PacifiCorp intends to finalize its evaluation of natural gas facilities necessary to provide natural gas transportation service to PacifiCorp’s Dave Johnston Power Plant (“DJ”).
PacifiCorp intends to select a natural gas transportation provider whose proposal is deemed to offer the best alternative and value proposition to DJ and PacifiCorp for all or a portion of the services detailed below.
As such, PacifiCorp would like to request each bidder resubmit its best and final offer. Proposals should be submitted via email to Irene.Heng@PacifiCorp.com by 5:00 PM (Pacific) on November 15, 2024. PacifiCorp’s evaluation of the proposals received under this request will be based on firm mainline transportation rates, pipeline lateral rates, and other qualitative and quantitative factors deemed relevant by PacifiCorp, in its sole discretion. PacifiCorp reserves the right to reject any proposal that it deems deficient or incomplete, in its sole discretion. Proposals will be treated confidentially per the terms of the Non-Disclosure Agreements under effect with each of the bidders.
2024 Dave Johnston Power Plant RFP for Natural Gas Facilities for Transportation Service
For background, PacifiCorp is evaluating the conversion of DJ, from its current coal-fueled generation to natural gas, with required in-service date in three phases:
i. Phase I: April 1, 2028, 52,629 Dekatherms per Day (Dth/Day)
ii. Phase II: April 1, 2029, additional 74,634 Dth/Day
To enable the conversion of DJ, PacifiCorp requires firm transportation service, from a liquid natural gas supply hub to a new delivery point adjacent to DJ, which may require the design, permitting, construction, and operation of a natural gas pipeline lateral and associated interconnect facilities and metering facilities (“Natural Gas Facilities”). The design of the Natural Gas Facilities must be able to safely and reliably meet the following operational requirements:
In-Service Year | Max. Daily Capacity (Dth/Day) |
Max. Hourly Quantity (Dth/Hour) |
Min. Delivery Pressure* (psig)f |
Max. Allowable Delivery Pressure (psig) |
Temperature at Meter Station Exit (Fahrenheit) |
|
Phase I | April 1, 2028 | 52,629 | 2,193 | 475-790 | 830 | 62 |
Phase II | April 1, 2029 | 74,634 | 3,110 | 350 | 830 | 62 |
Total Phase I & II | Phased per above dates | 127,633 | 5,303 | See above | 830 | 62 |
*Final pressure requirement based on final power generator requirements |
PacifiCorp requests the following Natural Gas Facilities information be provided:
1. Detailed (.kmz file) pipeline lateral route(s) and location(s) of proposed interconnect(s) between proposed pipeline lateral and the interstate/intrastate pipeline
a. Provide alternative routes, if any
2. Detailed proposed Natural Gas Facilities design parameters:
a. Proposed pipeline lateral inlet pressure
b. Proposed pipeline lateral minimum, design, and maximum pressures
c. Proposed interconnect piping diameter
d. Proposed delivery meter station piping diameter, meter type and diameter, and minimum and maximum capacities
3. Preliminary assessment of right-of-way crossing (including identification of any federal/state land (i.e., BLM, U.S. Forest land, etc.), historical site impacts)
4. Preliminary permitting, procurement, construction, and commissioning schedule
a. Preliminary identification of potential complexities in permitting, procurement, and construction
PacifiCorp requests the following Natural Gas Facilities pricing information be provided:
1. Detailed cost estimate of the Natural Gas Facilities, inclusive of income tax gross up and estimated applicable line pack
2. Proposed Natural Gas Facilities’ transportation rate, based on the Maximum Daily Quantity and illustrated as $/Dth/day, for the following terms:
a. 10-year term for each respective phase
b. 5-year term with 5 one-year extensions
3. Any other applicable pipeline lateral only transportation costs (i.e., usage/commodity, fuel lost and unaccounted for)
PacifiCorp also requests proposals for primary firm transportation service from a major natural gas hub in the Rockies region to the interconnection point of the Natural Gas Facilities (“Mainline-only Transportation Path”). Proposed firm transportation rate(s) must be based on the Maximum Daily Quantity with primary firm transportation service commencing on the in-service Date for Phase I and Phase II. In addition, proposals must include, at a minimum, the following:
1. Identify proposed primary natural gas receipt point and other applicable alternative receipt points within the Mainline-only Transportation Path
2. Proposed primary firm transportation rate, illustrated as $/Dth/day assuming the following contract terms/options:
a. 10-year term for respective phase
b. 5-year term with 5 one-year extensions
3. Provide mitigation options around permitting around in-service dates which could include any temporary options and/or contractual guarantees of April 1, 2028, in-service date.
4. Applicable fuel lost and unaccounted-for gas rate for deliveries to the interconnection point of the Natural Gas Facilities
5. All other applicable transportation rates and surcharges (i.e., ACA, electric compressor charge, usage/commodity, etc.) associated with deliveries to the interconnection point of the Natural Gas Facilities
6. Provide and identify any associated additional costs to transport and deliver, in whole or in part, the Maximum Daily Quantity to secondary delivery points on the bidder’s interstate/intrastate pipeline system
Should you have any questions or would like to discuss the request please feel free to contact Irene Heng at the email provided or at (503) 956-6881.