Compilation of Rules and Regulations of the State of Georgia
Department 515 - RULES OF GEORGIA PUBLIC SERVICE COMMISSION
Chapter 515-3 - GENERAL RULES
Subject 515-3-4 - INTEGRATED RESOURCE PLANNING
Rule 515-3-4-.04 - Identification of Capacity Resources
Universal Citation: GA Rules and Regs r 515-3-4-.04
Current through Rules and Regulations filed through September 23, 2024
(1) Existing Resources.
(a) Assessment of Existing Resources. The utility shall describe all existing resources, including existing power purchases, sales and exchanges, demand-side resources, purchases from non-utility sources, purchases from other utilities, cogeneration, standby generation capacity, interruptible service capacity, pooling or coordination agreements that reduce resource requirements, owned or partially-owned generating facilities, and any other supply-side resources. Any projected changes must be documented. The utility shall also describe all resources available to the utility enterprise, to the extent that these resources affect the resources available to the utility;
(b) Assessment of Existing Transmission. The utility shall analyze the adequacy of its existing transmission system to determine its capability to serve load over the next ten years, to evaluate the supply-side resource potential of actions to reduce transmission losses, to evaluate the potential impacts of demand-side resources on the transmission network, and to assess the transmission component of the avoided cost;
(c) The utility must provide a comprehensive Environmental Compliance Strategy ("ECS") that includes a detailed report on the state of current and proposed environmental regulations that may have an effect on the installation of equipment or changes in the operation of electric generating plants, including coal-fired, gas-fired, nuclear and hydroelectric. Included among the items the ECS is to address are existing and proposed regulation of sulfur dioxides, nitrogen dioxides, lead, mercury and other hazardous air pollutants listed in section 112 of the Clean Air Act, particulates, ozone, carbon dioxide, methane, low-level nuclear waste, high-level nuclear waste, as well as water quantity and quality, cooling technologies, and the discharge effluents of coal ash and thermal pollution, as applicable to electric generation. The ECS will evaluate the utility's plans, including technologies and forecasted incremental capital and operation and maintenance expenditures for compliance for the next ten years for existing plants. It will include a section of environmental regulations promulgated since the last IRP, and the status of pending regulations that may have an effect on the installation of equipment or changes in the operation of electric generating plants, including coal-fired, gas-fired, nuclear and hydroelectric. The utility will also provide the citation and procedural status of any litigation (whether in a state or federal court, administrative tribunal, or any other forum) the utility is participating in, either representing itself or as a member of a consortium, that involves challenges to any regulations covered in the ECS.
(d) Assessment of the Future Potential of Existing Resources.
Each utility shall assess the role of existing demand-side and supply-side resources in meeting future demand requirements. For those resources for which any action other than continued use in its existing condition appears to be cost-effective, the utility shall assess and document the cost and benefit associated with any such action, and justify why such action will or will not be taken. Such assessment with respect to the use of existing supply-side capacity resources must include comparison against the resources offered in response to the utility's Request for Proposals, with the exception of the capacity resources identified in Rule 515-3-4-.04(3)(f);
(2) Potential New Electric Plant and New Transmission Facilities.
(a) The utility shall identify and fully describe all potential new utility electric plant options and transmission facilities options for meeting future demand. To the extent practicable and economically feasible, the options considered shall include all technologies and designs which are expected to be available within the twenty-year planning period, either on a commercial scale or on a demonstration scale. The utility shall also fully describe all new electric plant and transmission facilities options available to the utility enterprise to the extent that these resources affect supply-side resources available to the utility;
(b) The utility shall perform an initial screening utilizing the screening test of all future electric plant options to eliminate those which, upon preliminary evaluation, are not cost effective in relationship to other available electric plant options. These cost-benefit analyses shall be provided in the integrated resource plan for each electric plant option. If the utility eliminates any electric plant options, then each such option shall be identified, and the reason for rejection shall be fully explained and justified; and
(c) The utility shall submit a comprehensive and detailed bulk transmission plan of the Georgia Integrated Transmission System every three years. The utility shall identify future transmission facilities required to solve the transmission system inadequacies during the next ten years, as identified in 515-3-4-.04(1)(b). The purpose of this analysis is to assure that the transmission network is capable of reliably supporting the loads and resources placed upon it during the next ten years, that costs of the transmission network associated with supply- and demand-side resources are properly considered, that the avoided costs reflect the expected transmission system expansion, and that transmission system loss reduction opportunities are considered as a supply-side resource. Approval or adoption of an integrated resource plan does not constitute approval of transmission facilities for which information is provided under this section. The utility plan shall include at least the following:
1. An Executive Summary containing an overview of the plan, the results, conclusions and recommendations:
2. A Section that details all processes, procedures, guidelines and applicable planning standards used in the development of the plan.
