Southwest Power Pool, Inc. STRATEGIC PLANNING COMMITTEE ... order 1000... · Southwest Power Pool,...

Southwest Power Pool, Inc.

STRATEGIC PLANNING COMMITTEE TASK FORCE – ORDER 1000 MEETING

Thursday, September 4, 2014

10 AM – 5 PM

Friday, September 5, 2014

8 AM – 11 AM

In-Person Meeting – AEP Offices

• A G E N D A •

1. Call to Order and Administrative Items ................................................................... Ricky Bittle

2. Straw Proposal Review and Action Plan ..................................................................... SPP Staff

3. Summary of Action Items ................................................................................ Michael Desselle

Relationship-Based • Member-Driven • Independence Through Diversity

Evolutionary vs. Revolutionary • Reliability & Economics Inseparable

Order 1000 RFP I s suance and IEP Scor ing S traw Propo sa l

August 15, 2014

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Revision History

Date or Version Number

Author Change Description Comments

08/07/2014 Aaron Shipley Initial Draft

08/11/2014 Aaron Shipley, Ben Bright

Updates/Edits Refined initialed draft

8/14/2014 Aaron Shipley, Ben Bright

Finalized First Draft

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Table of Contents

Revision History ...........................................................................................................................................1

Straw Proposal & Timeline .........................................................................................................................3

Executive Summary: ........................................................................................................................3

RFP Issuance Guidance ...............................................................................................................................4

Instructions:......................................................................................................................................4

Issuing RFPs (Form/Process):..........................................................................................................4

IEPs Scoring Guidance ................................................................................................................................6

Instructions:......................................................................................................................................6

(1) Engineering Design (Reliability/Quality/General Design), 200 points: ....................................6

(2) Project Management (Construction Project Management), 200 points: ....................................6

(3) Operations (Operations/Maintenance/Safety), 250 points: ........................................................7

(4) Rate Analysis (Cost to Customer), 225 points: ..........................................................................8

(5) Finance (Financial Viability and Creditworthiness), 125 points: ..............................................8

Timeline ........................................................................................................................................................9

Timeline Summary: .........................................................................................................................9

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Straw Proposal & Timeline

Executive Summary: SPP Staff, under the guidance of the SPCTF on Order 1000 (“SPCTF”), has proposed the creation of a White Paper - Straw Proposal to provide clarity to the details that will be included in the Request For Proposal (“RFP”), what information respondents are required to submit with their proposals, and how the Industry Expert Panels (“IEP”) will score the competitive bids associated with the Transmission Owner Selection Process (“TOSP”). This document provides a high level look at the process, timeline, and working groups that could be used to assist in the creation of this information. Ultimately Staff will create a Business Practice for use in administering the RFP review and scoring portion of the TOSP. Once each group has reviewed its designated sections, they will provide their documented findings to the Point of Contact(s) below, who will provide the findings to the SPCTF. The SPCTF will take the lead and combine the information/feedback for final drafting to ensure consistency and accuracy as to what the stakeholder’s desires are in the execution of the TOSP for Competitive Upgrades within SPP. In order to have this information for use starting with the January 2015 cycle, the deadline for completion of this task is 11/15/2014. Point of Contact: At the conclusion of a group’s task(s), all reports and findings should be sent to Ben Bright ([email protected]) and Aaron Shipley ([email protected]), who will be responsible for organizing the findings to the SPCTF for their use in creating this Business Practice.

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RFP Issuance Guidance

Instructions: For the Issuing RFPs section below, those designated to provide feedback and information on this section should evaluate and provide guidance for SPP Staff to consider when issuing a RFP and for Qualified RFP Participants (“QRP”) to consider when responding to a RFP. Information included should provide clarity to what level of detail is required, what form the data should be in, and what data will be required in the RFP to ensure that the RFP respondents have the proper information available to best submit their RFP proposals. Once a group has completed its evaluation, they should document their findings and provide a report to the point of contact(s) found in the Executive Summary of this document. The deadline for this task is 10/1/2014. (Tariff reference: Attachment Y Section III.2.c)

Issuing RFPs (Form/Process): The purpose of this section is to better define the creation of the RFP document and how that RFP will be issued for Competitive Upgrades. Furthermore, this section will help define how a QRP will meet its requirements when responding to a RFP. Stakeholders, as well as staff, have expressed concern about the level of detail that needs to be included in a RFP to allow transparency and accurate RFP responses from bidders in the TOSP. Criteria considered in this evaluation category shall include, but not be limited to:

1. What is required to be included in the RFP Document? a) Form of RFP (RFP Document/Technical/Legal)

1. Overview of the purpose of the RFP including the need for the Competitive Upgrade, regulatory context and authority, and other necessary information

b) What is required to be in the RFP 1. The submission deadline (180 days unless staff discretion makes it less) 2. Minimum design specifications (Recommend that we use MDSTF Standards) 3. Date the regulatory approvals are required to be completed (pending FERC ROFR

language) c) Communication of RFP

1. In BPR 54 staff agreed to post a list of RFPs that will be issued after the Board of Directors approval of projects.

2. RFPs will be sent to QRP by email 3. RFP responses will be made through RMS

2. What is required to be included in the RFP Response?

a) Financial information (demonstration of financing), detailed engineering and construction cost estimate, itemized revenue requirement calculations, financial and business plans (include any FERC incentives)

b) Engineering information (engineering design and technical requirements) c) Construction information, anticipated project timeline (including all regulatory

approvals), equipment acquisition, description of applicable rights-of-way and real estate acquisition, description of routing, description of permitting, description of outage clearance(s), identification of the party responsible for construction

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d) Operations and maintenance information, demonstration of operations, statement of which entity will be operating and maintaining the transmission facility, storm and outage response plan, maintenance plan, staffing, equipment, crew training, and record of past maintenance and outage restoration performance

e) Safety information, identification of internal safety program, contractor safety program, and safety performance record

f) RFP’s responsibility to identify information considered confidential g) QRP demonstration of financial strength

1. QRP must demonstrate it continues to meet one of the following: i. Financial criteria set forth in Section III.1(b)(ii)(1) or (2) of Attachment

Y and that the Competitive Upgrade does not exceed 30% of the total capitalization of the QRP or its parent Guarantor

ii. Performance bond from an insurance/surety company equal to the total cost of the Competitive Upgrade, including financing cost, and a 30% contingency

iii. Letter of credit from a financial institution acceptable equal to the total cost of the Competitive Upgrade, including financing cost, and 30% contingency

h) Information exchange requirements 1. Identification of data required to be provided to the Transmission Provider in

accordance with NERC reliability standards and CEII requirements 2. A description of the proposal evaluation procedure, including the statement of

proposal evaluation methodology and criteria for acceptable proposals 3. QRP agreement to pay deposit as outlined in Section III.2(e) of Attachment Y for

each RFP proposal submitted for its share of the Transmission Provider’s costs to administer the TOSP; and (2) any additional costs that are assessed after the completion of the TOSP.

4. QRP must disclose any credit rating changes, bankruptcies, dissolutions, mergers, or acquisition within the past five (5) years of the QRP or its parent, controlling shareholder, or entity providing a Guaranty pursuant to Section III.1(b)(ii)(2) of Attachment Y

5. QRP provide Internal Revenue Service Tax Identification Number Note: Any italicized language is pending language from the 11/15/2013 Order 1000 Compliance Filing that is still pending at FERC, Docket No. ER13-366. This language should still be evaluated and considered when providing report Suggested Working Groups to provide input:

• PCWG • TWG • PCWG’s Minimum Design Standards Task Force • SPCTF

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IEPs Scoring Guidance

Instructions: For each of the five (5) scoring categories below, groups designated to provide feedback and information should evaluate and provide documented guidance on how each section should be considered during the scoring phase of the IEPs evaluations. Note that the group is not seeking a “weighting scale” but is seeking further clarity on how to evaluate multiple proposals consistently against each other. For example, the group is not seeking Wood=10 pts, Steel=20pts, etc., but does wish to see “rules/guidelines” around how to evaluate various topics in a proposal. This will also help to ensure the RFP respondent has adequately supported its proposal and met its burden to document how it will meet each requirement. Once a group has completed its evaluation, they should document their findings and provide a report to the point of contact(s) found in the Executive Summary of this document. The deadline for this task is 10/1/2014. (Tariff reference: Attachment Y Section III.2.f)

(1) Engineering Design (Reliability/Quality/General Design), 200 points: Measures the quality of the design, material, technology, and life expectancy of the Competitive Upgrade. Criteria considered in this evaluation category shall include, but not be limited to:

a) Type of construction (wood, steel, design loading, etc.); [AS1](SCERT, Use Minimum Design Standards as guide to complete)

b) Losses (design efficiency); (SCERT, Use Minimum Design Standards as guide to complete) c) Estimated life of construction; and (SCERT, Use Minimum Design Standards as guide to

complete) d) Reliability/quality metrics. (SCERT, Use Minimum Design Standards as guide to complete)

