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, PacifiCorp will have three Independent Evaluators (IEs) to provide oversight services representing the Washington Utilities and Transportation Commission (Commission) and also the commissions in 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 will issue a solicitation for a Washington IE on Thursday September 9, 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 anticipates it will recommend an IE to the Commission and request their approval at a public meeting on September 30, 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.

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

The Washington IE RFP is expected to be released on Thursday, September 9, 2021 giving bidders two weeks to provide their proposals before PacifiCorp recommends a finalist to the Commission for approval. PacifiCorp invites stakeholders to provide comments or recommendations regarding the Company’s proposed Washington IE IRP or express interest for participating in the Washington IE RFP by September 8, 2021.  Interested parties may bid on the IE RFP subject to meeting the minimum qualifications of the RFP documents.  Interested parties may also follow and comment upon the proceedings with the Commission. Additional updates will be posted to this website and also as part of the to-be-filed Washington docket. Please consult the dockets on the respective commission websites regarding the regulatory proceeding.

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.

Milestone

Date

Day

Washington IE RFP issued

09/10/2021

Friday

Washington IE bids due

09/24/2021

Friday

Washington Commission (WUTC) public meeting – seek approval of IE

09/30/2021

Thursday

Bidder and stakeholder workshops to discuss draft 2022AS RFP

10/05/2021

Tuesday

PacifiCorp files 2022AS RFP with WUTC

10/22/2021

Friday

WA interested persons – deadline to file comments on 2022AS RFP

12/06/2021

Monday

WUTC public meeting – seek approval of 2022AS RFP

01/06/2022

Thursday

2022AS RFP issued to market

01/10/2022

Monday

Bidder workshop to discuss 2022AS RFP

01/13/2022

Thursday

Notice of intent to bid due

01/24/2022

Monday

Last day for 2022AS RFP questions to be submitted to IEs

02/07/2022

Monday

PacifiCorp’s benchmark bids due

02/07/2022

Monday

Market bids due

02/15/2022

Monday

Benchmark bid evaluations complete (price and non-price scores)

02/21/2022

Monday

Market bid eligibility screening completed

02/28/2022

Monday

Demand-side RFP Issued to Market

Q2 2022

 

Initial Shortlist (ISL) scoring/ranking completed

04/05/2022

Tuesday

IRP modeling generates ISL

06/06/2022

Friday

IEs' review of ISL completed

05/12/2022

Thursday

PacifiCorp notifies bidders selected to ISL

05/13/2022

Friday

ISL bidders notify Pac Trans to enter cluster study

05/16/2022

Monday

Capacity factor and BESS evaluation on ISL started

06/30/2022

Thursday

Capacity factor and BESS evaluation on ISL completed

10/18/2022

Tuesday

Cluster study results posted to OASIS / bidders notified by Pac Trans

11/12/2022

Saturday

Bidders provide ISL price update including cluster study results

12/02/2022

Friday

Submit updated bids to IRP modeling

12/09/2022

Friday

IRP modeling generates Final Shortlist (FSL)

01/06/2023

Friday

Final Shortlist (FSL) selected

01/10/2023

Tuesday

IE review of FSL completed

01/17/2023

Tuesday

IE files summary report with WUTC

04/20/2023

Thursday

Complete negotiation of T&Cs for resource agreements

05/31/2023

Wednesday

Execute agreements

06/23/2023

Friday

Any questions or comments by interested parties regarding the Washington IE RFP or the 2022AS RFP or related documents 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 as well as its 2022AS RFP on this webpage as they become available.