B--RESEARCH ON US ELECTRIC POWER PRICING FACTORS FOR THE ANNUAL ENERGY OUTLOOK 2003

The DOE intends to award a sole source acquisition to Frost & Sullivan. The contractor will expand on market research already in progress to explore how changes in the structure of the electricity market will affect the electricity cost and demand structure and end use prices, as well as customers' ability to leave or reduce their dependence on the grid in competitive and regulated regions, by customer class. The contractor will identify and screen new types of electicity service "products" and technology innovations most likely to impact electricity prices and will focus on those that utilities and competitive electricity suppliers believe will give tham a competitive edge. Examples of these include: (1) new electricity product offerings such as "green energy", "total energy management", and real-time pricing and other demand response options; (2) bundling of electricity with other utility services; (3) the use of the internet for billing, metering and energy management; and (4) other technology developments which may be changing the cost structure for electricity providers. In addition, the contractor will describe the U.S. outlook for self-generation and distributed generation as facilitated by new regulations, such as sell-back provisions, also called net metering, and improving technology/economics. This will include an estimate of how many customers by class have already left or reduced dependence on the grid and what the determining factors were. Results and data research will be used to update the Electricity Market Module (EMM) of the National Energy Modeling System (NEMS) for the Annual Energy Outlook 2003 and will contribute to DOEs ongoing analysis of price uncertainty in electricity markets. This proposed action is estimated to be completed by the end of this fiscal year, September 30, 2002. This is a notice of intent and not a request for competitive proposals. This proposed simplified acquisition is for supplies or services for which the Government intends to solicit and negotiate with only one source under the authority of FAR 6.302. Interested parties that feel they can provide the service may respond by registering via the IPPS at http://e-center.doe.gov and submitting their capability statement electronically, referencing the above listed solicitation number indicated in this notice, including pricing information. All submissions must be received within forty-five (45) days of the publication date of this synopsis. A determination by the Government not to compete this action based upon responses to this notice is solely the discretion of the Government.