Staff Recommendation: Based on some input from the PCWG recommend that each respondent complete a full SCERT document (might have some additional details) for each response. This will help create uniformity in responses and will have potential use by the PCWG during construction phase. Suggested Working Groups to provide input:

• PCWG • TWG • PCWG’s Minimum Design Standards Task Force • SPCTF

(2) Project Management (Construction Project Management), 200 points: Measures an RFP respondent’s expertise in implementing construction projects similar in scope to the Competitive Upgrade that is the subject of the RFP. Criteria considered in this evaluation category shall include, but not be limited to:

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a) Environmental; (RFP respondent provided information in free form) b) Rights-of-way ownership, control, or acquisition; (RFP respondent provided information in

free form)[AS2] c) Procurement; (RFP respondent provided information in free form) d) Project scope; (RFP respondent provided information in free form) e) Project development schedule (including obtaining necessary regulatory approvals); (RFP

respondent provided information in free form) f) Construction; (RFP respondent provided information in free form)[AS3] g) Commissioning; (RFP respondent provided information in free form)[AS4] h) Timeframe to construct; (RFP respondent provided information in free form) i) RFP respondent’s plan to obtain authorization to construct transmission facilities in the

state(s) in which the Competitive Upgrade will be located; (RFP respondent provided information in free form)

j) RFP respondent has a right of first refusal granted under relevant law for the Competitive Upgrade; and (RFP respondent provided information in free form)

k) Experience/track record. (RFP respondent provided information in free form)[AS5] Suggested Working Groups to provide input:

• PCWG • TWG • SPCTF

(3) Operations (Operations/Maintenance/Safety), 250 points: Measures safety and capability of an RFP respondent to operate, maintain, and restore a transmission facility. Criteria considered in this evaluation category shall include, but not be limited to:

a) Control center operations (staffing, etc.); (Company supply records)[AS6] b) Storm/outage response plan; (Attach current company response plan/plan for this particular

project) c) Reliability metrics; (Attach current company metrics) d) Restoration experience/performance; (Company resume in specific items) e) Maintenance staffing/training; (Company resume in specific items) f) Maintenance plans; (Attach current company maintenance plans/plan for this particular

project) g) Equipment; (Attach current relevant equipment/what will be required to obtain if not

currently available) h) Maintenance performance/expertise; (Company supplied records)[AS7] i) NERC compliance-process/history; (Company supplied records) j) Internal safety program; (Company supplied records) k) Contractor safety program; and (Company supply records) l) Safety performance record (program execution). (Company supplied records)

Suggested Working Groups to provide input:

• PCWG • TWG

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• SPCTF

(4) Rate Analysis (Cost to Customer), 225 points: Measures RFP respondent’s cost to construct, own, operate, and maintain the Competitive Upgrade over a forty (40) year period. Criteria considered in this evaluation category shall include, but not be limited to:

a) Estimated total cost of project; (Submit via SCERT) b) Financing costs; (FERC/State Cost - SCERT) c) FERC incentives; (Submit via Formula Rate - SCERT) d) Revenue requirements; (ATRR/Formula Rate) e) Lifetime cost of the project to customers; (40 yr/ATRR – method for discounting rate/SPP

predetermined form and options) f) Return on equity; (40 yr/ATRR) g) Material on hand, assets on hand, or, rights-of-way ownership, control, or acquisition; and

(SPP provided form) h) Cost certainty guarantee. (SPP provided form)


• RTWG • SPP Staff • SPCTF

(5) Finance (Financial Viability and Creditworthiness), 125 points: Measures an RFP respondent’s ability to obtain financing for the Competitive Upgrade. Criteria considered in this evaluation category shall include, but not be limited to:

a) Evidence of financing; (Company supplied) b) Material conditions; (Company supplied) c) Financial/business plan; (Company supplied business plan) d) Pro forma financial statements; (Company supplied) e) Expected financial leverage; (Company supplied) f) Debt covenants; (Company supplied) g) Projected liquidity; (Company supplied) h) Dividend policy; and (Company supplied) i) Cash flow analysis (Company supplied)


• RTWG • SPP Staff • SPCTF

Note: Any italicized language is pending language from the 11/15/2013 Order 1000 Compliance Filing that is still pending at FERC, Docket No. ER13-366. This language should still be evaluated and considered when providing report

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Timeline

Timeline Summary: Recommended Timeline to have completed Business Practice for use starting in January 2015.

Order 1000 RFP Issuance and IEP Scoring Straw Proposal Timeline

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Due 8/15/14

•SPP Staff present timeline and plan for drafting of Strawman Proposal and BPR 59 to SPCTF

Due 8/31/14

•SPP Staff complete draft of Strawman Proposal and provide to SPCTF

Due 9/5/14

•SPCTF assign sections for review and feedback to Working Groups/SPP

Due 10/1/14

•Working Groups review sections and provide feedback to SPCTF

Due 10/1/14

•SPCTF receive feedback from:•Review Issuing RFP Section: PCWG, TWG, PCWG’s MDSTF•IEP Scoring Section (1): PCWG, TWG, PCWG’s MDSTF•IEP Scoring Section (2): PCWG, TWG•IEP Scoring Section (3): PCWG, TWG•IEP Scoring Section (4): RTWG, SPP Staff•IEP Scoring Section (5): RTWG, SPP Staff

Due 10/7/14

•SPCTF compile reports and begin work on reviewing, editing, and drafting of BPR 59

Due 10/16/14

•SPCTF provide update report on Strawman Proposal and BPR 59 to SPC

Due 11/15/14

•SPCTF have completed BPR 59 for use in TOSP

Due 12/7/14

•Provide BPR 59 to RTWG and ORWG for Review/Approval

Due 1/15/115

•MOPC Review/Approval of BPR 59

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SPCTF Order 1000

September 4 – September 5, 2014

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Outline• Welcome and Overview• Section 1: Request for Proposals (RFP) Drafting Process

– RFP Draft Creation Process– Timeline– RFP Communication Plan

• Section 2: SPP RFP Issuance Requirements– Staff recommended Working Groups for review

• Section 3: QRP RFP Response Requirements– Staff recommended Working Groups for review

• Section 4: Minimum Design Standards Task Force (MDSTF)• Section 5: Industry Expert Panel (IEP)

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REQUEST FOR PROPOSALS DRAFTING PROCESS

Section 1

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Request for Proposals (RFP) Drafting Process

• SPP Staff to present Straw Proposal to clarify Request for Proposals (RFP) requirements and IEP Scoring Guidelines at SPCTF on Order 1000 (SPTCF) 9/4/14 meeting

• SPCTF review Straw Proposal, request input from various working groups

• SPCTF compile working group(s) recommendations (due back to SPCTF by 10/1/14), complete draft of BPR059, present to SPC for approval mid November

• Obtain RTWG and ORWG approval of BPR059 in December meetings

• Obtain MOPC approval 1/15/15

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Due 9/5/14

• SPP Staff present draft of Strawman Proposal to SPCTF• SPCTF assign sections for review and feedback to Working Groups/SPP

Due 10/1/14

• Working Groups review sections and provide feedback to SPCTF

Due 10/1/14

• SPCTF receive feedback from assigned Working Groups

Due 10/7/14

• SPCTF compile reports and begin work on reviewing, editing, and drafting of BPR059

Due 10/16/14

• SPCTF provide update report on Strawman Proposal and BPR059 to SPC

Due 11/15/14

• SPCTF have completed BPR059 for use in TOSP

Due 12/7/14

• Provide BPR059 to RTWG and ORWG for Review/Approval

Due 1/15/15

• MOPC Review/Approval of BPR059

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Staff Recommended Communication Plan for Issuing RFPs

• Communication of RFP

– In BPR054 staff agreed to post a list of RFPs that will be issued after the BOD approval of projects. Transmission Provider will issue each RFP by or before the later of: (1) seven (7) calendar

days after approval of the Competitive Upgrade by the SPP Board of Directors; or (2) eighteen (18) months prior to the date that anticipated financial expenditure is needed for a Competitive Upgrade.

