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PA Bulletin, Doc. No. 00-2199



Request for Proposals to Provide Power Supply Services

[30 Pa.B. 6517]

Reference No. 123-001

Descriptive Memorandum

   The Pennsylvania Turnpike Commission (PTC) has retained Pace Global Energy Services (Pace) as its agent to conduct a Request for Proposals (RFP) on behalf of PTC facilities located in the Commonwealth of Pennsylvania. This Memorandum and RFP for power supply services is part of a procurement process, conducted by Pace, whereby PTC intends to award one or more power supply contracts to meet its requirements in the Commonwealth of Pennsylvania for a predetermined supply period, defined as February 2001 through January 2002. With the distribution of this Memorandum, Pace is requesting proposals from qualified Recipients who will deliver power supply services. This Memorandum has been assembled by the management of PTC and by Pace. The sole purpose of this Memorandum is to assist the Recipient in deciding whether to submit a proposal in accordance with the procedures herein. Additional information beyond what is included in this RFP will be provided to the Recipient upon request to Pace. All inquiries should be submitted to Pace.

   The information provided herein is believed to be accurate and reliable, any and all material changes will be addressed by addendum to this Document. In furnishing this Memorandum, PTC & Pace reserves the right to amend or replace the Memorandum at any time and undertakes no obligation to provide the Recipient with access to any additional information. The Recipient understands that Pace shall be free to establish and change any process or procedure with respect to this solicitation, as Pace in its sole discretion shall determine, without prior written notice to any and all Recipients, including terminating this solicitation. Nothing contained in this Memorandum is or should be relied upon as a promise or representation as to future load requirements or projection of electricity usage. Recipients should conduct their own investigation and analysis of the data and infrastructure described herein.

   Recipients are responsible for the preparation and submission of their proposals. Neither PTC nor Pace assumes any responsibility or liability for any costs incurred by the recipient in the preparation of a bid, conference calls/attendance, or otherwise in connection with this RFP. Recipients shall not disclose confidential information received hereunder. Pace or PTC reserves the right to reject any and all proposals, to terminate the process at any time at its sole discretion, or to reject and rebid in their own discretion.

   Proposals must be received by 5 p.m. December 29, 2000.

   Principal contact for questions and additional information: Director, Power Market Services, Pace Global Energy Services, 4401 Fair Lakes Court, Suite 400, Fairfax, VA 22033-3848, Phone: (703) 227-8746, Fax: (703) 222-6431, e-mail:

General Information and Special Requirements

1.0  Background and General Information

   The Pennsylvania Turnpike Commission (PTC) is seeking proposals from qualified power suppliers to provide electricity for its facilities in the Commonwealth of Pennsylvania. PTC has enlisted the services of Pace Global Energy Services to coordinate this RFP process including the short-listing of final supplier(s). Under the Commonwealth of Pennsylvania's recently enacted retail choice legislation, PTC has applied for and received confirmation of its participation in the retail choice program.

   PTC's Pennsylvania facilities are all located within the service territories of GPU, PECO and PP&L, which serve as the Electric Distribution Companies (EDC). Facility names, account numbers, EDC's, rate schedule, maximum peak load, and annual energy requirements can be provided upon request.

2.0  Quantity and Character of Service

   PTC is seeking supply for all purchased electricity requirements at the indicated sites. Power supply shall be for the firm, full purchased requirements of the indicated sites per the terms of the Pennsylvania retail electric choice program. PTC would prefer that Recipients use the most accurate data in developing their offer. A graph of PTC's peak demand for the 12-month period from June 1999 to May 2000 can be provided upon request. In addition, Pace can provide Recipients with 12 months of hourly demand data for 3 of the 4 Tunnel loads (Allegheny Tunnel, Tuscarora Tunnel and Lehigh Tunnel) upon request.

   The selected supplier(s) will be responsible for all power supply to meet all PJM requirements for PTC's loads for the duration of the contract including transmission, capacity obligation, scheduling, and line losses to the Delivery Point.

2.1  Energy Scheduling and Account Reconciliation

   PTC may experience increases or decreases in loads at various locations during the contract Term. PTC does not guarantee any specific load level during the Term. The supplier shall be responsible for both capacity and energy supply scheduling, planning, forecasting, including system losses (used for forecasted or actual energy credits, where applicable). PTC may add new service or shut down facilities at its sole discretion. The supplier shall perform all account reconciliation of differences and any supplemental energy.

   The supplier will be responsible for coordinating with the PJM and the EDC's among others to ensure the same level of safety, reliability and quality of power as historically provided by the EDC's.

   The supplier shall pay any enrollment fees per service account. The supplier will also be responsible for all costs associated with the procurement and delivery of the commodity requirements, including any congestion charges.

3.0  Transmission Service and Delivery Point

   Transmission services provided to PTC shall meet the following requirements:

   1.  Supplier will procure all transmission and transmission-related ancillary services necessary to supply electricity to PTC's facilities.

