20210614Petition.pdf

Peter J. Richardson ISB # 3195
Gregory M. Adams ISB # 7454
RICHARDSON ADAMS, PLLC
515 N. 271r' Street
Boise, Idaho 83702
Telephone: [phone]
Fax: [phone]
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Attorneys for the Industrial Customers of ldaho Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INDUSTRIAL
CUSTOMERS OF IDAHO POWER'S PETITION
FOR AN ORDER TO SHOW CAUSE PETITION OF THE INDUSTRIAL
CUSTOMERS OF IDAHO POWER
COMPANY FOR AN ORDER TO SHOW
CAUSE REGARDING IDAHO POWER'S
COMPLIANCE WITH COMMISSION
oRDER NO.32745
COMES NOW, the Industrial Customers of ldaho Power ("ICIP") and pursuant to Rule
33 of the ldaho Rules of Civil Procedure and respectfully Petitions this Commission issue its
Order to Show Cause and for an Order Requiring Compliance with Commission Order No.
32745. This Petition is supported by the ensuing statement of the law and facts and exhibits
hereto:
l. Respondent, Idaho Power Company ("[daho Power" or the "Company") has
issued a Notice of Intent ("NOI") also self-described as a Request for Proposals ("RFP") to
solicit bids to meet the Company's:
ICIP Petition for an Order to Show Cause
Page I
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CASE NO.IPC.E-2I-,?
[N]eed for additional capacity resources [that] has been identified as early as Summer
2023 at approximately 80MW, with peak deficits that grow to approximately 400 MW by
Summer 2025.1
Although specificity relating to timing and capacity is lacking, it is clear that ldaho Power has
issued a Request for Proposals ("RFP") seeking the addition of approximately 480 MW of new
capacity over the two year period beginning in the "Summer of 2023."
In February 2013, this Commission issued Order No. 32745 in which the Commission
ordered that:
Idaho Power is directed to comply with RFP2 guidelines applicable in its Oregon service
area, should the Company commence an RFP process for a new supply-side resource
prior to the development of ldaho-specific RFP guidelines.
The NOI/RFP published by Idaho Power and which is attached hereto as Exhibit l, is evidence
that ldaho Power has commenced "an RFP for a [and possibly several] new supply-side
resource[s]." This Commission has never issued, nor even considered, the issuance of [daho-
specific RFP guidelines. Thus, the "guidelines applicable" in ldaho Power's Oregon service area
are applicable in Idaho Power Company's Idaho service territory and to the current NOI/RFP just
recently issued by Idaho Power.
The Oregon RFP guideliness, which this Commission has ordered ldaho Power to
comply, are clearly applicable to ldaho Power's NOVRFP. Oregon PUC Rule 860-089-0100
provides:
I NOI at p. l, see Exhibit I hereto.
2 Anachment A to the NOI is self-described as "ldaho Powcr Company's ("lCP") 202 I All-source Requests for
Proposals (*2021 AS RFP"). Parentheticals in original. The Oregon Rule defines RFP as "all documents ... used
for soliciting proposals from prospective bidders."I OpUc Rule 860-089-0100. et seq. attached as Exhibit 2.
ICIP Petition for an Order to Show Cause
Page 2
( I ) An electric company must comply with the rules in this division when it seeks to
acquire generating or storage resources or to contract for energy or capacity if any of the
following apply:
(a) The acquisition is of a resource or contract for more than an aggregate of 80
megawatts and five years in length;
(b) The acquisition is of a resource or contract in which the electric company does not
specify the size or duration of the resource or contract sought but may result in an
acquisition described in subsection l(a) . . . of this rule;
Here Idaho Power has issued its RFPA.{OI for a resource that, in the aggregate, is approximately
480 MW of capacity. The RFPNOI is silent as to term of the contract[s], however the RFP/NOI,
taken as a whole appears to seek long term commitments and is not seeking a short term or
temporary fix to the Company's alleged capacity deficiencies. Presumably, Idaho Power will
respond to this lack of detail when it files its responsive pleading hereto.
Furthermore, section ( I Xb) of Oregon Rule 860-089-0100 is clearly applicable because
Idaho Power has neither specified the size or the duration of the resource or contract sought,
which acquisition "may" result in the acquisition of a resource described in Section ( I )(a), e.g.,
in excess of 80 MW.
ldaho Power's RFP/|',{OI does not mention this Commission's order requiring it to
comply with the RFP guidelines applicable to it in its Oregon service territory. Furthermore, to
the best of the ICIP's knowledge, Idaho Power has not obtained, or attempted to obtain, a waiver
of the applicability of the Oregon Rules from either this or the Oregon Commission. ldaho
Power has provided no explanation for its failure to so comply.
