RFO Questions and Answers
- How are mutually exclusive offers documented?
- How are linked and unlinked offers documented?
- Has SCE modified it's policy regarding the financial calls? i.e: Will non-investment grade parties be able to participate?
- For a Year Round Financial Call Option can we offer prices for multiple years with the understanding that SCE can select individual years?
- What forms are required for the Tolling product?
- What forms are required for the RA product?
- What forms are required for the Financial Call Option product?
- Would bundling/linking be considered attractive to SCE?
- Is SCE considering buying individual monthly offers for RA?
- If we are submitting offers to sell and buy RA, can we submit one mark-up confirmation to cover both?
- Is there a limit on the total number of offers we can submit?
Q1. How are mutually exclusive offers documented?
A. The simplest way to document mutually exclusive offers is through the use of the volume limits spreadsheet. The volume limits spreadsheet allows a bidder to restrict the amount of a certain product that may be selected by SCE. For example, a bidder may submit two different offers for 100MW, but then set a volume limit of 100MW, effectively allowing SCE to select only one of the offers.
Q2. How are linked and unlinked offers documented?
A. Linked or bundled offers are documented by including a package number at the end of each Toll and RA offer submitted in the spreadsheet. SCE will consider offers with the same package number as linked; these linked offers must be selected together or not selected at all, and only offers without a package number are allowed to be selected independently.
Q3. - Has SCE modified it's policy regarding the financial calls? i.e: Will non-investment grade parties be able to participate?
A. Non-investment grade bidders will be allowed to participate in the financial call option product on a limited basis, bidders should work with their assigned contract manager on limitation specifics.
Q4. For a Year Round Financial Call Option can we offer prices for multiple years with the understanding that SCE can select individual years?
A. On the financial call option offer sheet, each individual row is considered a distinct and separate offer. If a bidder wishes to allow SCE to select individual years, then each year must be submitted on a different row.
Q5. What forms are required for the Tolling product?
A. Outside of general informational forms required of all bidders, a Tolling agreement requires either an EEI or an ISDA with Power Annex Enabling Agreement, coupled with the Tolling Confirmation. Descriptions of other supporting documents can be found in Section D.3 of the RFO Instructions document on the website.
Q6. What forms are required for the RA product?
A. Outside of general informational forms required of all bidders, a RA agreement requires either an EEI or an ISDA with Power Annex Enabling Agreement, coupled with the RA Confirmation. Descriptions of other supporting documents can be found in Section D.3 of the RFO Instructions document on the website.
Q7. What forms are required for the Financial Call Option product?
A. Outside of general informational forms required of all bidders, a Financial Call Option agreement requires an ISDA Enabling Agreement, coupled with the Financial Call Option Confirmation. Descriptions of other supporting documents can be found in Section D.3 of the RFO Instructions document on the website.
Q8. Would bundling/linking be considered attractive to SCE?
A. In general, SCE prefers unlinked offers as it allows SCE more flexibility in meeting its needs. However bidders are encouraged to submit offers in whatever manner they prefer.
Q9. Is SCE considering buying individual monthly offers for RA?
A. SCE is accepting RA offers for individual months, not just August. If a bidder wishes to submit an RA offer for an individual month, they would select "Year Round" as the type, and then enter start and end dates for the particular month.
Q10. If we are submitting offers to sell and buy RA, can we submit one mark-up confirmation to cover both?
A. Given that there are slight differences between the Buy and Sell RA confirmations, SCE prefers a full mark-up of both confirmations if a bidder intends to participate in both products.
Q11. Is there a limit on the total number of offers we can submit?
A. Although SCE encourages bidders to submit as much volume with as much flexibility as possible, the number of offers that SCE's RFO team and systems can handle is limited. Thus SCE has limited the total number of offers from each bidder to 1,000 - the total number of rows submitted on the offer excel spreadsheets for all products (Tolling, RA and Financial Call Option) cannot exceed 1,000. SCE reserves the right to change this number at a later date.
