For a Report on Demand Response and Energy Efficiency

REQUEST FOR PROPOSALS

FOR A REPORT ON DEMAND RESPONSE AND ENERGY EFFICIENCY

OPPORTUNITIES FOR CITY OF SANTA CLARA, DBA SILICON VALLEY POWER

Introduction

The City of Santa Clara’s Electric Department, doing business as Silicon Valley Power (SVP), wishes to obtain a good estimate of energy efficiency potential in Santa Clara. This estimate, by customer class and with estimated costs to achieve the potential, will be used by SVP in the development of its overall resource acquisition and budgeting plans.

Project Description

Scope of Work:

The proposed work plan is categorized into three distinct work Areas, each consisting of specific tasks and deliverables. Some deliverables are task-specific and others are area-specific, spanning multiple tasks.

Area 1. Review and analysis of current electric resource plan and public benefit program

Task 1.1:

Review the overall Utilities Strategic Plan and any other draft plans that may include information related to energy efficiency program planning and development.

Task 1.2:

Review the long-range and short-term electric plans and analysis supporting the current status and how energy efficiency and demand side programs fit into this plan.

Deliverable: Technical Memorandum with a critique of the demand side and energy efficiency implementation recommendations and alternatives.

Expected completion date: Three weeks after initiation of contract work.

Area 2. Assist SVP in analyzing demand side management and energy efficiency response potentials in Santa Clara and in refining demand side and energy efficiency implementation plans.

Supporting analysis to answer key local resource questions, with a balance between the qualitative and quantitative analysis, in order to integrate local resource opportunities into a robust electric resource portfolio that manages total cost, market prices and other risks, environmental impacts, and program implementation feasibility.

Task 2.1. Define methodology and approach for refining the demand side and energy efficiency programs. The key questions arise along the following dimensions:

1. What are the most appropriate cost analysis methods: to what degree should non-monetary values be addressed, should the risk analysis be based on scenarios or decision analysis methods, to what degree is analysis already conducted sufficient, and what additional analysis is required?

2. To what degree do the Total Resource Cost, Participant, and Rate Impact Effectiveness tests determine cost effectiveness in Santa Clara?

3. How are equity issues best addressed; how should costs and savings be allocated among customer groups?

4. To what degree should DSM stress energy savings vs. peak load management?

5. Should customer implementation be driven through rates, rebates, or other methods?

6. How should renewable distributed facilities be focused on in the energy efficiency programs: what is the optimum and maximum scale, how should thermal energy from cogeneration be valued, how can fuel price risks and CO2 liabilities be mitigated, and how might future hydrogen generation impact these plans?

7. What is the best balance between low and stable rates, environmental stewardship, and reliability?

8. Review the rebate levels for current residential and business programs in the context of the various cost efficiency tests for each of the current and potential programs. Answer the question on whether a higher rebate amount for very cost-effective programs might generate more participation and how that affects cost efficiency.

9. Determine customer incentive levels that make the most sense for customers under the rate structures in Santa Clara and maximize cost-effective potential.

Deliverable: Technical Memorandum: Methodology and approach to refining the demand response and energy efficiency programs.

Expected completion date: Two months after initiation of contract work.

Task 2.2.

Analyze the relative merits of different local generation implementation strategies, including economies of scale versus number, benefits of modularity, cogeneration potential, emissions and other environmental impacts, and community concerns, as identified in Task 2.1. Evaluate the technical and economic potential for local renewable generation, including distributed generation, combined heat and power (and cooling), renewables, and potentially hydrogen fuel cells or other potential technologies. Identify risks and opportunities related to cogeneration, fuel risks, environmental impacts including CO2, and reliability. Identify potential sources of leveraging funding for specific alternatives.

Deliverable: Technical Memorandum: Analysis of the local renewable generation implementation recommendations and alternative strategies.

Expected completion date: Five months after initiation of contract work.

Task 2.3.