– RFPs will be sent to QRPs by email

– RFP responses will be made via RMS RFP respondents submit a complete proposal in response to the RFP within 180 calendar

days from the date the RFP is issued (RFP Response Window)

Upon receipt SPP will review proposal for completeness, and notify RFP respondent if its proposal is incomplete

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Documents for use in response to an RFP• Three Documents for use by QRP in response to an RFP:

– Request for Proposal (RFP)

– Request for Proposal Response Form (Excel File)

– Request for Proposal Response Instruction Document

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Presentation Format• RFP requirements are broken into two parts:

1. SPP RFP Issuance requirements “What is SPP giving you?”

2. QRP RFP Response requirements “What are you giving SPP?”

• First, we will review SPP RFP Issuance requirements. The format will follow how the requirements are presented in the Tariff Attachment Y Section III.c

• Next, we will review QRP RFP Response requirements. The format will follow how the requirements are presented in the Tariff Attachment Y Section III.c

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REQUEST FOR PROPOSALS –ISSUANCE REQUIREMENTS

Section 2

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SPP RFP Issuance Requirements

• An overview of the purpose for the RFP including the need for the Competitive Upgrade, regulatory context and authority, and other necessary information

• A deadline for all RFP proposal submissions (RFP Response Window) and minimum RFP proposal submission requirements

• Minimum design specifications

• Date the regulatory approvals are required to be completed as determined by the Transmission Provider

• Information exchange requirements including, but not limited to, identification of data required to be provided to the Transmission Provider in accordance with NERC reliability standards and CEII requirements

• A description of the proposal evaluation procedure, including the statement of proposal evaluation methodology and criteria for acceptable proposals

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An overview of the purpose for the RFP including the need for the Competitive Upgrade, regulatory context and authority, and other necessary information

• SPP Staff recommendation for the RFP Template:

– Section 2.1 Project Overview:

Describes what the RFP is soliciting offers for, how the need for the particular project was determined (Name of Study), supplies the date of BOD approval, and the project name

2.1 Project Overview

SPP is issuing this RFP to solicit offers from QRPs (Respondents) for the project described below. By responding, Respondents are bound by the terms and conditions of this RFP. On [DATE], the BOD approved the [PROJECT NAME] listed below as a Competitive Upgrade to be issued as an RFP as specified in Section III of Attachment Y of the SPP Tariff. SPP identified a need for the project below as a part of the [STUDY NAME].

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– Section 2.4 Project Regulatory Context and Authority:

“Pursuant to Section III of Attachment Y of the SPP Open Access Transmission Tariff ("OATT"), SPP is issuing this RFP providing QRPs with the opportunity to submit an RFP proposal for the Competitive Upgrade(s) described herein. On [DATE], the SPP Board of Directors approved or endorsed the Competitive Upgrade(s) described in Section 2 of this RFP to be constructed as part of the [STUDY].”

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– Section 2.2 Project Specifications:

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A deadline for all RFP proposal submissions and minimum RFP proposal submission requirements


– Section 1.4 RFP Timetable:

When issuing the RFP, Staff will provide the deadline submission date in the following table:

– The submission deadline will be 180 days from the date of issuance, unless Staff uses its discretion to change the RFP Response Window to no less than 90 days.

Task Deadline

RFP Issued [RFP_ISSUE_DATE]

Proposal/Deposit Deadline by 12 p.m. CALCULATED DATE

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A deadline for all RFP proposal submissions and minimum RFP proposal submission requirements


– At a high level, RFP proposal submissions shall include a completed RFP Response Form and any attachments necessary to provide supporting evidence in meeting response requirements.

– Section 3 of the RFP Template provides more detail on how to respond to reach requirement and the proposal process. Sections 3.1 – 3.22 RFP Template:

– The sections include: Instructions for Submitting a Proposal, Conditions of the Bid, Respondent Contact Information, Joint RFP Proposals, RFP Assignments, Financial Information, Engineering Information, Construction Information, Operations and Maintenance Information, Safety Information, Confidential Information, QRP Demonstration of Financial Strength, QRP Agreement on RFP Costs, Required Disclosures, Information Exchange Requirements, and Bid Clarifications and/or Exceptions, etc.

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Minimum design specifications


– Section 2.3 Project Design Standards:

Informs the RFP Respondent to comply with design specifications as outlined in the Minimum Design Standards (MDS)

– MDS are currently being drafted by the PCWG’s Minimum Design Standards Task Force (MDSTF)

We will discuss the MDS and this task force later in the presentation

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Date the regulatory approvals are required to be completed as determined by the Transmission Provider


– Section 2.2 Project Specifications:

Identifies the Regulatory Approval Completion dates as determined by the Transmission Provider

“Date Regulatory Approval Complete: MM/DD/YYYY”

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Information exchange requirements including but not limited to, identification of data required to be provided to the Transmission Provider in accordance with NERC reliability standards and CEII requirements


– Section 3.15 Information Exchange Requirements:

Identification of data required to be provided to the Transmission Provider in accordance with NERC reliability standards and CEII requirements;

• Group help to clarify this requirement

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A description of the proposal evaluation procedure, including the statement of proposal evaluation methodology and criteria for acceptable proposals


– Section 3 of RFP Template:

As detailed in Section 3 of the RFP Template, acceptable proposals should include completed RFP Response Forms and any necessary supporting documentation provided as attachments.

• Group help to clarify this requirement

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Staff Recommended Working Groups

Staff recommendation on Working Groups to request feedback:

• PCWG

• TWG

• PCWG’s Minimum Design Standards Task Force (MDSTF)

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REQUEST FOR PROPOSALS – QRP RFP RESPONSE REQUIREMENTS

Section 3

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QRP RFP Response Requirements

• Financial information, including but not limited to demonstration of financing (including a reasonable contingency), detailed engineering and construction cost estimate, itemized revenue requirement calculations, and financial and business plans (including the nature of any FERC incentives the QRP intends to request)

• Engineering information, including but not limited to engineering design of the project and technical requirements

• Construction information, including but not limited to anticipated project timeline including timeline for all necessary regulatory approvals, equipment acquisition, description of applicable rights-of-way and real estate acquisition, description of routing, description of permitting, description of outage clearance(s), and identification of the party responsible for construction

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• Operations and maintenance information, including but not limited to demonstration of operations, statement of which entity will be operating and maintaining the transmission facility, storm and outage response plan, maintenance plan, staffing, equipment, crew training, and record of past maintenance and outage restoration performance

• Safety information, including but not limited to identification of internal safety program, contractor safety program, and safety performance record

• Identification of information in the RFP proposal that the RFP respondent considers to be confidential

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• A requirement that the QRP agrees to pay, as outlined in Section III.2(e) of Attachment Y: (1) a deposit for each RFP proposal submitted for its share of the Transmission Provider’s costs to administer the TOSP; and (2) any additional costs that are assessed after the completion of the TOSP.

• A requirement that the QRP disclose any credit rating changes, bankruptcies, dissolutions, mergers, or acquisition within the past five (5) years of the QRP or its parent, controlling shareholder, or entity providing a Guaranty pursuant to Section III.1(b)(ii)(2) of Attachment Y

• A requirement that the QRP provide its Internal Revenue Service Tax Identification Number

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Financial information, including but not limited to demonstration of financing (including a reasonable contingency), detailed engineering and construction cost estimate, itemized revenue requirement calculations, and financial and business plans (including the nature of any FERC incentives the QRP intends to request)

• This requirement is to provide a plan of how a specific project will be financed, not the financial strength of the QRP and RFP respondent


– Section 3.6 Financial Information:

Directs the RFP respondent to complete section 2A of the RFP Response Form to meet this requirement. This response could include attachments of supporting documentation such as:

Demonstration and plan for the use of a line of credit to finance project

Liquid sources of funding that will be used to finance project

?

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– Section 3.6 Financial Information:

Directs the RFP respondent to complete section 2B of the RFP Response Form to meet this requirement. This is a detailed itemized sheet that allows the respondent to enter all cost associated with the engineering and construction of the project

The estimates provided with this requirement should be the +/- 20% cost estimate defined as the RFP Response Estimate (RRE) in BP 7060

“The RFP Response Estimate (RRE) is the cost estimate included in the response to an RFP by the DTO for a Competitive Project. The RRE will be used as the established baseline for reporting all cost estimate changes during the Project Tracking process and will be the basis for determining project variance. The final project cost is expected to be within a -20% to + 20% variance from the RRE.”

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– 3.6 Financial Information - Directs the RFP respondent to complete section 1C of the RFP Response Form to meet this requirement. This response could include attachments of supporting documentation such as:

A company’s Annual Transmission Revenue Requirements (ATRR) that include the itemized cost associated with the project

A Formula Rate template that includes the itemized cost associated with the project

– See Attachment H and RRR File for examples

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– 3.6 Financial Information - Directs the RFP respondent to complete section 1D of the RFP Response Form to meet this requirement. This response could include attachments of supporting documentation such as: A company’s business plan of how to complete the project

Its intentions for the project (own and maintain or sell)

How the RFP respondent intends to finance the project, i.e. are any FERC incentives to be requested. If so, provide detailed plan of how that impacts the project and timeline of the project

Indicate and detail if two or more Qualified Request for Proposals Participants (QRP) are submitting joint proposals in response to a RFP

Indicate and detail if the Designated Transmission Owner (DTO) for a Competitive Upgrade plans to assign the Notification to Construct (NTC) to an affiliated entity to comply with state regulatory requirements.