The Oregon RFP guidelines provide specific and detailed processes that an electric utility
issuing an RFP must follow. These processes include the retention of an independent evaluator,
stakeholder participation in the drafting/design of the RFP and Commission approval or
ICIP Petition for an Order to Show Cause
Page 3
disapproval of the draft RFP. In addition, the guidelines contain specific requirements on,
among many other details, drafting evaluation methodologies for the scoring of bids. All of
which are designed to'lrovide an opportunity to minimize long-term energy costs and risks"
and to establish a "transparent competitive bidding process.a" In order to achieve these goals,
which this Commission has adopted by implication in its issuance of Order No. 32745, Idaho
Power must be held to adherence to the Oregon RFP guidelines.
The ICIP therefore submits this Petition for an Order to Show Cause requiring Idaho
Power to show cause why it should not be ordered to fully and promptly comply with the Oregon
PUC's RFP rules.
WHEREFORE, the ICIP respectfully requests:
That the Commission enter an Order to Show Cause directing Idaho Power to show cause
why the Commission should not enter an order requiring it to comply with ldaho PUC Order No.
32475 and the Oregon RFP guidelines (Rule 860-089-0010, et. seq.)
Dated: June 14,2021
a
By:
Peter J. Richardson, RICHARDSON ADAMS, PLLC
Attorneys for the lndustrial Customers of ldaho Power
4 oAR $ 860-08e-0 t 0o( r ).
ICIP Petition for an Order to Show Cause
Page 4
I HEREBY CERTIFY that on the l4th day of June,z0}l, a tnre and correct copy of the within
and foregoing Petition of the Industrial Customers of ldaho Power for an Order to Show Cause
Case No. IPC-E-2I-_ (docket number yet to be designated by the Commission), by
electronic copy only, to:
flonovan Walker, Senior Counsel
Idatro Power Company
dwalker@idahopqwer. com
tlockets(!i idu hopower.ctrm
JanNorkyuki
Commission Secretary
Idatro Public Utilities Commission
Jan. noriygk i@ipuc. idaho. qov
By:
ICIP Petition for an Order to Show Cause
Page 5
Karl Klien, Director Legal Division
Deputy Attorney General
Idatro Public Utilities Commission
f4{.k I ien(ggpuc. idaho. goy
J
EXHTBIT I
Notice of Intent
2021 All-Source Request for Proposals
ICIP Application for an Order
To Show Cause
IPC-E-2I -
-\
rnDrooFoonD1ty
Notice of lntent
2021 All-Source Request for Proposals
Ideho PowerGompany
P.O, Box 70
BobG, lD 83707
ResourceNOI@ldahopoweraom
ldaho Power Company Notice of lntent
TABLE OF CONTEI{TS
I.INTRODUCTION
I[ SUPPLEMENTAT INFORMATION
IIT. GENERAL INFORtrIATION
Respondent to Conform with Law
Small Business and Small Disadvantaged Business Program
Purchasing Restrictions/Prohibited Technology - .....-.................3
1
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B.
c.
D.
E.
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1
I
1
2
2
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A.
B.
c.
D.
E.
F.
G.
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ldaho Power Company Notice of lntent
I. INTRODUCTION
A. Purpose
ldaho Power Company ("lPC") is releasing this Notice of Intent ("NOI") in anticipation of issuing multiple all-
source requests for proposals in 2021 ("202L AS RFPs"J,
B. Company Background
IDACORP, Inc. is a holding company formed in 1.998. Comprised of regulated and non-regulated businesses, its
origins lie with ldaho Power, a regulated electric utility that began operations in 1916.
Today, IPC is the largest regulated electric utility in the state of ldaho and IDACORP's chief subsidiary. IPC
serves over 590,000 residential, business, agricultural, and industrial customers. The company's service area
covers approximately 24,000 square miles, including portions of eastern Oregon. Learn more about ldaho
Powe r a t www.idahopower,corn,
C. Current State
IPC currently serves its customers by supplying low-cost, reliable, and clean energy. Affordable, clean
hydropower is the largest source of energy for customers. Power generation comes irom a diverse set of
resources that continues to meet a growing demand. For a more detailed description of current generation
resources, please visit: https://www.idahopower.com/energy-snvironment/energy/energy-sources/.
D. Need for Action
IPC's service territory continues to experience customer growth and an increasing demand (load) for
electricity. IPC anticipates sustained load growth that will require the procurement of new resources to meet
peak summer demand and rnaintain system reliability. Additionally, recent changes in the regional
transmission markets lrave constrained the transmission system external to the IPC service territory and
significantly impacted the ability to import energy from western market hubs for delivery to IPC's system. The
addition of new resources to meet peak demand is critical to ensure IPC can continue to reliably meet the
growing demands on its electrical system and serve its customers. The need for additional capacity resources
has been identilied as early as Summer 2023 at approximately 80MW, with peak deficits that grow to
approximatley 400 MW by Summer 2025.
