Washington Independent Evaluator Request for Proposal to support PacifiCorp’s 2022 All-Source Request for Proposal

September 2, 2021

Following PacifiCorp’s 2021 Integrated Resource Plan (IRP), which was published on September 1, 2021, PacifiCorp plans to conduct an all-source request for proposal (RFP) in 2022 (2022AS RFP). The 2021 IRP preferred portfolio includes approximately 1,345 megawatts (MW) of new proxy solar and wind resources, 600 MW of collocated battery energy storage system (BESS) capacity and 274 MW of new proxy demand-side resources by the end of 2026. 

To support this procurement effort and assure a fair and transparent process, three Independent Evaluators (IEs) will provide oversight services representing the Washington Utilities and Transportation Commission (Commission) and also the utility commissions of Utah and Oregon.  Each state has procurement rules designed to protect customers by ensuring competitive and fair practices.  Washington’s rules¹ require a utility to engage the services of an IE to assess and report on a solicitation process if 1) the utility, its subsidiary or affiliate plans to participate in the RFP bidding process; 2) the utility intends to retain the option to procure resources that will result in the utility owning a resource or having a purchase option for a resource; or 3) the utility is considering repowering an existing resource.

PacifiCorp anticipates it will participate in the 2022AS RFP, and therefore, after consulting with Commission staff and stakeholders, PacifiCorp issued a solicitation for a Washington IE on Friday September 10, 2021 to perform the IE responsibilities listed below and in the scope of work, including ensuring the equity considerations of Washington’s Clean Energy Transformation Act are met. PacifiCorp will recommend an IE to the Commission and request their approval at a public meeting on Friday November 12, 2021.

The IE will contract with, and be paid by PacifiCorp, and PacifiCorp will manage the contract terms with the IE. PacifiCorp will provide the IE with all data and information necessary to perform a thorough examination of the bidding process and bids received. The full scope of work is posted to this website. The IE responsibilities will be, at a minimum, to:

a) Ensure that the RFP process is conducted fairly, transparently, and properly;

b) Participate in the design of the 2022AS RFP;

c) Evaluate the unique risks, burdens, and benefits of each bid;

d) Provide PacifiCorp with the IE's minutes of meetings and the full text of written communications between the IE and PacifiCorp and any third-party related to the IE's execution of its duties;

e) Verify that PacifiCorp's inputs and assumptions, including capacity factors and capital costs, are reasonable;

f) Assess whether PacifiCorp's process of scoring the bids and selection of the initial and final shortlists is reasonable;

g) Prepare a final report to the Commission after reconciling rankings with PacifiCorp in accordance with Washington rules² that must:

- Include an evaluation of the competitive bidding process in selecting the lowest reasonable cost acquisition or action to satisfy the identified resource need, including the adequacy of communication with stakeholders and bidders; and

- Explain ranking differences and why the IE and PacifiCorp were or were not able to reconcile the differences.; and

h) Prepare any additional analysis requested by the Commission to be included in the final report.

The Washington IE RFP was released on Friday September 10, 2021 and gave bidders two weeks to provide their proposals. PacifiCorp has recommended a finalist to the Commission for approval at a public meeting on Friday November 12, 2021. PacifiCorp invites stakeholders to provide comments or recommendations to the Commission regarding the Company’s proposed Washington IE IRP.  Interested parties may follow and submit comments upon the proceedings with the Commission in the Washington docket  UE-210779.

Questions for PacifiCorp: Any questions or comments by interested parties regarding the Washington IE RFP can be sent to PacifiCorp via email at rfp_IE@pacificorp.com. PacifiCorp will provide further updates on the status and schedule of its IE RFP on this webpage as they become available.

¹ WAC 480-107-023(1)

² WAC 480-107-035(3) and WAC 480-107-023(g)

More about the anticipated 2022AS RFP:

Under 2022AS RFP, PacifiCorp will seek proposals for competitively priced resources capable of interconnecting with or delivering to PacifiCorp’s transmission system in its east or west balancing authority areas (PACE and PACW, respectively). The 2022AS RFP will consider affiliate and benchmark resources (PacifiCorp built and owned generation and storage resources), build-transfer agreements, power purchase agreements and tolling agreements, as well as service contracts for demand-side resources. Bids must be capable of beginning deliveries or achieving commercial operation by December 31, 2026. In addition, PacifiCorp will accept bids from long-lead time resources such as nuclear and pumped storage hydro resources which require a longer lead time to develop and construct that places the project completion beyond December 31, 2028. As noted above, PacifiCorp anticipates it will be submitting multiple self-build (benchmark) resources in the 2022AS RFP.

Schedule: The indicative schedule for the 2022AS RFP, subject to change, is shown below. Dates in 2022 and 2023 are approximate and subject to change.

Questions for PacifiCorp: Any questions or comments by interested parties regarding the 2022AS RFP can be sent to PacifiCorp via email at 2022AS_RFP@PacifiCorp.com. PacifiCorp will provide further updates on the status and schedule of its 2022AS RFP on this webpage as they become available.

Public Participation: Consistent with rules established in Chapter 480-107-017 WAC, interested parties have 45 days to submit written comments after a draft RFP is filed. Written comments may be submitted electronically through the Commission’s web portal. If you are unable to submit documents via the portal, you may submit your comments by email, or by mailing or delivering an electronic copy to the Commission’s Records Center. Comment submissions should include the docket number (to-be-determined), commenting party’s name and the title and date of the comments. The Commission will post all comments that are provided in electronic format to the All-Source RFP docket on its web site.

Interested parties may also participate in WUTC open meetings to discuss the draft All-Source RFP. Information about the timing of meetings and how to participate will be posted to the Commission’s website in the All-Source RFP docket (docket number to-be-determined). Information about open meetings can also be found on the Commission’s website on the Open Meetings page.

The Commission has 75 days after the utility files its draft RFP to approve, approve with conditions, or suspend the filed RFP. PacifiCorp anticipates it will file a draft All-Source RFP no later than December 30, 2021.

Questions about the comment submittal process and/or requests to be placed on the Commission’s distribution list for utility RFPs can be directed to the Commission’s Records Center at records@utc.wa.gov. Questions about the 2022 All-Source RFP and/or requests to be placed on the stakeholder distribution list for this All-Source RFP may be directed to PacifiCorp’s All-Source RFP mailbox.

Documents

Washington Independent Evaluator Scope of Work

Updates

Update to PacifiCorp’s Independent Evaluator (IE) Request for Proposals (RFP) 

RFPs -  Washington IE For PacifiCorp’s 2022 All-Source Request for Proposals