2016 Renewable Energy Credit (REC) RFP 2016R Renewable Resource RFP Bidder Workshop April 19, 2016
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2016 Renewable Energy Credit (REC) RFP
2016R Renewable Resource RFP Bidder Workshop
April 19, 2016
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Logistics
• April 19, 2016 1:00 PM - 5:00 PM (Pacific)
• Location:
PacifiCorp’s Training Center – East end of Lloyd Center Mall – 3rd
floor next to Sears.
Multnomah Street
Portland, Oregon 97232
• Call-in information:
Phone number: (855) 499-5252
Participant code: 3181805
Webinar: Microsoft Lync, Join online meeting
Note – Webinar hyperlink will only work in Slide Show mode.
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Agenda (Times are approximate)
Overview 1:00 to 1:30
Schedule
2016 Renewable Energy Credit (REC) RFP 1:30 to 2:30
Objective
Product Type Descriptions
Credit and Contract Requirements
Bid Submission Requirements
Break 2:30 to 2:45
2016R Renewable Resource RFP 2:45 to 4:30
Objective
Bid Proposal Types and Structures
Credit and Contract Requirements
Bid Submission Requirements
Questions and wrap up 4:30 to 5:00
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Overview
• Two parallel RFPs
• 2016 REC RFP
• 2016R Renewable Resource RFP
• Schedule
• Schedule reflects need to reach notice to proceed milestone in order for wind resources
to secure maximum federal production tax credit (PTC).
• Both RFPs have identical milestone dates for bid submittal, evaluation and selection.
• Different negotiation and execution milestones are established for the 2016R RFP which
is expected to require additional negotiation time for more complex Asset Purchase and
Sale Agreement (APSA) and Power Purchase Agreement (PPA) transactions.
• Deliverables
• Each RFP fully outlines the deliverables in sufficient detail
• Company’s expectation is that bidders will fully comply with bid submission
requirements or face non-compliance rejection of bid.
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Schedule
Milestone 2016R REC Date
RFP issued X X Monday, April 11, 2016
Bidder Workshop X X Tuesday, April 19, 2016
RFP proposals due X X Friday, May 20, 2016
Evaluation completed X X Monday, June 27, 2016
Notify short-listed Bidders X X Friday, July 01, 2016
Best & final pricing from short-listed Bidders X X Friday, July 08, 2016
Final selection X X Friday, July 15, 2016
Complete negotiations (REC) X Monday, August 1, 2016
Execution (REC) X Monday, August 8, 2016
Complete negotiations (2016R) X Friday, September 02, 2016
Notice to proceed/execution (2016R) X Friday, September 16, 2016
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2016 REC RFP
Objective
Product Type Descriptions
Credit and Contract Requirements
Bid Submission Requirements
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REC RFP Objective
• Cost-competitive bids for RECs that can be used to meet state renewable
portfolio standard (RPS) requirements under the applicable laws and
regulations of California, Oregon, and/or Washington
• Key points of the RFP
• RECs must qualify for compliance with the Oregon, Washington and/or California RPS
• RECs must be sourced from a facility located in the WECC territory
• No maximum size limit for proposals.
• All proposals must meet the minimum size requirement of at least 1,000 RECs per
calendar year
• Facility must be registered or will have to be registered in WREGIS
• RECs must be from vintage period on or after January 1, 2007
• Offered RECs can be for a firm quantity of RECs or resource contingent quantity of
RECs
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REC RFP Product Descriptions
Three REC Product Categories are Requested:
Product A: RECs from any vintage period beginning January 1, 2007
and on or before March 8, 2016.
Product B: RECs from a facility with commercial operation date after
March 8, 2016 and on or before December 31, 2022, from
which the associated electricity is acquired under a contract
having duration of 20 years or more.
