N.M. Admin. Code § 17.7.3.12 - REQUEST FOR PROPOSALS PROCESS
A. Scope and purpose: Unless the commission
grants a public utility's variance application pursuant to
17.7.3.17 NMAC for a variance from
Section 12 of this rule, the utility shall follow the request for proposals
process to ensure cost competitiveness and fairness in procurement by comparing
proposals among bidders through a transparently designed and monitored request
for proposals.
B. To address the
utility's procurement need, if any, as described in the statement of need, and
to fulfill the objectives of the utility's action plan, the utility shall issue
a request for proposals (RFP) in the current IRP docket, within five months of
the commission's acceptance of its statement of need and action plan.
C. Prior to the utility's commencement of an
RFP solicitation, the utility shall provide the commission, the IM, and parties
to the utility's pending IRP case with the documents and contracts that
constitute the RFP solicitation (RFP documents) and a timeline for soliciting,
accepting, and evaluating bids.
D.
Within 21 days of receipt of the RFP documents, commissioners, commission
utility division staff, and intervenors may submit comments to the utility,
including on whether its proposed RFP conforms with its accepted statement of
need and action plan and is not unduly discriminatory. Comments shall be
considered, and may be incorporated, by the utility prior to the issuance of
the RFP.
E. The utility may issue
the RFP after comments are submitted on the independent monitor's design report
pursuant to Subsection I of
17.7.3.14 NMAC. The utility shall
file a notice with the commission of any final changes to the RFP design upon
issuance.
F. The proposed RFP(s)
shall include:
(1) bid evaluation
criteria;
(2) the overall amount
and duration of power the utility is soliciting and any other details
concerning its resource needs;
(3)
a request for bidders' reasonable estimates of any new transmission costs and
transmission upgrade costs for resources, if known;
(4) the extent and degree to which resources
shall be dispatchable, including the requirement, if necessary, that resources
be able to operate under automatic dispatch control;
(5) the utility's proposed contract(s) for
the acquisition of resources;
(6)
proposed contract term lengths;
(7)
the applicable discount rate;
(8)
the timeline, including the solicitation period, the evaluation period, and the
expected selection period;
(9) all
security requirements and the rationale behind them; and
(10) any other information necessary to
implement a competitive RFP process.
G. For a proposed RFP, each utility shall
provide:
(1) a description of information that
the utility claims is confidential;
(2) descriptions of proposed protection
methods for:
(a) bid prices; and
(b) other bid details.
H. Not later than 120 days after
the utility receives bids for its projected needs, the utility shall provide
the IM with an evaluation of proposals that meet the above stated criteria, a
detailed description of price and non-price criteria, its preferred portfolio
of resources, along with a timeline for resource development.
I. The utility shall evaluate bids submitted
in response to an RFP using the following price and non-price criteria:
(1) consistency with the terms and
requirements of the Efficient Use of Energy Act and the Renewable Energy Act;
and other public policies regarding resource preferences adopted by New Mexico
or the federal government;
(2) cost
of the resource that would be borne by ratepayers, described in terms of the
net present value of capacity cost and lifetime cost of energy
calculation;
(3) resource effect on
system operations and reliability, credit, and financial risks to the
utility;
(4) any risks imposed on
ratepayers, including assessment of relative amounts of risk inherent among
different technologies, fuel sources, or financing arrangements;
(5) environmental impacts including, but not
limited to, those associated with resources that emit carbon dioxide or create
long-term waste disposal issues;
(6) resource dispatchability and operational
flexibility benefits or constraints;
(7) the utility shall include in its
evaluation the estimated cost and environmental impact of transmission upgrades
or distribution infrastructure upgrades necessary to deliver the project's
energy, capacity, or services;
(8)
each bidder shall be responsible for all costs associated with interconnecting
its project to the transmission grid or, if applicable, to local distribution
facilities; and
(9) completeness
and credibility of a detailed critical path schedule, and ability to meet
scheduled construction start date and commercial operational date, including
completing the interconnection process.
J. Additional criteria used by the utility
for evaluation may not establish a preference for utility ownership or for
projects proposed by a utility-affiliated company. The utility shall not
unreasonably discriminate between proposals for a utility-owned or utility
affiliate-owned resource and proposals for a resource owned by an independent
power producer through a purchased power agreement.
K. The bid evaluation shall ensure that all
bids are compared and evaluated on a consistent basis that is competitive,
fair, and shall be subject to review by the commission.
L. The utility may issue additional RFPs in
the current IRP docket, adhering to the processes and procedures described in
17.7.3.12 NMAC, if prudent
following a material event pursuant to Subsection D of
17.7.3.11 NMAC.
M. Nothing in this rule shall be construed to
prevent a public utility from procuring resources as required by the REA,
Section 62-16-4 NMSA 1978, the EUEA,
Section 62-17-5 NMSA 1978, or 17.9.570
NMAC. Such procurements shall be included in the utility's forecasting,
statement of need, and action plan.
Notes
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