Additional Questions from the RFO mailbox:

Post Date: June 17, 2011

Q1: Problems with Attachment D.

Enable Macros each time the file is opened. This may require closing Excel if you are not prompted to do so in the beginning.

Reset the macro security level.

From http://office.microsoft.com/en-us/excel-help/enable-macros-to-run-HP001119579.aspx:

When the macro security level in Excel is set to Low (not recommended), macros can be run without prompting. When macro security is set to Medium, Excel displays a dialog box asking if you want to enable macros. When macro security is set to High (the recommended macro security setting for all users), Excel allows you to run only those macros that are digitally signed or stored in the Excel startup (XLStart) folder.

Questions should be responded to in sequence, starting generally with the top left section of each topic box. If not in sequence, this may disable the macros.

Q2: I do not have the file in MS Word format.

Participants may submit offers in a non-Microsoft Word file if the document is from a third party source, such as a diagram or pdf.

Q3: For each Offer Variation, which Forms should be included? Do you want only the additional separate Offer Forms (Attachment Ds) that relate to each Variation or, do other forms need to be included for each Variation as well?

For each offer variation we ask that you completea separate Offer Form D1 or D2. The remaining project description can be the same, noting where the description diverges from other assumptions for each variation, such as online date.

Q4: Can I submit a site lease?

Yes, a site lease is acceptable.

Q5: Can I submit a site for solar development?

Yes, a site for solar development is acceptable.

Q6: What are the requirements for interconnection status and related studies for any given project?

There are no specific requirements to be eligible to bid. However, we will consider the project's status in the interconnection queue when we assess project viability. Sellersmay refer to the scoring in theproject viability calculator.

Q7: Can we propose contract lengths of greater than 20 years? Will a 25 or 30 year proposal be rejected?

Yes, you can offer a contract for longer than 20 years. Indicate the number of months in the Offer form.

Q8: We are unclear as to what the Term Sheet (Attachment I)is referring to when it asks developers to comment on "ERR Provisions".

The ERR provisions are contained in section 10.2 (b), (c), (i) and (ii) of the PPA. We are asking Seller to commit to those, or suggest necessary modifications. Note that modifications are not allowed to section 10.2 (b), as it is a CPUC non-modifiable term.

Q9. Can you specify how the item “other proxy transmission upgrades” is attributed in case several projects require the upgrades? Prorated? First project takes all?

If more than one project fall within the same generation Level in the same cluster, the associated cost in “other proxy transmission upgrades” column shown in Table X.1 of the 2011 RPS Protocol will be allocated on a pro rata basis in bid evaluation. Please see CPUC Decision 05-07-040, Ordering Paragraph 3, which states, “In ranking RPS bids, PG&E, SCE, and SDG&E shall each allocate costs of transmission upgrades that would be used by more than one RPS project on a pro rata basis, based on the percentage of transfer capacity added by the proposed upgrade that would be used by the RPS project: This pro rata allocation of upgrade costs shall be applied only if sufficient renewables potential exists, as identified by the California Energy Commission, to fully utilize the transmission facility sometime in the future.”

Q10. Please walk thru use of Table X.1 in more detail. Which column would be used?

The table X.1 is the Transmission Ranking Cost table for the PG&E study clusters showing potential availability of transmission capacity and the associated Transmission Ranking Costs for various levels of potential RPS RFO bid. This Table is meant to provide information and some guidance to the bidders before the bid submittal to the bidders to aid in structuring their bid proposals. For those bidders that have not completed the CAISO Interconnection Process, PG&E will use the Transmission Ranking Costs in Table X.1 and other information submitted by the bidders (such as generation profile) to calculate the Transmission Adders for bid evaluation purposes. For bid evaluation, PG&E will use the both the Column with heading “Proxy Voltage Support Devices” and the Column with heading “Other Proxy Transmission upgrades” with the time periods that best reflect the Generation Profile and technology submitted by the bidder.

For more information on the Transmission Ranking Cost Report (TRCR), please see the PG&E web site. For information on the use of the Transmission Ranking Costs in bid evaluation, please see CPUC Decision 04-06-013, Attachment A.

Q11. What happens if my actual interconnection costs are higher/lower than what was assumed for bid evaluation?

Interconnection costs are the responsibility of the counterparty. In the evaluation, PG&E uses network upgrade proxy costs for those generation projects that have not completed the CAISO Interconnection Process; however, regardless of whether the network upgrade costs end up higher or lower than the proxy estimate, it is the developer’s responsibility to fund these costs and the developer will get a refund over a five year period with interest after the project comes on line.

Q12. D1 asks for guaranteed construction start date. Are you looking for actually moving dirt on the construction site, or would procuring equipment be considered the start of construction?

The construction start date is typically when the full notice to proceed is given to the EPC contractor. For more specific information please refer to PG&E's PPA.

Q13. What documents are required for a complete bid package?

A complete bid package consists of Tabs 1 – 11 (as applicable) and are described beginning on page 23 of the solicitation protocol document. The necessary forms for completing Tabs 1, 2, 10 and 11 are available on PG&E’s website. All other documents will require the Participant to complete in a format that is acceptable as described in the protocol document.

Q14. What if actual transmission study results are significantly higher than at the related TRCR cluster? (new 06-17-2011)

We are aware of the potential difference in the TRCR proxy costs versus actual interconnection study costs at a particular cluster and we are considering that in our evaluation process.