E. IPC's Proposed Action
IPC's proposedaction includes the issuance of public 2021All-Source Requests for Proposal thatspecifically
solicit proposals for additional resources to satisfy IPC's resource needs and forecasted capacity deficits. IPC
may accept multiple proposals representing a diversity of resource types and bid structures to best serve
forecasted deficits. IPC remains fully committed to continuing to serve customers with reliable, affordable,
clean energy.
ldaho Power is seeking the following resource types, including but not limitecl to:
Renewable
Renewable plus Battery Storage
Low emission Non-Renewable, with renewable retrofit capabilities
Standalone Battery Storage
Pumped Storage Hydro
Other Resources as applicable
a
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Notice of lntent ldaho Power Company
II. SUPPLEMENTAT INFORMATION
A. Key Events and Dates
lPCintendstoissueanRFPasearlyasJune30,202l. Eachrequestforproposal will includeamoredetailed
schedule of key events and dates to meet the identified Need for Action,
B. Contact lnformation
Throughout the duration of the information gathering process, all questions, submissions, responses and other
conrmunications concerning this NOI shall be sent to IPC via email at ResourceNOl(oidaltopower.{:ont.
C. Intent to Bid Requirements
Respondents shall return the following completed documents, in an electronic copy to IPC via an email to:
[e-mail] no later rhan 5:00 PM MDT on lune 11. 2021. to be accepted as a respondent
in the 2021 AS RFPs:
o Attachment A - Intent to Bid form
ln the case where multiple facilities are being proposed, please provide one Attachment A - Intent to Bid Form
[or each facility separately.
Upon receipt of the above information, IPC will provide acknowledgement of receipt.
III. GENERAT INFORMATION
A. Revisions to this NOI
The information specified in this NOI reflects those presently known. IPC reserves the right to vary, in detail,
the requirernents and/or to make changes as necessary. IPC also reserves the right lo cancel or to rescind this
N0l or any further RFP processes, in whole or in part, prior to the execution of a contract, if any.
8. Cost to Respond
Respondent will absorb all costs incurred in responding to this NOl, including without limitation, costs related
to the preparation and presentation of its response. All rnaterials submitted by the Respondent immediately
become the property of lPC. Any exception will require written agreement by both parties prior to the time of
submission.
C. Respondent to Conform with Law
Respondent shall con[orm in all material respects to all applicable laws, ordinances, rules, and regulations and
nothing in this NOI shall be construed to require IPC or Respondent to act in a manner contrary to law.
D. Business Conduct Policy
ln responding to this NOI, Respondent shall adhere to best business and ethical practices.
Respondent shall adhere to IPC's Supplier Code of Conduct, available at www.idahopower.cqm.
Page 2
ldaho Power Company
E. Small Business and Small Disadvantaged Business Program
Notice of lntent
IPC is committed to the implementation of a Small and Disadvantaged Business Program. lt is the intent of IPC
that small business concerns and small busitresses owned and controlled by socially and economically
disadvantaged individuals have the opportunity to participate in the performance of contracts awarded by lPC.
Consequently, we request rhat you indicate your eligibility as a small business based upon the regulations in
Title 13, Code of Federal Regulations, Part 121.. (lf in doubt, consult the Small Business Administration Office
in your area).
Eligibility as a small disadvantaged br.rsiness is first based on eligibility as a small business, as noted above,
Second, the business must be majority owned (51 percent or more) and controlled/managed by socially and
economically disadvanlaged person(s). The Small Business Administration designated the following groups as
"presumed socially disadvantaged": Black Americans, Hispanic Americans, Native Americans, and Asian-Pacif,ic
Americans. Other individuals may be found socially disadvantaged and eligible for the program on a case-by-
case basis. Ifyou have any questions, please see 13 CFR i24.1-124,1016 or contact your local Small Business
Administration of,fice.
F. Purchasing Restrictions/Prohibited Technology
Pursuant to Section 889[a)(1)(B) of the fohn S. McCain National Defense Authorization Act for FiscalYear 20].9,
[Supplier/Contractor] must be able to represent in its agreement with Idaho Power that [Supplier/Contractor]
does not use or have installed any telecommunications equipment, system, or service [or as a substantial or
essential componert o[any system or as or critical technology of any system) made by any of the following
companies, or any subsidiary or affiliate thereof (including companies with the same principal word in the
name, e.9., "Huawei" or "Hytera"): Huawei Technologies Company; ZTE Corporation; Hytera Communications
Corporation; Hangzhou Hikvision DigitalTechnology Company; or, Dahua Technology Company fcollectively,"Prohibited Technology"J. Prohibited Technology may include, but is not limited to, video,/monitoring
surveillance equipment/services, public switching and transmission equipment, private switches, cables, local
area networks, modems, mobile phones, wireless devices, landline telephones, laptops, desktop computers,
answering machines, teleprinters, flax machines, and routers. Prohibited Technology does not include
telecommunications equipment that cannot route or redirect user data traffic or permit visibility into any user
data or packets that the equipment transmits or handles.
G. Entire NO!
l'his NOI and all Exhibits, Attachments, and Addendunrs withiu are incorporated herein by this reference and
represent the final expression of this NOl. Only information supplied by IPC in writing through the parties listed
hereirr or by this reference made in the submittal of this NOI shall be used as the basis for the preparation of
Respondent's submtttals.
