PG&E’s Participants’ Webinar...• Corcoran: 6/1/2022 • Project size – Offers are restricted...

PG&E’s Participants’ Webinar

Distribution Investment Deferral Framework(DIDF)

Request for Offers

January 29, 2020

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Agenda

Topics Presenter• Introduction Sandy Burns• Distribution Services Needed Mini Damodaran• Solicitation Overview Sandy Burns

− Eligibility− Technology Neutral Pro-Forma− Evaluation Methodology− Incrementality

• Offer Submittal Process Michael Blaevoet• Offer Form Michael Blaevoet• Intermission • Q & A Team

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Webinar Format

• PG&E will not take questions during the presentation. Please save all questions for the Q&A session.

• Participants should email questions [email protected] during the presentation– Questions will be answered at the end of the webinar– PG&E might not address all questions during the Q&A portion of this webinar– After the webinar, PG&E will compile and post a Q&A document on PG&E’s

DIDF RFO website, accessed via www.pge.com/2020didf

• PG&E will post a list of attendees on PG&E’s website– If you do not want your name or the name of your company published, please

send an email to [email protected] by January 31, 2020 at 5 PM (PPT)

• PG&E plans to post a recording of the webinar on PG&E’s DIDF RFO website (listed above)

mailto:[email protected]

http://www.pge.com/2020didf


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Webinar Overview

• This presentation is intended to provide a summary of the information and requirements set forth in the RFO materials

• Participants should carefully review the DIDF Solicitation Protocol and all RFO materials, available on PG&E’s DIDF RFO website

• To the extent that there are any inconsistencies between information provided in this presentation and the requirements in the RFO materials, the RFO materials published on PG&E’s website shall govern

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Independent Evaluator (IE)

• Primary role of the IE is to:– Monitor RFO processes to ensure fair and equal treatment of all Participants– Monitor evaluation processes to ensure PG&E has implemented methodology

as described and that offers are treated consistently– Report on RFO process and proposed transactions to CPUC when filed for CPUC

approval

• The IE may review all Offer data and communications with Participants

• DIDF RFO IE is Sedway Consulting. Contact is:Alan Taylor ([email protected])


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Communications and Website

• RFO website provides everything you need to submit an Offer, including (but not limited to) the following:

– RFO materials

– Detailed instructions for submitting Offers(s) using Power Advocate and to the IE

– Announcements, additional resources, and Q&A

• All solicitation communications should be directed to: [email protected] with a copy to the Independent Evaluator at [email protected]



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DIDF Timeline

Develop Assumptions & Scenarios

Distribution Grid Needs Assessment

(GNA) Report

Distribution Deferral

Opportunities Report (DDOR)

Distribution Planning Advisory

Group (DPAG)

Seek Commission

Approval Distribution

Deferral Opportunities

Competitive RFOs for DERs

Implement Traditional

Solution

3

Implement DER

Solution

3a

5

7

62 4

• For locations where DERs don’t meet RFO deferral screens, proceed with traditional solution

Nov 15Sep –NovSep 1Jun 1

PG&E received Commission approval on distribution deferral opportunities for competitive procurement on December 16,

2019

1

• Advice Letter (AL) submitted in November 2019

• AL approved December 2019

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DIDF RFO Schedule

Date/Time Event

January 15, 2020 PG&E issued RFO

January 29, 2020 Participants’ webinar

March 16, 2020 Deadline for Participants to submit Offers via Power Advocate

March 17, 2020 Deadline for IE to receive a flash-drive of Offers

April 29, 2020 Participants Notified of Eligibility for Shortlisted Offer Negotiations

May 4, 2020 Participants notify PG&E whether they accept Shortlist status

August 3, 2020 Negotiations complete

September 1, 2020 Target Advice Letter filing with the CPUC

Distribution Services Need

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DIDF Project Location:Corcoran Bank & Feeders

LocationCorcoran Substation Bank 3, Kings County

this G&E

entity

s the

Corcoran

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• Equipment: Corcoran Bank 3 – Feeders 1112, 1116, and 1118

• Electrical Service:

• 3-phase, 30 MVA bank with three 12.47 kV feeders

Corcoran Bank 3 & Feeders Location Overview

Candidate Deferral

In-Service Date

Deficiency (MW)

Alpaugh New Feeder

4/1/2022 4.4

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• A combined need of at least 4.4 MW across Corcoran feeders 1112, 1116, and 1118 is required

• At least 2.3 MW of the 4.4 MW must be sourced at Corcoran feeder 1112

Technical and Operational Requirements

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Corcoran Bank 3 (Feeders 1112, 1116, 1118)

