Open Solicitation

On April 15, 2019, Duke-American Transmission Co. launched its open solicitation process to allocate remaining transmission capacity on the San Luis Transmission Project, a new 85-mile, 230,000-volt transmission line connecting WAPA’s substation in Tracy to the San Luis, O’Neill and Dos Amigos substations in the Los Banos area. Expressions of Interest from parties interested in acquiring transmission rights on SLTP will be accepted until May 15, 2019 at 5 p.m. EST. Read the news release.

This website provides information on SLTP and the Open Solicitation process. Interested parties are encouraged to browse this website and review all documents.  If you have questions regarding the project or the Open Solicitation, submit your questions using our contact form, or send them to SLTP@datcllc.com. All questions received will be answered and added to the Open Solicitation FAQs at the bottom of this page.

Project

The SLTP project is a unique public-private partnership between DATC SLTP and three public entities – WAPA, the United States Bureau of Reclamation, and the San Luis & Delta-Mendota Water Authority – for the construction of needed transmission facilities and the provision of transmission service to customers at more competitive rates than could be provided without DATC SLTP’s involvement. Providing opportunities for Reclamation to achieve transmission cost certainty over the long term is a significant objective of SLTP, but this project also presents compelling opportunities for transmission interconnection and service that developers may use to unlock the renewable potential in the Valley.  DATC’s involvement in financing the SLTP and remarketing the capacity created by this expansion provides value to existing and new customers alike.  The efficient distribution of capacity to a broad customer base allows for contracting at costs that would be unachievable for a single customer. WAPA will construct, own, and operate the transmission facilities, providing service over the new line under the terms of the WAPA OATT. In return for its investment, DATC SLTP will enter into a thirty-year transmission service agreement with WAPA, through which it will obtain transmission rights to the entire capacity of the SLTP. Under a FERC approved Rate Schedule, and utilizing the capacity release provisions of the WAPA OATT, DATC SLTP will release up to 600MW of bidirectional transmission capacity. DATC will utilize an Open Solicitation process to accept non-binding Expressions of Interest for SLTP capacity.  Upon conclusion of the Open Solicitation period, DATC will commence negotiations with selected parties.  DATC SLTP will negotiate commercial terms with willing buyers, release the respective capacity rights, and buyers will become direct customers of WAPA, effectively stepping into the shoes of DATC SLTP as the transmission customer.

FERC proceeding and Open Solicitation process

March 15, 2019 DATC submitted filing at FERC (ER19-1338)
April 8, 2019 Commence Public Notice of Open Solicitation
April 15 – May 15, 2019 Open Solicitation window
May 15, 2019 Deadline to submit a complete and executed Expression of Interest form
May 20 – June 28, 2019 Commence negotiation period with Selected Parties
July 26, 2019 Placeholder date for Status Report submitted to FERC
Aug. 30, 2019 Execute binding agreements with Selected Parties

Interested parties should:

  1. Complete and submit Expression of Interest form prior to close of solicitation window
  2. Review requirements to be an Eligible Customer under the WAPA OATT

FAQ

DATC will be the owner of the transmission service rights and proposes to reassign these rights for up to 30 years.  WAPA is the transmission provider as they will be the owner and operator of the transmission facilities. 

DATC will negotiate the commercial terms of service with each party.  Upon conclusion of negotiations, DATC will assign its transmission service rights to each party.  Each party will become a transmission customer of WAPA.

DATC’s reassignment of capacity is conditioned on the new customer qualifying as an Eligible Customer as defined in the WAPA OATT.  The new customer will be required to execute a transmission service agreement with WAPA.

DATC will conduct the solicitation and evaluate the responses to select parties for further negotiations. 

Some examples of the potential considerations for determining award of capacity are:

  • Longer term
  • Earlier commencement date
  • Total capacity requested
  • Total revenue
  • Revenue compared to similar term requests
  • Combination of requests to maximize revenue