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Engineering information, including but not limited to engineering design of the project and technical requirements


– 3.7 Engineering Information - Directs the RFP respondent to complete section 3 of the RFP Response Form to meet this requirement.

Four tabs comprise this section on the RFP Response Form

– 3A Engineering Project Summary – provides a template for the RFP respondent to complete “summary” information

– 3B Engineering RRE for Project Cost (+/-20%) – provides the RRE project cost estimate. This tab automatically populates certain cost items from previously completed cost tab and allows for items to be completed by the RFP respondent that were not captured on the itemized engineering and construction tab (Section 2B)

– Continued on next slide…

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Engineering information, including but not limited to engineering design of the project and technical requirements


– 3.7 Engineering Information - Directs the RFP respondent to complete section 3 of the RFP Response Form to meet this requirement.

Four tabs comprise this section on the RFP Response Form continued

– 3C Engineering transmission line design and technical requirements –provides an expanded SCERT document that can be completed to include all engineering information both design and technical requirements for building a transmission line

– 3D Engineering substation design of the project and technical requirements – provides an expanded SCERT document that can be completed to include all engineering information both design and technical requirements for building a substation

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Construction information, including but not limited to anticipated project timeline including timeline for all necessary regulatory approvals, equipment acquisition, description of applicable rights-of-way and real estate acquisition, description of routing, description of permitting, description of outage clearance(s), and identification of the party responsible for construction


– 3.8 Construction Information - Directs the RFP respondent to complete section 3 of the RFP Response Form to meet this requirement.

Tab 4A of the RFP Response Form is a table that should be completed with the anticipated project timelines

Project Timeline Return to RFP Response FormTask Start Date DurationRegulatory Approvals Complete No later than DATE ------Right-of-Way Complete No later than DATE ------Environmental Complete No later than DATE ------Engineering Complete No later than DATE ------Procurement Complete No later than DATE ------Construction Complete No later than DATE ------In-Service Date No later than DATE ------

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Tab 4B of the RFP Response Form is a table that should be completed with the Regulatory Approval timelinesItemize Regulatory Approval Dates Return to RFP Response FormTask Start Date DurationRegulatory Approval #1 No later than DATE ------Regulatory Approval #2 No later than DATE ------Regulatory Approval #3 No later than DATE ------Regulatory Approval #4 No later than DATE ------Regulatory Approval #5 No later than DATE ------Regulatory Approval #6 No later than DATE ------Date Regulatory Approvals Complete No later than DATE ------

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– 3.8 Construction Information - Directs the RFP respondent to complete section 4 of the RFP Response Form to meet this requirement. Tab 3C of the RFP Response Form directs the RFP respondent to previously completed

Tab 2B column G (Estimated Procurement Date). The RFP respondent should ensure this column has been completed with the estimated procurement date of all itemized project materials

RFP Detailed Material Costs* Return to RFP Response Form

Qty Unit price Extended Price Labor/Each Labor/Extended Estimated Procurement Date

TRANSMISSION LINE MATERIALSConductors

Entry #1 (add description) 0 0Entry #2 (add description) 0 0Entry #3 (add description) 0 0Entry #4 (add description) 0 0

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– 3.8 Construction Information - Directs the RFP respondent to complete section 4 of the RFP Response Form to meet this requirement. Tab 4D of the RFP Response Form directs the RFP respondent to previously completed

Tab 3C. The RFP respondent should ensure this section of the SCERT document has been completed with all applicable information pertaining to the description of rights-of-way and real estate acquisition for the RFP project

RIGHT-OF-WAY

Width (ft)

Ownership, Control or Acquisition description

EPA, State or Local requirements

Clearing Requirements

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– 3.8 Construction Information - Directs the RFP respondent to complete section 4 of the RFP Response Form to meet this requirement. Tab 4E of the RFP Response Form directs the RFP respondent to previously completed

Tab 3C. The RFP respondent should ensure this section of the SCERT document has been completed with all applicable information pertaining to the description of routing for the RFP project

ROUTING

Preliminary Line Route description (Rough location when practical)

New Line (Miles)Reconductor (Miles)

Voltage Conversion (Miles)

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QRP RFP Response Requirements Construction information, including but not limited to anticipated project timeline including timeline for all necessary regulatory approvals, equipment acquisition, description of applicable rights-of-way and real estate acquisition, description of routing, description of permitting, description of outage clearance(s), and identification of the party responsible for construction


– 3.8 Construction Information - Directs the RFP respondent to complete section 4 of the RFP Response Form to meet this requirement. Tab 4F of the RFP Response Form directs the RFP respondent to previously completed

Tab 3C. The RFP respondent should ensure this section of the SCERT document has been completed with all applicable information pertaining to the description of permitting for the RFP project

PERMITTING

Traffic Control Requirements

FAA Requirements

Corps of Engineers Requirements

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– 3.8 Construction Information - Directs the RFP respondent to complete section 4 of the RFP Response Form to meet this requirement. Tab 4G of the RFP Response Form directs the RFP respondent to previously completed

Tab 3C. The RFP respondent should ensure this section of the SCERT document has been completed with all applicable information pertaining to the description of outage clearance(s) of the RFP project

Outage Coordination & Scheduling

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Tab 4H of the RFP Response Form directs the RFP respondent to complete the identification of the party responsible for construction. The experience of the construction party should be included with the identify and contact information. A “resume” of past experience for this construction party attached to the RFP Response Form would be helpful during the scoring and evaluation of phase of the process.

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Operations and maintenance information, including but not limited to demonstration of operations, statement of which entity will be operating and maintaining the transmission facility, storm and outage response plan, maintenance plan, staffing, equipment, crew training, and record of past maintenance and outage restoration performance


– 3.9 Operations and Maintenance Information - Directs the RFP respondent to complete section 5 of the RFP Response Form to meet this requirement.

Tab 5A of the RFP Response Form directs the RFP respondent to provide the experience and history the RFP respondent (or applicable parties) has in operating completed projects. A “resume” or examples of past experience for this function attached to the RFP Response Form would be helpful during the scoring and evaluation of phase of the process.

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Tab 5B of the RFP Response Form directs the RFP respondent to provide the identity of the entity that will be operating and maintaining the transmission facility. Providing the experience and history the RFP respondent (or applicable parties) has in operating transmission facilities will be helpful during the scoring and evaluation phase of the process. To meet this request a “resume” or examples of past experience for this function attached to the RFP Response Form would be acceptable.

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• SPP Staff recommendation on how to meet requirement:

– 3.9 Operations and Maintenance Information - Directs the RFP respondent to complete section 5 of the RFP Response Form to meet this requirement. Tab 5C of the RFP Response Form directs the RFP respondent to provide the storm and

outage response plan an RFP respondent has developed for the RFP project. To meet this request attaching a complete response plan for this requirement to the RFP Response Form would be acceptable.

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Tab 5D of the RFP Response Form directs the RFP respondent to provide the maintenance plan an RFP respondent has developed for the RFP project. To meet this request attaching a complete maintenance plan for this requirement to the RFP Response Form would be acceptable.

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Tab 5E of the RFP Response Form directs the RFP respondent to provide the staffing that will be required to maintain a completed RFP project. To meet this request attaching a complete staffing plan for this requirement to the RFP Response Form would be acceptable.

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Tab 5F of the RFP Response Form directs the RFP respondent to provide the equipment that will be required to complete and maintain a completed RFP project. To meet this requirement a completed SCERT document will be required and if applicable attaching a document detailing any other equipment not already captured in the SCERT document. For attached items, procurement details and timelines as was previously determined for items on the SCERT document should be included.

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Tab 5G of the RFP Response Form directs the RFP respondent to provide the crew training associated with the RFP project. To meet this requirement providing projected training schedules, current training materials and schedules, and any other information pertaining to crew training will meet this requirement.

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– 3.9 Operations and Maintenance Information - Directs the RFP respondent to complete section 5 of the RFP Response Form to meet this requirement. Tab 5H of the RFP Response Form directs the RFP respondent to provide the record and

experience the RFP respondent (or applicable parties) has in maintenance and outage restoration performance. Supplying documented records of past occurrence and experience in this area as an attachment to the RFP Response Form will meet this requirement.

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Safety information, including but not limited to identification of internal safety program, contractor safety program, and safety performance record


– 3.10 Safety Information - Directs the RFP respondent to complete section 6 of the RFP Response Form to meet this requirement.

Tab 6A of the RFP Response Form directs the RFP respondent to identify the internal safety program(s) the RFP respondent (or applicable parties) currently have in place. Supplying current company documents and safety records, training, and other pertinent safety information as an attachment to the RFP Response Form will meet this requirement.

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Tab 6B of the RFP Response Form directs the RFP respondent to identify the safety program(s) that any contractors to be used on the RFP project currently have in place. Supplying current company documents and safety records, training, and other pertinent safety information as an attachment to the RFP Response Form will meet this requirement.

