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Natural Gas RFO

Fall 2011 Natural Gas RFO

Long Term Natural Gas Products Request for Offers

Gas RFO Products

SCE is issuing this Natural Gas Request for Offers ("Gas RFO") for products described in the following table:

Gas RFO Products
RFO Auction Product 1 Commodity Reference Price 2 Notional Quantity (MMBtus/day) Contract Term December 6, 2011 Auction Start Time(PPT)3
Term Start Date End Date
1 Swaps SoCal Border Up to 60,000 12 Months January 1, 2013 December 31, 2013 7:00 AM
2 Swaps SoCal Border Up to 50,000 12 months January 1, 2014 December 31, 2014 7:30 AM
3 Swaps SoCal Border Up to 30,000 12 months January 1, 2015 December 31, 2015 8:00 AM
4 Swaps SoCal Border Up to 50,000 24 months January 1, 2013 December 31, 2014 8:30 AM
5 Swaps SoCal Border Up to 30,000 36 months January 1, 2013 December 31, 2015 9:00 AM

  1. SCE will be the Fixed Price Payer and the selected Qualified Respondent(s) will be the Floating Price Payer.
  2. After the close of the RFO, SCE and any awarded Qualified Respondent(s) must fully execute their respective awarded Offer(s) through the negotiated ISDA Commodity Swap Transaction Confirmation.
  3. See Sections B.1 and B.5 for more details regarding the RFO schedule.

Gas RFO Schedule

Gas RFO Schedule
Milestone Date and Time Description
Launch Thu, Nov 10, 2011 Natural Gas RFO Documents (as defined in Section B.2) will be posted on:
http://www.sce.com/gasrfo
Bidder Webex/Conference Call
(via Webex)		 Wed, Nov 16, 2011
(starts at 9:00 AM PPT)

To join the Webex online meeting:

  1. Go to https://sce.webex.com/sce/k2/j.php?ED=163886447&UID=1223617967&RT=MiM0
  2. Enter your name and email address.
  3. Enter the session password: gas.
  4. Click "Join Now".
  5. Follow the instructions that appear on your screen.

To join the audio conference:

  1. Call the toll-free #: 1-(866)-469-3239
  2. Enter Access Code: 803-400-754

Note: A replay of the call will be available from Nov 16, 2011 to Dec 6, 2011 at www.sce.com/gasrfo.

Submission of Notice of Intent to Offer and Draft Materials Thu, Nov 17, 2011
(due by 5:00 PM PPT)

Respondent must submit to SCE, in electronic format, the following documents (see Section B.3 for additional information):

  1. Completed Non-Binding Notice of Intent to Offer (Attachment A);
  2. Draft Confidentiality Agreement (Attachment B);
  3. Draft ISDA Schedule (Attachment C);
  4. Draft Paragraph 13 of the ISDA Credit Support Annex (Attachment D); and
  5. Draft ISDA Commodity Swap Transaction Confirmation (Attachment E).

Note: All “Draft” documents (2-5 above) involve Respondent’s thorough review and redline of each document. Documents 2-4 are only applicable if the Respondent does not already have those documents in place with SCE.
Qualification Date Wed, Nov 30, 2011
(due by 5:00 PM PPT)

SCE must have on file the following:

  1. Fully executed Confidentiality Agreement
  2. Fully executed ISDA Master Agreement (including ISDA Schedule);
  3. Fully executed ISDA Credit Support Annex (including Paragraph 13); and
  4. Fully negotiated and agreed to ISDA Commodity Swap Transaction Confirmation.

Note: Respondents who fail to submit these materials will be disqualified from participation in this RFO.
Notice of Qualification Thu, Dec 1, 2011
(notification by 5:00 PM PPT)		 SCE will send notices of qualification to all Qualified Respondents via email.
RFO Indicative Price and Maximum Volume Limits Date Mon, Dec 5, 2011
(due by 9:00 AM PPT)

Each Qualified Respondent must provide to SCE indicative prices and Maximum Volume Limits (as defined in Section B.5.2) for the Swaps it will be offering in the RFO close. In addition, SCE will conduct a connectivity test with all Qualified Respondents to ensure the relevant instant messaging system(s) (“IM”) is functioning between the parties.

