Southwest Power Pool, Inc. STRATEGIC PLANNING COMMITTEE ... order 1000...آ  Southwest Power Pool, Inc

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  • Southwest Power Pool, Inc.

    STRATEGIC PLANNING COMMITTEE TASK FORCE – ORDER 1000 MEETING

    Thursday, September 4, 2014

    10 AM – 5 PM

    Friday, September 5, 2014

    8 AM – 11 AM

    In-Person Meeting – AEP Offices

    • A G E N D A •

    1. Call to Order and Administrative Items ................................................................... Ricky Bittle

    2. Straw Proposal Review and Action Plan ..................................................................... SPP Staff

    3. Summary of Action Items ................................................................................ Michael Desselle

    Relationship-Based • Member-Driven • Independence Through Diversity

    Evolutionary vs. Revolutionary • Reliability & Economics Inseparable

  • Order 1000 RFP I s suance and IEP Scor ing S traw Propo sa l

    August 15, 2014

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  • Revision History

    Date or Version Number

    Author Change Description Comments

    08/07/2014 Aaron Shipley Initial Draft

    08/11/2014 Aaron Shipley, Ben Bright

    Updates/Edits Refined initialed draft

    8/14/2014 Aaron Shipley, Ben Bright

    Finalized First Draft

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  • Table of Contents

    Revision History ...........................................................................................................................................1

    Straw Proposal & Timeline .........................................................................................................................3

    Executive Summary: ........................................................................................................................3

    RFP Issuance Guidance ...............................................................................................................................4

    Instructions:......................................................................................................................................4

    Issuing RFPs (Form/Process):..........................................................................................................4

    IEPs Scoring Guidance ................................................................................................................................6

    Instructions:......................................................................................................................................6

    (1) Engineering Design (Reliability/Quality/General Design), 200 points: ....................................6

    (2) Project Management (Construction Project Management), 200 points: ....................................6

    (3) Operations (Operations/Maintenance/Safety), 250 points: ........................................................7

    (4) Rate Analysis (Cost to Customer), 225 points: ..........................................................................8

    (5) Finance (Financial Viability and Creditworthiness), 125 points: ..............................................8

    Timeline ........................................................................................................................................................9

    Timeline Summary: .........................................................................................................................9

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  • Straw Proposal & Timeline

    Executive Summary: SPP Staff, under the guidance of the SPCTF on Order 1000 (“SPCTF”), has proposed the creation of a White Paper - Straw Proposal to provide clarity to the details that will be included in the Request For Proposal (“RFP”), what information respondents are required to submit with their proposals, and how the Industry Expert Panels (“IEP”) will score the competitive bids associated with the Transmission Owner Selection Process (“TOSP”). This document provides a high level look at the process, timeline, and working groups that could be used to assist in the creation of this information. Ultimately Staff will create a Business Practice for use in administering the RFP review and scoring portion of the TOSP. Once each group has reviewed its designated sections, they will provide their documented findings to the Point of Contact(s) below, who will provide the findings to the SPCTF. The SPCTF will take the lead and combine the information/feedback for final drafting to ensure consistency and accuracy as to what the stakeholder’s desires are in the execution of the TOSP for Competitive Upgrades within SPP. In order to have this information for use starting with the January 2015 cycle, the deadline for completion of this task is 11/15/2014. Point of Contact: At the conclusion of a group’s task(s), all reports and findings should be sent to Ben Bright (bbright@spp.org) and Aaron Shipley (ashipley@spp.org), who will be responsible for organizing the findings to the SPCTF for their use in creating this Business Practice.

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  • RFP Issuance Guidance

    Instructions: For the Issuing RFPs section below, those designated to provide feedback and information on this section should evaluate and provide guidance for SPP Staff to consider when issuing a RFP and for Qualified RFP Participants (“QRP”) to consider when responding to a RFP. Information included should provide clarity to what level of detail is required, what form the data should be in, and what data will be required in the RFP to ensure that the RFP respondents have the proper information available to best submit their RFP proposals. Once a group has completed its evaluation, they should document their findings and provide a report to the point of contact(s) found in the Executive Summary of this document. The deadline for this task is 10/1/2014. (Tariff reference: Attachment Y Section III.2.c)

    Issuing RFPs (Form/Process): The purpose of this section is to better define the creation of the RFP document and how that RFP will be issued for Competitive Upgrades. Furthermore, this section will help define how a QRP will meet its requirements when responding to a RFP. Stakeholders, as well as staff, have expressed concern about the level of detail that needs to be included in a RFP to allow transparency and accurate RFP responses from bidders in the TOSP. Criteria considered in this evaluation category shall include, but not be limited to:

    1. What is required to be included in the RFP Document? a) Form of RFP (RFP Document/Technical/Legal)

    1. Overview of the purpose of the RFP including the need for the Competitive Upgrade, regulatory context and authority, and other necessary information

    b) What is required to be in the RFP 1. The submission deadline (180 days unless staff discretion makes it less) 2. Minimum design specifications (Recommend that we use MDSTF Standards) 3. Date the regulatory approvals are required to be completed (pending FERC ROFR

    language) c) Communication of RFP

    1. In BPR 54 staff agreed to post a list of RFPs that will be issued after the Board of Directors approval of projects.

    2. RFPs will be sent to QRP by email 3. RFP responses will be made through RMS

    2. What is required to be included in the RFP Response?

    a) Financial information (demonstration of financing), detailed engineering and construction cost estimate, itemized revenue requirement calculations, financial and business plans (include any FERC incentives)

    b) Engineering information (engineering design and technical requirements) c) Construction information, anticipated project timeline (including all regulatory

    approvals), equipment acquisition, description of applicable rights-of-way and real estate acquisition, description of routing, description of permitting, description of outage clearance(s), identification of the party responsible for construction

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  • d) Operations and maintenance information, demonstration of operations, statement of which entity will be operating and maintaining the transmission facility, storm and outage response plan, maintenance plan, staffing, equipment, crew training, and record of past maintenance and outage restoration performance

    e) Safety information, identification of internal safety program, contractor safety program, and safety performance record

    f) RFP’s responsibility to identify information considered confidential g) QRP demonstration of financial strength

    1. QRP must demonstrate it continues to meet one of the following: i. Financial criteria set forth in Section III.1(b)(ii)(1) or (2) of Attachment

    Y and that the Competitive Upgrade does not exceed 30% of the total capitalization of the QRP or its parent Guarantor

    ii. Performance bond from an insurance/surety company equal to the total cost of the Competitive Upgrade, including financing cost, and a 30% contingency

    iii. Letter of credit from a financial institution acceptable equal to the total cost of the Competitive Upgrade, including financing cost, and 30% contingency

    h) Information exchange requirements 1. Identification of data required to be provided to the Transmission Provider in

    accordance with NERC reliability standards and CEII requirements 2. A description of the proposal evaluation procedure, including the statement of

    proposal evaluation methodology and criteria for acceptable proposals 3. QRP agreement to

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