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Clean Power Alliance Launches 2023 Clean Energy and Reliability Request for Offers Solicitation

Sylvia MacIntyre by Sylvia MacIntyre
June 17, 2023
in Clean Energy
A A
Clean Power Alliance Launches 2023 Clean Energy and Reliability Request for Offers Solicitation

Clean Power Alliance (CPA), the fourth largest electricity provider in California, has launched its 2023 Clean Energy and Reliability Request for Offers (RFO). The RFO solicits competitive proposals to better allow CPA to meet its various energy portfolio needs, while also complying with California Public Utilities Commission (CPUC) Procurement Orders and Resource Adequacy (RA) requirements.

Relative to CPA’s prior RFOs, this solicitation has expanded product categories and now includes RA-only and existing thermal energy resources with preferences for those that are transitioning to cleaner operations. CPA has also implemented changes to its RFO eligibility requirements such as expanding term limits, allowing proposers to submit bundled offers, and a fast-track process for negotiations.

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“CPA is working to address the significant challenges load-serving entities are facing in procuring short-term resource adequacy that supports power reliability,” said Ted Bardacke, CPA’s Chief Executive Officer. “We’re seeking the benefits of increased long-term procurement to fulfill a larger portion of our renewable energy portfolio needs and best provide for the energy reliability needs of our customers.”

CPA has traditionally focused its RFOs on meeting various California compliance requirements. However, CPA is currently on track to meet or exceed its long-term contracting compliance requirements over the next several years. As a result, this RFO seeks to fill a larger portion of CPA’s energy portfolio needs with long-term contracts that reduce the need for CPA to procure energy in the more expensive short-term market. Long-term contracts provide CPA a viable avenue to help stabilize customer bill costs.

Among the expanded procurement options CPA has included in this RFO are the following:

  • Counterparties may propose contract terms of 10 to 20 years within most product categories, compared to the typical 15-year terms requested in previous RFOs
  • Allowing bids for Resource Adequacy only contracts, whereas previously CPA considered only projects that paired Resource Adequacy with energy
  • Consideration for bundled offers, meaning proposers can submit a portfolio for resources from multiple projects at a lower price, as opposed to individual offers for each resource offered
  • An option to request “fast-track” status for projects with unique circumstances such as very near-term online dates.

To review CPA’s Clean Energy and Reliability RFO click here. A webinar to inform about the RFO process will take place on June 20, 2023, at 11 a.m. (PST). Offers are due July 19, 2023. Proposers must register on the RFO website to receive RFO documents and participate in the webinar.

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