Product C: RECs from a facility with commercial operation date after
March 8, 2016 and on or before December 31, 2022, from
which the associated electricity is acquired under a contract
having duration of less than 20 years
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REC RFP Contract and Credit Requirements
• PacifiCorp will utilize either of the following agreements:
• Existing enabling agreement already effective between PacifiCorp and the
bidder
• WSPP Service Schedule R for bidders that are WSPP members
• PacifiCorp’s pro forma REC purchase and sale agreement (proforma subject to
change during bidding process)
• Each Bidder must provide the complete Bidder’s Credit
Information, per Section 4.B of REC RFP Main Document, so that
PacifiCorp can evaluate the financial viability of the Bidder or any
entity providing credit assurances on behalf of the Bidder.
• PacifiCorp may require credit assurances adequate to PacifiCorp in
its sole and absolute discretion.
• Credit assurances may include, without limitation, a guaranty, a
letter of credit, or other forms of collateral, in a form, amount and
from such entities acceptable to PacifiCorp.
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2016R Renewable Resource RFP
Objective
Bid Proposal Types and Structures
Credit and Contract Requirements
Bid Submission Requirements
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2016R RFP Objective
• Solicit cost-competitive firm-price proposals for renewable energy
resources that can be used to meet state renewable portfolio standard
(RPS) requirements under the applicable laws and regulations of
California, Oregon, and/or Washington
• Key points of the RFP
• Technology agnostic but must meet qualifying resource definition under RPS
guidelines.
• No aggregate MW cap.
• No maximum size limit for individual projects.
• Multiple smaller projects proposed by the same Bidder must aggregate to a minimum of
3.0 MW.
• Projects must be a discrete generating asset that is not located behind any load served by
a utility or net-metered.
• Must be capable of being individually metered and remotely monitored.
• Not locational specific but directly interconnecting and delivering energy to the
Company’s west balancing authority area (PACW) or capable of delivering energy into
PACW with the use of third-party firm transmission service.
• In-service date no later than December 31, 2018.
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2016R RFP Bid Proposal Structures
• Two bid proposal structures are requested:
1. “Build-Transfer” where PacifiCorp purchases resource from bidder upon or
prior to the operation date through an Asset Purchase and Sale Agreement
(APSA)
2. Purchase generation output from bidder-owned asset through a power
purchase agreement (PPA)
• Alternative transaction structures may be proposed:
• Provide a means for the Company to acquire a resource after tax benefits have been
realized (e.g., sale-leaseback, equipment financing, partnership flips) or,
• More suited to the existing holding structure for the proposed resource (e.g.
membership interest purchase or stock purchase agreements), or
• Bifurcate the purchase and sale of the existing development assets and the
construction of the proposed resource.
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2016R RFP Delivery Options
1.Must deliver to PacifiCorp’s west balancing
area (PACW) A. Interconnected directly to PacifiCorp’s
transmission or distribution system
B. Firm, scheduled and delivered generation into
PacifiCorp’s system via third-party transmission
provider
2. Both options must be deemed to be a
Network Resource by PacifiCorp
Transmission
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Bidder develops the project, assumes responsibility for permitting,
construction and commissioning, and ultimately transfers the asset to the
Company upon or prior to the operation date, all pursuant to the terms of an
Asset Purchase and Sale Agreement (APSA) with O&M Agreement.
A. Full disclosure and documentation of all owned assets, permits, tax credits,
incentives, grants, obligations, royalties, leases, and taxes
B. Delivery
1. Directly interconnected
2. Off-system with firm transmission to PacifiCorp’s system via third party
transmission provider
C. Bidders to submit an O&M agreement (term no less than 5 years)
D. Technical Specification compliance
Bid Proposal Structures - APSA
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Purchase of generation output from bidder-owned asset
A. Power Purchase Agreement
I. Bidders are requested to provide pricing for 20-year term
II. Bidder may propose an asset purchase option during term of PPA
III. Fixed price per MWh (either fixed escalator or levelized at bidder’s
option)
B. Delivery
I. Directly interconnected
II. Off-system with firm transmission to PacifiCorp’s system via third
party transmission provide
C. Technical Specification compliance for purchase options
Bid Proposal Structures - PPA
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Credit and Contract Requirements
• Final credit requirements will be dependent upon each
individual proposal:
• Indicative proposals will be used to establish initial credit requirements for
proposals
• PacifiCorp will utilize the following agreements for proposed
transactions:
• Power Purchase Agreement including all required appendices and exhibits
• Asset Purchase and Sale Agreement including all required appendices and
exhibits
• Each Bidder must provide the complete Bidder’s Credit
Information, per Appendix D, so that PacifiCorp can evaluate
the financial viability of the Bidder or any entity providing
credit assurances on behalf of the Bidder.