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Tab 6C of the RFP Response Form directs the RFP respondent to supply safety performance records. Supplying current company documents on safety records, and actions taken to correct any safety issues as an attachment to the RFP Response Form will meet this requirement.

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Identification of information in the RFP proposal that the RFP respondent considers to be confidential


– 3.11 Confidential Information - Directs the RFP respondent to complete section 7 of the RFP Response Form to meet this requirement.

Tab 7A of the RFP Response Form provides the opportunity for the RFP respondent to detail and list any information that the RFP respondent considers to be confidential. Referencing specific sections and items in the RFP response will ensure the proper information is redacted from IEP and BOD reports as required by the Tariff in Attachment Y Section III.d

• Group discussion on best way to identify confidential data

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QRP must demonstrate it financial strength by providing one of the following:

1) Financial criteria set forth in Section III.1(b)(ii)(1) or (2) of Attachment Y and that the Competitive Upgrade does not exceed 30% of the total capitalization of the QRP or its parent Guarantor

2) Performance bond from an insurance/surety company equal to the total cost of the Competitive Upgrade, including financing cost, and a 30% contingency

3) Letter of credit from a financial institution acceptable equal to the total cost of the Competitive Upgrade, including financing cost, and 30% contingency


– 3.12 QRP Demonstration of Financial Strength - Directs the RFP respondent to complete section 8 of the RFP Response Form to meet this requirement. Tabs 8A, 8B, and 8C of the RFP Response Form provides the opportunity for the RFP respondent

to supply the necessary information to meet the applicable demonstration of QRP continued financial strength. Attaching current records or information similar to what was included in the approved QRP application will meet this requirement. Essentially this is a check to ensure no negatively impactful financial changes have occurred since receiving QRP status.

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A requirement that the QRP agrees to pay, as outlined in Section III.2(e) of Attachment Y: (1) a deposit for each RFP proposal submitted for its share of the Transmission Provider’s costs to administer the TOSP; and (2) any additional costs that are assessed after the completion of the TOSP.


– 3.13 QRP Agreement on RFP Costs - Directs the RFP respondent to complete section 9 of the RFP Response Form to meet this requirement.

Tab 9A of the RFP Response Form requires a signature of authorized personal at the RFP respondent and/or applicable companies acknowledging and agreeing to the deposit and potential for future additional costs related to the administration of the TOSP.

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A requirement that the QRP disclose any credit rating changes, bankruptcies, dissolutions, mergers, or acquisition within the past five (5) years of the QRP or its parent, controlling shareholder, or entity providing a Guaranty pursuant to Section III.1(b)(ii)(2) of Attachment Y


– 3.14 QRP Required Disclosures - Directs the RFP respondent to complete section 10 of the RFP Response Form to meet this requirement. Tabs 10A-10E of the RFP Response Form can be utilized by the RFP respondent to detail

the applicable changes as detailed in the requirement. Attaching any necessary information to support the change to the RFP Response Form would be required as evidence of the disclosure.

– Examples of items to include as evidence:» Credit Bureau Ratings» Contracts» ?

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A requirement that the QRP provide its Internal Revenue Service Tax Identification Number


– 3.14 QRP Required Disclosures - Directs the RFP respondent to complete section 10 of the RFP Response Form to meet this requirement.

Tab 10F of the RFP Response Form can be utilized by the RFP respondent to provide the Internal Revenue Service Tax Identification Number of the QRP.

Reference Section 1A of the RFP Response Form

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Staff Recommended Working Groups

Staff recommendation on Working Groups to request feedback:

• PCWG

• TWG

• PCWG’s MDSTF

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Due 9/5/14

• SPP Staff present draft of Strawman Proposal to SPCTF• SPCTF assign sections for review and feedback to Working Groups/SPP

Due 10/1/14

• Working Groups review sections and provide feedback to SPCTF

Due 10/1/14

• SPCTF receive feedback from assigned Working Groups

Due 10/7/14

• SPCTF compile reports and begin work on reviewing, editing, and drafting of BPR059

Due 10/16/14

• SPCTF provide update report on Strawman Proposal and BPR059 to SPC

Due 11/15/14

• SPCTF have completed BPR059 for use in TOSP

Due 12/7/14

• Provide BPR059 to RTWG and ORWG for Review/Approval

Due 1/15/15

• MOPC Review/Approval of BPR059

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MINIMUM DESIGN STANDARDS TASK FORCE

Section 4

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Minimum Design Standards Task Force (MDSTF) Scope Summary

The MDSTF is a working group for the PCWG. The goal of the MDSTF is to create Minimum Design Standards (MDS) for the SPP footprint. The MDS will be used when SPP issues RFPs to request proposals to meet future project needs.

• MDS is approximately 25% complete

• Currently focusing on Substation design standards

• Original completion scheduled for October 16

• Next meeting scheduled for “early” September

– Proposed Face-to-Face meeting to significantly move progress forward

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INDUSTRY EXPERT PANEL SCORING GUIDELINES

Section 5

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Industry Expert Panel (IEP) Scoring Guidelines

The IEP will score RFP responses based on five categories and award up to one thousand (1000) base points for each RFP proposal.

Five Scoring Categories:

1. Engineering Design (Reliability/Quality/General Design) 200 points

2. Project Management (Construction Project Management) 200 points

3. Operations (Operations/Maintenance/Safety) 250 points

4. Rate Analysis (Cost to Customer) 225 points

5. Finance (Financial Viability and Creditworthiness) 125 points

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Industry Expert Panel (IEP) Scoring Guidelines

The IEP will score RFP responses based on five categories and award up to one thousand (1000) base points for each RFP proposal.

• SPP Staff recommended guideline scoring:

– IEP will use “IEP Scoring Guideline” that directs the Industry Expert to certain locations for each response and category.

Step 1: The panel will determine (or Staff pre-determine in guideline) the percentage of overall category points for each sub-category as defined in the Tariff Attachment Y Section III.f.iii

Step 2: Industry Expert evaluate the RFP response and determine what percentage of the allotted “sub-category” points will be awarded for the RFP response

– Example: Engineering: 200 Points

– (a) Type of Construction (Wood, Steel, Design Loading, etc.): 40% of 200 Points– (b) Losses (design efficiency): 20% of 200 Points– (c) Estimated life of construction: 20% of 200 Points– (d) Reliability/quality metrics: 20% of 200 Points

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DRAFT – For Review Purposes Only

Request for Proposal

SPP-RFP-YYYY###

RFP ISSUED DATE: [RFP_ISSUE_DATE]

RFP ORIGINATION STUDY: [STUDY NAME]

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Table of Contents Table of Contents ............................................................................................................................ 2 Section 1 - Background ................................................................................................................... 3

1.1 SPP Overview ................................................................................................................... 3 1.2 Overview of Order 1000 Process ...................................................................................... 3 1.3 RFP Deposit ...................................................................................................................... 4 1.4 RFP Timetable .................................................................................................................. 4 1.5 RFP Communication ......................................................................................................... 5

Section 2 – Project Objectives ......................................................................................................... 6 2.1 Project Overview ............................................................................................................... 6 2.2 Project Specifications ........................................................................................................ 6 2.3 Project Design Standards .................................................................................................. 6 2.4 Project Regulatory Context and Authority .......................................................................... 7 2.5 RFP Proposal Cost Estimate ............................................................................................. 7

Section 3 - Proposal Process and Requirements ............................................................................ 8 3.1 Instructions for Submitting a Proposal ............................................................................... 8 3.2 Conditions of Bid ............................................................................................................... 8 3.3 Respondent Contact Information ....................................................................................... 8 3.4 Joint RFP Proposals – PENDING ..................................................................................... 8 3.5 RFP Assignments – PENDING ......................................................................................... 9 3.6 Financial Information ......................................................................................................... 9 3.7 Engineering Information .................................................................................................... 9 3.8 Construction Information ................................................................................................... 9 3.9 Operations and Maintenance Information ........................................................................ 10 3.10 Safety Information ........................................................................................................... 11 3.11 Confidential Information .................................................................................................. 11 3.12 QRP Demonstration of Financial Strength ....................................................................... 11 3.13 QRP Agreement on RFP Costs ....................................................................................... 11 3.14 QRP Required Disclosures ............................................................................................. 12 3.15 Information Exchange Requirements .............................................................................. 12 3.16 Bid Clarifications and/or Exceptions ................................................................................ 12 3.17 Response Instructions ..................................................................................................... 13 3.18 Confidentiality ................................................................................................................. 13 3.19 Disclosure of Interest....................................................................................................... 13 3.20 Disclaimer ....................................................................................................................... 14 3.21 Disqualification ................................................................................................................ 14 3.22 Requirements and Criteria .............................................................................................. 14

Section 4 - Acknowledgements ..................................................................................................... 16 Attachment A: Bid Clarifications and/or Exceptions ....................................................................... 18

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Section 1 - Background

1.1 SPP Overview

Southwest Power Pool, Inc. (“SPP”) is regional transmission organization (“RTO”) made up of members in central United States serving more than fifteen million customers. Membership is comprised of investor-owned utilities, municipal systems, generation and transmission cooperatives, state authorities, wholesale generators, power marketers, and independent transmission companies. SPP's footprint includes over 48,000 miles of transmission lines, and approximately 370,000 square miles of service territory.

