pg&e’s participants’ webinar...webinar format •pg&e will not take questions during the...

PG&E’s Participants’ Webinar

Distribution Investment Deferral Framework

(DIDF)

Request for Offers

January 19, 2021

Agenda

Topics Presenter

Introduction Sandy Burns

Distribution Services Needed Mini Damodaran

Solicitation Overview▪ Eligibility▪ Technology Neutral Pro-Forma ▪ Evaluation Methodology▪ Incrementality

Michael Blaevoet

Offer Submittal Process Michael Blaevoet

Offer Form Michael Blaevoet

Intermission

Q&A Team

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/2021didf

• 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 21, 2021 at 5 PM (PPT)

mailto:[email protected]://www.pge.com/2021didfmailto:[email protected]

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

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])

mailto:[email protected]

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]

mailto:[email protected]:[email protected]

7

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, 2020

1

•Advice Letter (AL)

submitted in

November 2020

•AL approved

December 2020

8

DIDF RFO Schedule for Third Party Ownership Opportunities (Willow Pass, San Miguel, Calistoga, Ripon, Zamora, AND Greenbrae)

Date/Time Event

January 11, 2021 PG&E issued RFO

January 19, 2021 Participants’ webinar

February 20, 2021 at 1:00 PM (PPT)

Deadline for Participants to submit Offers via Power Advocate

February 21, 2021 Deadline for IE to receive a flash-drive of Offers

March 5, 2021 Participants Notified of Eligibility for Shortlisted Offer Negotiations

March 11, 2021 Participants notify PG&E whether they accept Shortlist status

May 31, 2021 Negotiations complete

June 14, 2021 Target Advice Letter filing with the CPUC

9

DIDF RFO Schedule for Third Party and Utility Ownership Opportunity (Blackwell Bank 1)

Date/Time Event

January 11, 2021 PG&E issued RFO

April 15, 2021 PG&E issues detailed specifications and term sheet for IOU ownership

April 20, 2021 Participants’ webinar

June 14, 2021 at 1:00 PM (PPT)

Deadline for Participants to submit Offers via Power Advocate

June 15, 2021 Deadline for IE to receive a flash-drive of Offers

July 23, 2021 Participants Notified of Eligibility for Shortlisted Offer Negotiations

July 29, 2021 Participants notify PG&E whether they accept Shortlist status

November 16, 2021 Negotiations complete

December 16, 2021 Target Advice Letter filing with the CPUC

Distribution Services Need

DIDF Project Locations

All data depicted in thisapplication is for PG&Einternal use only.Dissemination to any entityoutside of PG&E requires theapproval of Corporate Security.

Ripon

ZamoraCalistoga

Willow Pass

`Greenbrae

Blackwell

San Miguel

* CUSTOMER CONFIDENTIAL due to their peak loads violating the 15-15 customer privacy rule

Candidate Deferral GNA Facility NameIn-Service

Date

WILLOW PASS BANK 1WILLOW PASS BANK 1 2023

WILLOW PASS BANK 3 2023

SAN MIGUEL BANK 2

SAN MIGUEL BANK 1 2023

SAN MIGUEL 1104 2023

PASO ROBLES 1107 2023

CALISTOGA BANK 1CALISTOGA BANK 1 2023

CALISTOGA 1102 2023

RIPON 1705 VIERRA 1707 2024

ZAMORA BANK 1 ZAMORA BANK 1 2023

GREENBRAE BANK 2* GREENBRAE BANK 2 2023

BLACKWELL BANK 1 * BLACKWELL BANK 1 2023

WILLOW PASS DEFERRAL OPPORTUNITY

Willow Pass Bank 1 and Willow Pass Bank 3

Technical and Operational Requirements

• A combined need of at least 0.3 MW across Willow Pass feeders 1101 and 1102 is required• A combined need of at least 5.1 MW across Willow Pass feeders 2107 and 2108 is required