Hourly Load Forecast: Summer

Facility Rating = 29.7 MW

4.4 MW

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Corcoran 1112


2.3 MW


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Corcoran 1116



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Corcoran 1118

Facility Rating = 13 MW


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Customer Composition Served byCorcoran Feeder 1112

Customer Class Total Customer Count Peak Day Demand (MW)*

Residential 2,458 5.14

Commercial/ Industrial 146 1.09

Agricultural 46 2.84

Other 0 0.00

Total 2650 9.07

*Peak Load Day – July 19th 2018

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Load by Customer Class – Corcoran 1112 (Peak Load Day – July 19th 2018)

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Residential 241 0.44



Other 0 0.00

Total 418 6.89



20


21


Residential 163 0.4



Other 0 0.00

Total 417 8.28



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Corcoran 1112 DER Overview

Corcoran 1112

Historical 2018 Forecast (10 years)

Observed Peak Load

(MW)

Installed DERsYear

(Need vs Peak)

Peak Load

(1 in 10 Year) (MW)

Incremental DER Growth

PV (MW) Wind (MW)

PV (MW) ES (MW) EE (MW) DR (MW) EV(MW)

9.07 2 02022 12.2 0.598 0 0.086 0 0.013

2028 14.07 0.341 0 0.088 0 0.013

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Corcoran 1116


Observed Peak Load

(MW)

Installed DERsYear

(Need vs Peak)

Peak Load

(1 in 10 Year) (MW)


PV (MW) Wind (MW)


6.89 3.42 02022 11.03 0.066 0 0.044 0 0

2028 12.2 0.063 0 0.045 0 0


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Corcoran 1118


Observed Peak Load

(MW)

Installed DERsYear

(Need vs Peak)

Peak Load

( in 10 Year) (MW)


PV (MW) Wind (MW)


8.28 1.22 02022 11.9 0.025 0 0.043 0 0

2028 12.9 0.027 0 0.044 0 0


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Solicitation Overview

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RFO Design (1/4)

• Product– PG&E is purchasing distribution capacity only

No RA, energy, ancillary services, RECs, other attributes Delivery June-September, 3:00 p.m. to 10:00 p.m.

– PG&E is looking for a 7 year Delivery Term – Initial Delivery Date

• Corcoran: 6/1/2022• Project size

– Offers are restricted by project size described in RFO Solicitation Protocol– Corcoran:

– Corcoran 1112: minimum need is 2.3 MW, but participants may submit offers for 1.1 MW, 2.3 MW, 3.4 MW or 4.4 MW.

– Corcoran 1116: participants may submit offers for 1.1 MW, or 2.1 MW.– Corcoran 1118: participants may submit offers for 1.1 MW, or 2.1 MW.

– PG&E offer form asks Participants to indicate whether offer sizes are flexible at the offered price

– Offers must be the same size for all the delivery hours and for the length of the delivery term

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RFO Design (2/4)

• Offers– There are no limits on the number of offers Participants may submit. – To the extent that a Participant is able to, each Participant is encouraged to submit at least

one Offer that addresses the entire combined need at Corcoran.

• Project eligibility– DERs: Distributed generation, energy storage, energy efficiency, demand response,

electric vehicles– Participants may be either in-front-of-the-meter or behind-the-meter– Participants may offer one resource or an aggregation

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RFO Design (3/4)

• Measurement and verification– Participants must submit a measurement and verification plan with their offers– Behind the meter Projects using a baseline methodology may require a customized approach

• Interconnection – Project must connect to specified lines/feeders– No specific interconnection milestone required, but Participants must demonstrate they can

meet the online date

• Double payments/double counting– Projects must be fully or partially incremental to PG&E’s programs, tariffs, and solicitations– Participants must submit Appendix B Section 5 of the RFO materials to demonstrate how their

Offer is incremental– Energy efficiency Participants may choose to have their Offer evaluated for incrementality on a

project-specific basis or having their Offer evaluated based on a pre-specified overlap factor of 20%

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RFO Design (4/4)

Resources can be: Examples

Fully Incremental Not already sourced through another program, tariff, solicitation

• Add-on’s to existing DERs, such as the addition of dispatchable storage to an existing PV resource

• New programs;• EE Technology not included in Portfolio

Partially Incremental

Partially sourced through another program, tariff, solicitation

Enhanced uptake of DER over base

Not Incremental Wholly sourced through another program, tariff, solicitation

Rooftop PV compensated under NEM without enhancement;Existing DG or ES compensated under SGIP without enhancement;EE or DR portfolio resources without enhancement

Participants must demonstrate how Projects are incremental:

