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2006-08 Targeted II and Innovative RFP: Q&A

Question / Answer
  1. I will be out of town until July 16 and thus will not have time to prepare a proposal. Please note that our firm was approved to provide service via your "Technical Matrix" almost one year ago. We were requested to submit a proposal because of our unique expertise in process instrumentation and control systems, and process analysis. To date we have note received a single request to even bid on work as part of this technical matrix. What else should we have been doing to be offered the opportunity to provide our expert services?
/ This question relates to a separate contracting effort, the “technical matrix” contracts. It is outside the scope of this RFP and should be directed to staff who administer the technical matrix contract.
  1. What are columns K, L, & M used for on the input tab?In your documentation you indicate that the amounts in these fields are for the participant. Is the participant considered the vendor providing the technology or is it the end user where the technology will be installed.
/ The columns are for computing the program’s incentive budget, i.e. the amount of budget allocated for incentive payment to program participants. The “participant” can be the end user (i.e. customer) or another entity that is eligible to receive incentive under the proposed program’s rules. For example, a program may provide incentives to installation contractors, if the program is designed to target installation contractors.
  1. I had a customer inquiry asking about the possibility of them preparing a bid, but wanted to check on their applicability before they spend resources to pursue this.
/ Any entity that meets the Bidder Eligibility requirements specified in Section 3.2 of the RFP may submit a proposal.
  1. Would it be possible for PG&E to provide prospective bidders with information about their residential electricity and gas customers. Specifically, we would like to know the distribution of your residential customers by climate region and within each climate region, approximately how many residential customers are taking service under each rate schedule available to them.
/ This data is provided in Bidder Q&A Attachment 1.
  1. We are a large customer of PG&E. As a customer, may we participate in the RFP as both “implementer” and ultimate PG&E customer?
/ Yes. Any entity that meets the Bidder Eligibility requirements specified in Section 3.2 of the RFP may submit a proposal.
  1. Notwithstanding the recent award to our firm of a large Specific Performance Contact (SPC) incentive payment for energy savings in PG&E service territory, certain limiting requirements of the SPC program, most notably the SPC incentive payment “cap” and the incentive payment level of cents per kWh saved, reduced the level of our energy efficiency involvement. Should we be eligible for RFP involvement, will the assumed larger scope of the RFP program ($69 million) remove program limiters, such as the funding limiting “cap”, allowing more complete development of our energy saving proposals?
/ Bidders should propose what funding caps, if any, will be included in their proposed program. PG&E reserves the right to set funding caps for third party programs as PG&E, at its sole discretion, deems necessary for portfolio balancing.
  1. Although the RFP Bidder’s Manual, in section 3.1.3 on page 14, limits proposed programs to PG&E customers, as a CPUC endorsed program, there is also discussion on possible RFP crossover to other California utilities. As our operations cover large portions of California and we are also a large customer of Southern California Edison (SCE), are possible RFP proposals strictly limited to PG&E service territory?
/ Proposals in response to this solicitation are limited to PG&E’s service territory.
  1. We have registered for the 2006-2008 Energy Efficiency Program Portfolio RFP and wanted to see if there was any chance of getting a copy of last years RFP as well?
/ Last year’s RFP is posted on the website under Related Links – click on “Third Party Solicitation Released September 23, 2005 (now completed)”
  1. We are interested in attending the bidder training session on Friday July 7, 2006 at the PacificEnergyCenter. I can not locate the session agenda and information on the web site. Could you please send me the information regarding this RFP bidder training session?
/ Bidder training information is posted on the website under RFP Update. The next training session is scheduled for August 11.
  1. For Stage 1 proposals is a simple staple allowed for binding proposals?
/ Yes.
  1. If a bidder identifies a significant gap in the portfolio that is one of the market segments but not one of the targeted areas and the bidder can cost-effectively fill that gap, would PG&E evaluate a proposal to address that gap?
/ Bidder’s proposal would not be eligible under the “targeted” part of this RFP. However, Bidder should consider whether its proposal could be considered “innovative” and thus eligible given the definition of “innovative” contained in the RFP.
  1. Per Section 1.10.3, PG&E long-term vision of competitively bid programs, can a bidder propose a program that is faster, better and more cost effective? Or, must each proposal respond to the identified market segment and target areas?
/ To be considered, each proposal must either fall into one of the identified market segments and target areas OR qualify as innovative given the definition contained in the RFP.
  1. A list of Tasks/Deliverables is listed on page 82, Section 5.3.1 of the RFP, for which successful bidders can expect to be paid on a T&M basis. Can “program development” costs not listed here (e.g., development of a program tracking database) also be assumed billable under T&M?
