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Bonneville Requests 100MW of External Reserves by Staff Argus, February 20, 2015

Washington -- The Bonneville Power Administration plans to buy up to 100MW of within-hour external imbalance capacity for use in May-June 2015 to help balance wind generation installed in its footprint during spring runoff.

Bonneville typically balances the nearly 4,700MW of wind capacity in its footprint with federal hydropower reserves it manages. But the agency's balancing ability is limited in April-July, during spring runoff, when environmental regulations and reservoir management requirements limit hydropower flexibility.

Bonneville plans to issue a formal request for offers on 27 February, giving suppliers until 6 March to submit offers. The agency will select the winners no later than 16 March.

The agency wants to buy up to 100MW of within-hour generating capacity or demand response resources, in 25MW flat increments, based on terms disclosed in the draft request for offers released today. Generating capacity should be able to increase output and demand response resources should be able to reduce load, both within 10 minutes, to be fully deployed in order to meet performance criteria.

Bonneville will pay the supplier for the dispatched energy or for energy use reduced by demand response, in addition to a monthly capacity payment. The agency is requesting bids for both the capacity offered, in $/kW-month, and the energy made available.

The agency asked potential bidders to submit comments on the draft and expressions of potential interest before 27 February, when the formal request for offers will be issued.

The bids submitted in the offering will complement the 54MW of external capacity Bonneville plans to procure in April-June. The agency plans to issue that quarterly acquisition request for offers after the 100MW selection process concludes.

Questions on the request should be directed to John Wellschlager by phone at 503-230-5944 or via email jdwellschlager@bpa.gov.