Attachment A - lntent to Bid Fornt
Page 3
Attachment A - lntent to Bid Form
This form is to declare that the undersigned intcnds to respond to one or more of ldaho Power Company's
('IPC) 2021 AII-Source Requests for Proposals ('2021AS RFPs'). In the case where multiple facllides are
being proposed, please provide one Intant to Bld Form for each facility separately.
COilPAttIY ll{FORtATlOlil
Company Name:
lLegal enfity of htended cortbacllcignatory)
Company &vnership:
(Dtrect or ldlred owners of @nryany, attech
organizatbnal $art sbwirry ptoontomnnhlp shan,
etc.)
Mailing Addrese:
Company Telephone Numbel:
Controct Name:
Job Ti[e:
Contacd Telephone Numben
E-mail:
COilPAITIY BUS|ilESS CLASSIFICATION
E SmaU Businees
EI Small Disadvantaged Businose
E Woman Oilned Business
E Large Bueiness
PROPOSAL IT{ FORUATIOI{
Resource type?
ls the resource now or existing?
Storage type? (lf induded)
Can the inbnded propoealaccommodate a Build Transfer
or IPC Ornership agreement atsucture?
Size of each bid asset in MW capaoty (nominal)
Location (County, State)
Location (GPS Coordinates)
What ie the prcposed point of interconnecton into !PC's
system, or if ofi-system, what is the propoeed point of
delivery?
Please provide IPC's intorconn*{ion queue number if
applicable.
ltthat is the estimabd commercial operation date
(month{rear)?
E XUazone Small Bueiness
E Veteran OYvned Businoss
E Service-Oiaabled Veteran Orned Businees
E otrar
lnlcndcd Propoeal
At rlitonail Cormenb:
Idrho Pmrr Gompmy Afrlletc AtEcta0on
By slgning bclow, Respondent certf,es that nelther Rspondent Company nor eny afrUah of Respondent
Company has an afiltate reladoruhlp (r,vbether by ormerslrip, folnt vmtre, or other assodadon) wlth ldaho
Pourcr Company,IDAGORP, or any othcr IDACORP affiltate.
NESPOTDEIIT
Authorlzed Slgnahtre
Prlnted Namc of Stgnor
I'iflc of Slgpor
DE
EXHIBIT II
Oregon Administrative Rule
Sections 860-089-0100, et. seq.
ICIP Application for an Order
To Show Cause
IPC-E-2I-
Pubtic Utility Commission
Chapter 86O
Division 89
RESOURCE PROCUREMENT FOR ELECTRIC COMPANIES
860-089.0010
Appllcablllty ad Purpose of Dlylslon 089
(1) The rules contained in this Division apply to electric companies, and are intended to provide an opportunity to
minimize long-term energvcosts and risk, complement the integrated resource planning (lRP) process, and establish a
fair, objective, and transparent competitirae bidding process, without unduly restricting electric companies from
acquiring new resources and negotiating mufually beneficial terms.
(2) Upon request or its own motion, the Commission may waive any of the Division 089 rules for good cause shown. A
request for waiver must be made in writing to the Commission prior to or concurrent with the initiation of a resource
acquisition.
(a) ln addition to the filing requirements in OAR Chapter 86Q Division 001, an electric company filing a request for
waiver under this section must serve the request on all parties to the electric company's most recentgeneral rate case,
request for proposal (RPF) filing, and IRP docket.
(b) lf a request for waiver is filed by an electriccompany after it acquires a resource, granting; if any, of the waiver
request does not result in or equate to the Commission's acknowledgment of the resource acquisition
Statutory/Othcr Authorltp ORS Ch. 183, 756, 758, 2016 OL Ch. 28
Stetutes/Other lmplemented: ORS 756.0€, 758.060, 2016 OL Ch, 28, Sect 6
Hlstory:
PUC 4-2018, adopt filed 08/30/2018, effestive 08130/2018
860.089-qn0
Deltnitlons
For purposes of this Division, unless the context requires otherwise:
(11 'Benchmark resource' is a resource identified in an electric company's response to its own request for proposals.
(2) "Commission-acknowledged IRP' means an IRP for which the Commission has acknowledged the electric company's
action item to procure the resource subject to the rules in this division.
(3) "Electric company" has the meaning given that term in ORS 757.600.
(4) 'lrdependent evaluator" or "lE'refers to a person engaged by an electric company to oversee an RFP process under
the rules in this division, and who also reports directly to the Commission during that process. The lE must be
independent of the utility and bidders, and also be experienced and competent to perform all lE functions identified in
these Division 089 rules.
(5) "lntegrated resource plan" or *lRP' has the meaning given that term in OAR 860-027-0400.
(6) 'lRP Update'means an update to an acknowledged IRP that is filed in accordance with OAR 860-027-0400(9).
(7) 'Qualifying facility" refers to qualifying facilities under 16 USC 5 796(17) and (18) (2O12) and ORS 758.505(8).
