2008 All Source Participants WorkshopJune 19, Participants Workshop All Source RFO June 19, 2008

2008 All Source Participants WorkshopJune 19, 2008 General Information Offers and bid deposits are due Monday, July 21 by 1 p.m. Pacific Time All Offers must contain each of the following:  Completed Cover Sheet: Appendix A  Signed Offer Agreement: Appendix B (word version and signed executed version)  Letter of Credit: Appendix C and C1 (completed W-9 form)  Executed 2004 FERC Waiver: Appendix E  Executed Power Purchase Agreement (Appendix F) or Purchase and Sale Agreement (Appendix G) redline and clean versions  Offer Data Form: Appendix H1 or H2  Generation Facility Information: Appendix I1 or I2. If you’re submitting more than one variation of each offer provide a letter after the unique name identifier.  Project Description: Appendix J  Credit and Finance form: Appendix K and completed Tables A and B  Completed Transmission Data form: Appendix L  A copy of the completed Gas Interconnection Application and the Agreement to Perform Tariff Related Work: Appendix M2  Completed Generation Operating Characteristics: Appendix N3 and an “as is” or markup of Appendix N4.

2008 All Source Participants WorkshopJune 19, 2008 General Information All Offers require five (5) bound copies and (1) one unbound copy. We prefer to have two (2) USB removable flash drives or three (3) compact discs. We will not be accepting any offers via FAX or . Version –Standard Microsoft Word or Excel If you have Microsoft products greater than v make sure you “Save As” v to avoid any potential incompatibility issues. If more than one offer you must submit each file with a unique name to ensure Offer differentiation

2008 All Source Participants WorkshopJune 19, 2008 Appendix I1: Market Valuation Sheet - Header 12

2008 All Source Participants WorkshopJune 19, 2008 Appendix I1: Market Valuation Sheet - Header Long-term Request for Offers Market Valuation Data Sheet Header 1 Seller: Plant Address: Technology Type: Fuel Type: Fuel Delivery Point*: Power Delivery Location*: Seller Information 1111 Sample Street, SampleCity, CA Natural Gas OB SF * Participants should provide textual descriptions. PG&E will replace with a “mapping code”. Number of Units: Combined Cycle (many-on-1) Combined Cycle (1-on-1) Number of Units: Combustion Turbine (multiple CTs) Combustion Turbine (1 CT) Reciprocating Engine (multiple units) Number of Units: Reciprocating Engine (1 unit) Other Combined Cycle (many-on-1) Number of Units: 2 Must Take: X Type of Constraints: Annual: Q1: Q2: Q3: Q4: Daily: Energy Energy (GWh) Energy NO X NO X (lbs) SO 2 SO 2 (lbs)CO CO (lbs) CO 2 CO 2 (million lbs) PM10 PM10 (lbs) Fired Hrs Fired Hours NO X NO X (lbs) Check the box if the contract is must-take, which means (deliver power and consume fuel) Regarding of prevailing economics.

2008 All Source Participants WorkshopJune 19, 2008 Appendix I1: Market Valuation Sheet - Header Long-term Request for Offers Market Valuation Data Sheet Header 2 Index Pricing: X Check the box if Index Pricing applies to the Capacity Index Portion: 60 % of Capacity Payments Subject to indexing Index End Date: 10/1/’09 Construction Financing Date (the end date before which the Capacity Payments are subject to index) X Check the box if the index pricing applies to the Energy Payments ($/MWh) Check the box if the index pricing applies to the Fixed O&M ($/kw-yr) X Check the box if the index pricing applies to the Fired Hour Charge ($/fired-hour) Check the box if the index pricing applies to the Variable O&M ($/MWh) X X

2008 All Source Participants WorkshopJune 19, 2008 Appendix I1: Market Valuation Sheet – Heat Rate Long-term Request for Offers Market Valuation Data Sheet Heat Rate Seller: Plant Address: Technology Type: Fuel Type: Fuel Delivery Point*: Power Delivery Location*: Seller Information 1111 Sample Street, SampleCity, CA Natural Gas OB SF CC Contract Capacity Under Expected Operating Conditions (including Duct Firing and Power Augmentation Capacity if applicable) (Positive during the term of the contract. Enter blanks outside the term of the contract).

2008 All Source Participants WorkshopJune 19, 2008 Appendix I1: Market Valuation Sheet – Heat Rate Long-term Request for Offers Market Valuation Data Sheet Heat Rate Seller: Plant Address: Technology Type: Fuel Type: Fuel Delivery Point*: Power Delivery Location*: Seller Information 1111 Sample Street, SampleCity, CA Natural Gas OB SF CC Net Contract Heat Rate at ISO Conditions (all units on) MMBtus/MWh

2008 All Source Participants WorkshopJune 19, 2008 Appendix I1: Market Valuation Sheet – Heat Rate Long-term Request for Offers Market Valuation Data Sheet Heat Rate Seller: Plant Address: Technology Type: Fuel Type: Fuel Delivery Point*: Power Delivery Location*: Seller Information 1111 Sample Street, SampleCity, CA Natural Gas OB SF CC Net Contract Heat Rate at Peak July Conditions (all units on) MMBtus/MWh