Analyze the relative merits of different approaches to implementing demand-side resources, including (1) cost-effective energy efficiency, and (2) demand response programs in Santa Clara, as identified in Task 2.1. Determine the technical and economic potential for energy efficiency and demand response. Develop demand-side resource portfolios to reduce energy and peak capacity costs, improve asset utilization and manage long-term demand growth. Recommend high-level strategies and analytical tools for reconciling rates, cost recovery and cost allocation goals to ensure that cost-effective demand-side measures are captured with adequate incentives to participate but without unfair rate increases for non-participants. Incorporate public input collected in public outreach efforts (Area 3). Identify outside programs in which SVP could jointly participate. Identify potential sources of leveraging funding for specific alternatives.

Deliverable: Technical memorandum: Analysis of cost-effective energy efficiency and demand response program alternatives, with specific recommendations for maximum impact and cost-effectiveness.

Expected completion date: Five months after initiation of contract work.

Area 3. Program Outreach Assistance. Review program outreach efforts and budget to make sure that they are in alignment with achieving the potential identified in area 2 above.

Task 3.1.

Review Santa Clara PBC program outreach efforts and budget to make sure that they are in alignment with achieving the potential identified in area 1 above.

Expected completion date: Three months after initiation of contract work.

Deliverables: Report with analysis of outreach efforts and budget with recommendations to improve program.

Additional Deliverables: (1) Monthly progress report over the duration of the project.

Estimated Timeline

Insurance

Proposed Contractors must meet the City’s insurance requirements, as in the Sample Call Agreement for Services in Attachment “B.” Proof of insurance or the ability to obtain such insurance must be included in all proposal packets.

Price

Proposals will include a not to exceed price. Costs, including anticipated out of pocket and travel expenses, will be submitted on a not to exceed basis. The Contractor may need to make other presentations that arise from time to time. The Contractor will include a charge for attendance at a specified number of presentations and meetings in the not-to-exceed price with an hourly rate for any presentations that exceed the contract total. The Contractor will be required to prepare and submit any and all reports required by local, regional, state or federal authorities.

Payment

Invoices, accompanied by complete and accurate reports on work performed, shall be submitted to SVP on a monthly basis. All payments to will be made by the City of Santa Clara. Payments will be processed upon verification of correctness of each submitted invoice. SVP reserves the right to question any invoice based on complaints, observations, reports, or data that in any way do not correspond to the information submitted in or with an invoice. In the event that an error is found in an invoice, the Contractor will be required to submit a corrected invoice. Expenses in excess of those specified in the Proposals will be reimbursed pursuant to the provisions set forth in the Call Agreement for Services, following prior written approval from City.

Evaluation and Selection Process

SVP staff will evaluate all proposals received by the due date in response to this RFP using evaluation criteria and methods determined by SVP. The criteria listed below will be evaluated to determine which, if any, Contractors may be selected to manage the development and implementation of this analysis.

Evaluation Criteria

q Relevant Experience

q Conformance with the RFP

q References from Other Clients in Similar Projects

q Price

SVP, at its own discretion, may request additional information from any or all proposed Contractors after the initial evaluation to clarify terms, conditions, and/or information submitted in proposals.

After evaluating all proposals, SVP will notify all proposed Contractors of their status by September 28, 2006. If SVP determines that at least two Contractors are qualified, these two Contractors will be asked to respond to more detailed questions and participate in an interview with the SVP team. After these interviews, SVP will notify the Contractors of their status by October 16, 2006. SVP may enter into contract negotiations with the qualified Contractor. Negotiations, if initiated, are not a guarantee that SVP will execute a contract. SVP reserves the right to cancel this RFP at any time.

Information to be Submitted:

Persons or firms wishing to respond to this RFP must supply a minimum of six (6) copies of the proposal to Silicon Valley Power located at 1500 Warburton Avenue, Santa Clara, CA 95050. The proposals are due on Thursday, September 14, 2006 at 4:00 p.m., and are to be addressed to the Public Benefits Program. The nature and form of response is at the discretion of those responding, but shall include the information listed below:

General: Proposals should be typed and should be as brief as possible and should not include any unnecessary promotional material. Restrict proposal to not more than 20 pages total, including all responses, reference work, and information about the firm and individuals assigned to the project.

Additional information submitted after the formal closing date and time will not be accepted, except that copies of a presentation may be provided during an oral presentation, if required.