3. A Section that contains a review and analysis of any major outage events in the prior three years, including a discussion of the problem, action taken and any conclusions and recommendations. In addition, a discussion of any significant issues affecting the reliability or adequacy of the transmission system and plans to address them.
4. A Section that summarizes the results of the long-term analyses of the transmission network by year for the next ten years which would include at least the following:
i. An overview of the existing integrated transmission system ("ITS") plan for Georgia as a whole and by regions within the State, including interfaces.
ii. A ten year study of all regional interfaces and their import and export capabilities as defined in the applicable NERC/SERC guidelines, as well as plans for future interconnections and improvements to existing interconnections.
iii. A ten year plan by year with details of all approved budgeted projects including discussions of the problems, alternatives and the final solutions as well as all forecasted projects including discussions of the problems and proposed solutions. Details of all approved budgeted projects shall include at least the following:
(1) the expected termination points and length for each new transmission line;
(2) identification of existing transmission facilities planned for upgrade, rebuilding or retirement;
(3) the expected design voltage, capacity and in-service date for each new, upgraded or rebuilt transmission facility;
(4) the approximate cost of each planned expansion or alteration to the transmission network.
iv. A list of all transmission projects proposed for the 500 kV, 230 kV and 115 kV systems, by year for the next 10 years.
5. An appendix that contains the Siemens load flow program (PSS/E) data files. The cases to be included are the Summer Contract cases for the 10 year plan period without the proposed fixes and an IDEV file containing the proposed fixes for each year. These files will be provided in electronic format.
6. Public information regarding preferred sites on the transmission system for the interconnection of new generation.
(d) The utility shall submit documentation which discusses the following:
1. A general discussion of the decision making process, criteria, and standards employed at the utility as it relates to resource development and acquisition, including, but not limited to a discussion of the utility's organization, the review and approval procedure, and schedule for resource assessment and acquisition plan preparation;
2. A discussion which outlines and justifies the general methodological approach taken for resource assessment and selection;
3. A discussion of the models, methods, data sets and information used by the utility to obtain the results;
4. A discussion of key assumptions and judgments used in the assessment and how those assumptions and judgments were incorporated into the analyses;
5. An identification and discussion of those factors (e.g., environmental laws, inflation, customer acceptance) which are most likely to have the greatest impact on the selected system configuration, and those factors that could prevent the successful implementation of the resource acquisition plan as presented;
6. A discussion and justification of the criteria (e.g., present value of revenue requirements, capital requirements, environmental impacts, flexibility, diversity) used to screen each resource alternative and the criteria used to select the final system configuration presented in the application(s) for certification;
7. A discussion and justification of why each alternative in the screening analysis was either accepted or rejected for further analysis; and why each alternative was or was not included in the final mix of resource options;
8. A discussion and justification of the criteria used in determining the appropriate level of reliability and the required reserve or capacity margin, and a discussion of how this determination has influenced the selection of options; and
9. A discussion of research efforts and/or programs underway or planned which are directed at developing data for future assessments and refinements of analyses.
(3) Request for Proposals Procedure for Long-Term New Supply-Side Options.
(a) Notwithstanding language contained in any other rule set forth in this chapter, the following terms shall have the following definitions as used in this Utility Rule 515-3-4-.04(3):
1. "Commission" means the Georgia Public Service Commission.
2. "Independent Evaluator" or "IE" means the entity or entities selected pursuant to the RFP Rule to conduct a RFP Process.
3. "IRP" means the filing ma de by the utility in which it proposes a specific integrated resource plan for adoption/approval by the GPSC.
4. "IRP Plan" means the specific integrated resource plan adopted by the GPSC for a utility, as may be modified from time to time, and which identifies specific supply-side resource blocks to be added by the utility at specific periods in time.
5. "PPA Execution Date" means the date on which a power purchase agreement between the soliciting utility and the winning bidder is executed pursuant to a RFP Process.
6. "RFP" means the notice of a request for proposals distributed to the marketplace by the IE under the RFP Rule identifying the needed resources and the time for providing those resources as set out in the IRP Plan, or any amendment thereto.
