2013 Natural Gas Transportation Request for Proposals

Transcription

1 2013 Natural Gas Transportation Request for Proposals Please provide two hard copies of your proposal and electronic version on a disk or a USB flash drive by 5 pm (PPT) February 10, No s will be accepted Natural Gas Transportation Request for Proposals Attn: Origination 825 NE Multnomah Street, Suite 600 Portland, Oregon If you have any questions please contact RFP team at: GasTportRFP@pacificorp.com

2 Contents SECTION 1. INTRODUCTION... 3 A. Purpose and Scope... 3 B Transportation RFP Deliverables... 3 SECTION 2. LOGISTICS... 4 A Transportation RFP Schedule... 4 B. Effectiveness of Bids... 5 C. Minimum Eligibility Requirements for Bidders... 5 D. Company s Reservation of Rights and Disclaimer... 6 E. Confidentiality... 6 F. Credit information... 7 SECTION 3. BID EVALUATION AND SELECTION... 9 SECTION 4. AWARDING CONTRACTS... 9

3 SECTION 1. INTRODUCTION A. Purpose and Scope PacifiCorp is requesting proposals for creative structured firm transportation July through September or a combination of firm (July through September) and interruptible (October through June) gas transportation ( 2013 Transportation RFP ) to provide gas supply to the Naughton Unit 3 (the Project) located near Kemmerer, Wyoming. PacifiCorp will accept proposals of available existing firm and/or interruptible service and/or service resulting from construction of new pipeline and delivery facilities. The pipeline connection to the Project is an existing Questar pipeline lateral delivery point called Naughton Interconnect. To the extent a bidder proposes construction of a new pipeline the bidder must provide details of its planning, overall design, permitting, application, and construction processes and an anticipated schedule. After conducting a comprehensive analysis, PacifiCorp has elected to convert the Naughton Unit 3 from coal to 100% natural gas. Planned conversion will be complete by June If a conversion extension is approved by the United States Environmental Protection Agency (EPA ), other regulatory events occur indicating a delay in conversion is possible or maybe appropriate, or there is a delay for any reason in the conversion construction or contracting for constructing, PacifiCorp may cancel this RFP process or otherwise delay it until a later date. Planned conversion is anticipated to be complete by June 2015, or subject to an EPA conversion extension, June B Transportation RFP Deliverables Proposals must include the following information: Term: March 1, 2015 or March 1, December 31, 2029 PacifiCorp s requirements for firm transportation service are limited to the July through September period for each year Delivery Point: Receipt Points: Naughton Interconnect - Map # 0207 on Questar Pipeline Company System. For any transportation agreement, PacifiCorp seeks firm receipt points that offer sufficient market liquidity and operational flexibility to meet the challenges of matching generator fuel requirements with the dynamic balancing needs of a large, multi-state, electric utility operation. PacifiCorp does not pre-judge what receipt points will meet this need and expects bidders to demonstrate liquidity and flexibility commensurate with the volume at proposed receipt points. 3

4 Start Date 2013 Gas Transportation RFP Volume: End Date December 31, 2020 December 31, 2029 March 1, 2015 Up to 71,000 MMBtu/day - March 1, 2018 Up to 71,000 MMBtu/day - January 1, Up to 89,000 MMBtu/day Pressure at the Delivery Point: Minimum 252 psig Maximum 300 psig Rate of Change: Bidder must allow the flexibility to provide a rate of change of minimum 1,600 MMBtu per hour. SECTION 2. LOGISTICS A Transportation RFP Schedule The schedule for the 2013 Transportation RFP process is provided below. PacifiCorp may revise this schedule at any time in its sole discretion. Event Anticipated Date 2013 Transportation RFP issued December 23, 2013 Bidder workshop Teleconference January 10, 2014 Analyze bids and shortlist March 6, 2014 Management approvals March 13, 2014 Award contract March 14,

