Request for Proposalfor

Small Business Direct Install Pilot Program

Date RFP Issued: April 2, 2018

Deadline to Submit Letter of Intent: April 13, 201812:00 p.m. EST

Deadline to Submit Questions: April 13, 201812:00 p.m. EST

Responses to Questions: April 20, 201812:00 p.m. EST

Proposal Due Date: April 26, 201812:00 p.m. EST

Contact/Submit To: Corporate SecretarySantee CooperOne Riverwood DriveMoncks Corner, SC 29461Email: corporate.secretary@santeecooper.com

Table of Contents

I. RFP Summary3

Small Business Direct Install Overview.........................................................................................3Coverage & Participation................................................................................................................3Original RFP Document.................................................................................................................3

II. Santee Cooper Overview.............................................................................................3Santee Cooper Profile.....................................................................................................................3Current Background of Santee Cooper Small Business Customer.................................................3

III. Key Dates....................................................................................................................4IV. Scope of Work and Expectations.................................................................................4

Scope of Work................................................................................................................................4Expectations....................................................................................................................................5

V. Proposal Instructions...................................................................................................6Proposal Section 1: Transmittal Letter..........................................................................................7Proposal Section 2: Executive Summary.......................................................................................7Proposal Section 3: IC Qualifications............................................................................................7Proposal Section 4: Requirements..................................................................................................9Proposal Section 5: Costs.............................................................................................................10

VI. Basis of Award...........................................................................................................11VII. Conflict of Interest......................................................................................................12Appendix A – Santee Cooper Insurance Requirements...................................................13

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I. RFP SummarySouth Carolina Public Service Authority (hereinafter called “Santee Cooper”) is releasing this RFP to procure an Implementation Contractor (“IC”) who will facilitate Santee Cooper’s implementation of a cost-effective Small Business Direct Install (“SBDI”) pilot program. At the conclusion of the pilot program, Santee Cooper will have the option to extend the contract with the selected IC in order to implement a full scale SBDI program.

Small Business Direct Install OverviewSantee Cooper is planning a SBDI energy efficiency pilot with the intention of capturing quantifiable energy savings as a result of replacing old equipment with new energy efficient equipment. Santee Cooper expects to serve 300 customers and capture 2 GWh of savings during a six-month pilot. The vendor awarded this contract will have a strong history of expertise in direct install energy efficiency programs in the small business sector. The vendor must also provide a turnkey solution and manage the job from beginning to end, including procurement of materials. Additional requirements are listed below in sections 4 through 6.

Coverage & ParticipationThe intended coverage of this RFP, and any agreement resulting from this solicitation, shall be for the use of all departments at Santee Cooper along with any satellite offices. Issuance of this proposal does not obligate Santee Cooper to purchase any solution from any IC. Santee Cooper reserves the right to reject any or all proposals. All costs associated with the proposal preparation are the sole responsibility of the IC. Following acceptance of a proposal but prior to entering into contract negotiations, Santee Cooper reserves the right to improve, diminish and/or modify any part of the proposal to satisfy changed requirements.

Original RFP DocumentSantee Cooper shall retain the RFP, and all related terms and conditions, exhibits and other attachments, in original form in an archival copy. Any modification of these, in the IC’s submission, is grounds for immediate disqualification. Any follow-up communications in regards to the RFP will be included in the final contract.

II. Santee Cooper OverviewThe following section is intended to present background information for ICs with respect to Santee Cooper's customer base.

Santee Cooper ProfileSantee Cooper is South Carolina’s state-owned electric and water utility, and the state’s largest power producer, supplying electricity to more than 180,000 retail customers in Berkeley, Georgetown, and Horry counties, as well as to 31 large industrial facilities, the cities of Bamberg and Georgetown, and the Charleston Air Force Base. Santee Cooper also generates the power distributed by the state’s 20 electric cooperatives to more than 685,000 customers in all 46 counties. Approximately 2 million South Carolinians receive their power directly or indirectly from Santee Cooper. The utility also provides water to 137,000 consumers in Berkeley and Dorchester counties, and the town of Santee.

