Summer 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:
| Product 1 | Commodity Reference Price 2 | Notional Quantity | Contract Term | RFO Auction Schedule 3 | ||
|---|---|---|---|---|---|---|
| Term | Start Date | End Date | ||||
| Fixed/Floating SWAP | SoCal Border | Up to 150,000 MMBtus/Day | 6 months | January 1, 2013 | June 30, 2013 | 9:00 AM PPT Auction #3 |
| Fixed/Floating SWAP | SoCal Border | Up to 40,000 MMBtus/Day | 12 months | July 1, 2014 | June 30, 2014 | 8:30 AM PPT Auction #2 |
| Fixed/Floating SWAP | SoCal Border | Up to 10,000 MMBtus/Day | 18 Months | July 1, 2014 | December 31, 2015 | 8:00 AM PPT Auction #1 |
- SCE will be the Fixed Price Payer and the Qualified Respondent will be the Floating Price Payer.
- After the close of this RFO, SCE and the Qualified Respondent must clear the Swap as two separate transactions: (i) Henry Hub Natural Gas Swap Futures (NN); and (ii) SoCal Basis Swap (Platts IFERC) Futures (NS). See Section C. for additional information.
- RFO Auctions will take place on June 28, 2011. See Sections B.1 and B.5 for more details regarding the RFO schedule.
Gas RFO Schedule
| Milestone | Date and Time | Description |
|---|---|---|
| Launch | Thu, Jun 9, 2011 | Launch Natural Gas RFO Documents (as defined in Section B.2) will be posted on: http://www.sce.com/gasrfo |
| Bidder Webex/Conference Call | Tue, Jun 14, 2011 (starts at 10:00 AM PPT |
To join the Webex online meeting:
To join the audio conference:
Note: A replay of the call will be available from June 15, 2011 to June 28, 2011 at www.sce.com/gasrfo. |
| Submission of Notice of Intent to Offer and Draft Materials | Thu, Jun 16, 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):
Note: All “Draft” documents (2-4 above) are only applicable if the Respondent does not already have those documents in place with SCE. |
| Qualification Date | Mon, Jun 20, 2011 (due by 5:00 PM PPT) |
SCE must have on file the following:
Note: Respondents who fail to submit these materials will be disqualified from participation in this RFO. |
| Notice of Qualification | Tue, Jun 21, 2011 (notified by 5:00PM PPT) |
SCE will send notices of qualification to all Qualified Respondents via email. |
| RFO Indicative Price and Maximum Volume Limits Date | Mon, Jun 27, 2011 (due by 9:00AM PPT) |
Each Qualified Respondent must provide to SCE its indicative price and Maximum Volume Limit (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 Respondent will have no bearing on whether or not the Respondent’s Offer is selected by SCE in this RFO. |
| RFO Closing and Final Award Selections | Tue, Jun 28, 2011 (starting at 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:
Note: SCE will select successful Offers and confirm the selection with the selected Respondent(s) via IM and a recorded phone call. See Section B.5.2 and Attachment A for additional information. |
| Clearing of Offers | Tue, Jun 28, 2011 (by Close of Business Day for NYMEX) |
Swap award(s) will be submitted and cleared through NYMEX Clearport on the same day. See Section C. for additional information. Note: While we anticipate that each auction will be no longer than 20 minutes, the auction may be much shorter in time duration. Therefore, participants are strongly encouraged to give their most aggressive bids as early as possible. |
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 Tuesday, June 14, 2011 at 10:00 AM Pacific Prevailing Time to respond to questions concerning the Gas RFO. Please see the RFO Schedule above for call in information.
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) and an appropriate Confidentiality Agreement in place with SCE by the Qualification Date, as indicated above.
Gas RFO Documents
- Gas RFO Instructions (PDF)
- SCE-1 – Non-Binding Notice of Intent to Offer (Word)
- SCE-2 – Master Confidentiality Agreement (Word)
- SCE-3 – Schedule to 2002 ISDA Master Agreement (Word)
- SCE-4 – Paragraph 13 to ISDA Credit Support Annex (Word)
- SCE-5 – SWAP Award Notification Form (Word)
- Zip file containing all above documents (Zip file)
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, please email GasRFO@sce.com or contact Rajdeep Roy at (626) 302-1636 or Marci Palmstrom at (626) 302-8214.
