Acquiring Energy

Procuring new energy supply

To meet the anticipated energy needs of our region in the coming years, PSE must acquire new sources of energy. We have several strategies for acquiring additional energy, approaches that meet your long-term demands for electricity and natural gas while keeping your rates as low as possible.

As a leader in renewable energy, we are actively developing additional renewable resources that protect both your pocketbook and the environment.

Another important strategy is to continue helping homes and businesses save energy. Over the next 20 years, our energy-efficiency programs are expected to help customers save more than 500 megawatts of electricity. Those savings are equivalent to the output of four average-sized natural gas-fired power plants.

We also identify new energy resources by issuing formal requests for proposals (RFP). This open-bidding process helps us purchase power, acquire existing power plants and develop new facilities at the most competitive prices.

 

Our RFP process

Pursuant to Washington Utilities and Transportation Commission rules (WAC 480-107), following the biannual updating of PSE's Integrated Resource Plan, PSE files a Request for Proposals when the plan identifies a resource need within the next three years.

 

2020 Demand Response and All-Source RFPs Update

Puget Sound Energy (“PSE”) has filed a motion to withdraw draft Demand Response and All-Source RFPs filed with the Washington Utilities and Transportation Commission (“WUTC”) in dockets UE-200413 and UE-200414 respectively. Currently, the draft RFPs are scheduled for consideration at the Commission’s open meeting on September 10, 2020. PSE filed a petition in these dockets on September 3, 2020 requesting a two week extension. If the extension is granted, the motion to withdraw PSE’s draft RFPs would be considered at the Commission’s open meeting on September 24, 2020.

On May 4, PSE filed with the WUTC draft Demand Response and All-Source RFPs demonstrating a need for new capacity resources within the next four to five years. In late July, PSE completed the process to update its load forecast, which reflects updated economic and demographic assumptions, the effects of the COVID-19 pandemic, and increased conservation from the 2019 Integrated Resource Planning (“IRP”) process. PSE subsequently updated its electric-peak capacity need projection to include the new load forecast, which had the overall effect of reducing the expected capacity need over the next 20 years. PSE does not project a material need for new capacity resources until 2026.

On August 26, 2020 PSE filed an informational update in Washington Utilities and Transportation Commission dockets UE-200413 (Demand Response RFP) and UE-200414 (All-Source RFP), seeking comment from interested parties on the potential withdrawal of its draft RFPs. PSE received a total of eight comments in response to this notification. After careful consideration of the comments, as well as the impact of the F2020 normal peak load forecast on the capacity need, PSE maintains it is in the public interest to withdraw both the draft Demand Response and the draft All-Source RFPs. For more information about the comments received, please see PSE’s petition filed on September 8, 2020 in these dockets. More information about PSE’s decision to withdraw the draft RFPs can be found in the stakeholder updates provided below and in the dockets referenced above.

  • August 12, 2020 Stakeholder Update
  • August 26, 2020 Stakeholder Update
  • September 3, 2020 Stakeholder Update
  • September 8, 2020 Stakeholder Update
  • If PSE’s petition filed on September 3, 2020 in Washington Utilities and Transportation Commission dockets UE-200413 and UE-200414 for a two week extension is granted, the Commission would consider PSE’s petition to withdraw the draft Demand Response and All-Source RFPs at its next open meeting on September 24, 2020. If these requests are withdrawn, PSE intends to integrate targeted demand response into a separate Targeted Demand Side Management (“TDSM”) RFP in September of this year.

    PSE will notify interested parties of the outcome of these dockets once the Commission issues a final order. Notifications will be sent by email to PSE’s stakeholder notification list and will be posted to this webpage. Interested parties may opt in to receive stakeholder notifications by contacting AllSourceRFPmailbox@pse.com.

     

    Schedule for 2020 Demand Response and All-Source RFPs

    Dates

    Milestones

    May 4, 2020

    Draft All-Source and Demand Response RFPs filed with WUTC

    July 6, 2020

    Public comment period closes

    September 24, 2020

    WUTC open meeting to discuss RFPs

    TBD 2020

    PSE hosts RFP respondents’ conference (details below)

    TBD 2020

    PSE expects to issue All-Source and Demand Response RFPs

    TBD 2020

    Mutual Confidentiality Agreements due to PSE 

    For demand Response RFP proposals, intent to bid forms also due

    TBD 2020

    Offers due to PSE

    TBD 2021

    PSE selects short list, notifies respondents

     To follow

    Post-proposal negotiations



    2018 Demand Response and All-Source RFPs Update

    PSE received nearly 100 proposals in response to its 2018 All-Source and Demand Response RFPs from a variety of resource alternatives. This is the largest response to a PSE All-Source RFP to date. Many proposals included multiple offer options with variations in pricing, offer structure, term start and duration, and transmission delivery points. Some proposals offered hybrid options, pairing storage with wind or solar resources.

    So far, PSE has issued four press releases announcing the execution of contracts from the 2018 RFP. The RFP process remains ongoing. PSE will update this site if and when new resources are contracted.

    The following table summarizes the resources PSE received in response to its 2018 Demand Response and All-Source RFPs by resource type and size.


    Resource type

    # Proposals

    Size range
    (MW / RECs, roughly)

    Solar

    36

    35 – 290 MW

    Wind

    20

    45 – 500 MW

    Storage – battery

    17

    10 – 200 MW / 30 – 800 MWh

    Storage – pumped hydro

    2

    330 – 500 MW

    Biomass

    3

    10 – 55 MW

    Natural Gas-fired Gen.

    4

    50 – 620 MW

    Geothermal

    2

    15-25 MW

    Hydro - run of river

    1

    40 MW

    System PPA / Call Option

    1

    100 MW

    Unbundled RECs

    5

    35,000 - 130,000 RECs

    Demand Response

    6

    20-40 MW

    Total

    97

     

     

    2020 RFP Respondent Conference

    PSE expects to host a web-based RFP respondent conference in August 2020 to help respondents prepare successful proposals and to address matters of common interest prior to the proposal due date. Click AllSourceRFPmailbox@pse.com to be added to the RFP notification list and receive an email alert about the conference. Details about the conference will also be posted to this site as they become available.

    Respondents will be asked to register for the conference in advance. Presentation materials will be posted here after the conference.

     

    2020 RFP for Demand Response

    PSE filed a draft Demand Response RFP on May 4, 2020.

    2020 All-Source RFP

    PSE filed a draft All-Source RFP for peak capacity resources on May 4, 2020.


    Contact information

    Questions or comments about the 2020 Demand Response RFP may be sent to DemandResponse@pse.com. Questions about the 2020 All-Source RFP may be sent to AllSourceRFPmailbox@pse.com.

    Reporting information

    PSE's Code of Conduct for voluntarily submitting energy data to index developers.