Magnolia Gas Marketing Services RFP

The Southern California Public Power Authority (SCPPA) is soliciting competitive proposals from qualified gas marketers to provide comprehensive gas marketing and balancing services for the Magnolia Power Plant (MPP), a 320 MW natural gas combustion turbine facility located in Burbank, California. The facility operates with an average daily burn of approximately 35,000 MMBtu, with maximum capacity reaching 72,000 MMBtu. The selected Gas Marketer will serve six SCPPA member utilities (Anaheim, Burbank, Cerritos, Colton, Glendale, and Pasadena) that participate in the plant's output.

Key service responsibilities include: managing all physical fuel supply and fuel imbalances for the generation station; serving as the default provider of gas to all participants that do not arrange 100% of their needs from alternative sources; serving as the default purchaser and provider of any imbalance gas; managing daily and monthly fuel imbalances and associated Southern California Gas Company penalties; preparing and submitting participant-level invoices; and handling all gas nominations, scheduling, and balancing on a preschedule and same-day basis. The Gas Marketer will operate as a Contracted Marketer under Southern California Gas Company Rule No. 35 and must maintain an existing large balancing pool of natural gas at SoCal Citygate. Gas will be priced on an index basis at SoCalGas Citygate, with the Marketer required to cover or liquidate daily and monthly fuel imbalances based on procedures approved by the participants.

Minimum qualifications require experience providing these services in Southern California Gas Company's system to a natural gas generator with multiple participants, capability to supply all natural gas needed, ability to manage natural gas imbalances and perform scheduling and settlement by participant, and an existing large balancing pool at SoCal Citygate. Respondents must have significant gross purchases and annual sales volumes at SoCal Citygate and demonstrate detailed experience with multi-participant generation facilities.

Services are expected to begin July 1, 2026, with an initial three-year term and an option to extend for an additional three-year term or three one-year terms. SCPPA will assign 100% of its 2026 Backbone Transportation Service (BTS) bidding rights to the selected Gas Marketer. The contract will incorporate the General Terms and Conditions for Sale and Purchase of Natural Gas published by the North American Energy Standards Board (NAESB) as agreed to by SCPPA and the successful Respondent. Clarification questions must be submitted by May 16, 2025, with responses provided by May 23, 2025. Interviews may be scheduled for June 23-26, 2025, with final selection for negotiation by July 3, 2025, and Notice of Intent to Award by July 21, 2025.