/ PG&E will review requests for T&M payment for other program development costs not listed in the RFP on a case-by-case basis. However, PG&E has considered reasonable program tracking database expenses to be allowable T&M expenses in the past
  1. I understand that payment/invoicing will be based on a combination of T&M and per unit savings, but will what will be required for reporting? Will we be required to report expenditures on a cost-plus basis, similar to what has been required in recent years’ CPUC workbooks, or will we reports fully loaded costs?
/ Bidders should be prepared to report expenditures on a cost-plus basis, if required by the CPUC.
  1. Given the separate solicitation for RCx services, are we allowed to include RCx as part of target market proposals?
/ There is no separate solicitation for RCx services. Bidders may propose RCx as part of target market proposals.
  1. Is the Innovative Program section required for Phase I?
/ No.
  1. If we propose a measure with water savings, is there a way to derive energy credit for it?
/ No. CPUC policy does not allow us to claim energy savings associated with water savings. There is a separate proceeding on this subject currently being conducted at the commission with a workshop scheduled for July 17th in Southern California.
  1. If our proposal makes use of an existing PG&E program or financial incentive, are we able to claim the energy savings as part of our program?
/ No. The savings will be credited to the program from which the incentives are paid.
  1. How do we model retro-commissioning in the E3 model? Is it possible to do it on one line, as for Southern California Edison, or does it have to be broken out into multiple lines?
/ You may propose retro-commissioning either as a single measure or break it out into intermediate steps.
  1. How do we obtain capacity values from the calculator for demand response programs?
/ The CPUC adopted avoided costs for energy efficiency only calculate a capacity value for transmission and distribution avoided costs. There is no official generation capacity value.
  1. Is CPUC/PG&E requirements forDR on website?
/ Pge.com discusses available DR programs. Click on “your business” then “Demand Response” for DR program info. In addition, click on “Rates & Regulation” to access the demand response tariffs.
  1. If you submit budget breakdown for Stage 1, would you be held responsible for the same budget and breakdown in stage 2?
/ Bidders will be held to same budget and breakdown in Stage I and Stage II. The purpose of Stage II is not to modify Stage I proposal but to provide more detail about the Stage I proposal.
  1. What is the value that differentiates between a small and large gas customer?
/ 20,800 therms/month is the line between core (small) & non-core (large).
  1. If a single office building wished to do a HVAC retrofit, are PG&E rebate programs still available? And if so would it make more sense to use this RFP or the rebate?
/ Customers may receive PG&E rebates as long as they meet the rebate requirements and funds are available. Customers may also submit program proposals under this RFP. However, customers may not receive both PG&E rebates and third party program funds for the same project. While a single customer site is not precluded from submitting a proposal under this RFP, the customer/prospective Bidder must meet all bidding eligibility requirements as stated in the RFP.
  1. For customers with existing self gen, can we have a program that produces more gas in order to reduce overall gas consumption?
/ Program and customer eligibility requirements are discussed in the body of the RFP. Contract requirements that apply to self-generation customers specifically are contained in Section 3.6 of the Specific Conditions, attached to the RFP. Bidder should consult both the customer and program eligibility requirements as well as the language in the Specific Conditions to assess eligibility of their proposal.
  1. Can a program be linked to an existing program? For example, if a program offers engineering/auditRCX services and identifies small capital projects that are not part of the RCX services (e.g. addition of VFD), can customer receive PG&E rebates for those measures?
/ Customers can receive PG&E rebates for measures that are not covered under the proposed third party program, provided that the measure meets PG&E rebate requirements and funds are available. However, please note that savings will be credited to the program which pays out the incentives. Therefore, the proposed program may not claim energy savings for measures identified by the proposed program if customer receives incentives from another program.
  1. Would you entertain a proposal that would be strictly for the benefit of a single owner that is not provided to or marketed to other building owners?
/ Yes.
  1. What level of marketing assistance can be provided by PG&E?
/ Bidder should propose level of marketing assistance it seeks from PG&E to be successful. PG&E will assess and discuss the request with Bidder if Bidder is selected for negotiations.
  1. For searching the DEER Database, is there an “and” search option?
/ The DEER search function can accommodate an "or" command but not "and. "
  1. Please re-clarify “number of common units” in DEER
/ Number of common units identifies how many common units (CFLs, tons, linear feet, etc) are included in the assessment.
  1. The Portfolio Summary spreadsheet on the web does not include LGP budgets – can those be added?
/ PG&E can add budgets for the Stage II process.
