Delmarva Power and Light
Company "Delmarva" is, using the model RFP, approved by the Maryland
Public Service Commission, to solicit full-requirements wholesale electric
power supply. The RFP for Delmarva is part of a Maryland statewide procurement
process conducted to concurrently seek offers for all of the SOS loads in
Maryland on a utility specific basis.
The RFP seeks offers for the supply of full-requirements to meet the needs of
three specific customer service types. The service types are described as
Residential SOS, Type I and Type II Non-Residential SOS. Type I and Type II
Non-residential service types were redefined consistent with Order 81102,
effective June 1, 2008. Starting in June 2008, Type I was defined as “small
commercial” with a demand below 25kW and the Type II demand will range from
25kW up to 600kW.
Table 1 below describes the customer classes included in each service type for
Bidding on the load for each service type will be conducted through a
multi-procurement process. This process will have four procurements (plus
reserve procurements, if necessary) to fulfill Utility’s requests for its
various customer service types. The exact number of procurements required will
vary by utility depending on the retail load for each service type.
If multi-year contracts are applicable, the load associated with each
procurement will be further divided amongst the contract terms. The
solicitation for this RFP is for two-year wholesale supply contracts for
Residential load, and for Type I load. The Type II load will be solicited for
quarterly contract terms.
The load in each procurement is divided into blocks of approximately 50 MW in
size for bidding purposes. Suppliers may bid on as many blocks, for as many
service types, as the supplier deems appropriate. A supplier of
full-requirements service will have an obligation stated as a percentage of
Delmarva’s actual retail load for a service type, and as that load varies from
day to day and hour to hour, the supplier’s full requirements obligation will
follow those variations.
For the Residential and Type I Small Commercial, the RFP provides a volumetric
risk mechanism to mitigate the risk to wholesale suppliers if there is large
customer migration back to SOS from competitive retail service. When such
events occur, the Utility (Buyer) will be responsible for the incremental load
obligation, and wholesale supplier’s percentage obligation will remain the
same. Table 2 shows preliminary Peak Load Contribution (PLC) for the specific
service type for which Delmarva is soliciting wholesale supply in the RFP. Two
representations of PLC are provided. The first represents the PLC associated
with customers currently receiving SOS from each utility. The second represents
the PLC associated with all customers currently eligible for a specific service
type within Delmarva’s service territory.
Bidders will be required to submit bids using the Bid Form Spreadsheets
attached to the RFPs, or electronic versions. There will be separate Bid Form
Spreadsheets for each procurement, and each service type. The Bid Form
Spreadsheets will contain shaded cell areas in which bidders provide
information and their offers. In order to prevent any misunderstanding of a
bidder’s offer, all shaded cells within a Bid Form Spreadsheet must be
completed by the bidder. A Bid Form Spreadsheet submitted by a bidder that
contains blank shaded cells will be deemed a non-conforming bid, and will be
eliminated from further consideration. Therefore if it is the intent of a
bidder to submit a zero price for any component of the pricing structure, the
bidder must enter the numerical value of zero in that specific cell.
Bidders will indicate the number of bid blocks offered and the price quote for
the bid blocks offered. All price quotes are limited to two decimal places. All
of the pricing components within a bid for a specific service type will be
reduced to a single discounted price (Discounted Average Term Price) on a
common basis for comparison purposes. Once all conforming bids have thus been
reduced to common Discounted Average Term Prices, the blocks will be awarded to
the lowest bidders until the procurement targets are filled.
Applicants interested in participating in the RFPs are required to express
their non-binding interest to bid by completing and submitting the Expression
of Interest Form. The applicant will not be eligible to submit proposals until
such submission has been provided to Delmarva. Upon submission of the
Expression of Interest Form, an applicant will be issued a password to access a
Web site containing additional information relating to the RFPs.