1. EE Third-Party Solicitation Process Workshop Solicitation Alignment
June 16, 2017
Joint IOU Team
Solicitation Alignment
PG&E Pacific Energy Center
851 Howard Street
San Francisco, CA, 94103

2. Introduction
The IOUs have formed a joint IOU Solicitation Team to address areas of concern within the Third Party program solicitation process as raised by stakeholders. The team is working together to:
Collaborate with stakeholders
Align IOU solicitation packages to the extent practical
Ensure compliance with CPUC direction
Protect ratepayer interests
Maintain consistency with approved business plans
The IOUs have formed a ‘joint team’ to work together with our stakeholders to address concerns and hopefully streamline the solicitation process. Our intent is to:
Collaborate
Align
Ensure compliance
Protect
Maintain consistency

3. Areas of Alignment Between IOUs
Announcement process
Solicitation structure
Timeline
Consistency in solicitation packages
Coordination between IOUs
Solicitation schedules
Solicitation logistics
SW program solicitations
The team looked at areas for alignment

4. Solicitation Announcement
To provide visibility of solicitations for bidders, the IOUs propose to announce the solicitations by utilizing the following:
Consistent mechanisms for announcements
PEPMA
CAEECC
Standard announcement follow-up methods which could include:
contractors registered for a specific solicitation
Post updates and additional announcements on SW sites
How can we communicate with this large stakeholder group and the market.
SDG&E utilizes the Power Advocate system for blast s.

5. Solicitation Structure
The IOUs propose a standard structure to describe each opportunity. This structure will be consistent with CPUC direction that third parties propose, design and implement, and deliver EE programs.
IOUs will outline the opportunity and/or the gap and may include the following elements within the solicitation:
Segment
Objectives
High-level goals
IOU service territory goals and objectives
Any other applicable CPUC and utility contracting requirements
Delivery timeframe (i.e. determine the success of program based on early indicators, timely demonstration of concept success)
Payment structures which may include Pay-for-Performance compensation, turnkey or some variation thereof
We want to support the development of meaningful proposals from the market.
This information in conjunction with the bidders knowledge of our goals and objectives, through our business plans

6. Solicitation Structure (continued)
Elements the contractors’ proposals may be required to include are:
Proposed program design / solution
Implementation methodology
Technologies
Detailed compensation structure
Customer Incentive structure
KPIs
During contract negotiation (and if needed and in accordance with CPUC direction), the IOUs may work with the selected contractor to adjust the proposed solution and program design

7. Solicitation and Program Launch Timelines
Solicitation timeframes may vary depending upon scope and expected market response. The duration of each solicitation, from release date to selection, is likely to range between 5 and 8 months
The IOUs may utilize the following approaches to the solicitation process:
Single stage solicitation, two step process:
Step 1: RFP with down selection to smaller number of qualified bidders
Step 2: Targeted questions, bidder presentations and in-person interviews
Two stage solicitation:
Stage 1: RFA with down selection to smaller number of qualified bidders for RFP
Stage 2: RFP, targeted questions and/ or interviews with selected bidders
Program Launch
Following completion of the solicitation process, the program launch or mobilization begins with contract negotiation to program launch and is likely to range between 6 and 9 months in duration
Uncertainty in business plan approval = uncertain start date.

8. Representative Solicitation / Program Launch Timelines
A single-stage RFP process is illustrated below.

9. Representative Solicitation / Program Launch Timelines
A two-stage RFA/RFP process is illustrated below.

10. Solicitation Distinctions: Statewide vs Local
To the extent possible, the consistent third-party solicitation process will be used for both Statewide programs and local third-party programs, with the following distinctions for Statewide program solicitations:
The Lead PA will manage the solicitation for its Statewide program
All Funding PAs will participate in establishing evaluation criteria for Statewide program solicitations
All Funding PAs will evaluate/score solicitations against these criteria to determine the right mix of implementers for any given solicitation to meet metrics and goals

11. Consistency in Solicitation Packages
The IOUs are also collaborating on the solicitation packages. The structure of each IOU’s solicitation packages will be similar. These similarities are likely to include:
Identical high-level sections
Overall content of the documents:
Approach
Compensation
Experience
Identical requested information and format for standard data
Bidder company information:
Name and contact info
Company size: employees & revenue
Office locations

12. Consistency in solicitation packages (continued)
Although the IOUs are working together to gain consistency in the solicitation packages, some differences will be necessary based on priority of customer and service territory needs, individual business plans, and portfolio needs.
Differences may include:
Scope of opportunity/gap for each sector
Selection criteria and/or weightings
Specific solicitation logistics, which may or may not be employed:
Bidders’ Conferences
Use of Q&A and/or Interviews

13. Coordination of Scheduled Solicitations
The IOUs are collaborating in development and review of the solicitation schedules
However, given the extremely aggressive schedule to outsource both SW and local 3P programs to achieve a minimum of 60% of the portfolio by the end of 2020, the solicitation release dates will be tailored and take into account the differences in service territories, portfolio needs and business plan requirements
The IOUs will continue to seek coordination in schedules in order to facilitate bidder participation