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Credit and Contract Requirements (Continued)
• PacifiCorp may require credit assurances adequate to
PacifiCorp in its sole and absolute discretion.
• Credit assurances may include, without limitation, a guaranty,
a letter of credit, or other forms of collateral, in a form,
amount and from such entities acceptable to PacifiCorp.
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Bid Submission Requirements
• Bid proposals are due by 5:00 pm (PPT) Friday May 20, 2016 to the
address listed on page 6 of the RFP main document.
• APSA bids, and PPA bids that propose an asset sale option, must
materially comply with the technical specifications (Appendix A).
• PPA and APSA bids have both common and different deliverables.
Carefully review PPA and APSA bid deliverables as described in RFP
main document and RFP Appendix B. Note: some deliverables are
referenced in another form of bid category document.
• Pages 9 - 10 of the RFP main document summarizes bid deliverables.
• Provide one (1) hard copy and an electronic copy of your proposal as
explained on pages 6 - 7 of the RFP main document.
• Bid forms must be provided in Microsoft Word or Excel in addition to
the hard copy.
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MINIMUM ELIGIBILTY REQUIREMENTS FOR BIDDERS
If proposals do not comply with these requirements, PacifiCorp has the option to deem the proposal ineligible and eliminate it
from further evaluation. Reasons for rejection of a Bidder or its proposal include, but are not limited to:
1. Receipt of any proposal after the response deadline.
2. Failure to provide all documents as defined in Bid Submission Matrix.
3. The proposed renewable resource does not qualify as an eligible resource for RPS compliance under applicable Oregon,
Washington or California law.
4. A new renewable resource that will not qualify for the full federal PTC (i.e., begin construction on or prior to December 31,
2016), or the 30% federal ITC, as applicable.
5. Proposal is not a firm offer through the bid validity date outlined in Section 3.A. of this RFP.
6. The Bidder, or an affiliate of Bidder, is in current litigation with PacifiCorp or has, in writing, threatened litigation against
PacifiCorp, respecting an amount in dispute in excess of one hundred thousand dollars.
7. Proposal has failed to clearly specify all pricing terms or submit information required by PacifiCorp to evaluate the price
and non-price factors.
8. Proposal has failed to offer unit contingent (as generated) or system firm capacity and energy, directly interconnected with
or delivered into or in PACW (including appropriate contract term lengths and commercial operation dates).
9. Proposal presents unacceptable level of development, technology or implementation risk or is an unacceptable contract
structure.
10. Proposals involving potential PacifiCorp ownership or operational control fail to materially comply with technical
specification requirements in Appendix A.
11. Failure to demonstrate a process to adequately acquire critical long lead time equipment or interconnection capability.
12. Failure to demonstrate, to PacifiCorp’s satisfaction, that it can meet the credit security requirements or bid is involved in
bankruptcy proceedings
13. Failure to abide by the applicable safety standards.
14. Failure to provide one year of site-specific solar radiation data that is financing-level quality, or two years of wind resource
data for a proposed wind project, as validated by a third party engineering firm, as applicable.