SPP was a founding member of the North American Electric Reliability Corporation in 1968, and was designated by the Federal Energy Regulatory Commission as a Regional Transmission Organization (“RTO”) in 2004 and a Regional Entity (“RE”) in 2007. As an RTO, SPP ensures reliable supplies of power, adequate transmission infrastructure, and competitive wholesale prices of electricity. The SPP RE oversees compliance enforcement and reliability standards development. Visit SPP.org to read more fast facts, see a list of SPP members and access governing documents, including the Open Access Transmission Tariff, Bylaws, and Membership Agreements.

1.2 Overview of Order 1000 Process

FERC Order 1000 requires the removal of federal right of first refusal (“ROFR”) for certain transmission projects under the SPP Open Access Transmission Tariff ("OATT" or “Tariff”). To comply with this requirement, SPP developed the Transmission Owner Selection Process (“TOSP”) to competitively solicit proposals for projects that no longer have ROFR. Transmission Facilities that meet the criteria contained in Attachment Y, Section I.1 of the Tariff and are approved for construction or endorsed by the SPP Board of Directors (“BOD”) after January 1, 2015, are known as Competitive Upgrades. SPP will solicit proposals for Competitive Upgrades from Qualified RFP Participants (“QRPs”) utilizing the TOSP. A QRP is an entity that wants to participate in the TOSP. Each entity must submit a QRP application and supporting materials to demonstrate that it satisfies the qualification criteria, as defined in Attachment Y, Section III of the Tariff. All QRP applications must be received no later than June 30 of the year prior to the calendar year in which the applicant wishes to begin participation in the TOSP. Only approved QRPs can participate in the TOSP. A Request for Proposal (“RFP”) will be created and published for each Competitive Upgrade which is approved for construction or endorsed by the BOD after January 1, 2015. RFPs are only issued to QRPs through email distribution. SPP staff will also make a list publicly available of all projects that are expected to be competitively bid. QRPs have 180 days (the “RFP Response Window”), unless the SPP staff uses its discretion to reduce the response time window to no less than 90 days to submit their RFP proposal via the Request Management System (RMS). The RFP Response Window duration will be stated in the RFP. The estimate provided in an RFP proposal establishes the RFP Response Estimate (“RRE”), as defined in Business Practice 7060. Refer to Business Practice 7060 for more detail on SPP’s required structure and accuracy of cost estimates. All RFP submissions will be reviewed and evaluated by an Industry Expert Panel (“IEP”). After completing the RFP evaluation, the IEP will recommend an RFP proposal for each Competitive Upgrade for which SPP must select a replacement Transmission Owner to the BOD pursuant to Section III.2.f of Attachment Y of the Tariff.

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http://www.spp.org/section.asp?pageID=28


http://www.spp.org/section.asp?group=215&pageID=27




If the Competitive Upgrade was submitted as a Detailed Project Proposal (“DPP”) during the Integrated Transmission Planning (“ITP”) study process as outlined in Section III.8.b. of Attachment O of the Tariff, the submitting QRP may be eligible to receive incentive points pursuant to the eligibility requirements described in Section III.2.f.iv of Attachment Y of the Tariff. Any entity may submit a DPP during the 30-day transmission planning response window occurring after the needs assessment is published during the Integrated Transmission Planning (ITP) 3-year planning cycle.

1.3 RFP Deposit

The Respondent must agree to pay a deposit for each RFP proposal (the “TOSP Deposit”). The TOSP Deposit required for this RFP proposal is: $[Calculated from Total Project Cost]. The TOSP Deposit and cost calculation are outlined in Section III.2(e) of Attachment Y of the SPP Tariff. The TOSP Deposit is required with each RFP proposal, and is required to be paid by electronic funds transfer or by check. SPP will hold each Respondent’s TOSP Deposit in a segregated interest-bearing account in the name of the Respondent tied to the Respondent’s Internal Revenue Service Tax Identification Number. At the completion of the TOSP, SPP will determine the actual costs to administer the TOSP, detailed in Section III.2(e)(ii), and each Respondent will make additional payments or obtain refunds based on the reconciliation of the TOSP Deposits collected and actual TOSP costs. The cost will be allocated to each RFP proposal on a pro-rata share basis, calculated by taking the total TOSP costs for each Competitive Upgrade and dividing by the number of RFP proposals submitted for that Competitive Upgrade. Any unused deposit amounts will be refunded with interest earned on such deposits. If an RFP proposal is disqualified from further consideration pursuant to Section III.2(d)(iv) of Attachment Y, SPP shall refund to the Respondent ninety (90) percent of its RFP deposit. [SM1]

1.4 RFP Timetable

The following events are scheduled for this bid:

Task Deadline RFP Issued1 [RFP_ISSUE_DATE] Proposal/Deposit Deadline by 12 p.m.2 CALCULATED DATE

1 SPP shall issue each RFP by or before the later of: (1) seven (7) calendar days after approval or endorsement of the Competitive Upgrade by the SPP BOD; or (2) eighteen (18) months prior to the date that anticipated financial expenditure is needed for a Competitive Upgrade. 2 Each Respondent shall submit a complete proposal in response to the RFP within the RFP Response Window, unless the SPP Staff uses its discretion to reduce the response time window to no less than 90 days to submit their RFP proposal via the RMS.

The RFP and overall TOSP process are governed by the SPP Tariff and Business Practices. If there is a conflict between this document and the SPP Tariff or Business Practices, the SPP Tariff and Business Practices shall govern.

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1.5 RFP Communication

QRPs should submit any inquiries through the SPP Request Management System (“RMS”). Please refer to this link for RMS: https://spprms.issuetrak.com/login.asp. For further questions regarding SPP's FERC Order 1000 process, please contact SPP Customer Relations. To receive information related to Order 1000, please subscribe to the "SPP Order 1000" exploder here.

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https://spprms.issuetrak.com/login.asp



http://www.spp.org/exploder.asp

Section 2 – Project Objectives

2.1 Project Overview

SPP is issuing this RFP to solicit offers from QRPs (“Respondents”) for the project described below. By responding, Respondents are bound by the terms and conditions of this RFP. On [DATE], the BOD approved the [PROJECT NAME] listed below as a Competitive Upgrade to be issued as an RFP as specified in Section III of Attachment Y of the SPP Tariff. SPP identified a need for the project below as a part of the [STUDY NAME].

2.2 Project Specifications

Project ID: PID Need Date for Project: DATE Project Name: Project Name Project Overview: Project Description Estimated Cost for Project: $###,###[SM2] Estimated Cost Source: SPP Date of Cost Estimate: MM/DD/YYYY Details of Project: Upgrade ID: UID Need Date for Network Upgrade: DATE

Date Regulatory Approval Complete: MM/DD/YYYY[SM3][SM4] Expected Financial Expenditure Date: MM/DD/YYYY

Network Upgrade Description: Network Upgrade Description Categorization: Regional or Zonal Reliability / Economic / Public Policy / Transmission Service Network Upgrade Specifications: Network Upgrade Specifications[SM5] Network Upgrade Justification: Network Upgrade Justifications[SM6] Cost Allocation of the Network Upgrade: Base Plan Funded NOTE TO STAKEHOLDERS: This information will be provided with the RFP issuance.

2.3 Project Design Standards

Respondent should comply with design specifications as outlined in the Minimum Design Standards (“MDS”), which can be found here. The MDS are in compliance with the SPP Study Estimate Design Guide.[SM7][AS8]

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2.4 Project Regulatory Context and Authority

Pursuant to Section III of Attachment Y of the SPP Tariff, SPP is issuing this RFP providing QRPs with the opportunity to submit an RFP proposal for the Competitive Upgrade(s) described herein. On [DATE], the SPP Board of Directors endorsed or approved the Competitive Upgrade(s) described in Section 2 of this RFP to be constructed as part of the [STUDY].

2.5 RFP Proposal Cost Estimate

The RFP Response Estimate (“RRE”) as described in SPP Business Practice 7060 is the cost estimate included in the response to an RFP by the Respondent for a Competitive Project. The RRE will be used as the established baseline for reporting all cost estimate changes during the Project Tracking process and will be the basis for determining project variance. The final project cost is expected to be within a -20% to + 20% variance from the RRE.