7. "RFP Document" shall mean the collection of materials identified in part IV.4 and distributed to interested bidders and pursuant to which the bids shall be submitted and evaluated during the RFP Process.
8. "RFP Process" means the preparation and issuance of a RFP and all the activities subsequently associated therewith that are expected to terminate in the execution of a PPA between the soliciting utility and the winning bidder, and in which an Independent Evaluator is selected pursuant to and performs the functions described in this Proposed RFP/IE Structure.
9. "RFP Rule" means GPSC Rule 515-3-4-.04(3) as amended from time to time, including specifically as amended to adopt the procedures and principles contained in this Proposed RFP/IE Structure.
10. "RFP Service Date" means that date six months in advance of the date the RFP is expected to be issued, as further described in paragraph II.3.
11. "Staff" means the Commission Staff assigned to participate in the RFP Process.
(b) Requirement to use an RFP Process.
1. For each block of required new supply-side resources identified in the IRP, the utility shall propose a schedule for conducting a RFP Process, including specifically the expected date upon which the RFP shall be issued that solicits each such new supply-side resource along with the amount of capacity required. This information shall be considered public information and made available to all potential bidders.
2. The RFP Process shall be utilized for every block of required new supply-side resource identified in the IRP Plan, except as provided in Rule 515-3-4-.04(3)(f).
(c) Role and Selection of an Independent Evaluator.
1. The IE will be retained by the soliciting entity under a contract that is acceptable to the Commission and which is consistent with the RFP Rule. In order to help assure independence, the IE shall be selected by and report to the Commission. The soliciting entity (i.e., Georgia Power Company or Savannah Electric and Power Company), the Staff and potential bidders may recommend persons or entities to serve as the IE. The Commission shall establish the minimum qualifications and requirements for an IE and shall select the IE pursuant to the selection process described herein. The role and function of the IE in the RFP Process shall be as set forth herein.
2. Any IE considered by the Commission shall be required to disclose any financial or personal interest involving any soliciting entity or any potential bidder, including but not limited to all substantive assignments for any Southern Company affiliate or any other potential bidder during the preceding five (5) years. The Commission may consider this interest in selecting the IE. The Commission will post on its web site the list of all IE candidates being considered and their statements of interest. The Commission will invite and consider any comments from the soliciting entity and potential bidders concerning the IE candidates prior to the selection of the IE. No IE selected by the Commission may perform services for the soliciting entity or any bidder for a period of two (2) years after the completion of an RFP Process in which the IE served.
3. The IE shall be retained in time to begin service at least six months prior to the expected issuance of the RFP ("RFP Service Date"). Consequently, the IE selection process identified in paragraphs II.2 and II.3 shall be concluded in time for the IE to begin service as of the RFP Service Date. From the date the IE is selected, no bidder or potential bidder shall have any communication with the IE, Staff, or the soliciting entity pertaining to the RFP, the RFP documents, the RFP process, the evaluation or the evaluation process or any related subjects except as those communications are specifically allowed by this proposed RFP/IE structure or as are made publicly through the IE's website.
4. The IE will report to the Commission and the Staff. In carrying out its duties, the IE will work in coordination with the Staff and the soliciting entity with regard to the RFP Process as further described herein.
5. If the IE becomes aware of a violation of any requirements of the RFP Process as contained in the RFP Rule, the IE shall immediately report that violation, together with any recommended remedy, to the Commission.
6. The IE's fees shall be funded through reasonable bid fees collected by the soliciting entity. The soliciting entity shall be authorized to collect bid fees up to $10,000 per bid to defray its costs of evaluating the bids and, in addition, the soliciting entity may charge each bid an amount which shall be equal the estimated total cost of the IE divided by the anticipated number of bids. To the extent that insufficient funds are collected through this method to pay all of the IE's fees, the soliciting entity shall pay the outstanding cost. Invoices for services rendered by the IE should be sent directly to the Commission for its review. After they are reviewed and approved, the invoices will be forwarded to the soliciting entity for payment, which will be made directly to the IE.
(d) Affiliate Communications.
1. Any affiliate of the soliciting entity that intends to submit a bid in response to the RFP, as well as any other persons acting for that affiliate or on its behalf in support of the development and submission of such bid, shall be known collectively as the "Bid Team."
