Attachment_VI_-_Responses_to_Pre-Solicitation_Questions.pdf

FERMI 2019 ATTACHMENT VI SPE60419R0402

RESPONSES TO PRE-SOLICITATION QUESTIONS Page 1 of 6

1. Can you please confirm that the fixed index adder price is to include ancillaries?

DLA Response: In accordance with B19.46 Block Purchases, Paragraph (b), the SSF shall not include any charges identified in B19.46, Paragraphs (a) or (c). Ancillary Services are not identified in either Paragraph (a) or (c). Also refer to Attachment IV – Supply Service Fee Charges which specifically identifies several Ancillary Service charges which shall be included in the SSF. Attachment IV also states that any applicable ancillary service fees not identified in Attachment IV shall be included in the

SSF.

2. Can you confirm that the following understanding of the product being requested includes:

Fixed Adder includes:

• Op Reserves

• Regulation

• Spinning Reserves

• RSVC

• Black Start

• ISO Fees, etc.

Pass Thru:

• Energy

• Losses

• Deration

• ARR

• MLC

• NITS

• TEC/RTEP

• Capacity

• RMR

DLA Response: Regarding the items listed above, Day-Ahead Operating Reserves, Regulation and Frequency Response Service, Synchronous Condensing Charge, Reactive Supply and Voltage control from Generation and Other Sources Service Charge, and Black Start Service are listed on Attachment IV – Supply Service Fee Charges as items to be included in the SSF. Attachment IV further states that any applicable ancillary service fees not identified in the attachment shall be included in the SSF.

In accordance with B19.46 Block Purchases, Paragraph (b), the SSF shall not include any charges identified in B19.46, Paragraphs (a) or (c). Electricity is listed in Paragraph (a).

Paragraph (c) lists Transmission and Distribution Losses (Subparagraph (6)), EDC Loss De-Ration (Subparagraph (9)), Auction Revenue Rights (Subparagraph (5)), Marginal Loss Overcollection Credit (Subparagraph (7)), Regional Transmission Expansion Planning Process (Subparagraph (3)), Capacity (Subparagraph (1)), and Reliability Must

RESPONSES TO PRE-SOLICITATION QUESTIONS Page 2 of 6

Run (Subparagraph (4)). Attachment IV lists Network Integrated Transmission Service as a pass-through which shall not be included in the SSF.

3. Does Fermi have on-site generation? If so, could you please provide more specific information as to size, technology, and run schedule?

DLA Response: No, Fermi does not have any on-site generation.

4. Please confirm whether the following components should be fixed or passed through:

a. Balancing Congestion-

DLA Energy Response: Please refer to Amendment 0001, Item 5. In accordance with B19.46 Block Purchases, Paragraph (b), the SSF shall not include any charges identified in B19.46, Paragraphs (a) or (c). Balancing Congestion is not identified in either Paragraph (a) or (c). Also refer to Attachment IV – Supply Service Fee Charges as revised by Amendment 0001 which lists Balancing Congestion as an item to be included in the SSF.

5. Should any charges or credits imposed by the ISO specifically for the “Current Recovery

Charges” and the “Transmission Enhancement Charge Adjustments,” as defined in the settlement agreement approved by FERC as of May 31, 2018 in Docket Number EL05- 121-009, be passed through or fixed?

DLA Energy Response: Please refer to Attachment IV – Supply Service Fee Charges as revised by Amendment 0001. In accordance with B19.46 Block Purchases, Paragraph (b), the SSF shall not include any charges identified in B19.46, Paragraphs (a) or (c).

Current Recovery Charges are not identified in either Paragraph (a) or (c). Transmission Enhancement Charges (and credits) are identified in Attachment IV as a pass-through and shall not be included in the SSF. Any adjustments to the Transmission Enhancement Charges (and credits) shall also be a pass-through and not included in the SSF.

6. Please confirm capacity and transmission costs calculations for pass-through billing purposes will include all applicable scalars such as:

• Capacity Costs = Actual Capacity PLC Value (kW) x Capacity Price ($/kW-Day) x Forecast Pool Requirement x Final Zonal Scaling Factor x Average Daily Zonal Scaling Factor x # Days in Billing Period

• Transmission Costs = Actual NSPL PLC Value (kW) x Transmission Price ($/kW- Day) x Average NSPL Daily Zonal Scaling Factor x # Days in Billing Period.

DLA Energy Response: The formula referenced above for Capacity Costs is consistent with the requirements of this solicitation. Transmission Costs shall be calculated as defined in B19.46, Subparagraph (c)(2) Transmission Costs.

7. Proposer notes Fermi has requested dual billing but also references the single bill option in ComEd. Please clarify.

RESPONSES TO PRE-SOLICITATION QUESTIONS Page 3 of 6

DLA Energy Response: In accordance with C804, Paragraph (b), the Government will utilize Dual Billing for any and all applicable awards made under this solicitation.

8. With regards to de-ration, the words do not reference transmission loss factor, only distribution loss factor. De-ration affects both transmission loss factor and distribution loss factor, as the formula correctly notes. Please confirm that the formula is what should be used and the wording will reflect transmission loss factor.

DLA Energy Response: Please refer to Amendment 0001, Item 2 which revises B19.46, Subparagraph (c)(9) to clarify both Transmission and Distribution loss factors shall be accounted for in the calculation of EDC Loss De-Ration.

9. ICC Orders from Docket Nos. 13-0506 and 14-0701 require ARES maintain a Letter of

Authorization (“LOA”) for interval load in its files. Please provide an LOA.