   2.  The charge to PTC for such transmission and transmission-related ancillary services shall not exceed the transmission and transmission-related ancillary services charge accepted by the Pennsylvania Public Service Commission (PSC) in the EDC's final proofs of revenue submitted to the PSC in the respective restructuring proceeding supporting the unbundled rates for PTC's service classification, including any applicable riders, discounts or incentives in PTC's unbundled transmission and ancillary services rates.

   3.  If the EDC's are granted permission by the FERC to adjust its transmission revenue requirements or the rate design applicable to PTC's service classification (including but not limited to adjustments in ancillary services charges), supplier will take all necessary steps to ensure that PTC's transmission and distribution charges do not exceed the combined level for such charges as of January 1, 2001, as approved in the EDC's final proofs of revenue submitted in its restructuring proceeding.

   Electricity shall be delivered to the facilities identified by the PTC at the delivery point on the transmission system identified by the EDC's (Delivery Point). Identification of specific facilities can be provided upon request.

4.0  Contract Term

   Delivery of power shall commence on the February 2001 meter reading date for each location as set by the EDC and shall continue for 12 months to the January 2002 meter read date as determined by the EDC. PTC understands that the date that service will begin is dictated by the EDC, but PTC expects that the Recipient will make every effort to ensure that service will begin as soon as permitted. Alternative contract periods will be considered, and should be included as an option.

5.0  Pricing

   PTC is open to different pricing options and Recipients are encouraged to be creative in their offer. As a minimum requirement PTC is requesting that one of the pricing options offered be a fixed price per facility (in $ per kWh) for firm, full purchased requirements service. PTC will consider alternative pricing options including, but not limited to:

   1.  Demand and Energy pricing for all facilities in aggregate.

   2.  Time of Day/Demand and Energy pricing-per facility or in aggregate.

   3.  Demand and Energy prices with a demand charge applied to monthly peak demand and energy charge applied to each kWh consumed-per facility or in aggregate.

   4.  Curtailable Load/Generation capacity sales and power remarketing.

   5.  Indexed price.

   6.  Seasonal Pricing.

   7.  Other.

   Prices for transmission, capacity, energy and ancillary services should be separately stated. All pricing and other economic terms must be clearly and concisely stated in the offer.

6.0  Evaluation Criteria

   Price and material economic terms of the offer are among the selection criteria. Cancellation terms, liquidated damages, Force Majuere terms, and other material terms of the power supply offers are equally relevant to the evaluation. Recipients that provide credit assurances (that is, a balance sheet or high credit rating) to back up economic terms of the Offer will be favorably considered. Supplier experience, offer credibility and any known information that could affect the ability of the Recipient to deliver will be considered in the evaluation. PTC and/or Pace may request oral presentations.

7.0  Participation Eligibility

   The following requirements must be satisfied in order to be considered as a potential supplier:

   1.  Potential suppliers responding to this RFP must be capable of making arrangements for power delivery to the Delivery Point specified by the EDC's for all facilities.

   2.  Recipient must be a licensed electricity generation supplier by the Pennsylvania Public Service Commission.

   3.  All offers must conform to the terms of the retail choice program approved by the PSC for the EDC's serving PTC's facilities.

   4.  Recipient must be a member of the Pennsylvania-New Jersey-Maryland Interconnection Power Pool (PJM) or provide evidence that it has contracted with a member for generation and transmission services.

   5.  Recipient must offer fixed price in $ per kWh for each of the facilities from the earliest possible date after February 2001 for 12 months. Any alternative pricing structures must be stated separately.

   6.  The Recipient will provide full electric purchased power requirements to each PTC site under the terms of the Pennsylvania retail choice program approved by the Pennsylvania PSC.

8.0  Required Information and Instructions

   Offers should include, but are not limited to, the following information:

   1.  Rates and all pricing terms for firm, full purchased requirements power supply as allowed by the Pennsylvania retail electric choice program;

   2.  A sample contract specifying terms such as prices, liquidated damages, cancellation terms, force majuere terms and commencement date for power deliveries;

   3.  Evidence of financial creditworthiness which may include any of the following:

   *  Willingness to provide a letter of credit or other form of commercially accepted security supporting this transaction;

   *  Credit rating by a recognized credit rating agency;

   *  Financial statements (income statement and balance sheet);

   *  Parent Guarantee; and

   4.  Exceptions to the RFP.

   Offers are due by 5 p.m. on December 29, 2000. PTC reserves the sole right to reject any and all offers and to select a short list of suppliers based on the responses for the purpose of interviewing prospective suppliers. PTC intends to select a supplier by January 19, 2001. Recipients must send five copies of the offer to Pace Global Energy Services at the following address: Brandon Fowler, Director, Power Services, Pace Global Energy Services, L.L.C., 4401 Fair Lakes Circle, Suite 400, Fairfax, VA 22033.

   Questions regarding this RFP should be directed to Brandon Fowler at (703) 227-8746 or via e-mail to:


[Pa.B. Doc. No. 00-2199. Filed for public inspection December 15, 2000, 9:00 a.m.]

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