Current Background of Santee Cooper Small Business CustomerSantee Cooper currently has approximately 30,000 retail commercial customers. Of those 30,000 customers, about 20,000 are considered small business customers. Santee Cooper defines a small business customer as one that is served by the GA rate defined below:

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“All non-residential users of energy and power having no more than a 50 kW potential demand in any three months of any twelve consecutive months, for all service of the same available character supplied to the customer's premises through a single delivery point”

Although not unique to Santee Cooper, the following are some barriers to entry that our typical small business customer may face:

Limited upfront capital Seasonal customer base Limited time to perform research Little or no resources to manage a project Lack of knowledge about energy efficiency

III. Key DatesThe following is a tentative schedule that will apply to this RFP, but may change in accordance with the organization’s needs or unforeseen circumstances.

ITEM DATEDistribute Request for Proposal to potential ICs April 2, 2018Deadline to submit a letter of intent. April 13, 2018Deadline to submit questions to Santee Cooper April 13, 2018Answers to questions from all Implementation Contractors delivered (email or conference call)

April 20, 2018

Proposal Deadline April 26, 2018

IV. Scope of Work and ExpectationsThe purpose of this RFP is to engage an IC to perform a cost-effective SBDI pilot program that demonstrates the efficacy of a full-scale SMDI program.

Based on the final grading of responses, Santee Cooper will select an IC and initiate contract negotiations. The IC’s proposal must provide sufficient detail to permit easy identification of costs. Santee Cooper reserves the right to accept all, none, or portions of the proposed solution. Santee Cooper may elect to utilize its existing technical staff to implement sections of an accepted proposal when it deems it economically preferable and will not negatively impact the outcome of the scope of work.

Scope of Work

The successful proposal will offer a turnkey experience for the participating customer and all implementation activities for Santee Cooper. Activities include but are not limited to the following:

Recruitment of customers Procurement of equipment for installation Creation of marketing materials Application processing Representation of financing options Coordination of installation schedules Project management of the installation

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Quality assurance testing of a percentage of projects Selection and supervision of installers Enter projects accurately into Energy Orbit database Measurement and verification of measures

For a typical project, the successful proposal will outline a process whereby the IC contacts a small business owner eligible for an energy efficient upgrade and presents a plan to upgrade equipment to more efficient technology that reduces the customer’s energy consumption. The plan presented to the customer will include the measures targeted for replacement along with the materials and installation costs associated with those measures, the projected energy savings from the new measures, the amount of the incentive Santee Cooper will pay and financing options for the customer’s remaining balance. If the customer chooses to purchase the new measures, the IC will arrange for the purchase and installation of the measures, utilizing local contractors or employees when possible, and complete the application(s)/document(s) in a way that ensures the customer’s hassle-free experience and confidentiality of customer information.

In addition to providing a Program Manager to serve as a liaison between Santee Cooper and the IC, Santee Cooper will provide incentives which will be paid directly to the installer through the IC. These incentives will cover up to 80% of the cost of the purchase and installation of eligible measures. Measures can include but are not limited to lighting, refrigeration and HVAC. The IC is asked in section 4 to provide Santee Cooper with a list of suggested measures for installation.

ExpectationsA successful SBDI pilot will do the following:

Achieve 2,000 MWH of savings Complete projects for a minimum of 300 customers Demonstrate a UCT score of 1.0 or greater Tie compensation directly to energy savings Place priority on the use of local contractors and/or employees Offer financing directly to customers Scale into a full program with very few programmatic changes

A successful proposal will demonstrate an IC’s ability to do the following:

Maintain a high level of customer satisfaction Work on a pay-for-performance structure and quote a price on a per kWh-saved basis Hire local employees or work with local contractors to complete projects Confirm that local employees or contractors meet insurance thresholds and have licensing required by

Santee Cooper Identify cost-effective energy efficient measures for installation Offer a turnkey solution for customers, including procurement and installation of all products Provide full scale program services with little to no disruption in the program Assist Santee Cooper with marketing the SBDI pilot and future program, if necessary, including

coordination with Santee Cooper’s Corporate Communications Department. Offer a financing option, whether its own or through a third party, to customers for the costs of the

projects that the customers must pay Meet Santee Cooper’s insurance requirements (See appendix A) Have a SC business license or be able to obtain one in a timely manner

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Work in coordination with Santee Cooper’s Technology Services in order to meet all cyber security requirements regarding customer and employee privacy

V. Proposal InstructionsBefore responding to this proposal, the IC must send Santee Cooper a letter of intent by 12:00 p.m. EST on April 13, 2018 stating that they are planning to send a response to the RFP by 12:00 p.m. on April 26, 2018. Any RFP responses sent without a prior letter of intent will be considered ineligible and will not be reviewed.