Note: The indicative price provided by a Qualified Respondent has no bearing on whether or not the Qualified Respondent’s Offer is selected by SCE in this RFO.
RFO Closing and Final Award Selections Tue, Dec 6, 2011
(starting at 7:00 AM, 7:30 AM, 8:00 AM, 8:30 AM, and 9:00 AM PPT)

Only Qualified Respondents may participate in the RFO closing process. SCE will conduct each auction and close the RFO according to the following schedule:

  • Auction #1: 7:00 – 7:20 AM PPT for January 1, 2013 - December 31, 2013;
  • Auction #2: 7:30 – 7:50 AM PPT for January 1, 2014 - December 31, 2014;
  • Auction #3: 8:00 – 8:20 AM PPT for January 1, 2015 - December 31, 2015;
  • Auction #4: 8:30 – 8:50 AM PPT for January 1, 2013 - December 31, 2014; and
  • Auction #5: 9:00 – 9:20 AM PPT for January 1, 2013 - December 31, 2015.

Note: (1) While SCE anticipates that the duration of each auction will be no longer than 20 minutes, the duration of any auction may be much shorter. Therefore, participants are strongly encouraged to submit their most aggressive bids as early as possible. (2) SCE will select Offers and confirm the selection with the selected Qualified Respondent(s) via IM and a recorded phone call. See Section B.5.2 and Attachment A for additional information.
Execution of ISDA Commodity Swap Transaction Confirmation Tue, Dec 6, 2011

Following the RFO close and confirmation of selected offer(s) via recorded phone lines.

  1. SCE will send each awarded Qualified Respondent its ISDA Commodity Swap Transaction Confirmation(s) populated with the final parameters of their respective awarded Offer(s);
  2. Each awarded Qualified Respondent will execute the ISDA Commodity Swap Transaction Confirmation(s) and send a copy to SCE in an attached PDF via e-mail; and
  3. Upon receipt of the awarded Qualified Respondent’s executed ISDA Commodity Swap Transaction Confirmation(s), SCE will execute the ISDA Commodity Swap Transaction Confirmation(s) and send a copy to the Qualified Respondent in an attached PDF via e-mail.

Note: See Section C. for additional information.

Please see Gas RFO Instuctions (PDF) for additional details. All references pertain to the Gas RFO Instructions.

Bidder's Conference Call

For those interested in bidding in response to SCE's Gas RFO, a conference call will be held on Wednesday, November 16, 2011 at 9:00 AM Pacific Prevailing Time to respond to questions concerning the Gas RFO. Please see the RFO Schedule above for call in information.

Note: SCE Bidders Conference Call MS Powerpoint Presentation and Playback Video will be available after the Bidders Conference Call on November 16, 2011. Please review the RFO Instructions for the most current information because changes to this Gas RFO may have occurred since the Bidders Conference Call.

Gas RFO Qualifications

In order to be eligible to participate, potential counterparties must have a fully executed ISDA Master Agreement (including the Schedule to the ISDA Master Agreement and the Paragraph 13 to the Credit Support Annex), an appropriate Confidentiality Agreement in place with SCE, and a completely negotiated ISDA Commodity Swap Transaction Confirmation by by the Qualification Date, as indicated above.

Gas RFO Documents

Questions and Frequently Asked Questions

Questions about the Gas RFO requirements and process should be addressed to GasRFO@sce.com. Questions of a general nature will be posted on this website as appropriate. Frequently asked questions and answers about the Gas RFO will be posted as they arise on a corresponding FAQ page.

Contact

Should you have any questions regarding SCE's enabling agreements and/or this Gas RFO, please email GasRFO@sce.com or contact Rajdeep Roy at (626) 302-1636 or Marci Palmstrom at (626) 302-8214.

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