(8)'Request for proposals" or "RFP" means all documents, whether attached or incorporated by reference, used for
soliciting proposalsfrom prospective bidders.
(9) 'Resource acquisition" refers to a process for the purpose of acquiring energy, capacity, or storage resources that
starts with an electric company's;
(a) Circulation of a final or draft RFP to third parties; or
(b) Communication of a final offer or receipt of a final offer in a two-party negotiation.
Statutory/Other Authority: ORS Ch. 183, 756, 758, 2016 OL Ch. 28
Statutes/Other tmplemented: ORS 756.040,758.060, 2016 Ch.28, Sect 6
History:
PUC 4-2018, adopt filed 08/30/2018, effective 08/30/?Otg
860.089-0100
ApplicabiliW of Competltive Bidding Requirements
(1) An electric company must comply with the rules in this division when it seeks to acquire generating or storage
resources or to contract for energy or capcity if any of the following apply:
(a) The acquisition is of a resource or a contract for more than an aggregate of 80 megawatts and five years in length;
(b) The acquisition is of a resource or contract in which the electric company does not specify the size or duration of the
resource or contract sought but may result in an acquisition described in subsection (11(a) or (1Xc) of this rule;
(c) The acquisition is of multiple resources more than five years in length that in aggregate provide the electric company
with more than an aggregate of 80 megawatts, and these resources:
(A) Are located on the same parcel of land, even if such parcel contains intervening railroad or public rights of way, or on
two or more such parcels of land that are adiacent; and
(B) The generation equipment of any one of these resources is within frve miles of the generation equipment of any
other of these resources and construction of these resources is performed under the same contract or within two years
of each other; or
(d) As directed by the Commission.
(2) An electric company may request that the Commission find that resources presumed to be subject to subsection (1)
(c) of this rule should not be considered in the aggregate. The electric company may make this request before acquiring
the resources. The electric company bears the burden of rebutting the presumption that the acquisition is subject to
these rules by showing each resource is separate and distinct.
(3) An electric company is not required to comply with the competitive bidding requirements to acquire a resource
otherwise subject to section (1) of this rule when:
(a) There is an emergency; meaning a human-caused or natural catastrophe resulting from an unusual and unexpected
event, including but not limited to earthquake, flood, wa( or a catastrophic energy plant faiiure, that requires an electric
company to take immediate action;
(b) There is a time-limited opportunity to acquire a resource of unique value to the electric company's customers;
(c)An alternative acquisition method was proposed by the electric company in the IRP and explicitly acknowledged by
the Commission; or
(d) Seeking to exclusively acquire transmission assets or rights.
(4) Within 30 days of seeking to acquire a resource under section (3) of this rule, the electric company must file a report
with the Commission explaining the relevant circumstances. The report must be served on all the parties to the electric
company's most recent rate case, RFB and IRP dockets.
Statutory/Other Authority: ORS Ch. 183,756,758, 2016 OL Ch.28
Statutes/Other lmplemented: ORS 756.040, 758.060, 2016 OL Ch. 28, Sect. 6
History:
PUC 4-2018, adoptfiled 08/30/2018, effective 08130/2078
860-089-0200
Engaging an lndependent Evaluator
(1) Prior to issuing an RFP, an electric company must engage the services of an I E to oversee the competitive bidding
process. The electric company must notify all parties to the electric company's most recent general rate case, RFB and
IRP dockets of its need for an lE, and solicit input from these parties and interested persons regarding potential lE
candidates.
(2) The electric company must 6le a request for Commission approval to engage an lE. The Commission Staff will review
the request and recommend an lE to the Commission based in part on the consideration of:
(a) lnput received from the electric company and interested, non-bidding parties:
(b) Review of the degree to which the lE is independent of the electric company and potential bidders;
(c) The degree to which the cost of the services to be provided is reasonable;
(d) The experience and competence of the lE; and
(e) The public interest.
(3) The electric company is responsible for engaging the services of the I E and is responsible for all fees and expenses
associated with engaging the lE's services. The eiectric company may request recovery of fees and expenses associated
with engaging an lE in customer rates.
(4) The electric company's contract with the lE must require that the lE fulfills its duties under these rules and that the lE
confers as necessary with the Commission and Commission Staff on the lE's duties.
Statutory/Other Authority: ORS Ch. 183, 756, 758, 2016 OL Ch. 28
Statutes/Other lmplemented: ORS 756.040, 758.08O, 2016 OL Ch. 28. Sect. 6
History:
PUC 4-2018, adopt filed 08/30/2018. effective OglSO/2OLB
860-089-0250
Design of Requests for Proposals
(1) For each resource acquisition, the eiectric company must prepare a draft request for proposals for review and
approval with the Commission, and provide copies of the draft to all parties to the lE selection docket. Prior to filing the
draft RFP with the Commission, the electric company must consult with the lE in preparing the RFP and must conduct
bidder and stakeholder workshops.