Candidate Deferral

Expected Performance and Technical Requirements

GNA Facility NameIn-Service

DateRequirement

Real Time

(RT) or Day

Ahead (DA)

Grid Need (MW)

MonthDelivery

DaysCalls/ Year

HoursDuration (Hours)

Willow Pass Bank 1

WILLOW PASS BANK 1• Willow Pass 1101• Willow Pass 1102

6/1/2023 A DA 0.3 6-8 Sat - Sun 82PM-8PM

2

WILLOW PASS BANK 3• Willow Pass 2107• Willow Pass 2108

6/1/2023 B DA 5.1 6-9 Mon - Sun 1012PM-10PM

6

Willow Pass Bank 1 and Feeders Location

Overview

• Equipment: Willow Pass Bank 1 – Feeders 1101 and 1102

• Electrical Service:

• 3-phase, 3.5 MVA bank with two 12.47 kV feeders

Location

Willow Pass Substation Bank 1, Contra Costa County


Willow Pass

Candidate Deferral GNA Facility NameIn-

Service Date

Grid Need (MW

)

Willow Pass Bank 1WILLOW PASS BANK 1 6/1/2023 0.3

WILLOW PASS BANK 3 6/1/2023 5.1

DIDF Project Location: Willow Pass Bank 1

Willow Pass Substation Bank 1 and Bank 3 Map

Willow Pass Bank 1

Willow Pass 1101

Willow Pass 1102

Willow Pass Bank 3

Willow Pass 2107

Willow Pass 2108

DIDF Project Location: Willow Pass Bank 1

Willow Pass Substation Bank 1 Map

Willow Pass Bank 1


0

2

4

6

8

10

12

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Load

(MW

)

Hour

Willow Pass Bank 1 – Hourly Load Profile

June July August Facility Rating

0.3 MW

Candidate Deferral GNA Facility Name Requirement

Real Time (RT) or

Day Ahead (DA)

Grid Need (MW)

MonthDelivery

DaysCalls/ Year


Willow Pass Bank 1WILLOW PASS BANK 1 A DA 0.3 6-8 Sat - Sun 8 2PM-8PM 2

WILLOW PASS BANK 3 B DA 5.1 6-9 Mon-Sun 101 2PM-10PM 6

Customer Composition Served by Willow Pass

Bank 1

1 183

2,674

9

Customer Count

Agricultural Commercial/Industrial Residential Other

0.0%

18.5%

81.5%

0.0%

Peak Day Load by Customer Class (%)


Customer Class Total Customer Count Peak Day Load (MW)

Agricultural 1 0.00

Commercial/Industrial 183 1.64

Residential 2,674 7.23

Other 9 0.00

Total 2,867 8.87

Load by Customer Class – Willow Pass Bank 1

(Peak Load Day – August 15th, 2019)

0

1

2

3

4

5

6

7

8

9

10

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

MW

Hour

Peak Day Hourly Load Profile by Customer Type


Willow Pass Bank 1 DER Overview

Historical 2019 Forecast

Observed Peak Load

(MW)

Installed DERs

Year(Need vs

Peak)

Peak Load (1 in 10 Year) (MW)

Incremental DER Growth

Solar PV (MW)

Storage (MW)

PV (MW)

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

8.87 0.94 0.022020 10.11 0.26 0.004 0.07 0.00 0.00

2020 10.11 0.26 0.004 0.07 0.00 0.00

Willow Pass Bank 3


0

5

10

15

20

25

30

35

40

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Load

(MW

)

Hour

Willow Pass Bank 3 – Hourly Load Profile

June July August September Facility Rating

5.1 MW


Real

Time

(RT) or

Day

Ahead

(DA)

Grid

Need

(MW)

MonthDelivery

Days

Calls/

YearHours

Duration

(Hours)

