NYS Renewable Portfolio Standard Program

RFP 1168 Questions and NYSERDA’s answers.
Posted November 16, 2007


Questions a...
Proposers wishing to pay their bid deposit by wire transfer should use
   the following wire instructions and clearly iden...
If we decide by December 05, 2008 to extend our Commercial Operation Milestone Date
to November 30, 2009 from January 01, ...
2008 RFP submit a second 3-year bid covering 2010, 2011 and 2012 for the same
facility?

   Notwithstanding any future cha...
the electric generating facility for co-firing with natural gas. If the anaerobic digester is
owned and operated by an ent...
Proposal remains an open offer. No interest will be paid on any Bid
   Deposit.


If a project produces more power than an...
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RFP 1168 Questions

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RFP 1168 Questions

  1. 1. NYS Renewable Portfolio Standard Program RFP 1168 Questions and NYSERDA’s answers. Posted November 16, 2007 Questions are listed exactly as submitted and NYSERDA’s responses are listed in italics. Capitalized terms in NYSERDA’s responses are defined in RFP 1168 and should be referenced when reviewing NYSERDA’s responses. Would a solar electric generating plant located in LIPA territory be eligible? Yes. Does the facility that generates these RPS-Eligible Attributes have to be in New York state? If not, what other states are allowed? Per the bilateral sales section, it appears that if you sell electricity “the purchaser of the electricity is a NYS Load Serving Entity (LSE) serving an equal or greater amount of load than the Bid Quantity” = which would imply the system has to be in New York State. But please let me know Bid Facilities located outside of NY State are eligible. However, electric energy produced by any Bid Facility must be delivered to the Delivery Point as that term is defined in the RFP and Standard Contract. External Bid Facilities must deliver electricity to the Delivery point in accordance with Section XVII, “External Bid Facility Electricity Delivery Requirements”. Is any special consideration being given to specific technologies (i.e. solar?) No. Would NYSERDA accept an irrevocable Letter of Credit for the Bid Deposit, due November 20? Yes, provided that it is in the form specified in Exhibit C of the RPS Standard Form Contract (Attachment H to RFP 1168). Bidders who intend to do so must contact rps@nyserda.org ASAP.
  2. 2. Proposers wishing to pay their bid deposit by wire transfer should use the following wire instructions and clearly identify the Bidder Name when doing so: Bank: Bank of America ABA#: 021000322 if by ACH; 026009593 if by Fedwire Account: Mac30 Acct#: 6010316543 What is meant by “certified funds”? Is a corporate check acceptable? “Certified funds” would include a bank certified check or similar type of instrument issued from a financial institution. Corporate checks are not acceptable. Section XX.D Metering on page 19 of RFP No. 1168 states that "Unless specifically agreed by NYSERDA in writing, all Bid Facilities that are the subject of an award under this RFP must be separately metered and must function in the ISO wholesale market as a single and discrete Injection Point." What is the requirement for metering for Actual Eligible Production associated with a Hydroelectric upgrade where separate metering is not possible? In the case described above, NYSERDA would accept revenue quality data provided by a local utility or similar metering authority that is responsible for reporting Actual Production data to the ISO. Contract Security Questions: If awarded a contract in February 2008 to supply 20,000 MWh's per year, our Contract Security will be 20,000 MWh's X $6 per MWh = $120,000. If we terminate the contract on or before October 1, 2008 how much will be refunded? Pursuant to Article XV, “Contract Security,” Section 15.04 (a), of the RPS Standard Form Contract, if Seller terminates the contract on or before October 1, 2008, NYSERDA will refund 50 % (or $60,000 of the Contract Security in this example).
  3. 3. If we decide by December 05, 2008 to extend our Commercial Operation Milestone Date to November 30, 2009 from January 01, 2009, will we need to provide an additional $120,000 Contract Security? (20,000 MWh's X $3 per MWh = $60,000) You would need to provide $60,000 (20,000 MWh’s X $3). In this scenario, if we terminate the contract before November 30, 2009 how much of the Contract Security will be returned? Seller’s opportunities to terminate the RPS Standard Form Contract are set forth at Article XIV, “Termination”. The refund/retention of Contract Security under the various circumstances is described under Article XV of the RPS Standard Form Contract. What happens to the deposit if we terminate our contract between October 1, 2008 and December 31, 2008? Pursuant to Section XI of RFP 1168, “Bid Deposit”, Bid Deposits will be refunded to Bidders whose Bid Proposal has been selected for contract award upon execution of a contract and NYSERDA’s receipt of Contract Security. Bid Deposits will be refunded to Bidders whose Bid Proposals have not been selected by NYSERDA, if not before, immediately upon the expiration of the time during which the Bid Proposal remains an open offer. Alternate Bid Proposal Question: Will the program consider a bid based on fuel escalation/de-escalation prices within the 30% Alternative Bid Range? For instance, if the price of biomass fuel goes from $25 to $17.50 per ton, can we submit a proposal that reflects a variable MWh REC price based on the documented fuel costs? No. Bid Prices are fixed and will remain constant for the contract delivery term. See definition of Bid Price in the RFP. Bid Duration: Can we submit overlapping contracts for the same facility in future RFP's. Example: Submit a 3-year bid in the 2007 RFP covering years 2009, 2010, and 2011 and in the