In preparing proposals, ICs are required to complete all areas of this RFP including:

Transmittal Letter Executive Summary Description of the IC’s Qualifications Requirements Cost Worksheets

ICs must provide answers to questions in the format requested. Complete answers to each question must be provided in the cell immediately to the right or below the question. If the response is lengthy, the IC should provide an abstract of the answer in the space allocated and then refer to the location of the full text at the end of the abstract. ICs should avoid responses that require the reader to search for an answer, i.e. “See question 7,” “See Appendix A,” etc. Yes or No responses must be annotated with further explanation whenever possible. Brief, succinct responses are preferred. Failure to respond as requested may affect the overall scoring of the RFP and, in extreme instances, could result in the disqualification of the RFP.

ICs may provide additional information on the company, the vision, direction, experience or other pertinent factors that differentiate them from other competitors.

Four non-priced and one priced copy of the RFP responses shall be submitted in non-transparent, sealed envelopes/boxes. Proposals must be formatted in the same manner as the Proposal Responses section of this RFP; all tables should retain their numerical sequence and content integrity. Proposals which do not meet these format requirements risk disqualification.

Proposals, as described, must be received no later than 12:00 p.m. EST April 26, 2018. No modifications to the proposals will be accepted after this closing date except as requested by Santee Cooper.

All proposals must be submitted to the following address:

Santee Cooper Attention: Corporate SecretaryOne Riverwood DriveMoncks Corner, SC 29461-6101

All correspondence, communications, and questions relative to the proposal or preparation of proposals should be directed by e-mail to the Corporate Secretary (corporate.secretary@santeecooper.com). Letter of intent must be submitted by 12:00 p.m. EST Friday, April 13, 2018. All questions concerning the RFP must be submitted by 12:00 p.m. EST Friday, April 13, 2018. Answers will be compiled and sent back to all bidders by Friday, April 20, 2018. The IC is responsible for verifying receipt of any electronic documentation.

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Contact with any other Santee Cooper personnel including but not limited to management or members of the Board of Directors, regarding this project, is prohibited and is grounds for rejection of your proposal without further explanation.

Proposal Section 1: Transmittal LetterThe transmittal letter will indicate the intention of the IC to adhere to the provisions described in the RFP without modification. The letter of transmittal will: Identify the submitting organization; Identify the person, by name and title, authorized to obligate the organization contractually; Identify the contact person responsible for this response. Specify phone, fax, and email address; Explicitly indicate review and acceptance of the Terms and Conditions and identify exceptions or "deal

breakers"; Acknowledge the proposal is considered firm for ninety (90) days after the due date for receipt of

proposals or receipt of the last revised offer submitted; Acknowledge completion of the Pricing Worksheet; Acknowledge completion of the Requirements Worksheets; Signed by the person authorized to contractually obligate the organization.

Proposal Section 2: Executive SummaryThe IC will provide an Executive Summary that presents in brief, concise terms a summary level description of the contents of the Proposal. In addition, the IC must clearly and specifically detail all exceptions to the Terms and Conditions imposed by this RFP.

Proposal Section 3: IC QualificationsThe IC must have a demonstrated track record in providing services for proposed solution. The IC’s track record should reflect experience in work of a similar nature and magnitude to that being proposed. Relevant experience must be associated with projects completed not more than two (2) years prior to the date of this RFP. The IC should highlight their experience with electric utilities in the United States.

