LIPA Issues RFP for Power Supply Management Services
Long Island Power Authority Issues RFP for Power Supply Management Services
Uniondale, NY-October 17, 2007- The Long Island Power Authority (the Authority) today issued a Request for Proposals (RFP) soliciting proposals from firms interested in providing Power Supply Management (PSM) Services for a term of up to 10 years. PSM Services include the bidding and scheduling of generation resources either owned or controlled by the Authority as well as LIPA’s transmission assets into the New York, New England, and Pennsylvania – New Jersey – Maryland markets in which the Authority participates as well as the operation of the Authority’s power system in a least cost manner.
The PSM Services obtained in the RFP are currently being provided by KeySpan Energy Trading (now National Grid) under two contracts that expire at the end of 2009.
“In this RFP, the Authority is seeking to lower its costs of managing its generation and transmission resources while maintaining or improving the quality of such services,” said Authority President and CEO Kevin S. Law.
The PSM Services contracts obtained from the RFP would provide the Authority with services in the three areas listed below. The Authority may select up to three entities to provide these services.
*Â Â Â Â Â Â Front Office:Â The purchase and sale of all energy, capacity, and ancillary services to meet the needs of the Authority’s customer load and the operation of the system in a least cost manner consistent with existing agreements, policies, regulations and reliability constraints.
*Â Â Â Â Â Â Mid Office:Â Monitor performance of front and back office operations; provide on-going reporting to the Authority and related support services.
*Â Â Â Â Â Â Back Office:Â Provide accounting, settlement, dispute resolution support, and related reporting and support services.
The RFP requires that proposals be submitted to the Authority by December 21, 2007 and the Authority anticipates proposal selection to occur at the Authority’s Board of Trustees meeting in March 2008.
To facilitate communications between the Authority and potential proposers, and to ensure that all entities have access to the same information, the Authority will post the RFP and information involving the RFP on its web site at http://www.lipower.org. In addition, the Authority will hold a Proposers Conference at the Authority’s offices in Uniondale, New York on November 7, 2007. At this conference, the Authority’s staff will provide an overview of key elements of the RFP and answer questions from the audience. Further details of the conference will be posted on the Authority’s web site.
Throughout the RFP process, potential proposers are encouraged to pose questions to the Authority relevant to the RFP and the Authority will make responses available to all potential proposers.
LIPA, a non-profit municipal electric utility, owns the retail electric Transmission and Distribution Systems on Long Island and provides electric service to more than 1.1 million customers in Nassau and Suffolk counties, and the Rockaway Peninsula in Queens. The Authority is the third largest municipal electric utility in the nation in terms of customers served and the sixth largest in terms of electricity delivered. In 2006, the Authority outperformed all other overhead electric utilities in New York State in all three major reliability categories. The Authority does not provide natural gas service or own any on-island generation assets. More information about the Authority can be found on line at http://www.lipower.org.
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