2. The representatives of the soliciting entity that will be evaluating the bids submitted in response to the RFP, as well as any other persons acting for or on behalf of the soliciting entity regarding any aspect of the RFP Process, shall be known collectively as the "Evaluation Team."
3. No later than the RFP Service Date, the Bid Team shall be separately identified and physically segregated from the Evaluation Team for purposes of all activities that are part of the RFP Process. The names and complete titles of each member of the Bid Team and the Evaluation Team shall be reduced to writing and filed with the Commission for use by the IE.
4. There shall be no communications, either directly or indirectly, between the Bid Team and Evaluation Team from the RFP Service Date through the PPA Execution Date regarding any aspect of the RFP Process, except (i) necessary communications as may be made through the IE and (ii) negotiations between the Bid Team and the Evaluation Team for a final PPA in the event and then only after the Bid Team has been selected by the soliciting entity as the winning bid. The Evaluation Team will have no direct or indirect contact or communications with any bidder other than through the IE as described further herein, until such time as a winning bid is selected by the soliciting entity and negotiations for a final PPA have begun.
5. At no time shall any information regarding the RFP Process be shared with any bidder, including the Bid Team, unless the precise same information is shared with all bidders in the same manner and at the same time.
6. On or before the RFP Service Date, each member of the Bid Team shall execute an acknowledgement that he or she agrees to abide by the restrictions and conditions contained in paragraphs III.3 through III.5 above. At the PPA Execution Date, each member of the Bid Team shall execute an acknowledgement that he or she has met the restrictions and conditions contained in paragraph III.3 through III.5 above. These acknowledgements shall be filed with the Commission by the Bid Team within 10 days of their execution.
7. Should any bidder, including the Bid Team, attempt to contact a member of the Evaluation Team directly, such bidder shall be directed to the IE for all information and such communication shall be reported to the IE by the Evaluation Team member. At the RFP Service Date, each Evaluation Team member shall execute an acknowledgement that he or she agrees to abide by the and conditions contained in paragraphs III.3 through III.5 above and, as of the PPA Execution Date, shall execute an acknowledgement that he or she has met the restrictions and conditions contained in paragraphs III.3 through III.5 above. These acknowledgements shall be filed with the Commission by the Evaluation Team within 10 days of their execution.
(e) RFP Structure and Process.
1. Identification of Bidders and Design of RFP.
i. The soliciting entity will provide the Staff and the IE with a list of the companies that have submitted proposals in the three most recent solicitations conducted on behalf of the soliciting entity, as well as a list of all potential bidders to whom notice of those prior solicitations was sent. The soliciting entity shall be responsible for preparation of the final list of potential bidders to whom notice of the upcoming solicitation will be sent.
ii. The soliciting entity will be responsible for preparing an initial draft of the RFP Document, including RFP procedures, evaluation factors, credit and security obligations, a pro forma power purchase agreement, the inclusion of any "proxy price" agreed to by the Staff and the IE against which the soliciting entity wishes to have the RFP bids tested, and a solicitation schedule. No later than one hundred twenty (120) days prior to the planned issue date of the RFP, the soliciting entity will supply the draft of the RFP Document to the Staff and the IE. These drafts shall be posted on the Commission's website and be accessible through a link established for the use of the IE (the "IE website").
iii. If the soliciting entity wishes to consider an option for full or partial ownership of a self-build option, the utility must submit its construction proposal ("Self-build Proposal") to provide all or part of the capacity requested in the RFP to the IE at the time all other bids are due. Once submitted, the Self-build Proposal may not be modified by the soliciting entity. Provided, however, that in the event that the soliciting entity demonstrates to the satisfaction of the Staff and the IE that the Self-build Proposal contains an error and that correction of the error is in the best interest of customers and will not be harmful to the RFP Process, the soliciting entity may correct the error. Persons who have participated or assisted in the preparation of the Self-build Proposal in any way may not be a member of the Bid Team, nor communicate with the Bid Team during the RFP Process about any aspect of the RFP Process. The soliciting entity's Selfbuild Proposal must consist of the entire cost to complete the project including the "overnight cost," project capital additions, the Allowance for Funds Used During Construction (AFUDC) and the non-fuel operating and maintenance cost of the proposed self-build facility. The "overnight cost" is the cost to build the plant all at once, or "overnight," without consideration of financing costs. The utility thus may choose to make no commitment to the structure of the construction organization, to the timing of the project, or to its financing costs.