(2) The draft RFP must reflect any RFP elements, scoring methodology, and associated modeling described in the
Commission-acknowledged lRP. The electric company's draft RFP must reference and adhere to the specific section oI
the I RP in which RFP design and scoring is described.
(a) Unless the electric company intends to use an RFP whose design, scoring methodology, and associated modeling
process were included as part of the Commission-acknowledged lRP, the electric company must, prior to preparing a
draft RFP, develop and file for approval in the electric company's I E selection docket, a proposal for scoring and any
associated modeling.
(b) I n preparing its proposal, the electric company must consider resource diversity (e€. with respect to technology, fuel
type, resource size, and resource duration).
(3)At a minimum, the draft RFP must include
(a) Any minimum bidder requirements for credit and capability;
(b) Standard form contracts to be used in acquisition of resources;
(c) Bid evaluation and scoring criteria that are consistent with section (2) of this rule and with OAR 860-089-0400;
(d) Language to allow bidders to negotiate mutually agreeable final contract terms that are differentfrom the standard
form contracts;
(e) Description of how the electric company will share information about bid scores, including what information about
the bid scores and bid ranking may be provided to bidders and when and how it will be provided;
(f) Bid evaluation and scoring criteria for selection of the initial shortlist of bidders and for selection of the final shortlist
of bidders consistent with the requirements of OAR 860-089-0400,
(g) The alignment of the electric company's resource need addressed by the RFP with an identified need in an
acknowledged IRP or subsequently identified need or change in circumstances with good cause shown; and
(hl The impact of any applicable multi-state regulation on RFP development, including the requirements imposed by
other states for the RFP process; and
(41 An electric company may set a minimum resource size in the draft RFB but it must allow qualifyingfacilities that
exceed the eligibility cap for standard avoided cost pricing to participate as bidders.
(5) The Commission may approne the RFP with any conditions it deems necessary upon a finding that the electric
company has complied with the provisions of these rules and that the draft RFP will result in a fair and competitive
bidding process.
(6) The Commission will generally issue a decision approving or disapproving the draft RFP within 80 days after the draft
RFP is filed. An electric company may request an alternative review period when it 6les the draft RFP for approval
including a request for expedited rwiew upon a showing of good cause. Arry person may request an ortension of the
review period of up to 30 days upon a showing of gmd cause.
Statutorylothcr Authorlty: ORS Ch. 183, 756, 758, 2016 OL Ch. 28
St tuteyOthcr lmplcmented: ORS 756.040, 758060, 2016 OL Ch. 28, Sect. 6
Hlstory:
PUC 4-2018, adopt filed 08/30/2018, effective O8/30/2018
860-089-0flX)
Rcsource Orvnershlp
(1) An electric company may submit or allow its affiliates to submit bids in response to the electric company's request for
proposals.
(al Electric company and affiliate bids must be treated in the same manner as other bids.
(b) Any individual who participates in the development of the RFP or the evaluation or scoring of bids on behalf of the
electric company may not participate in the preparation of an electric company or affiliate bid and must be screened
from that process.
(21 An electric company may propose a benchmark bid in response to its RFP to provide a potential cost-based
alternatirrc for customers. The electric company may make elements of the benchmark resource o,rrned or secured by
the electric comparry (eg., site, transmission rights, or fud arrangementsl available for use in third-party bids.
(3) lf benchmark bid elements secured by the electric company are not made available to all bidders, it must provide
analysis explaining that decision when seeking RFP acknoivledgement and recovery of the costs of the resorrce in rates.
(a) lf electric company resources are offered and made available for use in third-party bids, then the RFP may provide
for appropriate compensation of electric company resources by third-party bidders.
(b) Separate electric company affiliate bids are not subject to this section of this rule, and no information on any decision
to offer the use of separate electric company affiliate-owned elements to third-parties is required to be supplied to the
Commission.
(41 An electric co.npany may consider ownership transfers within an RFP solicitation.
(5) The electric company issuing the RFP must allow independent power producers to submit bids with and without an
option to renew, and may not require that bids include an option for transferring ownership of the resource,
Statutoryy'Other Authority: ORS Ch. 183, 756, 758, 2016 OL Ch. 28
StatuteVOther lmplemented: ORS 756.02t0, 758.060, 2016 Ctr 28, Sect, 6
Hlstory:
PUC 4-2018, adopt filed 08/30/2018, effective 0813o/2018
860-089-0350
Benchmark Resource Score
(1) Prior to the opening of bidding on an approved RFB the electric company must hle with the Commission and submit
to the lE, for review and comment, a detailed score for any benchmark resource with supporting cost information, any
transmission arrangements, and all other information necessary to score the benchmark resource. The electric company
must apply the same assumptions and bid scoring and evaluation criteria to the benchmark bid that are used to score
other bids.
(2) lt during the course of the RFP process, the Commission or the lE determines that it is appropriate to update any
bids, the electric company must also make the equivalent update to the score of the benchmark resource,
(3) Before the lE provides the electric company an opportunity to score other bids, the electric company must file with
the Commission and submit via a method that protects confidentiality the following information:
(a) The final berrchmark resource score developed in consultation with the lE, and
(b) Cost information and other related information shared under this rule.