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Bid Submission Requirements Matrix
2016R RFP Bid Applicability PPA APSA
Alternative
Ownership
Proposals
Appendix A. Solar or Wind – Renewable Resource Technical Specification
Appendix A-1 Overview of Appendices -- -- --
Appendix A-2 Interconnection Agreement X X X
Appendix A-3 Permit-Matrix X X X
Appendix A-4 Not used
Appendix A-5 Project One-line Drawing and Layout X X X
Appendix A-6 Division of Responsibility X X
Appendix A-7 Owner Standards and Specification X X
Appendix A-8 Performance Summary Report X X X
Appendix A-9 Product Data- Equipment Supply Matrix X X X
Appendix A-10 Plant Performance Guarantee X X
Appendix B. Information Required in Bid Proposal X X X
Appendix C-1. Bid Summary - PPA (including term sheet) X
Appendix C-2. Bid Summary - APSA (including term sheet) X
Appendix D. Bidder’s Credit Information X X X
Appendix E-1 PPA Instructions to Bidders X
Appendix E-2. PPA and Exhibits (Wind or Solar) X
Appendix F-1. APSA Instructions to Bidders X X
Appendix F-2. APSA and Appendices (A-Q) X X
Appendix G. Mutual Confidentiality Agreement X X X
Appendix H. Form 1 - Pricing Input Sheet X X X
Appendix I. FERC’s Standards of Conduct
Appendix J. QRE Agreement X
Appendix K. General Services Contract-Operations & Maintenance Services (Wind) or
(Solar) or other resource type X X
[1]While specific specifications and contracts are provided for wind and solar resources, PacifiCorp will consider other renewable energy resources that satisfy renewable
portfolio standard requirements in California, Oregon or Washington. If a bidder is submitting a proposal for a resource other than solar and wind, the bidder must include
with its proposal all appropriate feasibility and technical information that will allow PacifiCorp to fully evaluate the proposal.[2]
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PPA Instructions to Bidders - RFP APPENDIX E-1
General Proposal Description
1. RFP Appendix B Information Required in Bid Proposal
Provide detailed project description as identified in Appendix B as it applies to a PPA.
2. RFP Appendix C-1 Bid Summary - Power Purchase Agreement (Excel spreadsheet)
Four tabs in this worksheet. Bidder should complete each tab.
3. Legal Description of Site
Legal description of the site as well as conditional use permits, endangered species studies, historical artifacts reports
and environmental assessments.
4. APSA Appendix B Critical Path Schedule
Bidder should provide a preliminary critical path schedule.
RFP Appendix A
If a resource other than solar photovoltaic or wind is proposed, the Bidder must provide similar data for resource type for
each Appendix.
1. RFP Appendix A-2: Interconnection Agreement with PacifiCorp or Other Interconnection Utility
Provide a copy of the Interconnection Agreement.
2. RFP Appendix A-3: Permit Matrix
Provide the completed permit matrix applicable to the project.
3. RFP Appendix A-5: Project Single-Line Drawing and Layouts
Provide the electrical single-line drawings and site layout applicable to the project.
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PPA Instructions to Bidders - RFP APPENDIX E-1 (con’t)
RFP Appendix A (continued)
4. RFP Appendix A-8: Wind or Solar Performance Summary Report
• For solar photovoltaic proposals, provide a copy of: 1) PVSyst Performance Summary Report for solar.
• For wind, a copy of Bidder’s wind performance report prepared by an independent third party engineer which is
supported by a minimum of two years’ worth of wind data, 2) 12 month x 24 hourly profile (in Excel) and 3) an
8760 hourly profile (in Excel) performance. Bidder should clearly identify any (un)availability loss factor
assumptions.
5. RFP Appendix A-9: Product Data Equipment Supply Matrix (Solar or Wind).
• Submit a completed Equipment Supply Matrix.
6. RFP Appendix A-10: Performance Guarantee (Solar resources)
• In the event Bidder proposes to sell the asset to PacifiCorp, Bidder shall submit a completed performance guarantee.
7. RFP Appendix G: Mutual Confidentiality Agreement
• Submit a completed Mutual Confidentiality Agreement.
8. RFP Appendix H: Form 1- Pricing Input Sheet (Excel Spreadsheet)
• Submit a completed Form 1- Pricing Input Sheet (in Excel); “Form 1 Inputs PPA” tab.
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APSA Instructions to Bidders - RFP APPENDIX E-2
General Proposal Description
1. RFP Appendix B: Information Required in Bid Proposal
• Provide the project description as identified in Appendix B as it applies to an APSA.
2. RFP Appendix C-2: Bid Summary - Asset Purchase and Sale Agreement (Excel spreadsheet)
• Four tabs in this worksheet. Bidder should complete each tab.
