June 06, 2008
Q&A from the 2008 All Source LTRFO Mailbox
1) “Page 15 of the draft PPA states “All Products from the Units must be delivered through a single Electric Revenue Meter and that meter must be dedicated exclusively to the Units.” “Units” is basically defined as whatever is in Appendix II. For a 2 on 1 (two gas turbine, one steam turbine) combined cycle power plant with three meters (one for each generator) would Appendix II be repeated three times so that each generator ends up having a “contract capacity” (even the steam turbine generator), or would there be one Appendix II where the Units = the Facility. How would this change for an aggregated meter set.”
The California ISO requires that all generating entities over one MW have a dedicated revenue meter. Multiple Units may “deliver” through a single revenue meter. This could include multiple reciprocating engines or combustion turbines as well as a combined cycle with one or more combustion turbines and one or more steam turbines. The California ISO requires telemetry on each Unit providing ancillary services. A combined cycle with two combustion turbines and one steam turbine would have meters on each Unit for telemetry purposes. It would also have a revenue meter.
The data for Appendix II should reflect the distinct operating modes for all the Units. This may include the combined cycle operating with one combustion turbine and the steam turbine, with two combustion turbines and the steam turbine and perhaps, if the design allows, one or two combustion turbine(s) without the steam turbine.
2) In the draft PPA it states that PG&E will be the Scheduling Coordinator (SC). Does PG&E expect a separate SC agreement to memorialize such terms and liability, or will it all be in the PPA or operating agreement? Additionally, what would be each parties’ obligation under a SC agreement?
There are no ancillary agreements required for the Scheduling Coordinator function. Responsibilities and obligations for both Seller and Buyer, if any, relating to scheduling are as set forth in the PPA itself.
3) The term “Offer” is tied to “Offer Deposit” requirements. If we propose a 4-unit simple cycle plant, and alternatively a 3 unit simple cycle plant, will each one require a separate Offer Deposit? If we offer a combined cycle plant with two output variables (such as with or without duct firing), will each iteration require a separate Offer Deposit?
Yes, each configuration will require a separate Offer Deposit for this solicitation as stated in section V.C. of the protocol agreement.
4) The Capacity compensation paragraph states:
Capacity Payment Rate (“CPR”) shall equal $___ per MW-year; ____ % indexed to the GDP [between 0 and 100] for the period of time between the Execution Date and the financing date corresponding with Section 11.2(b)(vi), at which time the CPR freezes at a rate applicable for the full Services Term.
The opening paragraph states:
This Power Purchase and Sale Agreement is made between Pacific Gas and Electric Company, a California corporation (“PG&E”, and as further defined herein, “Buyer”) and , a [identify State] limited liability company (“Seller”) as of ______, 2008 (“Execution Date”). Seller and Buyer are referred to individually as “Party” or collectively as “Parties”.
Please clarify the execution date as it relates to contract effectiveness in general and the capacity payment rate in particular.
I read it as meaning the Seller fills in the execution date upon submittal (July 21, 2008) and the Capacity Payment Rate escalates from that point forward (assuming a number other that zero is filled in as the “% to be indexed”). Is that correct?
No, this is not correct. Once you execute the contract and PG&E countersigns the contract then the price escalates from that point forward.
5) Is PG&E still planning on having a Participants work shop to go through what is expected in the submittals? If it is going to benefit the process of compiling the RFO response it needs to take place in the middle of June or at the latest by the end of June, which provides for three (3) weeks to finalize the responses.
Yes, PG&E will be hosting the Participants workshop via webinar on June 19. Webinar information is available on the RFO website located at:
http://www.pge.com/rfo/
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