DLA Energy Response: A Letter of Authorization will be provided to all offerors after the closing date following receipt of a valid proposal.

10. Over the past 2 years, Fermi’s usage dipped July-October; however, the blocks requested appear to dip in July, August, and September. Is Fermi changing its operating schedule accordingly to align with this? The September and October requested blocks are much higher than usage data suggests over that period.

DLA Energy Response: The blocks defined in Attachment V – Block Purchase Schedule are indicative and based on expected operating characteristics of the accelerator operations known at the present time. Block schedules could change based on changes in accelerator operations.

11. In reference to DFARS Clause 252.204-7008 – Please advise what the DLA considers as

Covered Defense Information (CDI) specifically for this RFP (FERMI 2019).

DLA Energy Response: Please refer to Amendment 0001, Item 3.

12. While it is helpful to know which charges ARE NOT part of the Supply Service Fee, Proposer would also find it helpful to have it stated which charges ARE part of the Supply Service Fee. Would Fermi be able to provide?

DLA Energy Response: The Government does not have an exhaustive list of all charges applicable to the supply of retail electricity as required to provide the supply of electricity under this solicitation, however the solicitation clearly states which charges (and credits) shall not be included in the SSF.

13. Page 19, subsection (e) states that no deliveries are required after December 2020.

Proposer believes this to be a typo.

RESPONSES TO PRE-SOLICITATION QUESTIONS Page 4 of 6

DLA Energy Response: Please refer to Amendment 0001, Item 4.

14. Proposer notes the request for fully derated line losses. How does Fermi currently have losses shown on their account, an RDS7 rate class? This tariff has line loss costs less than the deration credit. Are line losses a credit to Fermi?

DLA Energy Response: DLA Energy does not currently have information on current EDC Loss De-Ration charges or credits, however such charges shall be a direct pass-through to the Government and not included in the SSF in accordance with B19.46, Subparagraph (c)(9). B19.46, Paragraph (b) states that all credits shall be pass-through to the Government and not included in the SSF.

15. Considering the product to be supplied will be 100% Day Ahead LMP, will DLA or

Fermi Labs be able to provide suppliers with an expected load schedule?

DLA Energy Response: The Government does not have an expected load schedule.

Please refer to Attachment V – Block Purchase Schedule for Fermi’s anticipated monthly consumption.

16. Are there any plans for this load to materially increase or decrease over an extended period of time during the 3-year term of this contract?

DLA Energy Response: See the Government’s response to Question 15 above.

Attachment V – Block Purchase Schedule represents the Government’s anticipated consumption during the delivery period. No significant increases or decreases in consumption are anticipated.

17. Are ancillaries (excluding MLO and ARR) to be included within the SSF?

DLA Energy Response: Please refer to the Government’s response to questions 1 and 2 above.

18. Per B1.08(c)(3) - Is this pass-through to be for all credits and charges for Transmission

Enhancement Projects?

DLA Energy Response: Yes. In accordance with B19.46, Paragraph (c)(3), PJM’s RTEP shall be treated as a direct pass-through to the Government. Per B19.46, Paragraph (b), all credits shall be passed through to the Government and not included in the Supply Service Fee.

19. Is the Government requesting that the hourly energy usage used to price the blocks be based off of NERC hours or Utility (ComEd) hours?

DLA Energy Response: Hourly energy usage shall be based on NERC hours.

RESPONSES TO PRE-SOLICITATION QUESTIONS Page 5 of 6

20. For settlement purposes, are the block quantities that the Government is requesting based on calendar months dates or utility meter read dates?

DLA Energy Response: All blocks defined on Attachment V are calendar month.

21. Under INVOICE & PAYMENT on page 7:

a. #4, Is the Demand Information required on the invoice or just can it be listed in the spreadsheet?

DLA Energy Response: The Demand information may be listed on a backup spreadsheet so long as it is provided with the invoice.

b. #14, Does the spreadsheet cover the “per-account energy usage break down (hour by hour) with the corresponding firm fixed price block rates and LMP rates for all applicable firm fixed price blocks for each hour)”?

DLA Energy Response: The information described above will need to included in the Spreadshseet showing how each of the invoice related items were calculated.

22. B1.08 d) says “The Government is soliciting offers for a 36-month delivery period (from the meter read date occurring in the month of January 2020 through the meter read date occurring in the month of December 2022).” That delivery period is only 35 months.

Does the Government want a 35-month delivery period, or would the Government prefer January 2020 – January 2023 to be written in the contract?

DLA Energy Response: Please refer to Amendment 0001, Item 1.

23. C804 (b) Invoice and Payment #14 – “Spreadsheet that shows how each of the invoice related items were calculated.” As the Government has requested Dual Billing for any and all applicable awards made under this solicitation, will the calculations of EDC charges be required to be shown as well. We do not see this charges.

DLA Energy Response: The Government does not require that the spreadsheet referenced in C800, Subparagraph (b)(14), include calculations for EDC charges.

24. Please clarify/confirm that the Government does NOT expect a pricing proposal with the response that is due on March 21, 2019. Page 2 of the solicitation states that “a date for the submission of prices will be established via a future amendment.” However, page 39 suggests that pricing must be submitted in the “Instructions to Offerors”.

DLA Energy Response: Offerors do not need to submit any prices with their initial proposal. A date for the submission of prices will be established via a future amendment

RESPONSES TO PRE-SOLICITATION QUESTIONS Page 6 of 6 after the Offer Due Date defined in Block 8 of the Standard Form 1449 (Page 1 of the solicitation).