Appendices to the APSA
Note: If a resource other than solar photovoltaic or wind is proposed, bidder should follow each Appendix as closely as
possible to complete
1. APSA Appendix B: Critical Path Schedule
• Provide the preliminary critical path schedule.
2. APSA Appendix C: Approved Subcontractors
• Provide list of proposed major suppliers and subcontractors to be used on the project.
3. APSA Appendix E: (Solar or Wind) Asset Equipment Warranties
• Provide the equipment warranties for the major system equipment as identified in this Appendix.
4. APSA Appendix H: Project Management Team
• Identify the key members of the proposed project management team to be used on the project.
5. APSA Appendix I: Legal Description of Site
6. Provide a legal description of the site as well as conditional use permits, endangered species studies (including studies of
species protected under the federal Bald and Golden Eagle Protection Act and federal Migratory Bird Treaty Act), historical
artifacts reports and environmental assessments.
7. APSA Appendix M: Critical Milestones
• Provide a milestone schedule as described in this Appendix.
8. RFP Appendix G: Mutual Confidentiality Agreement
• Submit a completed Mutual Confidentiality Agreement.
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APSA Instructions to Bidders - RFP APPENDIX E-2 (con’t)
Appendices to the APSA (Continued)
6. RFP Appendix H: Form 1- Pricing Input Sheet (Excel Spreadsheet)
• Complete Form 1- Pricing Input Sheet (in Excel) for category (“Form 1 Inputs APSA” or “Form 1 Inputs APSA
Lease”)
7. RFP Appendix K: General Services Contract – Operations & Maintenance Services For Project
• Submit pricing and any changes to O&M contract (Exhibit A to Appendix K).
RFP Appendix A
If a resource other than solar photovoltaic or wind is proposed, the Bidder must provide similar data for resource type
for each Appendix.
1. RFP Appendix A-1: For information only.
2. RFP Appendix A-2: Interconnection Agreement with PacifiCorp or Other Interconnection Utility
• Provide a copy of the Interconnection Agreement.
3. RFP Appendix A-3: APSA Permit Matrix
• Provide the permit matrix applicable to the project.
4. RFP Appendix A-5: Project Single-Line Drawing and Layouts
• Provide the electrical single-line drawings and project site layout applicable to the project.
5. RFP Appendix A-6: Division of Responsibility
• Complete the Division of Responsibility matrix as it applies to the project.
6. RFP Appendix A-8: Wind or Solar Performance Summary Report
• Provide a copy of: 1) PVSyst Performance Summary Report for solar. For wind, a copy of Bidder’s wind
performance report supported by a minimum of two years’ worth of wind data, 2) 12 month x 24 hourly profile (in
Excel) and 3) an 8760 hourly profile (in Excel) performance. Bidder should clearly identify any (un)availability loss
factor assumptions.
7. RFP Appendix A-9: Product Data Equipment Supply Matrix-Solar.xlsx (-Wind, as the case may be)
• Complete Equipment Supply Matrix.
8. RFP Appendix A-10: Performance Guarantee
• Submit a completed performance guarantee.
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Evaluation Process
Bids are received and evaluated on a first-price sealed bid format
Two step process:
1. Short-list selection
2. Final selection
Short-list selection is based on price and non-price factor evaluation.
• Price factor evaluation weighting is 80%
• Non-price evaluation weighting is 20%, including but not limited to the following
factors: Conformity to RFP requirements
Conformity to PPA or APSA pro forma contracts
Development and feasibility of proposal
Control and permitting
Operational viability
Financial strength of bidder, financing and guarantees
Final Selection
• Updated best and final pricing
• How bids and/or combinations of bids from both RFPs affect PacifiCorp’s state RPS
compliance position and compliance cost
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Questions?
Questions from the workshop or other requests should be sent to
the following mailboxes even if the answer was provided
verbally to ensure all bidders receive responses:
• 2016 REC RFP mailbox: [email protected]
• 2016R RFP mailbox: [email protected]
Responses will be posted on PacifiCorp’s 2016 REC RFP or
2016R RFP website, as appropriate. Questions from today’s
bidder workshop will be posted by Monday, April 25, 2016.
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