Wholesale power purchase costs are typically a significant factor that drive retail electricity costs and rate designs. Implementing a transaction with a new power supplier typically involves working through a myriad of pricing, locational, risk, transmission, and operation issues. PSE has the experience required to evaluate and procure power supply resources to serve your electricity needs.

Our team’s power supply evaluations often involve all or pieces of the following:

  • Develop a Request for Proposal (RFP) for the purchasing party to describe the amount of load anticipated being served, location on the system, desired term of agreement, and customer specific proposal requirements
  • Issue RFP to prospective suppliers
  • Evaluate key parameters of the proposal, including pricing structures, supplier location, and risk attributes
  • Present summary of proposals to decision-makers
  • Advise and work with decision-makers toward selection of a power supply provider
  • Negotiate the purchase power agreement (PPA) with the power supplier, working with legal counsel that has power transaction experience
  • Work with all entities involved to bring about the transmission implementation actions, including any changes needed for Balancing Authority and reliability related operations duties, transmission service, and market operations duties

Our Purchase Power Agreements Experts

Richard J. Macke

Vice President Economics, Rates & Business Planning

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