[Tdstf] MISO Selection Report

[Heidi Pacini]

Developer Selection Task Force,

Please see the link below to MISO's selection report for the Duff-Coleman transmission project.  Thank you to Jeff Hein for providing this.

https://www.misoenergy.org/Library/Repository/Study/Transmission%20Developer/20161220_FINAL_Selection%20Report_SRPT_v1.pdf

Bob has reviewed the report and summarized a number of useful takeaways for the task force to consider as we look to finalize the draft procedure for WestConnect's developer selection process.  Please see Bob's email below.

As a reminder, I will be sending out a clean version of the draft procedure document for your review, likely tomorrow.  We will ask for any additional comments back in about a week's time, and then we will look to forward the document to the Tariff Task Force for their initial review.

Thank you,

Heidi Pacini | new 401.619.3628 office | 303.229.9401 mobile | Heidi at PacEnergies.com<mailto:Heidi at PacEnergies.com>

From: Robert.Smith at transcanyon.com [mailto:Robert.Smith at transcanyon.com]
Sent: Thursday, March 2, 2017 3:00 PM
To: Jeffrey.T.Hein at xcelenergy.com; Heidi Pacini <heidi at pacenergies.com>
Subject: MISO report

I thought section 2.6 was very interesting in that it provided a fairly robust framework for how the comparative analysis process would work but still left a lot of flexibility to the evaluation team.  Would be interested to see if our task force agrees and if something like this could help address the concerns that Chris raised during our last call.  I wouldn't think we would go into quite as much detail but could provide some direction with a similar type scoreboard. Attachment 4 also interesting where each criteria is broken down into sub-criteria and further into factors.  Looks like that is from the tariff.

In general I think the direction we are headed is very similar to the MISO process.  Some specific takeaways from my review:

1.      The selection report names successful applicant only
2.      Has similar Q&A log, RFP Information Meeting, Additional conference calls, and requests for clarifying information as WC
3.      Weighting for the four evaluation criteria seem set in tariff, not flexible
4.      MISO project estimate was $58.9 M, bids were $34.0 M - $55.7M supporting competitive process and aggressive bidding
5.      Project specified as from A to B but flexibility in design as far as structures, conductor, impedance and rating
6.      Seemed to give high consideration to ATRR in cost criteria
7.      The bid O&M cost had very wide variation from $120 K to $894 K annually indicating need to evaluate carefully and encourage cost cap for O&M
8.      Planning Participation similar to WC except project specific
9.      Much of detailed proposals is kept confidential and good definition of types of information and confidentiality provisions
10.   BCR of 16.1 to 1 ! Would be interesting to know if because of recent change in system i.e. generator plant retirement or is this a project that should have been built years ago?
11.   From RFP to award is almost one year
12.   Package consists of four parts: RFP, Instructions, Proposal Template and Proposal Template Worksheet. Worksheet provides for consistent information and easier apples to apples comparison of criteria and sub-criteria
13.   Prohibits contact with Interconnected incumbent TOs. Wasn't sure I understood this since two of the proposals included interconnected incumbent TO as Proposal Participants
14.   Four Evaluation Criteria: Cost/Design 30%, Project Implementation 35%, O&M 30% (I think the cost of O&M is part of Cost/Design so this seems high to me favoring incumbents), Planning Participation 5%
15.   For each criteria the best proposal is given the maximum points and then other proposals scored relative to the best
16.   Criteria scoring ranges of best/better, good, acceptable, unacceptable

Heidi,

Can you forward this and the link to report to the task force? Thanks,

Bob



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