iv. The RFP and RFP Document together shall identify all factors to be considered in the evaluation of bids. In addition to the matters specified in Commission Rule 515-3-4-.04(3)(b), the following materials or matters shall be included in either the RFP or RFP Document, as appropriate:
I. a pro forma power purchase agreement containing all expected material terms and conditions;
II. information on the Southern Company OASIS that will permit each prospective bidder to identify any native load growth transmission service reservation made by or on behalf of the soliciting entity; and
III. the solicitation schedule.
With respect to item (iv)(I) above, the Commission shall conduct a process beginning at the conclusion of this IRP case, to be concluded within the shortest time practicable, in which all interested parties may participate to develop a pro forma power purchase agreement that will become part of the RFP Document. It is anticipated that the proforma power purchase agreement that is part of the RFP Document may be modified from time to time with the consent of both contracting parties in a manner that does not depart from the terms upon which the winning bid was selected.
v. The Staff and the IE will critique the initial draft RFP and RFP Document and provide their input to the soliciting entity. The soliciting entity may incorporate changes based on this critique if it so chooses. The initial draft RFP and RFP Document, plus the Staff/IE critique thereof, will be posted on the IE website.
vi. The IE and Staff, plus the soliciting entity, may conduct at least one public bidders conference to discuss the draft RFP and RFP Document with interested parties, including but not limited to potential bidders. Potential bidders may submit written questions or recommendations to the IE regarding the draft RFP and RFP Document in advance of the bidders' conference. All such questions and recommendations shall be posted on the IE website. The IE shall have no private communication with any potential bidders regarding any aspect of the draft RFP and RFP Document.
vii. Based on the input received from potential bidders and other interested parties, and based on their own review of the draft RFP and RFP Document, the Staff and the IE will submit a report to the soliciting entity detailing suggested recommendations for changes to the RFP and RFP Document prior to its issuance. This report shall be provided to the Commission and posted on the IE website for review by potential bidders.
viii. The soliciting entity shall submit its final version of the RFP and RFP Document to the Commission for approval or modification. Once approved by the Commission, the final RFP and RFP Document shall be posted on the IE website. At any time after the RFP is issued, through the time the winning bid is selected by the soliciting entity, the schedule for the solicitation may be modified upon mutual agreement among the soliciting entity, the IE and the Staff, or upon approval by the Commission.
ix. At the time the content of the RFP is considered for approval, the Commission may determine whether there will a single round of bidding, or whether a "competitive tier and refreshed bid" process will be used. The Commission will consider comments and views of the soliciting entity and any interested party, including potential bidders, on this issue. In the event that the Commission does not expressly determine that a "competitive tier and refreshed bid" process shall be used, there will be only one round of bidding.
x. Notwithstanding the foregoing, there shall be a single round of bidding to obtain the next supply-side resource identified in the current IRP case and that block of supply-side resource shall be procured through the RFP Process.
2. Issuance of RFP and Bidder Communications.
i. The IE will transmit the final RFP and RFP Document to the bidder list via the IE's website, pursuant to the solicitation schedule contained in the RFP and RFP Document.
ii. The only bidder communications permitted prior to submission of bids shall be conducted through the IE. Bidder questions and IE responses shall be posted on the IE website. To the extent such questions and responses contain competitively sensitive information for a particular bidder, this information may be redacted.
iii. The soliciting entity may not communicate with any bidder regarding the RFP Process, the content of the RFP and RFP Document, or the substance of any potential response by a bidder to the RFP; provided, however, the soliciting entity shall provide timely, accurate responses to an IE request for information regarding any aspect of the RFP and RFP Document or the RFP Process.
iv. Bidders shall submit bids pursuant to the solicitation schedule contained in the RFP and RFP Document. The soliciting entity, Staff, and the IE shall have access to all bids and all supporting documentation submitted by bidders in the course of the RFP Process.
v. The soliciting entity shall cause native load growth reservations to be made on the Southern Company OASIS for all bids that are not otherwise capable of using an existing native load growth reservation for evaluation purposes.
