Cost of Service Analysis

Peninsula Light Company is requesting proposals for a Cost of Service Analysis. Interested parties may submit a proposal per instructions provided in the RFP. Proposals will be accepted until 4:00 PM PST on July 17, 2017.

Peninsula Light Company – Gig Harbor, Washington

  • Project Background and Introduction Peninsula Light Company (PLC), formed in 1925, is a member owned mutual cooperative. PLC provides electric service to over 32,000 primarily residential members, in the Gig Harbor and Key Peninsulas of Western Pierce County in Washington State and is the second largest cooperative in the State of Washington. The PLC service territory covers approximately 120 square miles extending from the Tacoma Narrows (on the south) to the Kitsap County line (to the north). PLC’s last Cost of Service Analysis (COSA) was completed in 2010. Since that time, PLC has implemented 2 across the board rate increases. PLC primarily serves residential customers and has a small number of commercial accounts. PLC currently purchases the majority of its power requirements from the Bonneville Power Administration. PLC is partnered with 3 other Pacific Northwest public power utilities in the 98.9 MW Harvest Wind Project. PLCs share of the project is 20 MW. A portion of PLCs share of this Project is used to serve its Tier 2 load (Above Rate High Water Mark Load).Since 2006, PLC has had a fully deployed AMI system utilizing Landis+Gyr Focus meters with the Hunt TS2 communication module. Meter information is transferred manually from the Command Center package to Advanced Utility System’s CIS Billing System software.
  • Scope of WorkThe Consultant is expected to perform the following activities:Cost of Service AnalysisPLC wants to ensure that it properly recovers the cost of providing service to each of its members. The cost of service includes recovery of all operating costs and reasonable operating reserves after funding operations, debt service and capital projects. The Consultant shall establish the test-year for the study and prepare a cost of service analysis in accordance with generally accepted practices. The Consultant shall also isolate PLC’s I-937 Renewable Energy requirement costs to determine the cost per member. PLC will review the draft report and reply with comments prior to delivery of the final version. The Consultant will present the findings and results of the Cost of Service Analysis to Management for approval. PLC may ask the Consultant to assist with preparation and delivery of a presentation for the PLC Board’s review and consideration.DeliverablesThe Consultant will provide PLC with copies of all final documents including spreadsheet files, research results and all other data and materials developed for the project which PLC may use to perform future internal analyses and studies. The foregoing information will be available for PLC to use as it determines appropriate, subject to copyright or other proprietary use restrictions. The Cost of Service Analysis will be completed no later than October 31, 2017.
  • Qualifications, Firm Experience and References Please include the following in your proposal:


  1. A statement of qualifications and experience relevant to the preparation of a COSA. This should include a brief history of the firm and a brief statement regarding the experience of the likely members of the project team, including any sub-contractors, in performing the types of work required by the RFP
  2. Anticipated staffing requirements to complete the work
  3. A sample of a written report prepared by the individuals who will be the primary author(s) of Peninsula’s report. This may omit any client-specific or confidential information as needed
  4. A relevant client list, naming: company, reference person, address, and telephone number
  5. A list of any potential conflicts of interest

 Cost Proposal PLC expects each respondent to submit a “not to exceed” cost proposal and requires that information be submitted regarding the following:

  1. Staff hours and related salary rates
  2. Proposed overhead rates, and projected costs for materials, travel and other items
  3. Sub-contractor hours and fees
  4. Not to exceed total cost

Other Proposal Elements 

  1. Description of methodology to be used to perform analysis
  2. Anticipated work schedule with milestones
  3. Specific statement of any exceptions to terms and conditions of this RFP
  4. Copy of any proposed Contract
  5. Consultant shall state what action is needed from PLC beyond what has been described in this RFP. If this RFP contains deficiencies, which may result in out-of-scope charges, the Proposal should be expanded to correct for the inadequacies

Evaluation Criteria Each proposal will be evaluated on the following factors:

  1. Ability of the Consultant to perform the specified tasks
  2. Qualifications of the specific individuals who will be assigned to this project
  3. Amount of time key personnel will be working in their respective portion of the project
  4. Reasonableness of the fee requested to complete the work within the approved schedule
  5. Demonstrated record of success by the Consultant on similar work performed for Peninsula Light Company or other electric utilities
  6. The specific method and techniques to be employed by the Consultant on the project
  7. Responsiveness to the requirements of this RFP
  8. Contract terms and conditions Peninsula reserves the right to reject all bids for any reason and/or to request that bidders modify their bid proposal.

Billing and Payment The Consultant will provide a monthly progress report along with monthly invoices. The progress report will summarize activities of the preceding month and any revisions to milestone dates.Invoices will be submitted monthly. Invoices will be paid, net 30 days after receipt and are subject to approval by the Power Resources Manager. 

RFP Responses/Administrative Information An original and three copies of your proposal must be received no later than close of business, July 17, 2017 at the following address: Peninsula Light Company 13315 Goodnough Dr. NW Gig Harbor, WA 98332 Attn: Sharon Silver, Power Resources Manager  Electronic versions may be sent to PLC, at its discretion, may choose to require the respondents to make a presentation to its Board and Management prior to awarding the contract. PLC will entertain reimbursement for actual travel expense but not travel time for the respondent to make its proposal. All Proposals shall be valid for at least thirty (30) working days after the Proposal deadline for evaluation purposes. All Proposals must be signed and dated to be accepted and shall be prepared at the sole expense of the bidder. PLC will not reimburse any costs of bid preparation.

Contact Information

Questions regarding this RFP can be directed to:

Sharon Silver

Power Resources Manager

Peninsula Light Company

13315 Goodnough Dr. NW

Gig Harbor, WA 98332