  4. 4. 2008 RFP submit a second 3-year bid covering 2010, 2011 and 2012 for the same facility? Notwithstanding any future changes in eligibility criteria, a Bid Facility may be eligible to participate in future RPS solicitations provided that the aggregate Bid Quantity percentage from such Bid Facility does not exceed 95% and the combined Contract Delivery Terms may not exceed 10 years. Section VII - It is state that the NYSERDA will not permit substitution of an external bid facilities by an internal? In order to be sure, could you confirm my understanding of the acceptable substitutions will be allowed like the following: Bid Facilities original Substitution Facilities Accepted Internal (NY) Internal (NY) Yes Internal (NY) External No External Internal (NY) Yes External External Yes The examples listed above are correct. Are behind-the-meter facilities that fit the qualification criteria are acceptable for Main Tier product ? Yes, see definition of Actual Eligible Production listed in RFP 1168. Please confirm that, as described on page 15 of the Biomass Guidebook, gas produced by an anaerobic digester can be transported over a common carrier gas pipeline as Renewable Pipeline Gas. Yes, subject to the limitations, conditions and guidelines in the Biomass Guidebook and RFP 1168. The Provisional Certification process offers a practical approach to analyzing the eligibility under a given set of circumstances. Assume that an anaerobic digester is newly constructed and operated solely to provide gas to an existing gas-fired electric generating facility located approximately 50 miles away from the anaerobic digester. Further assume the gas produced by the anaerobic digester will be transported from the anaerobic digester over a common carrier pipeline to
  5. 5. the electric generating facility for co-firing with natural gas. If the anaerobic digester is owned and operated by an entity unaffiliated with the owner of the electric generating facility, can the economic benefits listed in Section XII, subsection A (Submitting a Bid Proposal) created by the construction and operation of the anaerobic digester be included in the Bid Proposal for the gas-fired electric generating facility? Would the answer change if the owners of the anaerobic digester and the electric generating facility were affiliates of each other? Under the RFP and RPS Standard Form Contract, a Bid Facility is defined as the electric generating station. The economic benefits that may be included under section XII of RFP 1168 are limited to those that accrue as a result of the construction/modification and operation of the Bid Facility. Under either scenario, the economic benefits that may be included would be the value of the fuels purchases as described in Section XII under category C “Payments for Fuels as Resource Access.” If a unit is already operating, will it still need to post contract security, if so for how long? If the Bid Capacity (i.e., the portion of the Bid Facility that will be generating Actual Eligible Production) is already in Commercial Operation, then no Contract Security would be required. I am preparing an application for additional capacity at my hydro site. Could you tell me what is the "proof of certification"? my FERC exemption? Also I am adding an additional 261 kW to an existing 2.2MW site. Is there any way to lower the Bid Deposit Requirement? and upon what terms will I get my deposit back? Please see the guidelines and requirements outlined in the Provisional Certification process. No, each Application Package must include a Bid Deposit, in the form of cash or certified funds, in an amount determined by the Nameplate Capacity of the Bid Facility as listed in Section XI, Subsection A, “Submitting an Application Package.” Bid Deposits will be refunded to Bidders whose Bid Proposals have been selected by NYSERDA for contract upon NYSERDA’s receipt of the Contract Security as described in Section XIII (Contract Security). Bid Deposits will be refunded to Bidders whose Bid Proposals have not been selected by NYSERDA, if not before, immediately upon the expiration of the time during which the Bid
  6. 6. Proposal remains an open offer. No interest will be paid on any Bid Deposit. If a project produces more power than an account can use, and we connect behind this meter, is the project still eligible for RPS recs on all of the power? 3.2MW of power connected behind the meter of an account that demands ~ 1.5MW. Please refer to Section XXIV, Definitions, "Actual Eligible Production (i)" and "RPS-eligible Attributes".

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