Statutory/Other Authorlty: ORS Ch. 183, 756, 758, 2016 OL Ch. 28
Statutes/Other lmplemented: ORS 756.040,758.060, 2016 Ot Ch,28, Sect.6
Hiitory:
PUC 4-2018, adopt frled 08/30/2018, effective 08/3O/2018
860-089-0400
Bld Scorlng and Evaluatlon by Electrlc Comptny
(1) To help ensure that the electric company engages in a transparent bid-scoring process using objective scoring criteria
and metri6, th€ electric company must provide all proposed and final scoring criteria and metrics in the draft and final
RFPsliled with the Commission.
(2) The electric company must base the scoring of bids and selection of an initial shortlist on price and, as appropriate,
non-price factors. Non-price factors must be converted to price factors where practicable. Unless otherwise directed by
the Commission, the electric company must use the following approach to develop price and non-price scores:
(a) Price scores must be based on the prices submitted by bidders and calculated using units that are appropriate for the
product sought and technologies anticipated to be employed in responsive bids using real-levelized or annuity methods.
The lE may authorize adjustments to price scores on review of information submitted by bidders.
(b) Non-price scores must, when practicable, primarily relate to resource characteristics identifred in the electric
company's most recent acknowledged I RP Action Plan or IRP Update and may be based on conformance to standard
form contracts, Non-price scoring criteria must be objective and reasonably subject to self-scoring analysis by bidders,
(c) Non-price score criteria that seek to identify minimum thresholds for a successful bid and that may readily be
converted into minimum bidder requirements must be converted into minimum bidder requirements,
(d) Scoring criteria may not be basd on renewal or ownership options, except insofar as these options affect costs,
revenues, benellts or prices. Any criteria based on renewal or ownership options must be explained in sufficient detail in
the draft RFP to allow for public comment and Commission review of the justification for the proposed criteria.
(4)The electric company may select an initial shortlist of bids after it has scored the bids and identified the bids with top
scores. Following selection of an initial shortlist of bids, the electric company may select a final shortlist of bids.
(5) Unless an alternative method is approved by the Commission under OAR 860-089-O250(2Xal, selection of the final
shortlist of bids must be based on bid scores and the results of modeling the effect of candidate resources on overall
system costs and risks using modeling methods that are consistent with those used in the Commission-acknowledged
IRP.
(a) The electric company must use a qualified and independent third-party expert to review site-specific critical
performance factors for wind and solar resources on the initial shortlist before modeling the effects of such resources.
(b) ln addition, the electric company must conduct, and consider the results in selecting a final short list, a sensitivity
analysis of its bid rankings that demonstrates the degree to which the rankings are sensitive to:
(A) Changes in non-price scores; and
(B) Changes in assumptions used to compare bids or portfolios of bids, such as assumptions used to extend shorter bids
for comparison with longer bids, or assumptions used to compare smaller bids or portfolios with larger ones.
(6) The electric company must provide the lE and Commission with full access to its production cost and risk models and
sensitivity analyses. When the lE and Commission concur that appropriate protections for protected information are in
place, the electric company must provide access to such information to non-bidding interested parties that request the
information in the final short list acknowledgment proceeding.
Stetutory/Other Authority: ORS Ch. 183, 756, 758, 2016 OL Ch. 28
Statutes/Other lmplemented: ORS 756.040,758.060,2016 OL Ch.28, SecL 6
Histortr:
PUC 4-2018. adopt frled O8/3O/2018, effective 08/3012078
860-089-0450
Independcnt Evrluator Dutles
(1) The lE will oversee the competitive bidding process to ensure that it is conducted fairly, transparently, and properly.
(2) The I E must be available and responsive to the Commission throughout the process, and must provide the
Commission with the lE's notes of all conversations and the full text of written communications between the lE and the
electric cornpany and any third-party that are related to the lE's execution of its duties.
(3) The lE must consult with the electric company on preparation of the draft RFP and submit its assessment of the final
draft RFP to the Commission when the company files the final draft for approval.
(4) The lE must check whether the electric company's scoring of the bids and selection of the initial and final shortlists
are reasonable.
(5) To determine if the electric company's selections for the initial and final shortlists are reasonable, when the RFP
allows bidding by the issuing electric company or an affiliate of the company, or includes resource ownership options for
the electric company, the lE must independently score the affiliate bids and bids with ownership characteristics or
options, if any, and all or a sample of the remaining bids. When the lE does not score all bids, and a request for
acknowledgment of a final shortlist is pending before the Commission, as provided in OAR 860-089-0500; a participant
in the acknowledgment proceeding may request that the Commission direct the lE to score all remaining bids or a
broader sample.
