Potomac Electric Power
Company "Pepco" is using the model RFP, approved by the Maryland
Public Service Commission, to solicit full-requirements wholesale electric
power supply. The RFP for Pepco 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 Pepco.
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 Pepco’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 Pepco 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 Pepco’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 Pepco. 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.