Common use of EVALUATION OF PORTFOLIO FIT Clause in Contracts

EVALUATION OF PORTFOLIO FIT. The approach PG&E employed in the 2011 RPS RFO to score Offers on portfolio fit differed from that used in prior years. The current approach has specific advantages: • The numerical score is based on quantitative calculations or on technology-specific attributes, and is objective in its development with little discretion or judgment involved in applying scoring guidelines. • The scoring for time of delivery is closely related to how PG&E currently perceives its greatest needs for new RPS procurement, an important consideration for compliance strategy. There are a few drawbacks to this approach: • The current scoring approach is somewhat black and white; it tends to provide either a high score or a low score with few steps in between. • In the greater scheme of things, the portfolio fit criterion does not appear to have as much impact as others such as market valuation, project viability, and RPS goals. To Xxxxxx’x awareness there has not yet been a situation where a renewable Xxxxx’s superior portfolio fit score has enabled it to be shortlisted by PG&E despite inferior value or viability; nor has there been a situation where an inferior portfolio fit score has led an Offer to be rejected from a short list. PG&E’s revised portfolio fit criterion for the 2011 RPS solicitation is consistent with the utility’s current understanding of its generation need for each compliance period under SBX

EVALUATION OF PORTFOLIO FIT. The approach PG&E employed in the 2011 RPS RFO to score Offers on portfolio fit differed from that used in prior years. The current approach has specific advantages: •  The numerical score is based on quantitative calculations or on technology-specific attributes, and is objective in its development with little discretion or judgment involved in applying scoring guidelines. •  The scoring for time of delivery is closely related to how PG&E currently perceives its greatest needs for new RPS procurement, an important consideration for compliance strategy. There are a few drawbacks to this approach: •  The current scoring approach is somewhat black and white; it tends to provide either a high score or a low score with few steps in between. •  In the greater scheme of things, the portfolio fit criterion does not appear to have as much impact as others such as market valuation, project viability, and RPS goals. To Xxxxxx’x awareness there has not yet been a situation where a renewable Xxxxx’s superior portfolio fit score has enabled it to be shortlisted by PG&E despite inferior value or viability; nor has there been a situation where an inferior portfolio fit score has led an Offer to be rejected from a short list. PG&E’s revised portfolio fit criterion for the 2011 RPS solicitation is consistent with the utility’s current understanding of its generation need for each compliance period under SBX

EVALUATION OF PORTFOLIO FIT. The approach PG&E employed in the 2011 RPS RFO to score Offers on portfolio fit differed from that used in prior years. The current approach has specific advantages: • The numerical score is based on quantitative calculations or on technology-specific attributes, and is objective in its development with little discretion or judgment involved in applying scoring guidelines. • The scoring for time of delivery is closely related to how PG&E currently perceives its greatest needs for new RPS procurement, an important consideration for compliance strategy. There are a few drawbacks to this approach: • The current scoring approach is somewhat black and white; it tends to provide either a high score or a low score with few steps in between. • In the greater scheme of things, the portfolio fit criterion does not appear to have as much impact as others such as market valuation, project viability, and RPS goals. To Xxxxxx’x Arroyo’s awareness there has not yet been a situation where a renewable Xxxxx’s superior portfolio fit score has enabled it to be shortlisted by PG&E despite inferior value or viability; nor has there been a situation where an inferior portfolio fit score has led an Offer to be rejected from a short list. PG&E’s revised portfolio fit criterion for the 2011 RPS solicitation is consistent with the utility’s current understanding of its generation need for each compliance period under SBX