Willow Pass Bank 1

WILLOW PASS BANK 1 A DA 0.3 6-8 Sat - Sun 8 2PM-8PM 2

WILLOW PASS BANK 3 B DA 5.1 6-9 Mon – Sun 101 2PM-10PM 6

SAN MIGUEL DEFERRAL OPPORTUNITY

San Miguel Bank 1, San Miguel 1104, and Paso Robles 1107


• A combined need of at least 3.5 MW across San Miguel feeders 1104, 1105, 1106 and 1107 is required• At least 1.0 MW of the 3.5 MW must be sourced at San Miguel feeder 1104• 0.6 MW must be sourced at Paso Robles 1107

Candidate Deferral


GNA Facility NameIn-Service

DateRequirement

Real Time

(RT) or Day

Ahead (DA)

Grid Need (MW)

MonthDelivery

DaysCalls/ Year

HoursDuratio

n (Hours)

San Miguel Bank 2

SAN MIGUEL BANK 1• San Miguel 1104• San Miguel 1105• San Miguel 1106• San Miguel 1107

5/1/2023 A1 DA 1.3 Jun-Sep Mon - Sun 122 6AM-11PM 5

5/1/2023 A2 DA 2.2 Jun-Sep Mon - Sun 122 6AM-11PM 10

SAN MIGUEL 1104 5/1/2023 B DA 1.0 Jun-Sep Mon - Fri 66 5PM-10PM 4

PASO ROBLES 1107 5/1/2023 C DA 0.6 Jul-Sep Mon - Fri 21 3PM-9PM 4

San Miguel Bank 1 and Feeders Location

Overview

• Equipment: San Miguel Bank 1 – Feeders 1104, 1105, 1106, and 1107


• 3-phase, 16 MVA bank with four 12.47 kV feeders

Location

San Miguel substation Bank 1, San Luis Obispo County


San

Miguel


Date

Grid Need (MW)

San Miguel Bank 2

SAN MIGUEL BANK 1 5/1/2023 3.5

SAN MIGUEL 1104 5/1/2023 1.0

PASO ROBLES 1107 5/1/2023 0.6

San Miguel Bank 1 – Hourly Load ProfileFlat, baseload profile – Energy storage will not be able to charge from the constrained location to meet

the grid need (i.e., would need a separate energy source)


0

5

10

15

20

25

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Load

(MW

)

Hour

San Miguel Bank 1


Candidate Deferral

GNA Facility NameDistribution

Service Required

RequirementReal Time

(RT) or Day Ahead (DA)

Grid Need Grid

Need Unit

MonthDelivery

DaysCalls/ Year

HoursDuratio

n (Hours)

San Miguel Bank 2

SAN MIGUEL BANK 1 Capacity A DA 3.5 MW 6-9 Mon - Sun 122 6AM-11PM 10

SAN MIGUEL 1104 Capacity B DA 1.0 MW 6-9 Mon - Fri 66 5PM-10PM 4

PASO ROBLES 1107 Capacity C DA 0.6 MW 7-9 Mon - Fri 21 3PM-9PM 4

1.3 MW

2.2 MW

San Miguel Bank 1 Options

• Option 1: Requirement A

• Requirement A: 3.5 MW, 10 hours

• Option 2: Requirements A1 and A2

• Requirement A1: 1.3 MW, 5 hours

• Requirement A2: 2.2 MW, 10 hours

• Both Requirement A1 and Requirement A2 must be met in order to meet the cumulative 3.5 MW grid need

San Miguel 1104 – Peak Day, Hourly Load Profile


0

2

4

6

8

10

12

14

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24Lo

ad (M

W)

Hour

San Miguel 1104


1 MW

Candidate Deferral


Service Required

RequirementReal Time (RT) or Day Ahead

(DA)Grid Need

Grid Need Unit

MonthDelivery

DaysCalls/ Year

HoursDuratio

n (Hours)

San Miguel Bank 2




Paso Robles – Peak Day Hourly Load Profile


0

2

4

6

8

10

12

14

16

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24Lo

ad (M

W)