3. Evaluation of Responses to RFP.
i. The evaluation stage of the RFP Process will proceed on two tracks. On one track, the soliciting entity will evaluate all bids based on a total cost impact analysis such as was applied in the 2005/2006 Georgia RFP (the "TCI Analysis"). The soliciting entity will conduct this track in an appropriate manner, consistent with the principles and procedures contained in this Proposed RFP/IE Structure.
ii. A second track will be conducted by the Staff and the IE. The Staff and IE shall have discretion to utilize whatever they consider the optimum combination of auditing the soliciting entity track and conducting its own independent evaluation in order to evaluate the resource options submitted to the soliciting entity in the RFP Process. The Staff and IE may apply the TCI Analysis as part of conducting their independent evaluation.
iii. The soliciting entity, the Staff or the IE may request further information from any bidder regarding its bid. Any communications between the soliciting entity and a bidder in this regard shall be conducted through the IE. The soliciting entity shall be informed of the content of any communications between the Staff/IE and a bidder. Should it be determined necessary by the IE, the soliciting entity and the bidder, conference calls between the soliciting entity and a bidder may be conducted for the sole purpose of clarification and understanding of a particular bid. All conference calls must be initiated by the IE and the IE will be present on each call for its duration. Communications will be conducted on a confidential basis between the IE and the bidder, and may include one face-to-face meeting between the IE, the soliciting entity, and each bidder to discuss the proposal, unless a bidder declines such a meeting.
iv. In order to conduct both its independent evaluation function and its auditing function, the IE and the Staff shall have access to all information and resources utilized by the soliciting entity in conducting its TCI Analysis. The soliciting entity shall provide complete and open access to all documents and information utilized by the soliciting entity in its TCI Analysis; and the IE and Staff shall be allowed to actively and contemporaneously monitor all aspects of the soliciting entity evaluation process in the manner they deem appropriate. The soliciting entity shall facilitate this access so that the soliciting entity evaluation process is transparent to the Staff and the IE. The soliciting entity shall have an affirmative responsibility to respond to any request for access or information made by the Staff and/or the IE. To the extent the IE determines that the evaluation processes of the two tracks are yielding different results, the IE shall notify the soliciting entity and attempt to identify the reasons for the differences as early as practicable. Where practicable, the soliciting entity and the IE shall attempt to reconcile such differences.
v. The Staff and the IE, as well as the soliciting entity, may rely on the Southern Services Transmission Planning ("SSTP") group to conduct all necessary transmission analyses concerning bids received. SSTP analyses provided to the Staff and the IE shall be equivalent in quality and content as that provided to the soliciting entity. No bidder, including any bidder that is an affiliate of the soliciting entity, shall communicate with the SSTP group during the course of the RFP Process regarding any aspect of the RFP.
4. Bidding Stages.
i. If the Commission has directed that a "competitive tier and refreshed bid" process be used, the IE and the soliciting entity will follow steps 22 through 26 in the evaluation process.
ii. The soliciting entity shall perform its evaluation of the bids and shall develop a competitive tier that narrows the bids to a manageable number that the soliciting entity believes are the best competitive options ("soliciting entity Competitive Tier"). The Staff and the IE also shall perform their independent evaluation of the bids and develop their own competitive tier that narrows the bids to a manageable number that the Staff and the IE believe are the best competitive options ("Staff/IE Competitive Tier").
iii. The soliciting entity shall provide the soliciting entity Competitive Tier to the Staff and the IE. Simultaneously, the Staff and the IE shall provide the Staff/IE Competitive Tier to the soliciting entity.
iv. If the soliciting entity Competitive Tier and the Staff/IE Competitive Tier are identical, the IE shall notify all companies on the Competitive Tier lists that they have the opportunity to better their bids as final best offers. The IE shall post the Competitive Tier list on the IE website showing each bidder's relative rank and the total evaluated cost of each bid. Each bidder on this list will be identified blindly so each bidder knows the identity of the bidder for only its bid but sees its rank compared to those of all other anonymous bidders who made the Competitive Tier.
v. If there are differences between the soliciting entity Competitive Tier and the Staff/IE Competitive Tier, the soliciting entity, the Staff, and the IE shall meet to try to resolve such differences in order to agree on a single Competitive Tier list. To the extent that such agreement cannot be reached, the IE shall notify all parties on each list that they have the opportunity to better their bids as final best offers. The IE shall post the combined Competitive Tier list on the IE website showing each bidder's relative rank and the total evaluated cost of each bid. Each bidder on this list will be identified blindly so each bidder knows the identity of the bidder for only its bid but sees its rank compared to those of all other anonymous bidders who made the Competitive Tier.
vi. The refreshed "better" bids/final best offers shall be evaluated independently by:
(1) the soliciting entity; and
(2) the Staff and the IE, in each case consistent with the process outlined above for initial bids.