The IC will provide a listing of its current clients that demonstrate the experience for which Santee Cooper is seeking. Please complete the client listing below. Add rows to the table as appropriate. These references are a requirement for a complete RFP response. These contacts may be called as part of the evaluation process. Any information obtained will be considered confidential and used only in the context of evaluating the responses to this RFP.

Relevant Client List (Utilities Preferred)Reference 1Organization nameIndustryContact name, title, phone number, and email addressType of ProgramRun Date of ProgramReference 2Organization nameIndustryContact name, title, phone number, and email address

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Type of ProgramRun Date of ProgramReference 3Organization nameIndustryContact name, title, phone number, and email addressType of ProgramRun Date of Program

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Proposal Section 4: RequirementsThe IC will present its project approach, project organization, and project timeline. Santee Cooper expects the IC to have a proven track record compliant with industry standards. Please address each of the following requirements below.

1. Project Approach1.1 IC will obtain at least 2,000 MWh of energy savings.

IC Response:1.2 IC will complete projects for at least 300 customers.

IC Response:1.3 IC will maintain a high level of customer satisfaction

IC Response:1.4 IC will hire local employees or work with local contractors to complete projects.

IC Response:1.5 IC will create a list of energy efficient measures (achieve a UCT of 1.0 or greater) to consider

installing during the pilot. (Include spec sheets.)IC Response:

1.6 IC will confirm that local employees or contractors meet insurance thresholds and have licensing required by Santee Cooper (licensing requirements determined by measures included in spec sheet from question 1.5).IC Response:

1.7 IC will have a turnkey solution, including procurement and installation of all products.IC Response:

1.8 IC will work with Santee Cooper in marketing the SBDI pilot and future program, if necessary, including coordination with Santee Cooper’s Corporate Communications Department IC Response:

1.9 IC will have a financing option available to the customer for any installation costs the customer must pay.IC Response:

1.10 IC must meet Santee Cooper’s insurance requirements (See Appendix A).IC Response:

1.11 IC must have a SC business license and all other necessary licensing or be able to obtain them in a timely manner before work begins.IC Response:

1.12 IC will work in coordination with Santee Cooper’s Technology Services in order to meet all cyber security requirements regarding customer and employee privacy.IC Response:

2. Project Staffing2.1 Please describe the project organization you recommend for proper governance and management

for a program of this type. Define the accountability of each of the organizational roles - for both Santee Cooper and your organization. IC Response:

2.2 IC shall provide access to key resources during the bid process. IC shall provide detailed resumes of these individuals and their alternates in Word document format. IC Response:

2.3 IC’s key project team members must have at least 2 years’ experience with proposed solution implementation.IC Response:

2.4 Santee Cooper reserves the right to interview all prospective key team members as proposed by

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the IC, prior to start of work, and in Santee Cooper’s sole discretion, to accept or reject any key team member. Key members will be jointly identified during the development of the project plan. If during the project, any IC team member demonstrates that he or she is not qualified to perform, or disrupts or interferes with the successful completion of the project, Santee Cooper’s business, or employees, Santee Cooper shall notify IC and request that such individual be replaced. In the event that any individual is removed, IC shall replace that individual within a two (2) week period for the remaining term of the project. The replacement shall also be subject to Santee Cooper review and approval. Does IC comply? IC Response:

2.5 IC shall name any third parties they plan to utilize. IC Response:

2.6 IC shall manage the contribution of third parties to each project. Describe your approach for managing third party contributors and indicate those legal and operational structures that are required to make the projects successful. IC Response:

2.7 IC's staff and contractors shall comply with Santee Cooper security and safety policies when working at Santee Cooper sites, at all times. IC Response:

2.8 IC's staff and contractors shall comply with Santee Cooper confidentiality and privacy requirements. IC Response:

3. Miscellaneous3.1 If IC is awarded the contract, how soon can it start?

IC Response:

Proposal Section 5: CostsThis section should contain cost information. Pricing should be quoted on a pay-for-performance basis. All pricing should be in $/kWh reduced or $/MWh reduced. It is acknowledged that the IC may be required to make some assumptions about Santee Cooper’s environment or about specific requirements. Any assumptions made by the IC in regard to this RFP should be documented in this section. Santee Cooper’s assumptions regarding costs are as follows:

Any expenses incurred by the IC prior to award are the IC’s responsibility Invoices must be sent on a monthly basis reflecting savings and costs associated with the prior month

Any oversight or unintentional omission of a component, artifact, resource or other consideration by Santee Cooper that was not specifically identified in this RFP, but is critical to the success of this solution’s implementation, must be disclosed by the IC, addressed, and included in this RFP. Failure to fully disclose and include all requirements for the successful implementation of the solution described by this RFP may result in IC disqualification.