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Technology Neutral Pro Forma (TNPF) Overview

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Transaction

• Product: Distribution Services in accordance with Operating Parameters− Decrease load or increase generation during specified hours− Sellers are free to monetize other revenue streams − Seller is free to operate the resource how it wants outside of the Delivery Days

• Seller commits to provide Product at Contract Quantities− Seller may sell excess amount of Product from Project to third parties− Seller may sell other attributes of the Project to third parties

• Sellers will be instructed on whether they are required to provide distribution capacity by 8 am day-ahead

– Project may be dispatched at the Buyer’s discretion up to the Contract Capacity – Seller will provide PG&E with real-time visibility into DER performance– Sellers are required to install a communications system and equipment for PG&E to be

able to remotely monitor Project status on an aggregate and individual unit basis

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Payment and Delivered Energy

• Compensation:– Fixed price ($/MW-month)– Variable price ($/MWh) for dispatchable resources when called upon to provide

Distribution Services• Fixed compensation is dependent on delivery of services when called:

Contract Capacity * Contract Price * Ratio Delivered Services when called * Delivered Services Adjustment

Delivered Services Delivered services adjustment≥0.90 and ≤ 1.00 1.0≥0.80 and < 0.90 0.5≥0.75 and < 0.80 0< 0.75 Delivered Services Adjustment –

.75(Seller will pay PG&E)

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Project Site and Customers

• Sellers are solely responsible for acquiring Customers

• Sellers may remove or replace Sites/Customers, provided that changes are in accordance with safety provisions

• Seller must provide PG&E a list of Customers and satisfy incrementality criteria prior to Initial Delivery Date

– Changes to initial Customer list must continue to satisfy incrementality criteria

• Seller’s marketing materials that reference PG&E are subject to written approval by PG&E

• Seller is responsible for all marketing activities, provided that PG&E may negotiate specified type of assistance

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Performance Assurance

Performance Assurance• “Project Development Security” is due to PG&E within five (5) business days following

CPUC approval of the agreement and must be in the form of a letter of credit or cash and in the following amounts:

– $40/kW for all new resources– $25/kW for existing resources

• “Delivery Term Security” is due to PG&E before the Initial Delivery Date and will be held by PG&E throughout the delivery term

– $40/kW– Seller may apply Project Development Security toward the Delivery Term Security

Damage Payment/Termination Payment • In an event of default, defaulting party will owe non-defaulting party an amount

equal to the performance assurance

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Conditions Precedent

• If CPUC Approval has not occurred on or before 180 days from the date on which PG&E files the agreement with the CPUC, then either party may terminate the agreement

• Initial Delivery Date shall not occur until Seller: – Has constructed the Project and provided certification from an independent

engineer that Project is commercially operable and constructed in accordance with the safety requirements

– Has passed an initial Performance Test demonstrating that the Project is capable of delivering Distribution Service

– Has provided PG&E with a list of Sites and Customers and PG&E has verified that such Sites/Customers are incremental

– Has provided Delivery Term Security

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Events of Default and Early Termination

Events of Defaults• Failure to meet two Critical Milestones• Failure to meet Initial Delivery Date• Monthly Distribution Services Factor averages less than 75% for any calendar

year• Results of Performance Test shows that the Project provides less than 85% of

Contract Capacity

Early Termination• Seller may terminate contract early if interconnection study results are not

received or if they indicate interconnection costs are beyond a prespecified threshold.

• Early termination must be exercised within 120 days after execution. • Seller subject to reduced damage payment.

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Evaluation Methodology

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Evaluation Criteria: Least Cost, Best Fit

• Quantitative Factors– Benefits (Distribution Deferral Value)– Fixed and Variable Costs

– Contract payments– Administrative costs

• Qualitative Factors– Project Viability

– Interconnection– Site Control Assessment– Developer Experience– Technology Viability

– Ability to provide full need– Renewable vs. non-renewable– Technology, Counterparty Concentration– Supply Chain Responsibility– Safety

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Offer Submittal Process

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Offer Submittal

• Offers must be submitted via the online platform at Power Advocate. Only accepted registrants are permitted to submit Offers.

Register through Power Advocate at:

https://www.poweradvocate.com/pR.do?okey=100786&pubEvent=true

– PG&E strongly encourages you to register well in advance of Offer due date of March 15, 2020 at 1 PM (PPT)

• Offer materials must also be physically delivered to the IE on a USB flash drive, no later than March 16, 2020 at the following address:

Sedway Consulting, Inc. 821 15th Street

Boulder, CO 80302

• PG&E will only consider Offers that, as of the submittal deadline, are complete and conforming Offers.

https://www.poweradvocate.com/pR.do?okey=100786&pubEvent=true

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Required Offer Submission Forms

Offer package must be in the format as specified in the DIDF RFO Protocol.