5. Certification of Resource(s).
i. After it has completed its evaluation, and pursuant to the RFP schedule, the soliciting entity shall notify the Staff and the IE of which resource(s) the soliciting entity has selected to win the bid.
ii. The Staff and the IE shall notify the soliciting entity whether they agree with the determination by the soliciting entity. The Staff/IE shall also notify the soliciting entity of the results of their independent evaluation.
iii. If the Staff and IE do not agree with the selection made by the soliciting entity, they shall meet to discuss the differences in their selections.
iv. The soliciting entity is responsible for determining which resource(s) it will submit to the Commission for certification. The soliciting entity may consider the Staff/IE evaluation in making its decision, but the soliciting entity remains ultimately responsible for the selection.
v. Based on the pro-forma PPA included in the RFP Document, the soliciting entity may negotiate a final PPA with the bidder for each resource it has selected so that the Commission may consider the exact terms under which the resource will be certified.
Any such PPA shall be expressly conditioned on the final decision of the Commission in the certification proceeding. If the soliciting entity conducts such negotiations, the IE and the Staff shall have the right, but not the obligation, to attend any and all negotiating sessions for the purpose of monitoring them. In the alternative, the soliciting entity may wait until the certification proceedings are complete to begin negotiations with the bidder for each selected resource based on the pro-forma PPA included in the RFP Document.
vi. The soliciting entity shall file with the Commission a request for certification of the resource(s) chosen by the soliciting entity.
vii. The Staff and the IE shall participate in the certification proceeding and testify regarding:
(1) their independent evaluation of whether the resource selected by the soliciting entity should be selected and if not, which resource(s) in their view should be selected as a result of the RFP process; and
(2) whether the soliciting entity conducted the RFP process in a fair and impartial manner.
viii. The Commission will conduct the certification proceeding and may take any actions it deems appropriate as allowed by law.
ix. If the soliciting entity has not yet negotiated a specific PPA prior to the certification, upon approval of PPA award recommendations by the Commission, the soliciting entity will proceed to negotiate or finalize appropriate contractual arrangements consistent with the approved award(s). The IE and the Staff shall have the right, but not the obligation, to attend any and all negotiating sessions for the purpose of monitoring them. The soliciting entity will make a compliance filing once the PPA is executed and the IE and the Staff will report to the Commission their opinion as to whether the PPA as executed complies with the Commission's certification order.
x. The soliciting entity will maintain a complete record of all materials developed for, generated during, or used in the RFP Process for (3) three years beyond the date of certification of the selected proposal(s), including any such materials prepared and/or used by the IE, as well as hard copies or electronically stored copies of all materials and exchanges posted on the IE's website.
xi. The IE will enter into an appropriate agreement pertaining to the disclosure and use of any models, analytical tools, data, or other materials of a confidential or proprietary nature that are provided or made available by the soliciting entity in conjunction with the RFP Process.
(f) The only exceptions from the requirement to procure supply-side capacity through competitive bidding shall be the following:
1. Purchases from Qualifying Facilities (30 MW or less) as required by 16 U.S.C. Section 796;
2. Repowering, life extension or efficiency improvement of an existing generating plant that does not require significant capital investment;
3. Supply-side capacity resources of extraordinary advantage that require immediate action, as demonstrated in a joint petition for certification by the utility and, where applicable, the potential provider;
4. Modification to comply with environmental regulatory requirements; and
5. Any supply-side resource that would provide power at a capacity level of 30 MW or less.
6. The Commission shall expressly consider in each IRP, and make a determination in each IRP Plan, whether to exclude from the RFP Process any new supply-side resources identified in the soliciting entity's approved IRP Plan; and
7. It is the Commission policy that investor-owned electric utilities under its regulation shall maintain a minimum percentage of their capacity as "self-owned" rate-based assets. Such percentage shall be set by Commission order and may be changed from time to time. In those situations in which the soliciting utility is nearing or finds that it would fall below this minimum percentage level, the soliciting utility shall inform the Commission of this eventuality in advance of the RFP Process at which time the Commission, in its discretion, may suspend these rules and provide guidance to the soliciting utility as to how it should proceed.
At the time when the utility decides to consider one of these options as an exception to the RFP solicitation requirement of Rule 515-3-4-.04(3)(f), the utility must so notify the Commission through an informational filing. The informational filing shall not constitute a certificate application for the resource option being considered, although an application is required if such a resource is selected.