5 Proposal submission deadline is February 10, 2014, 5:00 p.m. Pacific Prevailing Time (PPT). Please provide two hard copies of your proposal and an electronic version on a disk or on a USB flash drive in Microsoft Word or Excel format. No s will be accepted. All questions regarding this 2013 Transportation RFP should be submitted in writing electronically to GasTportRFP@pacificorp.com prior to 5:00 p.m. PPT, February 3, Responses will be provided in writing. B. Effectiveness of Bids Each bid proposal must remain open for acceptance by PacifiCorp from the date of submittal through April 1, C. Minimum Eligibility Requirements for Bidders 1. Receipt of proposal prior to response deadline. 2. Bidder must permit disclosure of information contained in the proposal to PacifiCorp agents, contractors or regulators. 3. Bidder must disclose the real parties in interest in the proposal. 4. Bidder or a primary sponsor of affiliate of the bidder or bid may not have any current litigation with or threatened litigation against, PacifiCorp. 5. Proposal must clearly specify all pricing terms and physical delivery terms. Each product proposal must include the following details: Daily volume delivery capability Hourly volume delivery capability Rates or rate schedule Start date Term Receipt point(s) Delivery point(s) Maximum and minimum delivery point delivery pressure Heating value of the gas (HHV) Btu per scf, Chemical composition (C1-C8), i.e., CO2, Sulfur (total, including any odorizer, H2O content Odorizer (if any) used. 6. Proposal must not present any unacceptable level of development and technology risk, as determined by PacifiCorp in its sole discretion. 7. Must submit a firm fixed price. 8. Bidder is responsible for construction risk if a new construction proposal is provided. 5

6 D. Company s Reservation of Rights and Disclaimer The Company reserves the right, without qualification and in its sole discretion, to reject any or all bids, and to terminate this 2013 Transportation RFP in whole or in part at any time and for any reason. Without limiting the foregoing, PacifiCorp reserves the right to reject as nonresponsive any or all bid proposals received. In addition, PacifiCorp may, in its sole and absolute discretion, issue additional subsequent solicitations, conduct due diligence with respect to the qualifications of each bidder, and vary any timetable. PacifiCorp further reserves the right without qualification and in its sole discretion to decline to enter into any agreement with any Bidder for any reason, including but not limited to change in regulation or regulatory requirements that impact PacifiCorp and/or any collusive bidding or other anticompetitive behavior or conduct. Bidders who submit bid proposals do so without recourse against PacifiCorp, its parent companies, its affiliates and its subsidiaries, or against any director, officer, employee, agent or representative of any of them, for any modification or withdrawal of this 2013 Transportation RFP, rejection of any bid proposal, failure to enter into an agreement, or any other reason. Bids must disclose the real parties in interest. PacifiCorp reserves all rights with respect to any attempt to influence PacifiCorp's evaluation outside the 2013 Transportation RFP process and any collusive bidding or other anticompetitive conduct. PacifiCorp may require credit assurances adequate to PacifiCorp in its sole and absolute discretion. Credit assurances may include, without limitation, a guaranty, a letter of credit, or other forms of collateral, in a form, amount and from such entities acceptable to PacifiCorp. E. Confidentiality PacifiCorp will attempt, but in no way promises, to maintain the confidentiality of all bids submitted, to the extent allowed by law or regulatory order, as long as such confidentiality does not adversely impact a PacifiCorp regulatory proceeding. It is the bidder s responsibility to clearly indicate in its proposal what information it deems to be confidential. Bidders may not mark their entire proposal as confidential, but must mark specific information on individual pages as confidential, in order to receive confidential treatment for such information. All information supplied to PacifiCorp or generated internally by PacifiCorp shall remain the property of PacifiCorp. Bidder shall maintain the confidentiality of such information and shall not make it available to any entity before, during or after this 2013 Transportation RFP process, unless required by law or regulatory order. The bidder expressly acknowledges that PacifiCorp may retain information submitted by the bidder in connection with this 2013 Transportation RFP. Only those PacifiCorp employees who are directly involved in this 2013 Transportation RFP process or with the need to know for business reasons will be afforded the opportunity to view submitted bids or bidder information. 6

