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COMMERCE BUSINESS DAILY ISSUE OF FEBRUARY 21,1996 PSA#1535

U.S. Department of Energy, Albuquerque Operations Office, Contracts and Procurement Division, P.O. Box 5400, Albuquerque, NM 87185-5400

S -- S--UTILITIES--REQUEST FOR EXPRESSION OF INTEREST - ELECTRIC SERVICES TO KIRTLAND AIR FORCE BASE/SANDIA NATIONAL LABORATORIES POC Michael G. Loera, Contracting Officer, (505) 845-4302. The U.S. Department of Energy (DOE) is seeking Expressions of Interest (EOI) from contractors who may wish to compete for award of a long term (ten year)contract to provide electric service to Kirtland Air Force Base/Sandia National Laboratories (KAFB/SNL). Currently, DOE purchases electric service for KAFB/SNL from Public Service Company of New Mexico (PNM) pursuant to a contract that will expire in December 1999. An opportunity now exists for DOE to terminate the existing contract and enter into a new purchase arrangement for electric service to KAFB/SNL. This request is to provide the DOE with preliminary information related to how the required services might be provided for a ten-year term commencing either October 1, 1996, 1997, 1998 or 1999. KAFB/SNL is currently supplied by PNM with three-phase, 60Hz electric power over four normally-closed 46 kV feeders and one normally-closed 115 kV feeder that originate from PNM s 345/115/46 kV Sandia Substation, as well as over one normally-open 46 kV feeder that originates on the west side of KAFB/SNL. The on-base 46 kV and 115 kV feeders are operated as a radial system. In the event of scheduled maintenance or a forced outage on a 46 kV feeder, other feeders are available to provide backup service via manually-operated sectionalizing switches. Similar backup capability is presently not available for the single, radially-operated 115 kV feeder. Plans are currently underway with PNM to construct a second 115 kV delivery point to provide redundant 115 kV service to KAFB/SNL. In addition to the power purchased from PNM, KAFB/SNL receives a federal allocation of approximately 3.5 MW of power from the Western Area Power Administration (WAPA). This allocation is delivered by WAPA to West Mesa and delivered to KAFB/SNL by PNM. The KAFB/SNL forecasted maximum demand and annual energy usage for FY 1996 is 66,747 kW and 356,669 Mwh respectively with an anticipated growth of 2.1% per year. Prospective contractors are being asked to submit EOIs that (l) identify the prospective contractor (business name, business size (large/small/8a)), point of contact, address and telephone number), (2) specify which ten-year term(s) the prospective contractor is interested in, (3) describe the prospective contractor s facilities and capabilities to provide the service during that ten- year term(s), (4) generally describe any off-site delivery arrangements and/or new transmission facilities the prospective contractor would require if use of remote sources of electric power is contemplated, and (5) describe whether the service would be subject to the jurisdiction of the New Mexico Public Utility Commission. In addition, pursuant to Section 8093 of Public Law 100-202, a federal agency cannot use appropriated funds to purchase electricity in any manner that is inconsistent with state law governing the providing of electric utility service, including state utility commission rulings and electric utility franchises or service territories established pursuant to state statute, state regulation, or state-approved territorial agreements. Therefore, prospective contractors responding to this request must provide a representation, supported with appropriate legal and factual rationale, that service can be provided in a manner not inconsistent with Section 8093 of Public Law 100-202. The DOE may set aside this requirement to small businesses based on responses received hereto. EOIs should be submitted to Michael G. Loera, Contracting Officer, at the address listed above, on or before March 26, 1996. AL control number 96-15. (0047)

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