Hour

Paso Robles 1107

July August September Facility Rating

0.6 MW

Candidate Deferral


Service Required

RequirementReal Time (RT) or Day Ahead

(DA)Grid Need

Grid Need Unit

MonthDelivery

DaysCalls/ Year


San Miguel Bank 2




CALISTOGA DEFERRAL OPPORTUNITY

Calistoga Bank 1 and Calistoga 1102


Candidate Deferral


GNA Facility NameIn-

Service Date

Requirement

Real Time

(RT) or Day

Ahead (DA)

Grid Need (MW)

MonthDelivery

DaysCalls/ Year


Calistoga Bank 1

CALISTOGA BANK 1

• Calistoga 1101• Calistoga 1102

5/1/2023 A DA 1.3 6-9Mon –

Sun40 2PM-6PM 3

CALISTOGA 1102

5/1/2023 B1 DA 2.0 6-9Mon –

Sun122 12PM-9PM 5

5/1/2023 B2 DA 1.0 6-9Mon –

Sun122 12PM-9PM 8

• A combined need of at least 1.3 MW across Calistoga feeders 1101 and 1102 is required• 3.0 MW must be sourced at Calistoga feeder 1102

Calistoga Bank 1 and Feeders Location Overview

• Equipment: Calistoga Bank 1 – Feeders 1101 and 1102


• 3-phase, 7 MVA bank with two 12.47 kV feeders

Location

Calistoga substation Bank 1, Napa County


Calistoga


Date

Grid Need (MW)

Calistoga Bank 1CALISTOGA BANK 1 5/1/2023 1.3

CALISTOGA 1102 5/1/2023 3.0


• Calistoga Bank 1 – Peak Day, Hourly Load Profile• Potential red flag – Interconnection in the area may be costly and challenging due to protection and operational issues. PG&E will

continue to assess the issue.

0

5

10

15

20

25

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Load

(MW

)

Hour

Calistoga Bank 1


1.3 MW

Candidate Deferral GNA Facility Name RequirementReal Time


Grid Need (MW)

MonthDelivery

DaysCalls/ Year


Calistoga Bank 1CALISTOGA BANK 1 A DA 1.3 6-9 Mon – Sun 40 2PM-6PM 3

CALISTOGA 1102 B DA 3.0 6-9 Mon – Sun 122 12PM-9PM 8

• Calistoga 1102 – Peak Day, Hourly Load Profile

0

2

4

6

8

10

12

14

16

18

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Load

(MW

)

Hour

Calistoga 1102


2 MW


Real Time (RT) or Day

Ahead (DA)

Grid Need (MW)

MonthDelivery

DaysCalls/ Year


Calistoga Bank 1CALISTOGA BANK 1 A DA 1.3 6-9 Mon – Sun 40 2PM-6PM 3

CALISTOGA 1102 B DA 3.0 6-9 Mon – Sun 122 12PM-9PM 8


1 MW

Calistoga 1102 Options

• Option 1: Requirement B• Requirement B: 3 MW, 8 hours

• Option 2: Requirements B1 and B2• Requirement B1: 2 MW, 5 hours

• Requirement B2: 1 MW, 8 hours

• Both Requirement B1 and Requirement B2 must be met in order to meet the cumulative 3.0 MW grid need

RIPON DEFERRAL OPPORTUNITY

Vierra 1707

Vierra 1707 Feeder Location Overview

• Equipment: Vierra Feeder 1707 (Bank 2)


• 17 kV feeder

Location

Ripon Substation Bank 1, San Joaquin County


Ripon`

Candidate Deferral

GNA Facility Name

In-Service

Date

Grid Need (MW)

Ripon 1705 VIERRA 1707 4/30/2024 3.7

0

5

10

15

20

25

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Load

(MW

)