Costs should be organized and detailed in such a way as to enable Santee Cooper to effectively analyze each cost component. A summary of items to include are below:

1. Price/fees for the Requirements 2. Other Costs - please specify any additional costs not otherwise included above3. Cancellation Fees4. Acceptance Criteria5. Pricing Assumptions

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6. Payment/Financial Terms

Santee Cooper is depending upon the expertise of the IC, and therefore, the IC is responsible for providing a COMPLETE list, with pricing, of ALL additional costs required to complete requested services successfully.

All responses to the requirements will be incorporated into the contract with the selected IC.

VI. Basis of AwardSantee Cooper has formed a project team that will evaluate and rank proposals. Evaluation and ranking will occur after an initial review for bid responsiveness. No information will be provided as to the status of proposals while they are being considered. The evaluation criteria for costs will not be the sole determinant of the award. The evaluation criteria for this RFP are as follows:

Requirements Experience Reference Calls Evaluated Cost

The IC ultimately selected for completion of the RFP will depend on cost, available funding and management approval. The evaluated cost includes all consulting services, either IC provided or subcontracted to third party, to successfully complete the described requirements. Upon completion of the proposal evaluation process, Santee Cooper will enter into negotiations with the winner of the bid.

1. For a proposal to be considered responsive, it must Be received by the due date and time specified herein; Be completed in the required format as indicated in the "Proposal Instructions" section of this

document; Be completed with the required original ink signature on the original priced copy; Supply all reference information and documentation in full, including current telephone numbers, as

outlined in the RFP.

2. A proposal will be considered non-responsive for failure to comply with any of the above. In addition, the IC may cause the proposal to be considered non-responsive for any of the following reasons; if the IC Lacks the resources and ability to fulfill the RFP requirements as outlined in this document; Shows evidence of real and/or apparent conflict of interest; Is experiencing financial problems which could impact its performance and ability to provide ongoing

support.

3. Santee Cooper may exclude from further consideration any proposal that is non-responsive. If no responsive offers or only one responsive offer is received, Santee Cooper may negotiate a noncompetitive contract or cancel the proposed procurement. If there are several responsive offers, Santee Cooper reserves the right to negotiate with one or more ICs to align bids, resolve bidder exceptions to the RFP requirements, and will select the offer that best meets its requirements. Santee Cooper is a public authority with an obligation to the citizens of South Carolina to exercise good judgment in use of its monies.

4. Santee Cooper reserves the right to purchase all, part, or none of the proposed solution. Santee

Cooper expressly reserves the right to reject any or all proposals, to waive any informalities or

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irregularities in the proposals received, and to accept that proposal which in its judgment best serves its purpose. The evaluated cost includes all consulting services, either provided by the IC or subcontracted to a third party, to complete the requirement successfully.

5. In addition, the following financial requirements must be met by the IC: No service fees or additional costs will be invoiced to Santee Cooper by the selected IC during the

term of this agreement (except as described in this RFP or mutually agreed upon in writing). There will be no “minimum service” or “special service” charges or surcharges. There will be no re-work fees for non-performance or other errors on the part of the selected IC.

VII. Conflict of Interest IC shall advise Santee Cooper in writing with his or her proposal or prior to the effective date of this Contract, of any relationship with third parties which present a conflict of interest with the rendering of the services, or which could prevent IC from carrying out the terms of this Contract or which could present a significant opportunity for the disclosure of confidential information. The IC shall not have an ownership interest in, or receive benefit, profit, or payment from, any company, firm, or individual which has or is seeking to have, business dealing with Santee Cooper.

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Appendix A – Santee Cooper Insurance Requirements

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