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Section 3 - Proposal Process and Requirements

3.1 Instructions for Submitting a Proposal

The Respondent should provide a detailed description of its solution(s) that it proposes to meet SPP’s objectives as described in Section 2. All RFP proposals should be submitted through RMS (https://spprms.issuetrak.com/login.asp). For further questions regarding SPP's FERC Order 1000 process, please contact SPP Customer Relations.

3.2 Conditions of Bid

In submitting a response to this RFP, Respondent acknowledges and accepts the conditions detailed in Section 4 (Acknowledgements) by initialing each sub-paragraph and signing at the bottom by an authorized representative of Respondent.

3.3 Respondent Contact Information

Please provide contact information of the authorized person making this proposal and any alternate person with the same authority whom SPP should contact in the event of questions or clarification.

• Complete Section 1A of the RFP Response Form

3.4 Joint RFP Proposals – PENDING

Joint RFP proposals are allowed in accordance with Section III.2(c)(vi) of Attachment Y, as follows:

i) An RFP proposal may be submitted jointly by more than one QRP (“Joint RFP Proposal”) for the purposes of identifying more than one (1) designated TO (“DTO”) for a Competitive Upgrade.

ii) Each entity submitting a Joint RFP Proposal must be a QRP at the time that the Joint RFP Proposal is submitted and at all times during the TOSP during which the Joint RFP Proposal is pending. If at any time during the TOSP, set forth in Section III of Attachment Y, one of the entities submitting a Joint RFP Proposal ceases to be a QRP, the Joint RFP Proposal will be disqualified from further consideration.

iii) Any reference to an RFP proposal shall also include a Joint RFP Proposal, and any reference to a Respondent shall mean the QRPs submitting a Joint RFP Proposal both individually and collectively.

iv) An RFP proposal in which one (1) QRP will serve as the DTO for the entire Competitive Upgrade, if selected, shall not be considered a Joint RFP Proposal, even if the RFP proposal indicates that more than one (1) entity will own the Competitive Upgrade.


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3.5 RFP Assignments – PENDING

Respondent must declare in its RFP proposal whether it intends to assign the Competitive Upgrade to an Affiliate pursuant to Section III.2(d)(xi) of Attachment Y, if selected as the DTO for the Competitive Upgrade, along with a description of each such Affiliate. The DTO for a Competitive Upgrade cannot assign the Competitive Upgrade to another entity, except to an Affiliate (as that term is defined in the Tariff) of the DTO and only upon the express written approval of SPP. Any such assignment shall be governed by Sections IV.4 and IV.5 of Attachment Y. Such Affiliate must be formed prior to SPP approval of any such assignment, and such Affiliate shall be bound by all aspects of the RFP proposal and any related Notification to Construct (“NTC”), including being bound by the annual transmission revenue requirement set forth in the RFP proposal or a lesser annual transmission revenue requirement. A DTO seeking to assign a project to its Affiliate may request such assignment at any time after the DTO has accepted the NTC for the Competitive Upgrade, provided that the DTO declared its intent to assign the project to an Affiliate in its RFP proposal. The selection of an RFP proposal that includes a declaration of intent to assign as the selected RFP Proposal does not constitute SPP’s approval of the assignment.


3.6 Financial Information

The Respondent must provide the following financial information specific to the Competitive Upgrade for which it submits this proposal including, but not limited to:

• A demonstration of financing (including a reasonable contingency) o Complete Section 2A of the RFP Response Form

• A detailed engineering and construction cost estimate of +/- 20% or RRE, as

described in Section 2.5 o Complete Section 2B of the RFP Response Form

• Itemized revenue requirement calculations (Annual Transmission Revenue

Requirements - ATRR) o Complete Section 2C of the RFP Response Form

• Financial and business plans, including the nature of any FERC incentives the

Respondent intends to request, as well as Joint RFP proposal default provisions and a description of any assignment plans for the proposal.[SM9] o Complete Section 2D of the RFP Response Form

3.7 Engineering Information

The Respondent must provide engineering design and technical requirements specific to the Competitive Upgrade for which it submits this proposal by completing all items in Section 3A through 3D of the RFP Response Form.

3.8 Construction Information

The Respondent must provide the following construction information specific to the Competitive Upgrade for which it submits this proposal including, but not limited to:

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• Anticipated project timeline, including all regulatory approvals; o Complete Section 4A and 4B of the RFP Response Form

• Equipment acquisition;

o Complete Section 4C of the RFP Response Form

• Description of applicable Right-of-Way(s) and real estate acquisition(s); o Complete Section 4D of the RFP Response Form

• Description of routing;

o Complete Section 4E of the RFP Response Form

• Description of any permitting; o Complete Section 4F of the RFP Response Form

• Description of outage clearance(s); and

o Complete Section 4G of the RFP Response Form

• An identification of the party or parties responsible for construction[AS10]. o Complete Section 4H of the RFP Response Form

3.9 Operations and Maintenance Information

The Respondent must provide the following operations and maintenance information specific to the Competitive Upgrade for which it submits this proposal including, but not limited to:

• Demonstration of operations; •o Complete Section 5A of the RFP Response Form

• Statement of which entity will be operating and maintaining the transmission

facility;[AS11] o Complete Section 5B of the RFP Response Form

• Storm and outage response plan;

o Complete Section 5C of the RFP Response Form

• Maintenance plan; o Complete Section 5D of the RFP Response Form

• Staffing;

o Complete Section 5E of the RFP Response Form

• Equipment; o Complete Section 5F of the RFP Response Form

• Crew training; and

o Complete Section 5G of the RFP Response Form

• Record of past maintenance and outage restoration performance.

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o Complete Section 5H of the RFP Response Form

3.10 Safety Information

The Respondent must provide the following safety information specific to the Competitive Upgrade for which it submits this proposal including, but not limited to:

• Identification of internal safety program; o Complete Section 6A of the RFP Response Form

• Contractor safety program; and

o Complete Section 6B of the RFP Response Form

• Safety performance record. o Complete Section 6C of the RFP Response Form

3.11 Confidential Information

The Respondent must identify any information in the RFP Proposal that the Respondent considers to be confidential. – Please denote what is confidential by highlighting that information in yellow.

• Method for communication? Anything in Section 7 of RFP Response Form?

3.12 QRP Demonstration of Financial Strength

The QRP must demonstrate that it continues to meet one of the following:

• Financial criteria set forth in Section III.1(b)(ii)(1) or (2) of Attachment Y and that the Competitive Upgrade does not exceed 30% of the total capitalization of the QRP or its parent Guarantor; o Complete Section 8A of the RFP Response Form

• Performance bond from an insurance/surety company equal to the total cost of the

Competitive Upgrade, including financing cost, and a 30% contingency; or o Complete Section 8B of the RFP Response Form

• Letter of credit from a financial institution acceptable equal to the total cost of the

Competitive Upgrade, including financing cost, and 30% contingency. o Complete Section 8C of the RFP Response Form

3.13 QRP Agreement on RFP Costs

A requirement that the QRP or Respondent, or in the case of a Joint RFP Proposal, the QRPs/Respondents, agree(s) to pay, as outlined in Section III.2(e) of Attachment Y:

(1) A deposit for each RFP proposal submitted for its share of the Transmission Provider’s costs to administer the Transmission Owner Selection Process; and

(2) Any additional costs that are assessed after the completion of the Transmission Owner Selection Process.

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Complete Section 9 of the RFP Response Form to comply with this requirement.

3.14 QRP Required Disclosures

The QRP must provide the following disclosures:

• Credit Rating Changes; o Complete Section 10A of the RFP Response Form

• Bankruptcies;

o Complete Section 10B of the RFP Response Form

• Dissolutions; o Complete Section 10C of the RFP Response Form

• Mergers;

o Complete Section 10D of the RFP Response Form

• Acquisitions within the past (5) years of the QRP or its parent, controlling shareholder, or entity providing a Guaranty pursuant to Section III.1(b)(ii)(2) of Attachment Y; and o Complete Section 10E of the RFP Response Form

• Respondent(s)’ Internal Revenue Service Tax Identification Number;

o Complete Section 10F of the RFP Response Form

3.15 Information Exchange Requirements

Identification of data required to be provided to the Transmission Provider in accordance with NERC reliability standards and CEII requirements;

1. A description of the proposal evaluation procedure, including the statement of proposal

evaluation methodology and criteria for acceptable proposals;

2. QRP agreement to pay deposit as outlined in Section III.2(e) of Attachment Y for each RFP proposal submitted for its share of the Transmission Provider’s costs to administer the TOSP; and (2) any additional costs that are assessed after the completion of the TOSP;

3. QRP must disclose any credit rating changes, bankruptcies, dissolutions, mergers, or

acquisition within the past five (5) years of the QRP or its parent, controlling shareholder, or entity providing a Guaranty pursuant to Section III.1(b)(ii)(2) of Attachment Y; and

4. QRP provide Internal Revenue Service Tax Identification Number.

3.16 Bid Clarifications and/or Exceptions

Your proposal shall conform to, in all respects, the applicable specifications, terms, and conditions referred to in this RFP. Submission of a proposal constitutes your company’s commitment that it can provide the services in the RFP. An inability to provide an individual service(s) will not eliminate your firm from consideration. Any deviations from or exceptions to this RFP should be clearly stated in

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your proposal using Attachment A. If there are no such exceptions, please state so. An award of a contract will not take place until there are executed terms and conditions between the parties. If a contract is awarded, any exceptions taken after announcing the award will not be considered.