• Introductory Letter. Format: MS Word

• Fully Completed Offer Form (Appendix A). Format: MS Excel

• Supplemental RFO Appendix Document (Appendix B). Format: PDF

Note: Incomplete documentation will require additional communication to resolve any issues.

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Offer Form

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Offer Form Structure

• Instructions• Create Offer Package• Select Grid Need Location• Offer Info• Participant Information• Attestations• Project Information• Pricing• Offer Size Flexibility• Offer Generation/Load Profile• Supply Chain Responsibility• File Name• Additional Offer

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Offer Form – Instructions

• Be sure to ENABLE MACROS when opening the offer form.

• Instruction tab provides clear directions on completing the offer form.

• Please make sure you save and submit the form in Microsoft Excel “.xlsb” format. No other formats will be accepted.

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Offer Form – Instructions (continued)

• All fields with an orange background must be filled in. As they are filled in, they will change to green and be considered complete.

• Data cannot be entered directly into grayed out fields. They are either for informational purposes or referenced elsewhere in the offer form.

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Offer Form – Create Offer Package

Participants can submit offers for all three of the grid need locations at Corcoran in a single offer form. Once an offer for one of the grid need locations is created, participants may add additional offers to their offer package at any of the three locations.

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Offer Form – Select Offer Location

1. Make a selection from one of the drop down lists for the location at which you would like to make an offer.

2. Click the radio button to right of the grid option for the offer you would like to create.

3. Once chosen, click on the “Create” button to begin entering offer information.

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Offer Form – Offer Info

This is a vertical offer form. All offer information will start at the top and work down in a single column.

Makes sure this field is set to “Yes” if you want offer considered. If you choose later you would not like offer considered for evaluation then change this field to “No.” DO NOT attempt to delete a column.

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Offer Form – Participant Information

• Complete legal entity name and location information

• At least one authorized contact

• Provide complete Developer information

• Provide parent company information if applicable

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Offer Form – Attestations

All participants must adhere to the attestations listed in the offer form to remain a qualified and eligible participant.

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Offer Form – Project Information

1. Choose Technology Type

2. EE Only: Select appropriate incrementality evaluation option: Project-specific basis (Custom) or Pre-specified Overlap (20% overlap factor)

3. Demand Response or Load Shift: Specify hours you anticipate on reducing load

4. Some Technology Types will require a Generation or Load Profile to be entered on the “GenProfile” Tab

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Offer Form – Pricing

Variable Pricing Not Applicable if following Technology Types Chosen:• Front of the Meter – Renewable Distributed Generation (Non-dispatchable)• Behind the Meter – Energy Efficiency• Behind the Meter – Permanent Load Shift

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Offer Form – Offer Range

Specify if your offer price can be applied to a MW range outside of the drop down list selection made for the offer.

Enter a maximum or minimum MW amount that can be applied to your offer.

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Offer Form – Generation/Load Profile

For front-of-the-meter renewable distributed generation (non-dispatchable), behind-the-meter energy efficiency or behind-the-meter permanent load shift offers, provide the generation or load data stated in MW by hour and month.

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Offer Form – Supply Chain Responsibility

Fill out all fields in this tab. Once all of the required fields are populated, the message at the top of the tab will change to “Complete”

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Offer Form – File NameVERY IMPORTANT! Please follow instructions carefully.

Generate File Name

Then click “Save This File”

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Offer Form – New OfferClick “Add Offer” button on the OfferInfo tab to add an offer at any of the grid need locations• It can be for any of the grid need options

• You can choose different grid requirement

Once new offer is created it will add a column next to original offer

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Offer Form – New Offer (continued)

Once a new offer is created it will add a column next to original offer

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Offer Form - Key Takeaways

• Enable macros in the Excel file.• Submit a single offer form with your offers for all grid need locations.

• More than one offer for a grid need location will be in same Offer Form.

• Ensure the file name is the same as the pre-populated Offer ID.• Pay attention to “Units” i.e. kW vs MW.• Be sure all fields are filled in completely.All required input fields should be green for the offer form to be considered complete, not orange.• Data contained in Offer Forms must be consistent with contract values

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Intermission

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Q & A

PG&E’s Participants’ Webinar...• Corcoran: 6/1/2022 • Project size – Offers are restricted...

Documents

Transcript of PG&E’s Participants’ Webinar...• Corcoran: 6/1/2022 • Project size – Offers are restricted...