7 Bidders should be aware that information supplied by bidders may be requested and supplied during discovery in docketed or other regulatory proceedings, subject to the appropriate confidentiality provisions applicable to that particular proceeding. This means that parties to docketed proceedings may request to view confidential information. If such a request were to occur, PacifiCorp will attempt to prevent such confidential Bidder information from being supplied to intervening parties who are Bidders or who may be providing services to a Bidder, but PacifiCorp shall not be held liable for any information that it is ordered to be released or that is inadvertently released. F. Credit information Please provide the following information so PacifiCorp can evaluate the financial viability of the Bidder (Section 1 below) and any entity providing credit assurances on behalf of the Bidder, if applicable (Section 2 below). 1. Credit information for Bidder a. Exact legal name and address of Bidder: b. Debt Ratings from S&P and/or Moody s (please provide senior unsecured long term debt rating or a corporate rating if a debt rating is unavailable). Please indicate type of rating, rating, and source: c. Please attach copies of fiscal year end audited financial statements (including balance sheet, income statement, and cash flow statement) for the three most recent fiscal years (a link to the applicable website may be provided if such statements are publicly available at such link). Please note that these financial statements are to be stand-alone financial statements in the name of the Bidder. d. Identify pending legal disputes (describe); if bidder is a new special purpose entity, please provide pending legal disputes involving the primary project sponsors: 7

8 e. Please state whether Bidder is or has within the past five years been the debtor or an affiliate of a debtor in any bankruptcy proceeding, and if so, identify such proceeding, with case number: f. If Bidder is unable to provide audited financial statements or is relying upon another entity to provide credit assurances on its behalf, Bidder must indicate so here and complete the following section. i. Is Bidder unable to provide audited financial statements? ii. Is Bidder relying upon another entity to provide credit assurances on Bidder s behalf? 2. Credit information for entity providing credit assurances on behalf of Bidder (if applicable) a. Exact, legal name and address of entity providing credit assurances on behalf of Bidder: b. Describe relationship to Bidder and describe type of credit assurances to be provided (e.g. parental guaranty, letter of credit, etc.). c. Debt Ratings from S&P and/or Moody s (please provide senior unsecured long term debt rating (or corporate rating if a debt rating is unavailable). Please indicate type of rating, rating, and source: d. Please attach copies of fiscal year end audited financial statements (including balance sheet, income statement, and cash flow statement) for the three most recent fiscal years (a link to the applicable website may be provided if such statements are publicly available at such link). Please note that these financial statements are to be stand-alone financial statements in the name of the entity providing credit assurances on behalf of the Bidder. e. Pending legal disputes (describe): 8

9 f. Please state whether the entity providing credit assurances on behalf of the Bidder is or has within the past five years been the debtor or an affiliate of a debtor in any bankruptcy proceeding, and if so, identify such proceeding, with case number. SECTION 3. BID EVALUATION AND SELECTION PacifiCorp will utilize the RFP Base Model to evaluate the proposals on the basis of all-in transport and delivery cost adjusted for risk, as well as operational flexibility and capacity of the contract path offered to matching generator fuel requirements with the Company s dynamic balancing needs. The all-in cost includes but not limited to the following variables: Capacity charge Usage charge Annual charge adjustment ( ACA ) Fuel lost and unaccounted-for gas charges Market price of natural gas at the point of receipt Cost of upstream transportation Cost of new pipeline build, if applicable Other bid-specific charges, fees, etc. Other bid-specific incentives and Cost of credit Proposals will be ranked from low to high based on the all-in cost for delivered gas measured in $ per MMBtu. The risk evaluation will consider reliability of the pipeline and liquidity of the market at the point of receipt. The RFP Base Model is a Microsoft Excel workbook that includes a number of proprietary Visual Basic macros, custom add-ins, and computational code written in C++. SECTION 4. AWARDING CONTRACTS The 2013 Transportation RFP is an invitation for bidder to provide proposals to PacifiCorp. No proposal in and of itself is a binding contract. PacifiCorp may, in its sole and absolute discretion, perform any one or more of the following: 9

10 1. Determine which proposals are eligible for consideration in response to this 2013 Transportation RFP. 2. Issue additional subsequent solicitations for information and conduct investigations with respect to the qualifications of each respondent. Negotiate and respond to bidders to amend any proposals. 3. Select and enter into agreements with the respondents who, in the Company s sole judgment, are most responsive to the 2013 Transportation RFP and whose proposals best satisfy the interest of the Company and its customers, and not necessarily on the basis of any single factor alone. 4. Reject any or all proposals in whole or in part. 5. Issue additional subsequent solicitations for proposals. 6. Vary any schedule. 7. Withdraw any invitation to submit a response. 8. Retire the plant earlier than the projected retirement date of December 31,