  1. How does the incentive payment work? If the customer gets the incentive, how does the third party program implementer get paid? Is there competition between 3P and PG&E Programs?
/ Incentive payment refers to rebates or other financial assistance provided to program participants by the proposed program. The proposed budget should include all costs to be incurred by the third party program implementer as well as any program incentives to be paid to participants. Thus, the incentive payments become a “pass through” payment. Customers can participate in more than one program but can only receive rebates from one program for each measures. The program providing the incentive for the measure is allowed to count the savings from the measures.
  1. If program gets an incentive amount, does that have bearing to what the customer gets?
/ The incentive amount entered in the Avoided Cost calculator is the amount expected to be paid to program participants (e.g. customers). For example, if the program specifies a rebate level of 5 cents per kWh, then that’s the amount the customer will get for each kWh delivered. Please note that this is not the same as the per-unit savings payment that the third party program implementer will receive. The per-unit savings payment ($/kWh or $/therm) is the agreed-upon payment which PG&E will pay implementers for each kWh or therm delivered and verified by PG&E.
  1. This RFP excludesmidstream point of sale program with big box and independent lighting and appliance retailers. Does the exclusion include to point of sale LCD computer monitors?
/ Yes. Point of sale programs with retailers for LDC monitors are not eligible for this RFP.
  1. If a line item measure is a generic measure group, do we include multiple DEER ID's?
/ You may use a generic measure group and average savings values in the calculator. However, you must provide the individual DEER ID’s, savings assumptions and how the average values are determined in the supporting documentation.
  1. Regarding DEER "unit definition". You refer to "homes" as being the unit, but if the project involves replacing lamps, shower heads, etc., then would each item become its own "unit?"
/ Yes.
  1. Please re-clarify "Number of common units" in DEER:
/ The number of common units identifies how many common units (CFLs, tons, linear feet, etc) are included in the assessment.
  1. For searching the DEER database, is there an "and" search option?
/ The DEER search function can accomodate an "or" command but not "and. "
  1. Is there still a minimum RFP value of $500,000?
/ The minimum values are listed in Section 4.3 of the RFP.
  1. How will programs that cut across multiple market segments be evaluated? By primary market? Is it preferable to break programs up into separate proposals for each market segment?
/ Proposals will be initially grouped by the primary market segment. However, PG&E may evaluate a proposal in one or more market segments as it sees fit. There are no requirements to break proposals into multiple programs for different market segments. Bidders must decide for themselves what makes the most sense from a programmatic perspective.
  1. Are their any restrictions of a successful bidder administering the accepted program in implementing some or all of the projects?
/ Bidder may propose to directly implement some or all of the projects.
  1. If we want to propose the same conservation measure for lodging (hotels/motels) and multi-family, should we submit 1 proposal with separate line items or two separate and distinct proposals, one for each industry
/ Please see response to Question 40.
  1. In the last RFP, the contract stated that there would be no additional agreement with the customer in regard to installing the conservation measure. We noticed in the latest RFP there is no verbiage to the same effect. Is this requirement still a condition of the contract?
/ PG&E expects that most third party programs will involve contracts or agreements between the third party implementer and the customer. In addition, the specific conditions attached to the RFP (Exhibit 6) refer to several issues that must be addressed in contracts between third party implementers and customers. For example, see Exhibit 6, Section 3.13 (Customer and Contractor Disclosure Obligations) and Section 4 (Access Agreement).
  1. Could you please clarify if our understanding is correct on the following two items?
    A. We understand a successful bidder would be paid the cost of "the program" that was developed. We will submit a budget in our proposal, and if selected, we would be paid to execute the program based on our budget.
    B. We understand that the incentives are handled separately (customer application filed and approved by PGE, customer pays full amount of project, rebate paid to customer.)
/ A. The Bidder’s proposed program budget should include both the Bidder’s costs for administering and implementing the program, and any incentives to be by the program to customers (participants). PG&E may award the successful Bidder a budget amount that is different from the bidder’s proposed budget, in which case, PG&E and the successful Bidder will negotiate savings and budget for modified contract amount.
B. If a proposed program includes customer incentives, then it will be the successful Bidder’s responsibility to review, approve and pay customer incentive payments. As stated above, any incentives the Bidder anticipates to pay out through the program should be included in the program budget. A customer may not receive incentives from a third party program and a PG&E program for the same measure.
45. Can we propose a retrocommissioning program focused for a specific commercial sector, as a targeted program? Will this be considered as an independent category from the retrocommissioning category for which a budget of $10 million has been allocated? / Bidder may propose a Retro-Commissioning program focused on a specific commercial sector as a targeted program.