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?
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
Is any special consideration being given to specific technologies (i.e. solar?)
Would NYSERDA accept an irrevocable Letter of Credit for the Bid Deposit, due
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 firstname.lastname@example.org ASAP.
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
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
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
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).
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
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.
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
2008 RFP submit a second 3-year bid covering 2010, 2011 and 2012 for the same
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
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
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
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
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
Proposal remains an open offer. No interest will be paid on any Bid
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".