Questions__Answers.docx

Date: March 30, 2016

To: All Bidders for Request for Information (RFI) #3188111 Natural Gas Management System

Subject: 3188111 Natural Gas Management System – Questions and Answers

As of March 21, 2016, OBAS received on behalf of the Office of Risk and Insurance Management the following questions (Q) and is providing the following answers (A):

Q1. Under Section D – Disclaimer, Item #6, there was a request for a non-binding quote for budgetary purposes. Our software is licensed on a per user basis; what do you envision the number of people at DGS requiring access to the Gas Management System to be?

A1. At this time it’s anticipated that 4 individuals will require access to the software.

Q2. How many users does the NGS group anticipate? We define a user as anyone who will need a logon id.

A2. 4 users.

Q3. You have requested MS SQL 2012. Is Oracle a viable alternative, and if not, would you consider a Private Cloud with Managed Services offering?

A3. Oracle is NOT an option according to IT enterprise roadmap, but a private virtual cloud offering with managed services is a viable alternative. The solution would need to conform to Security Standards and be supported with a DGS approved service level agreement.

Q4. Section J.1.B.iii.c states the following: “Link with electronic bulletin board (EBB) system for notification to NGS customers.” Are you just passing through the notifications from the pipeline to your customers? Or what is the process here?

A4. Yes.

Q5. Section J.1.B.iii.d states the following: “Program management information, i.e., auction allowable volume and award.” Could you please elaborate on what all this auction entails? The business process and timeline around it, etc?

A5. This relates to the intrastate pipeline capacity auctions (PG&E Redwood and SCG BTS). End users are entitled to bid on a certain capacity determined by their scheduled quantity volume (per local distribution company (utility)). DGS aggregates the eligible bid volumes and submits a single bid for the entire group. The awarded capacity is then distributed among end users (awarded volume/eligible user volume). Auctions occur annually and are determined by the utility company schedule – the entire process is completed (collection of end user allowable capacity to auction) in a few weeks. Award volumes are either annual or seasonal.

Q6. Section J.2.A discusses “Supply purchase (bid/offer)interface.” Interface to what? Is this an online exchange in which the NGS group is participating? A custom “exchange” or is this something like ICE or CME/NYMEX? Or do you desire the ETRM to Host, Manage, and execute a web based exchange for Suppliers to bid on supplying NGS gas?

A6. This is a live bidding opportunity between DGS and various gas suppliers/traders. Currently, DGS promotes the purchase request via email, schedules a time/date for bid receipt, receives offers by email within a fixed timeframe, and selects a supplier within 10 minutes. The purchase requirements include daily and/or monthly volume, dates of delivery, delivery point and price per MMBtu. DGS desires to have a web-based interchange where suppliers can submit their bids and the bids can be automatically evaluated against one another. DGS does not currently transact on ICE/CME; however, vendor experience or system ability to increase DGS access to these exchanges is desired.

Q7. Section J.4.A states the following: “Develop mid-month customer email for projected (prompt month) estimated usage.” What is the process here? Is NGS emailing the customers a forecast? If NGS is the agent and/or responsible for managing the gas acquisition on the customers behalf, is there a reason to email them a forecast? Could you help us by explaining the timeline and overall business process a bit more please?

A7. Current process is as follows. Annually, DGS collects monthly projected volume requirements from all participants for upcoming fiscal year (July-June). Then, prior to each new month, DGS requests end user review and “best approximation” of the prompt month projection for procurement and balancing baseline. DGS supplies natural gas to various types of end users, including cogeneration. The end user is best equipped to validate the forecast. DGS does not have a live feed to aggregated end user daily usage, but hopes to acquire that technology with the system.

Approximately the 20th day of each month, end users receive 15 day actual meter read (download) for current month and a copy of their prompt month projection (as provided by end user at annual collection). End users “true up” their early estimates by considering changes that have or will occur at their facility in the upcoming month. DGS uses the total collected projected gas requirements to ensure sufficient supply at Bid Week.

Q8. Section J.4.C.v states the following: “Access shipper resources including nomination, scheduling and balancing resources and management/response to operation functions and orders.” Access what exactly? How? Is the desire here for the ETRM system to just access this information electronically with the LDC and then import/absorb this information? Could you please elaborate on your business process here?

A8. DGS desires electronic visibility into supply scheduling/nomination for the pool(s). Gas supply transmission/distribution is currently managed by a 3rd party. DGS intends to continue this relationship, but would like oversight capability.

Q9. In Attachment I, General Standards Section, Requirement #2, what is meant by “cannot utilize database counts?”

A9. Security accounts database needs to integrate with active directory not create a separate database for accounts.

Q10. In Attachment I, General Standards Section, Requirement #9, what is the reason (driver) for this requirement?

A10. DGS has limited/shared bandwidth to the various DGS locations.