Hour

Vierra 1707


3.7 MW


• Vierra 1707 – Peak Day, Hourly Load Profile

Candidate Deferral GNA Facility Name RequirementReal Time


Grid Need (MW)

MonthDelivery

DaysCalls/ Year


Ripon 1705 VIERRA 1707 A DA 3.7 6-9 Mon – Sun 102 3PM-10PM 5

ZAMORA DEFERRAL OPPORTUNITY

Zamora Bank 1

Zamora Bank 1 and Feeders Location Overview

• Equipment: Zamora Bank 1 – Feeders 1105 and 1106


• 3-phase, 10.5 MVA bank with two 12.47 kV feeders

Location

Zamora Substation Bank 2, Yolo County


Zamora

Candidate Deferral

GNA Facility Name

In-Service Date

Grid Need

(MW)

Zamora 1108 ZAMORA BANK 1 5/1/2023 1.1


• Zamora Bank 1 – Peak Day, Hourly Load Profile• Flat, baseload profile – Energy storage will not be able to charge from the constrained location to meet the grid

need (i.e., would need a separate energy source)

0

2

4

6

8

10

12

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Load

(MW

)

Hour

Hourly Load Forecast - Peak Year (2020)

May June July August Facility Rating

1 MW


Date

Real Time (RT) or

Day Ahead (DA)

Grid Need (MW)

MonthDelivery

DaysCalls/ Year


Zamora 1108 ZAMORA BANK 1 5/1/2023 DA 1.1 6-7 Mon - Fri 45 6AM-10PM 14

Customer Composition Served by Zamora Bank 1

194

87

230

2

Customer Count


82.6%

14.3%

3.0%

Peak Day Load by Customer Class (%)


Customer Class Total Customer Count Peak Day Load (MW)

Agricultural 194 6.60

Commercial/Industrial 87 1.14

Residential 230 0.24

Other 2 0.00

Total 513 7.99

DIDF Project Locations


Ripon

ZamoraCalistoga

Willow Pass

`Greenbrae

Blackwell

San Miguel

* CUSTOMER CONFIDENTIAL due to their peak loads violating the 15-15 customer privacy rule


Date

WILLOW PASS BANK 1WILLOW PASS BANK 1 2023

WILLOW PASS BANK 3 2023

SAN MIGUEL BANK 2

SAN MIGUEL BANK 1 2023

SAN MIGUEL 1104 2023

PASO ROBLES 1107 2023

CALISTOGA BANK 1CALISTOGA BANK 1 2023

CALISTOGA 1102 2023

RIPON 1705 VIERRA 1707 2024

ZAMORA BANK 1 ZAMORA BANK 1 2023

GREENBRAE BANK 2* GREENBRAE BANK 2 2023

BLACKWELL BANK 1 * BLACKWELL BANK 1 2023

Solicitation Overview

RFO Design (1/4)

Product Attributes

Product • PG&E is purchasing distribution capacity only, for either generation or load▪ No RA, energy, ancillary services, RECs, other attributes

Dispatch • Day-Ahead

Delivery • Monthly Range (e.g. June – August) • Hourly Range (e.g. 2PM – 8PM) • Hours Duration during the range (e.g. 3 hours between 2 PM and 8 PM)

Delivery Term • PG&E is looking for 6 or 7 Delivery Terms

Online Date • Beginning in 2023 or 2024

Project Size • PG&E is looking to procure a minimum of 25.4 MW across all deferral opportunity locations

RFO Design (2/4)

• Offers– Offers cannot exceed 200% of the grid need MW amount and cannot be less than 0.5 MW, unless where

the grid need is less than 0.5 MW the grid need acts as the minimum allowable offer size. – Participants should indicate whether their Offer pricing may be applied to project sizes above or below

the project size specified in the offer. This range will allow PG&E to facilitate combinations of Offers to satisfy grid needs, potential grid load need changes due to an updated load forecast, or potential procurement of a buffer to address load forecasting uncertainty. PG&E encourages Participants to submit Offers that are flexible to the greatest extent possible.