(g) If the utility selects a purchase option, it must either include in the proposed contract each of the following four provisions, or show as a part of its resulting certificate application why other benefits of the proposed purchase warrant the Commission's approval:
1. A "regulatory out" clause written in terms acceptable to the contracting parties;
2. A "take-and-pay" provision that the utility will pay the variable charges associated with energy generated by the seller's facility only when it actually purchases that energy. It will pay capacity charges only when the seller's unit is effectively available for service, subject to appropriate contractual provisions regarding routine maintenance. "Take-orpay" provisions, under which the utility would be committed to pay for power regardless of the seller's performance, will not be approved;
3. Security deposits to ensure that if the seller's facility fails to produce power, the utility is covered such as for the extra costs of purchasing or generating replacement power. The parties should negotiate the form of such deposits such as whether they are separate or joined with general deposits securing contract performance generally; and
4. An option for the utility to purchase the seller's facility if for any reason the seller is unwilling or unable to meet its contractual obligations after a reasonable opportunity for cure. The contract should allow the utility to submit a price offer, or to have a right of first refusal to match an outstanding bona fide offer. The contract should also specify that the seller may not force the utility to undertake such a purchase of the facility; that the utility may, without waiving any other contract rights, elect to operate and maintain the facility if the seller fails to operate and maintain the facility after a reasonable opportunity for cure; and that the seller may not sell its facility or delegate its contractual obligations without notice to and consent of the utility, which consent shall not be unreasonably withheld. The utility must provide an informational notification to the Commission if it elects to operate and maintain the facility, if it elects to purchase the facility, if the seller sells the facility to a third party, or if the seller delegates its contractual obligations to a third party.
(h) In conducting evaluation of the bids received in the RFP process, the utility shall not:
1. add any adjustments on the basis of expected impacts to the utility's cost of capital; and
2. impose a penalty on the price of purchased power or discount on the cost of utility self generation on the basis of reliability of purchased power as part of the utility's resource mix.
These requirements are without prejudice to the utility at its option also performing evaluations taking into account all aspects of cost and risk it believes appropriate as a matter of information for the Commission for case-by-case review during resulting certificate application proceedings.
(4) Potential New Demand-Side Resources.
(a) Demand-side Resource Assessment and Initial Cost Screening:
1. Assessing Demand-Side Measures. A comprehensive range of demand-side measures shall be evaluated for each customer segment, and the utility shall compile a list of measures based upon an inventory of end-use devices and consumption patterns developed for energy and demand forecasting. For each DSM measure included on this list, the applicant shall provide the following information:
(i) A brief description of the measure;
(ii) Measure costs and basis for costs;
(iii) Measure kW and kWh load impacts and associated avoided costs;
(iv) Measure useful life;
(v) Forecast of market potential;
(vi) Current saturation of the measure;
(vii) Assumptions on participant benefits, if any, other than electricity savings; and
(viii) Any other supporting data deem pertinent by the utility.
2. Screening. The utility shall screen all demand-side measure utilizing the fate impact measure test, the participant's test, the total resource cost test and the societal cost test. The utility shall perform a final screening of demand-side programs based on current Commission policy.
(i) Program administrative costs shall not be included in the total cost for the initial screening of the measure because programs have yet to be designed. After programs are designed, program administrative costs are estimated and included in subsequent screening of demand-side programs;
(ii) Program costs include the participant's direct cost of a demand-side measure, the utility's direct cost of a demand-side measure, and the utility's administrative cost for developing and implementing the demand-side measure. Participant's costs are incremental costs and include only those costs which would not have been incurred but for participation in the program;
(iii) Utility estimates of these costs and benefits should, to the extent practicable, be evaluated on the same basis as electric supply-side resources;
3. Measure elimination. Those measures which fail the Total Resource Cost test shall be eliminated from program consideration. If the utility eliminates any demand-side measures, each such measure shall be identified, and the reason for rejection shall be fully explained.
(b) Development of Program Design for Measures Passing Initial Screening:
1. All demand-side measures which passed the Total Resource Cost test may be incorporated into one or more demand-side programs, taking into account the program administrative costs and interactions between measures; and
2. Programs should pass the final screening test and be designed as either full scale or pilot programs.
O.C.G.A. Secs. 46-2-30.
Disclaimer: These regulations may not be the most recent version. Georgia may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