3.17 Response Instructions

All RFP proposals must contain a table of contents delineating responses to each section. Proposals must be organized to include all responses, including attachments. Each section of the response must contain all items in the sequence identified. An authorized official must sign RFP proposals. The RFP proposal must also provide the names, titles, phone numbers, and email addresses of those individuals with authority to negotiate and contractually bind the company. See Section 3.17 below and Attachment C. SPP may use this information to obtain clarification of information provided.

3.18 Confidentiality

This RFP is confidential and for the sole use of Respondent’s preparation of a proposal. By Respondent’s acceptance hereof, Respondent agrees:

1. Not to disclose, copy, or distribute this RFP in whole or in part to persons other than Respondent’s employees and agents who are authorized by nature of their duties to receive such information and who have been advised of these obligations of confidentiality.

2. To return or destroy any SPP confidential or proprietary materials upon SPP’s request. Additionally, Respondent shall certify in writing that all confidential or proprietary materials related to this RFP have been either returned or destroyed as provided by this requirement.

3. Not to use any information in this RFP or any other materials related to the business affairs or procedures of SPP and of its member organizations or customers for the Respondent’s advantage, other than in performance of this RFP.

Prior to performing work, Respondents who intend to use subcontractors will be required to have subcontractors execute non-disclosure agreements or be contractually required to comply with the Respondent’s obligations of confidentiality as contained in the final contract. Respondents who seek to negotiate possible sub-contract arrangements with SPP’s existing subcontractors will be held accountable for any breach of obligations of confidentiality.

3.19 Disclosure of Interest

All Respondents shall make full disclosure, in writing, at the time of the proposal of any business relationships with SPP personnel or business relationships with any SPP stakeholders or their personnel, including but not limited to the following:

• Any ownership of shares or interests in the Respondent by any SPP personnel, SPP stakeholders, or personnel of any SPP stakeholder.

• Complete details of any directorships in the Respondent’s company or employment by the Respondent of: the SPP Board of Directors; officers; staff; or SPP member, customer, or market participants’ Board of Directors, officers, or staff.

• All other contractual relationships between the Respondent and SPP, SPP employees, or other SPP stakeholders.

• Any ownership of shares or interests by Respondent in SPP, entities owned/operated by its staff, or any SPP stakeholder.

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• Complete details of any directorships held by the Respondent or its personnel or any SPP member, customer, or market participant.

• All other contractual relationships between the Respondent and SPP, its employees, or other SPP stakeholders

By submission of a proposal, the Respondent certifies (and in the case of a joint proposal, each party certifies) that:

• No relationship exists or will exist during the contract period between the Respondent and SPP or the Respondent and SPP stakeholders that could be construed as a conflict of interest and breach the terms or conditions of this RFP or any resulting contract.

3.20 Disclaimer

This RFP is not an offer to enter into a contract, but is merely a request for the Respondent to submit information. Expenses incurred in responding to this request are the responsibility of the Respondent. All materials submitted become the property of SPP. SPP reserves the right to modify, reject or use without limitation any or all of the ideas from submitted information. SPP reserves the right to discontinue the RFP process at any time for any reason. The finalist’s response to this RFP will become part of the final contract if awarded. Wherever there is a conflict between Respondent’s responses to this RFP and the terms and conditions contained in any contract subsequently entered into by the parties, the terms and conditions of the contract will prevail. SPP has no obligations to disclose the results of the RFP process or to disclose why particular Respondent(s) were selected to participate in the contract negotiations process. SPP reserves the right to (1) accept other than the lowest-priced proposal, (2) accept or reject any proposal in whole or in part, or (3) reject all proposals with or without notice or reasons. If SPP does not accept any proposal, it may choose to abandon the work or have the work performed in another manner.

3.21 Disqualification

Respondents are to contact the SPP Primary Contact listed in Section 1.5 [AS12]of this RFP. Respondents are not permitted to contact any SPP employee other than the Project Coordinator regarding this [AS13]RFP or any of the information contained herein. Respondents are strictly forbidden from visiting SPP locations or approaching any SPP current provider or subcontractor for any information specific to its relationship with SPP. Violations of these provisions may subject the respondent to immediate disqualification.

3.22 Requirements and Criteria

An Industry Expert Panel (“IEP”) will evaluate the written proposals. During this time, IEP may initiate discussions with SPP or Respondents for the purpose of clarifying aspects of the proposals. However, proposals may be evaluated without such discussions. Respondents shall not initiate such discussions. The responses will be evaluated according to, but not restricted to, the following criteria: • Previous relevant experience with …

• The Respondent’s demonstration of its capabilities to provide a…

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• The Respondent’s overall responsiveness and consistency in meeting the requirements as specified in this RFP;

• Demonstration by the Respondent of an ongoing business capability, e.g., financial statements, etc.;

• The Respondent’s organizational and technical approach;

• The Respondent’s willingness and ability to meet the designated timelines and the reporting dates agreed upon with SPP;

• The compliance of the Respondent’s response to the proposal specification(s);

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Section 4 - Acknowledgements

In submitting a response to this RFP, Respondent acknowledges and accepts the following conditions, and make the following representations. Please initial each sub-paragraph in each box below in your response. A-1 Ownership of Proposals – All Proposals in response to this RFP are to be the sole

property of SPP. A-2 Oral Contracts – Any alleged oral Contracts or arrangements made by a respondent

with any employee of SPP will be superseded by the written Contract. A-3 Amending or Canceling Request – SPP reserves the right to amend or cancel this

RFP, at any time, if it is in the best interest of SPP. A-4 Rejections for Default or Misrepresentation – SPP reserves the right to reject the

Proposal of any Respondent that is in default of any prior contract or for misrepresentation.

A-5 Clerical Errors in Awards – SPP reserves the right to correct inaccurate awards

resulting from its clerical errors. A-6 Rejection of Qualified Proposals – Proposals are subject to rejection in whole or in

part if they limit or modify any of the terms and/or specifications of the RFP. A-7 Presentation of Supporting Evidence – If requested, Respondent(s) shall present

evidence of experience, ability and financial standing necessary to satisfactorily meet the requirements set forth in the RFP or those implied in the Proposal.

A-8 Consistency in Submissions – The hardcopy submission of the Proposal will prevail

in the case of a discrepancy between the electronic and hardcopy version of the documents.

A-9 Changes to Proposals – No additions or other changes to the original Proposal will

be allowed after RFP Response Window is closed. A-10 Collusion – In submitting a Proposal, the respondent implicitly states that the

Proposal is not made in connection with any competing respondent submitting a separate response to the RFP, and is in all respects fair and without collusion or fraud.

A-11 Costs – SPP shall not be liable for any cost incurred in the preparation of this RFP. A-12 Subcontractors – The use of subcontractors must be clearly identified and explained

in the Proposal. The prime contractor shall be wholly responsible for the performance of the contract in its entirety whether or not subcontractors are used. Subcontractors shall be bound by the terms and conditions of this RFP. The prime contractor shall indemnify and hold SPP harmless from any and all activities related to the services provided by the subcontractor(s) under this contract.

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A-13 Legal Compliance – In submitting a Proposal, the respondent warrants that it is legally authorized to do business in the state of the proposed project, is in compliance with all applicable laws and regulations, is not prohibited from doing business with SPP by law, order, regulation, or otherwise, and the person submitting the Proposal on behalf of the Respondent is authorized by the Respondent to bind it to the terms of the Proposal.

A-14 Legal Requirement- Depending on the nature of the services to be performed,

Respondent may be subject to certain legal requirements mandated by federal regulatory authorities pertaining to the security of facilities and non-disclosure of information. Respondent acknowledges that it will comply with the federal requirements imposed upon SPP which are relevant to the services anticipated by this Proposal.

IN WITNESS WHEREOF, the parties hereto have caused this RFP proposal to be executed by their respective authorized officials. RFP Respondent: By: _____________________________ _______________________ __________________ Name Title Date

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Attachment A: Bid Clarifications and/or Exceptions Respondent offers the following clarifications and/or exceptions taken to any requirement or provision of this RFP and any proposed modifications or replacement language for each clarification or exception (If none, so state): Respondent understands that unless itemized above, no other clarifications or exceptions to this Request for Proposal are taken by SPP.

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Southwest Power Pool, Inc. STRATEGIC PLANNING COMMITTEE ... order 1000... · Southwest Power Pool,...

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