Puget Sound Energy (PSE) on May 4 submitted for approval to the Washington Utilities and Transportation Commission the draft 2020 Request for Proposals for All Generation Sources (Draft 2020 All-Source RFP), through which the company seeks bids from qualified third parties to supply electric capacity resources to PSE.
PSE, in its draft RFP, said that it is also planning to file a demand response RFP roughly in parallel with the All-Source RFP.
Discussing the resource need, PSE noted that the integrated resource planning analysis, which evaluates and establishes the company’s capacity — physical reliability — and renewable energy — policy driven — needs on a biennial basis, guides PSE’s electric resource acquisition process. PSE said that its most recent Integrated Resource Plan (IRP) — the 2017 IRP — included a discussion of the electric planning standard and described the methodology for analyzing the company’s resource needs.
PSE also noted that it filed an IRP Progress Report in November 2019 that demonstrated a need for new resources to help meet PSE’s peak capacity need. The IRP Progress Report also found that PSE has sufficient renewable resources to meet its renewable portfolio standard (RPS) obligations through 2023, the company said.
PSE said that its demand forecast demonstrates a modest need for 82 MW of new electric resources in 2024 that is expected to increase to 753 MW in 2026. That forecast reflects PSE’s F2019 normal peak load forecast and includes the impact of the potential sale of PSE’s interests in Colstrip Unit 4, which is pending commission approval; the removal of Colstrip Unit 3 from PSE’s portfolio after 2025; the expiration of the Centralia power purchase agreement (PPA); and the addition of PSE’s draft 2018 All-Source RFP short list resources.
PSE also said that this All-Source RFP seeks resources to meet projected need beginning in 2024, 2025, and 2026.
PSE said that while it will primarily assess a resource’s contribution to capacity by its ability to meet PSE’s winter peak, the company also has seasonal and daily capacity needs. PSE said that its analysis will favor resources with production shapes that align well with PSE’s load or that offer the ability to dispatch to meet load. Proposals that can help meet seasonal (November-February, December-February, or November-March), heavy load hour, and super peak needs, while reducing surpluses off peak, will benefit in PSE’s analysis, the company said.
PSE said that it will consider proposals for renewable and baseload electric generation, capacity only resources, and storage resources from a wide variety of technologies and fuel sources. Since its capacity needs are greatest in winter, PSE said that it will evaluate resources based on their ability to fill winter deficits, while minimizing off-peak surpluses. Resources that are dispatch able, are shaped to meet winter peak needs, or with generation profiles that align well with PSE’s load shape will perform best in PSE’s analysis, the company said.
PSE also noted that given the transmission constraints associated with delivering peak capacity to the company’s load center, PSE strongly prefers proposals for resources that are located on PSE’s system or demonstrate that the project has secure long-term firm delivery to PSE’s system at BPA Transmission Service (BPAT).
The company also said that it prefers existing and yet-to-be built resources with commercial operation dates aligned with certain resource needs. PSE noted that it will not consider conceptual projects. Furthermore, the company said that it will evaluate all proposed energy storage technologies on a lowest reasonable cost and best-fit basis, consistent with PSE’s most recent IRP analysis, and based on the evaluation process and certain proposal requirements. Resources requested in this All-Source RFP include proposals for energy storage systems sized up to 100 MW.
Among other things, PSE said that according to the 2020 All-Source RFP schedule, the commission is expected to approve the RFP on Aug. 5, with the company issuing the RFP on Aug. 14.