– 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 each Grid Need Location.

• Project eligibility

– DERs: Renewable or non-renewable distributed generation, energy storage, energy efficiency, demand response, permanent load shift, electric vehicles

– Projects may be either in-front-of-the-meter or behind-the-meter

– Projects may be dispatchable or non-dispatchable

– Participants may offer one resource or an aggregation

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 10%

– All other resources must go through the project-specific review process

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:

Technology Neutral Pro Forma (TNPF) Overview

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

Payment and Delivered Energy

• Compensation:

– Fixed price ($/kW-month)

– Variable price ($/kWh) 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)

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

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

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

Events of Default and Early Termination

Events of Default

• Failure to meet two Critical Milestones

• Failure to meet Initial Delivery Date

• Monthly Distribution Services Factor averages less than 80% 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.

Evaluation Methodology

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

The distribution deferral values represent the net present value of deferring the annual revenue requirement associated with the traditional distribution investment.

• Deferral Values:

– Willow Pass Bank 1: $7,427,414

– San Miguel Bank 2: $4,904,489

– Calistoga Bank 1: $2,746,193

– Ripon 1705: $1,429,249

– Zamora 1108: $460,959

– Greenbrae Bank 2: $2,252,417

– Blackwell Bank 1: $2,307,478

Distribution Deferral Values

Offer Submittal Process

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=111578&pubEvent=true

– PG&E strongly encourages you to register well in advance of Offer due dates of February 19, 2021 at 1 PM (PPT) for third-party only offers and June 14, 2021 at 1 PM (PPT) for Blackwell.

• Offer materials must also be physically delivered to the IE on a USB flash drive, no later than February 20, 2021 for third party only offers and June 15, 2021 for Blackwell 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=111578&pubEvent=true

Required Offer Submission Forms

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

• Introductory Letter. Format: PDF

• Fully Completed Offer Form (Appendix A1 and/or A2). Format: MS Excel

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

• Note that in order to receive Greenbrae offer form an NDA (Appendix C) is required

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

Offer Form

Offer Form Documents

• Appendix A1– Offer Form for the Willow Pass, San Miguel, Calistoga, Ripon, and Zamora

deferral opportunities

• Appendix A2– Offer Form for Greenbrae which includes confidential load information

– In order to receive this offer form, please submit a completed and executed NDA (Appendix C)

Offer Form Structure

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

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.

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.

Offer Form – Create Offer

Participants can submit offers for a grid need location by selecting the “Create Offer” button in the “CreateInitialOffer” tab. More than one offer may be submitted for each deferral opportunity in your offer package. Only one offer can be created per offer form.

Offer Form – Select Deferral Location

1. Select from one of the drop-down lists for the Deferral Opportunity you would like to make an offer for.

Offer Form – Select Offer Location

1. Input the MW amount 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.

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.

Offer Form – Participant Info

Offer Form – Project Information

1. Choose Technology Type

2. EE Only: Select appropriate incrementality evaluation option: Project-specific basis (Custom) or Pre-specified Overlap (10% 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 “MW_Profile” Tab

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

Year 1 $ Pricing is Only Applicable to Behind the Meter – Energy Efficiency

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.

Offer Form – Offer Exclusivity

Provide additional information about the exclusivity of each offer relative to other offers that you may be submitting.

Specify if your offer is exclusive of other offers

Offer Form – Attestations

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

Offer Form – Generation/Load Profile

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

If applicable, enter the Annual Degradation value for your project.

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”

Offer Form – File Name

VERY IMPORTANT! Please follow instructions carefully.

Generate File Name

Then click “Save This File”

Offer Form - Key Takeaways

• Enable macros in the Excel file.

• Submit a single offer form for each offer that you wish to submit for all grid need locations.

• Only one offer for a grid need location can be made in each 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

Intermission

Participants should email questions [email protected]

mailto:[email protected]