2008 All Source Participants WorkshopJune 19, 2008 Appendix I1: Market Valuation Sheet – Heat Rate Long-term Request for Offers Market Valuation Data Sheet Heat Rate Seller: Plant Address: Technology Type: Fuel Type: Fuel Delivery Point*: Power Delivery Location*: Seller Information 1111 Sample Street, SampleCity, CA Natural Gas OB SF CC Net Contract Heat Rate at ISO Conditions (1 unit on) MMBtus/MWh

2008 All Source Participants WorkshopJune 19, 2008 Appendix I1: Market Valuation Sheet – Heat Rate Long-term Request for Offers Market Valuation Data Sheet Heat Rate Seller: Plant Address: Technology Type: Fuel Type: Fuel Delivery Point*: Power Delivery Location*: Seller Information 1111 Sample Street, SampleCity, CA Natural Gas OB SF CC Net Contract Heat Rate at Peak July Conditions (1 unit on) MMBtus/MWh

2008 All Source Participants WorkshopJune 19, 2008 Appendix I1: Market Valuation Sheet – Characteristics Long-term Request for Offers Market Valuation Data Sheet Characteristics Seller: Plant Address: Technology Type: Fuel Type: Fuel Delivery Point*: Power Delivery Location*: Seller Information 1111 Sample Street, SampleCity, CA Natural Gas OB SF CC Operating Characteristics of the Contract or Plant

2008 All Source Participants WorkshopJune 19, 2008 Appendix I1: Market Valuation Sheet – Characteristics Long-term Request for Offers Market Valuation Data Sheet Characteristics Seller: Plant Address: Technology Type: Fuel Type: Fuel Delivery Point*: Power Delivery Location*: Seller Information 1111 Sample Street, SampleCity, CA Natural Gas OB SF CC Maintenance Hours Required per Month

2008 All Source Participants WorkshopJune 19, 2008 Appendix I1: Market Valuation Sheet – Compensation Long-term Request for Offers Market Valuation Data Sheet Compensation Seller: Plant Address: Technology Type: Fuel Type: Fuel Delivery Point*: Power Delivery Location*: Seller Information 1111 Sample Street, SampleCity, CA Natural Gas OB SF CC

2008 All Source Participants WorkshopJune 19, 2008 Appendix I1: Market Valuation Sheet – Emissions Long-term Request for Offers Market Valuation Data Sheet Emissions Seller: Plant Address: Technology Type: Fuel Type: Fuel Delivery Point*: Power Delivery Location*: Seller Information 1111 Sample Street, SampleCity, CA Natural Gas OB SF CC

2008 All Source Participants WorkshopJune 19, 2008 Appendix I1: Market Valuation Sheet – Constraints Long-term Request for Offers Market Valuation Data Sheet Constraints Seller: Plant Address: Technology Type: Fuel Type: Fuel Delivery Point*: Power Delivery Location*: Seller Information 1111 Sample Street, SampleCity, CA Natural Gas OB SF CC Annual Limit Energy (GWh)

2008 All Source Participants WorkshopJune 19, 2008 Appendix I1: Market Valuation Sheet – Ancillary Services Long-term Request for Offers Market Valuation Data Sheet Ancillary Services Seller: Plant Address: Technology Type: Fuel Type: Fuel Delivery Point*: Power Delivery Location*: Seller Information 1111 Sample Street, SampleCity, CA Natural Gas OB SF CC

2008 All Source Participants WorkshopJune 19, 2008 Appendix F: Power Purchase Agreement Modifications ReferenceRevisionDescription Appendix II Page 2 - Capacity Table Appendix XII Pages 1 & 2 Appendix XIII Header and Deviation - Amount of Over (Under) delivery Case 3 & 4 Appendix XIV Header Humidity Price of Gas Reference to 3.5(c) Increased deviation amount Reference to 3.13(d)(ii) Spelling Clarification of the components that make up the Price of Gas when Actual Gas is greater than or lower than the Expected Gas. Previous reference to 3.5(d) corrected to 3.5(c). Increased deviation amount from 10 to 25 to better reflect the CAISO band of the greater of 5 MW or 3% of Pmax. This example assumes a Pmax amount of 500 MW and a 3% tolerance band of 15MW. Corrected reference format.

2008 All Source Participants WorkshopJune 19, 2008 Appendix F: Power Purchase Agreement Modifications ReferenceRevisionDescription Appendix XV Example 4.3(d) Equation Appendix XVI 4.2(a) Table 4.2(c) (iii) Equation Appendix XVII Pages 1 & 2 Monthly Fixed Payment Reference to Appendix II Reference to 4.2(c) (iii) Monthly Fixed Payment Corrected Monthly Fixed Payment (MFP) equation to include Fixed O&M rate (FOMR). Corrected reference from App. B to App. II. Modified reference from 4.2(a) (iii) to 4.2(c) (iii) and inserted reference to Note section at the bottom of the page. Added Fixed O&M Rate to illustration and corrected equation.