RAM Webinar Questions and Answers

June 12, 2013: 10:00 am – noon

Eligibility Requirements

  1. Can a project with an interconnection of 40 MW submit a proposal of 20 MW to PG&E and sell the balance to another energy buyer? Or does it need to commit to reduce the final capacity of the project to 20 MW in order to be eligible to RAM?

A project that has an interconnection capacity of 40 MW may submit a 20 MW proposal to PG&E and sell the other 20 MW as a project to another energy buyer providing that the projects are electrically separate as well as separately CAISOmetered.

  1. Can a project already under contract with PG&E through 2016, i.e., beyond the Dec. 2015 deadline, bid into the RFO and qualify if it is willing to terminate its existing contract by or before Dec. 2015?

Probably not. The intent is not to encourage early termination of contracts. There are some exceptions that may apply specifically if your contract allows for an early termination with a no fault option at the Sellers discretion.

  1. Is the project eligible to participate in RAM if the project is located outside California?

No, projects outside of California are not eligible to participate in this RFO. The RAM decision, D-10-12-048considered and rejected broader CAISO-wide eligibility and determined that the eligibility requirement should be limited to SCE’s, SDG&E’s and PG&E’s service territories.

Interconnection

  1. Can distribution lines be used to tie into transmission lines from a potential project site for limited distances (2 miles +/-) for plants in 3MW range?

You are eligible to bid into the RAM program if you connect to either PG&E’s, SCE’s or SDGE’s distribution or transmission lines. You will need to go through the interconnection study process. You will need to have at least a Phase I study, which will assess the feasibility of your proposed interconnection. The interconnection study will take place either through the Wholesale Distribution Tariff (“WDT”) process (for distribution lines) or the California Independent System Operation (“CAISO”) process (for transmission connections). If you do connect to the transmission system you are required to step-up your power to the transmission level voltage.

  1. Does a Cluster 4 CAISO project with a 24 month to 36 month timeline to achieve Reliability Network Upgrades (RNU)qualify to participate in the RAM-4 solicitation?

There is a 24 month COD requirement under the PPA. There is a six month extension that is available under certain circumstances. The start of the 24 month clock for achieving COD is expected to occur December 2013 which means the project must be online by December 2015. The Cluster 4 project that has an estimated 24 to 36 month timeline for construction would not beprecluded from participating. But you should carefully assess the risk of the upgrades not being completed in time. If you sign a PPA with PG&E, you will bear the risk of default and PPA termination in the event the interconnection and upgrades don’t get done in time.

  1. Regarding full deliverability, how would PG&E account for a project that has applied for DG deliverability through the CAISO program(applications are due 6/14). Does PG&E anticipate that the applications would be processed by the date of the RAM submission?

No. PG&E does not expect that the applications will be processed fully between June 14th and by the time the RAM bids are due on June 28th.

  1. If not (and assuming that the bidding project will be allocated deliverability in the DGD process), how should the project bid into the PG&E RAM?

You should bid your project as energyonly because you are not going to have your application processed in time. If you had already received a finding of full deliverability in either the Annual Deliverability process or the DG Deliverability process then you could bid as fully deliverable.Given that you have not received the finding, you will need to bid as energy only.

  1. For Projects in QC5, is PG&E requiring the bids to be classified as Energy Only?

It depends on what the interconnection studies say. If your project will receive a finding of full deliverability by 12/31/2021, we encourage you to bid your project both ways, as an energy only resource and as a fullydeliverable resource.

Bid Submission/Offer Form

  1. Regarding the Offer Form Energy Pricing tab, how does a bidder get the TOD Factors chart to change from Fully Deliverable to Energy Only?

The TOD factors are calculated based on the capacity type selected in the Product Description tab of the offer form. The chart that you are referring to is static and does not change based on your selection. That is used for your reference.

  1. Concerning the required submission of Forms pursuant to Section VII B. (Required Forms) of the Bid Protocol, please explain the Interconnection documents required for an Energy Only bid.

You will need to have a least a Phase I study completed in order to bid. We ask that you submit your latest documents, whether it’s a Phase I study, Phase II study, Interconnection Agreement or even a Draft Interconnection Agreement. We are looking for the Reliability Network upgrade (RNU) requirements. If you are an existing resource that is not going to repower or increase capacity then you do not need to submit an interconnection study. If the project will be repowered or expanded than upgrades may be required. You would be required to go through the ISO process to ensure the system is still sufficient to accommodate any increase in capacity.

  1. For an existing and operating project, how does completion of the "Developer Form" change?

Please populate the Developer Experience tab with the project information.

  1. For an existing and operating project, how does the completion of the "Interconnection Form" change?

Please fill out all requested data points to reflect current interconnection information of the existing operational project.

  1. Has the Offer Form, Appendix A, been updated to reflect the 24 month after expected CPUC approval date of 12/2015?

Yes. We have revised the Offer Form since the original issuance of May 28, 2013. Please download the current version that was posted on May 31, 2013.

Power Purchase Agreement

  1. For a project that will achieve Full Capacity Deliverability Status (FCDS) 1 year after COD, what TOD factors will be applied for what periods? Will the project receive Energy Only (EO) credit in years 2 through the end of the PPA term?

You will receive the FCDS TOD factors as soon as you are fully deliverable.In the situation where you receive FCDS 1 year after COD, you will be paid for energy only TOD factors for the first year and then you will be paid the FCDS TOD factors beginning in year 2 for the remaining term of the PPA.

Evaluation Methodology

  1. Are you using the same methodology that you used during the RPS RFO dated Dec 2012 to value projects in NP-15 versus SP-15?

Yes. The locational valuation is similar to the valuation methodology that was used for the 2012 RPS. For projects that are located in NP15 versus SP15 you would be providing a higher benefit to PG&E than projects that are located in SP15.

  1. Do you give preference to 10 year contracts versus 20 year contracts?

No. There is no preference for a 10 year contract versus a 20 year contract for RAM. All of the Offers will be compared on the basis of their levelized post-TOD price per $/MWh using PG&E’s authorized weighted average cost of capital of 7.0%. Offers will be ranked in order of levelized price, which will include, where applicable, the estimated network upgrade costs from the most recent applicable interconnection study.