Announcements


BEC-27: Can we include a preference for Combination products over individual month products in the bid form? How does bid evaluation work?

There is no ability for a bidder to specify a preference for Combination Products over individual month Products in the bid form. The process for the submission of Bids is described in Section V.9 of the Spring 2024 Block Energy and Capacity RFP Rules. A “Bid” for Energy Products and Combinations is the price that the Bidder is willing to accept to deliver each MWh in one (1) block to the Company. A Bid must be displayed as a price, in $/MWh rounded to the nearest cent, for one (1) block of a Product or for one (1) block of a Combination. The Bidder may not submit any additional instructions, contingencies, or conditions on their Bids. Any such additional instructions, contingencies, or conditions will be ignored.

A Bidder may bid on any number of Products and may bid on all Products. For each Product, a Bidder may bid on any number of blocks up to and including the Target for that Product. A Bidder may bid on any number of Combinations and may bid on all Combinations. For each Combination, a Bidder may bid on any number of blocks up to and including the number of blocks available for each Combination. Additionally, a Bidder may, but is not required to, specify a maximum willingness to supply for a Segment of a month for a Company, which is the maximum number of blocks that the Bidder is willing to win and supply for that Segment of that month for that Company, across all Bids on the Product corresponding to that Segment of that month for that Company as well as Bids on any Combination that includes that Segment of that month for that Company. Please see Appendix 17 to the RFP Rules for more information regarding maximum willingness to supply.

The evaluation procedure is described in Section VI.2 of the Spring 2024 Block Energy and Capacity RFP Rules. The evaluation of Bids for the procurement of Energy Products for a Company proceeds in two steps. In the first step, all Bids that fail to meet the benchmarks are eliminated. In the second step, the Procurement Administrator evaluates all Bids that meet or beat the benchmarks and selects a package of Bids that procures all needed blocks if possible for the Company at the lowest average cost per MWh. This package of Bids is called the Least Cost Package (for that Company).

It is possible that multiple Bidders could submit Bids of the same amount ($/MWh) for the same Product or Combination, resulting in a tie for the highest accepted price for a Product or Combination. Such Bids for a Company are Tied Bids (at the Tied Price) for a Product or Combination. If, in order to fill the Target exactly, only some of the Tied Bids for a Product or Combination must be accepted, the Bids included in the Least Cost Package will be selected at random from the Tied Bids on a Product or Combination. The Procurement Administrator will assign to each Tied Bid a random number between 0 and 1. The Tied Bids are selected in increasing order of random number until the Target is filled. No selection preference will be given to identical Bids submitted at any particular time or in any particular way.

It is the responsibility of each bidder to review the terms and conditions of the RFP Rules posted to the Block Energy and Capacity Procurement section of the procurement website. Each bidder accepts these terms as a condition of its participation in the BEC RFP.