CHP RFO Questions and Answers

Q1: Is SDG&E considering Capacity only products?

A: SDG&E will consider Capacity only (Resource Adequacy) products, but these products will be evaluated separately from the Pro-Forma and UPF Offers that have been received. SDG&E has uploaded a Resource Adequacy Confirmation onto the CHP website to allow for these products. The form has been uploaded to the RFO Website.

Q2: For a facility providing a hybrid combination of CHP must take and UPF Capacity, how is the required efficiency for the facility determined.

A: A hybrid offer (ie a CHP resource with limited dispatch capability) will be considered. The facility must comply with the eligibility set forth in the RFO Eligibility requirements. SDG&E will compare the efficiency of the “must take” resource to the efficiency of the settlement defined Double Benchmark resource to determine the GHG Reduction benefit. For the UPF portion (dispatchable portion) of the facility, SDG&E will assess the change in operation (from base load to dispatchable) in order to determine the GHG Reduction benefit. Please submit the hybrid combination as two separate bids and note that both bids are linked.

Q3: The CEC 2843 Application appears to establish eligibility for the AB 1613 feed-in-tariff which is only available to units < 20 MW. Our facility is much larger. Is this truly a requirement, or can we instead provide historical data?

A: If you do not have a copy or are not required to file the CEC 2843 Application, your bid will still be eligible. Please populate the Offer Form with historical data.

Q4: I could not find the link to the RFO Registration Form on the RFO website. Where can it be found?

A: The registration form has been uploaded to the website as of March 14, 2012 (Download Form). SDG&E will follow up with an username/password combination allowing access to the upload link.

Q5: Does the project have to be offered by the Operator or Owner? Can there be no transfer of Title to another company and then sale to SDG&E?

A: As long as SDG&E is entitled to all of the same protections that an owner/operator can offer, SDG&E will consider the marketer offer.

Q6: The Capacity Allocation Factors when applied to the formula is section 3(a) of the PPA Exhibit D yields payments very different than those obtained using SCE and PG&E Factors. Please explain how to determine the Capacity payment using the Capacity Allocation Factors listed in Exhibit D.

A: The steps listed below yield capacity payments in line with those calculated using SCE and PG&E factors.

  1. Populate a 4 TOD Period x 12 month matrix with appropriate values from the SDG&E table in the PPA.

  2. Create another 4 x 12 matrix with hours per TOD period per month.  (We recognize that the number of TOD hours per month varies slightly from year to year.)

  3. Multiply the values in step 1 by values in step 2. For example, for the cell corresponding to January On-Peak multiply the factor 0.013237 by 63 hours.

  4. Divide each of the 48 results from step 3 by 100.  After this step is performed the sum of the factors arranged in a matrix of 4 TOD periods by 12 months is 1.0. 

  5. Use the results from step 4 in the monthly capacity payment calculations for each TOD period.

Q7: Under the Economic Curtailment participation section, SDG&E can only exercise curtailment of the facility during times with CAISO Market Prices fall below $0/MWh. What if we wish to offer curtailment when the CAISO Market price is something other than $0/MWh?

You may do so. SDG&E has updated the Offer Form to allow the Seller to set the Market price (If other than a $0/MWh price) at which SDG&E can curtail generation. If the Seller would like to offer curtailment at any price input “Mkt” into cell C123 of the ‘9. Contract Pricing’ tab.