(6) The I E must also evaluate the unique risks and advantages associated with any company-owned resources (including
but not limited to the electric company's benchmark), and may apply the same evaluation to third-party bids, including
an evaluation of the following issues:
(a) Construction cost over-runs (considering contractual guarantees, cost and prudence of guarantees, remaining
exposure to ratepayers for cost over-runs, and potential benefits of cost under-runs);
(b) Reasonableness offorced outage rates;
(c) Reasonableness of any proposal or absence of a proposal to offer electric company owned or benchmark resource
elements (e.g,, site, transmission rights or fuel arrangements) to third-party bidders as part of the draft and final RFP;
(d) End effect valuesl
(e) Environmental emissions costs;
(f) Reasonableness of operation and maintenance costs;
(g) Adequacy of capital additions costs;
(h) Reasonableness of performance assumptions for output, heat rate, and power curve; and
(i) Specificity of construction schedules or risk of construction delays.
(7) The lE must review the reasonableness of any score submitted by the electric company for a benchmark resource.
Once the electric company and the lE have both scored and evaluated the competing bids and any benchmark resource,
the lE and the electric company must frle their scores with the Commission. The lE and electric company must compare
results and attempt to reconcile and resolve any scoring differences. lf the electric company and lE are unable to resolve
scoring differences, the lE must explain the differences in its closing report to the Commission.
(8) The lE must review the electric company's sensitivity analysis of the bid rankings required under OAR 860-089-0400
and file a written assessment with the Commission prior to the electric company requesting acknowledgment of the
6nal short list.
(9) The lE must frle a closing report with the Commission after the electric company has selected its final shortlist. The
lE's closing report must include an evaluation of the applicabie competitive bidding processes in selecting the least-cost,
least-risk acquisition of resources. The Commission may request that the lE include additional analysis in its closing
report.
(10) Unless the Commission directs otherwise, the lE must participate in the final short list acknowledgment proceeding
initiated by the electric company, and must continue to participate it at the time of acknowledgment of the electric
company's 6nal shortlist, the Commission chooses to require lE involvement through final resource selection. ln
addition to making a decision on acknowledgment, the Commission, on its own motion or at the request of other parties,
including bidders, may require expanded lE involvement. Upon such a request or its own motion, the Commission may
require an lE to be involved in the competitive bidding process through final resource selection,
Statutory/Other Authority: ORS Ch. 783,756,758, 2016 OL Ch. 28
Statutes/Other lmplemented: ORS 756.040,758.060, 2015 OL Ch.28, Sect.6
Hlstory:
PUC 4-2018, adopt filed 08/30/2018, effective 08/3O/2078
860-089-0500
Final Short List Acknowledgement and Result Publication
(1) For the purposes of this section,'acknowledgment" is a finding by the Commission that an electric company's final
shortlist of bid responses appears reasonable at the time of acknowledgment and was determined in a manner
consistent with the rules in this division.
(21 An electric company must reguest that the Commission acknowledge the electric company's linal shortlist of bids
before lt may begin negotiations. Acknowledgment of a shortlist has the same legal force and effect as a Commission-
acknowledged IRP in any future cost recovery proceeding
(3lA requestfor acknowledgement must include, at a minimum, the lE's closingrepo( the electric company'sf nal
shortlist of responsive bids, all sensltivity analyses performed, and a discussion of the consistency between the final
shortlist and the electric company's last-acknowledted IRP Action Plan or acknowledged IRP Update.
(4) The Commission will generally issue a decision on tlrc request for acknowledgment within 60 days of receipt of the
electric company's fi ling.
(51 The electric company must make a publicly available filing in the RFP docket providing the average bid score and the
average prlce of a resource on its ltnal shortlist
(6) FollowinS execution of all contracts resulting from an RFP or cancellation of the RFB the electric company must
prwide information, on request, to a bidder about the bidder's bid score.
StatutorylOtherArthorlty: ORS Ch. 183.756, 758, 2016 OL Ch. 28
StatuteVOther lmplemcntcd: ORS 756.040,758.060,2016 OL Ch.28, Sect 6
Hlrtory:
PUC 4-2018, adopt frled 08/30/2018, effective 08/3012078
860{89.0550
Protccted lnformrtlon
The electric company may rcqu€st a protectit/€ order be issued prior to making available protected information
required to be shared under the rules in this Division. Protected information may include, but is not limited to, RFP-
related and bidding information, such as a company's modeling, cost support for any benchmark resource and detailed
bid scoring and evaluation results. Protected information may then be provided to the Commission, the lE, and non-
bidding parties, as appropriate under the terms of the protective order. lnformation shared under the terms of a
protectiv€ order issued under this rule may be used in RFP rwiew and approval, final shortlist acknowledgement, and
cost-recovery proceedings.
Sffiutoryr0ther Authorlty: ORS Ch. 183, 756, 758, 2016 OL Ch. 28
Statuteo/Other lmplemented: ORS 756.040, 758.060,2016 OL Ch, 28, Sect. 6
HlrtorS
PUC 4-2018, adoptfrled O8/3O/2018, effective 08/30/2018
v1.8.9
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