Respondents are encouraged to refrain from using general marketing material and make this portion of the proposal as specific to Santa Clara and this scope of work as possible. Only information specifically related to the requirements of this program will be used when deciding on the preferred candidate.

General Information Form: Complete attached General Information Form.

General Background Information: To facilitate comparisons during evaluation, the following information shall be listed in the order shown and shall appear at the front of all proposals submitted immediately following the Letter of Proposal and General Information Form:

1. Type of service your firm is particularly qualified to perform. Generally describe the scope of services that can be provided by your firm without the use of outside staff.

2. Include a brief summary of your firm’s overall organization, area of practice and related experience.

3. A brief representative listing of similar projects completed in the last five years. Indicate the similarities between these projects and SVP’s project.

4. List of references for similar projects. Contractors hall submit at least three references. These references will include contact name, address, telephone number, fax number, and e-mail address.

5. Other information that might aid the Selection Committee in ascertaining your qualifications.

Proposal Due Date and Delivery

Proposals must be postmarked no later than September 14, 2006, or hand-delivered prior to 4:00 p.m. on September 14, 2006. If proposal is delivered by overnight mail, a City employee must acknowledge receipt by signature prior to September 14, 2006 at 4:00 p.m. Information must be delivered to:

City of Santa Clara

Silicon Valley Power

Joyce R. Kinnear

Public Benefits Manager

1500 Warburton Avenue

Santa Clara, California 95050

Late proposals will not be accepted. Questions and clarifications concerning this RFP may be sent to the above address, faxed to (408) 244-2990, emailed to or by calling (408) 615-5686.

Instructions to all Proposers

SVP will evaluate all proposal packets received by the deadline. Evaluation criteria are included in this document. SVP will be sole decision-makers on how these criteria are used to select the successful Proposal.

SVP staff, at their discretion, may hold interviews with one or more of the proposed Contractors, who will be required to attend such interviews if requested. SVP will be the sole point of contact for all proposed Contractors. SVP reserves the right to reject any and/or all proposals. In submitting proposals, Contractors hold SVP and the City harmless from any claim or liability as a result of submitting proposals.

Once the top ranking selection is known, a contract will be negotiated for the scope of services to be rendered and for the method of compensation. If agreement is not reached after a reasonable period of time, as determined by the Director of the Electric Utility, negotiations with the top selection will be terminated and negotiations will then be opened with the second choice of the selection committee. When agreement is reached, the agreement will be submitted by the City Manager to the City Council for approval and execution.

Attachments

A. General Information Form.

B. Sample Call Agreement for Services

C. Sample Call

ATTACHMENT “A”

General Information Form

To be completed by the proposer and placed at the front of your proposals

REQUEST FOR PROPOSALS

FOR A REPORT ON DEMAND RESPONSE AND ENERGY EFFICIENCY

OPPORTUNITIES FOR CITY OF SANTA CLARA, DBA SILICON VALLEY POWER

______

Legal Name of Firm Date

______

Contact Email Address Firm’s Telephone Number

Type of Organization (Partnership, Corporation, etc.)

Name of Main Contact and Title

Name, Title and Phone Number of Person Project Correspondence Should be Directed to

Address Where Correspondence Should be Sent

______

Company Address

ATTACHMENT “B”

SAMPLE CALL AGREEMENT FOR SERVICES

CALL AGREEMENT BY AND BETWEEN

THE CITY OF SANTA CLARA, CALIFORNIA

AND

(Insert contractor’s name here)

for ______Services

PREAMBLE

This call agreement (“Agreement”) is made and entered into in the City of Santa Clara, California, on this ____ day of ______200__ (“Effective Date”), by and between the City of Santa Clara, California, a chartered California municipal corporation, with its principal place of business located at 1500 Warburton Avenue, Santa Clara, California 95050 (“City”) and ______, a ______insert appropriate corporation\contractor\partnership reference as required ______, with its principal place of business located at ______(“Contractor”). City and Contractor may be referred to herein individually as a “Party” or collectively as the “Parties” or the “Parties to this Agreement.”