Energy Resource Acquisition: 2010 Request for Proposals from All Generation Sources & Demand Side Resources

Purpose of RFP Filing

Regional growth, the expiration of large purchased-power contracts in coming years and the potential retirement of aging power plants are the principal drivers behind PSE's need for additional power supplies. PSE's recently updated Integrated Resource Plan, published in July 2009, estimates that the utility will need nearly 1,100 megawatts (MW) of new electricity supply by winter 2016-17 to meet customers' peak demand. That need grows to approximately 5,000 MW by 2029—almost triple the peak winter demand of a city the size of Seattle.

To help ensure that PSE acquires resources for our customers at the lowest reasonable cost, the Company filed a Request for Proposals from All Generation Sources ("All Source RFP") and a Request for Proposals for Electric and Gas Demand-Side Resources ("Energy Efficiency RFP") (collectively, "RFPs") with the Washington Utilities and Transportation Commission ("WUTC").

Energy Efficiency RFP

The Energy Efficiency RFP seeks to enhance PSE's already aggressive programs for helping customers use less energy. The utility's 2009 Integrated Resource Plan estimates that energy-efficiency services to customers could save PSE more than 530 average-MWs of electricity over the next 20 years. Those savings, sufficient to offset the electricity requirements of 400,000 households, would forestall the need to build four average-sized natural gas-fired power plants. The updated resource plan also identifies 90 million therms of achievable natural-gas savings by PSE customers, enough to satisfy the total gas needs of 108,000 households.

The draft energy-efficiency RFP invites qualified firms to offer services that complement or improve upon PSE's existing energy-saving programs involving rebates and grants to residential, commercial and industrial customers.

All Source RFP

The All Source RFP asks outside power producers, marketers, and power-plant developers to help PSE procure approximately 1,000 MW of new electricity resources by 2016. While PSE anticipates energy efficiency, renewable power and gas-fired generation will be its dominant sources of new power supply in coming years, the RFP will consider any viable power-supply offering or technology that can be in operation by 2016. PSE will consider various contract arrangements, such as investment in existing power plants, ownership of new plants, or long-term power purchases.

Schedule

The expected timeline for PSE's 2010 RFP solicitation is shown below. The Company will host a public meeting on October 29, 2009 to discuss the draft RFPs and to solicit comments from interested parties. The meeting will be held at PSE's Bellevue, Washington campus on October 29, 2009, from 10:00 a.m. to noon. To R.S.V.P. for this conference, email janice.brown@pse.com.

October 12, 2009	Draft RFP filed with WUTC
October 29, 2009	PSE hosts public meeting on Draft RFP
December 11, 2009	Public comments due
January 11, 2010*	WUTC comments expected
January 12, 2010*	PSE releases final RFP solicitation
January 28, 2010	PSE hosts proposal conference
March 2, 2010	All Source RFP offers due to PSE Confidentiality Agreements are due by February 15, 2010.
March 5, 2010	Demand Side RFP offers due to PSE Confidentiality Agreements are due by March 5, 2010 with proposals.

*estimated dates

Questions or comments regarding the Demand Side Resources RFP may be sent to rich.hazzard@pse.com. Questions or comments regarding the All Generation Sources RFP may be sent to sheri.maynard@pse.com. If you are not on our email distribution list but would like to be, please email your contact information to sheri.maynard@pse.com.

Thank you for your interest in PSE's RFP process.

2010 RFP Filing Letter

All Generation Sources RFP

RFP for All Generation Sources
Exhibit A, Evaluation Criteria
Exhibit B, Proposal Requirements
Exhibit C, Summary Data Form [Note: The linked PDF is a draft only. Once approved, it will be replaced with an online form.]
Exhibit D, Energy Delivery (12x24) – Wind, Solar, Tidal and Wave (Excel file)
Exhibit E, Capital Costs and Operating Expenses (Excel file)
Exhibit F, Mutual Confidentiality Agreement
Exhibit G, Schedule of Estimated Avoided Cost
Exhibit H, Prototype Ownership Agreement Term Sheet
Exhibit I, Prototype Gas Tolling Agreement Term Sheet
Exhibit J, Prototype Wind Power Purchase Agreement (PPA) Term Sheet

Note: To use the Excel file templates identified above, click on the file link, select save and select a location on your computer. You will then be able to complete the form fields as directed.

Demand Side Resources RFP ("Energy Efficiency")

RFP for Electric and Gas Demand Side Resources
Exhibit A, Proposal Cover Letter
Exhibit B, Proposal Summary Document (Word file)
Exhibit C, Proposal Cost Summary Document (Word file)
Exhibit D, Measure Metrics Summary Document
Exhibit E, Measure Lives Documents
Exhibit F, Conservation Cost Effectiveness Standard (updated 10/13/09 to include revised tables F-1 and F-2)
Exhibit G, Doing Business with PSE Documents

Note: To use the Word file templates identified above, click on the file link, select save and select a location on your computer. You will then be able to complete the form fields as directed.

Glossary and acronyms

Frequently asked questions (Updated November 5, 2009)