PRINCIPLES FOR EVALUATING THE METHODOLOGY Sample Clauses

PRINCIPLES FOR EVALUATING THE METHODOLOGY. The Energy Division of the CPUC has usefully provided a set of principles for evaluating the process used by IOUs for evaluating contracts in competitive renewable solicitations, within the template intended for use by IEs in reporting. The principles include: • The IOU bid evaluation should be based only on information submitted in bid proposal documents. • There should be no consideration of any information that might indicate whether the bidder is an affiliate. • Procurement targets and objectives were clearly defined in the IOU’s solicitation materials. • The IOU’s methodology should identify quantitative and qualitative criteria and describe how they will be used to rank bids. These criteria should be applied consistently to all bids. • The LCBF methodology should evaluate bids in a technology-neutral manner. • The LCBF methodology should allow for consistent evaluation and comparison of bids of different sizes, in-service dates, and contract length. Some additional considerations appear relevant to the specific situation PG&E finds itself in when evaluating renewable power contracts. Unlike some utilities, PG&E does not rely on weighted-average calculations of scores for various evaluation criteria to arrive at a total aggregate score. Instead, the team ranks contracts by net market value using its methodology, after which, “[u]sing the information and scores in each of the other evaluation criteria, PG&E will decide which Offers to include and which ones not to include on the Shortlist.”6 The application of judgment in bringing the non-valuation criteria to bear on decision-making, rather than a mechanical, quantitative means of doing so, implies an opportunity to test the fairness and consistency of the method using additional principles: • The methodology should identify how non-valuation measures will be considered; non-valuation criteria used in evaluating contracts should be clear to counterparties. • The logic of using non-valuation criteria or preferences to reject high-value contracts and select low-value contracts should be applied consistently and without bias. • The valuation methodology should be reasonably consistent with industry practices.