Questionnaire for the Prospective Independent Evaluator
- Identify the members of your proposed project team. For each team member, include: (a) a short description of his or her educational and professional background,(b) experience with design, administration, and evaluation of any electric, natural gas, or renewable related procurement process similar to that of PG&E’s,(c) prospective role on the project team, and (d) billing rate.
- Please provide your hourly billing rate for each year during the period YYYY-YYYY (e. g. 2012 – 2016).
- Describe in detail the familiarity and experience of your proposed project team with design, administration and evaluation of Requests For Offers (“RFOs”) and Requests for Proposals (“RFPs”) for long-term procurement and for renewable resources.
- Describe the familiarity of your proposed project team with: (a) Purchased Power Agreements (“PPAs”),(b) Purchase and Sale Agreements (“PSAs”) for power plant agreements, and (c) engineering, procurement, and construction (“EPC”) agreements for power plants.
- Describe the experience of your proposed project team with assessing PPAs and PSAs for power plants, on price and non-price factors.
- What particular topics would you anticipate to be critical in the negotiations regarding the terms and conditions of a: (a) PPA,(b) PSA for a power plant, and (c) EPC for a power plant.
- In your opinion, what contract terms and conditions are toughest to negotiate, and why? What areas tend to be overlooked? Cite examples from your experience, as appropriate. Please use generic descriptions to avoid disclosing confidential information.
- In your opinion, which cost components are difficult to evaluate while making cross-comparison between PPA offers and offers for Utility ownership for power plants, and why?
- Capital expenses associated with new power plant construction are anticipated to be a significant element in determining the cost for both PPA offers and Utility ownership offers. What capability and experience does your proposed project team have in determining whether such capital expenses are reasonable?
- Operating characteristics of power plants are anticipated to be a significant element of each offer.
(a) What capability and experience does your proposed project team have with how operating characteristics are specified in contracts of the type PG&E may execute?
(b) What capability and experience does your proposed project team have with how operating characteristics specified in an offer and/or contract may be represented in models used to assess the value of the offer and/or contract?
- Describe the familiarity of your proposed project team with technologies for producing electricity from renewable sources.
- Describe the ability and experience of your proposed project team in verifying transmission characteristics that may affect the suitability of certain bids.
- Describe the ability and experience of your proposed project team to evaluate PPA offers and Utility ownership offers on a “head-to-head” basis.
- What evaluation criteria and methodology would you use in assessing and selecting among the offers PG&E will receive? In particular, describe how the methodology enables evaluating PPA offers and Utility ownership offers on a “head-to-head” basis. Do you anticipate using your own parallel methodology or will you validate PG&E’s methodologies?
- PG&E has used Market Valuation and Portfolio Fit as two evaluation criteria in its RFOs. Market Valuation means how a bid’s costs compares to the bid’s benefits, from a market perspective. Portfolio Fit means how well a bid’s features match PG&E’s portfolio needs. How would you independently verify the analyses of Market Valuation and Portfolio Fit performed by PG&E?
- How would you determine whether or not the RFO process is transparent and fair?
- When looking at comparable offers, how should bilaterals not related to an RFO be considered?
- Describe the skill and experience of your proposed project team in analyzing a range of power market derivatives (e.g., futures, options, swaps).
- Would you and members of the proposed project team be willing to testify as expert witnesses in California Public Utilities Commission proceedings, and to report regularly to PG&E and its Procurement Review Group?
- Would you be amenable to a time-and-materials contract with an annual “not-to-exceed” dollar amount? If so, specify the not-to-exceed amount per year (or per month) to which you would be amenable.
- Do you, any member of your proposed project team, the business entity that would be contracting party for the Independent Evaluator engagement, or any of its affiliates or subsidiaries or related companies, have an existing contractual relationship with, or financial interest in, PG&E?
- Do you, any member of your proposed project team, the business entity that would be contracting party for the Independent Evaluator engagement, or any of its affiliates or subsidiaries or related companies, have an existing contractual relationship with, or financial interest in, a market participant (other than PG&E) in the California energy markets?
- Do you, any member of your proposed project team, the business entity that would be contracting party for the Independent Evaluator engagement, or any of its affiliates or subsidiaries or related companies, own or operate power facilities serving the California energy market?
- Please identify and describe any Equal Employment Opportunity (EEO) complaints that you or your organization have been involved with and the disposition of those complaints.
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