LREC/ZREC YEAR 3 RFP Bidder Meeting May 5, 2014 1 Program Overview - PowerPoint PPT Presentation

LREC/ZREC YEAR 3 RFP Bidder Meeting May 5, 2014 1

Program Overview CL&P Christie Bradway Denae Corcoran Laura Stilwell UI Gary Zielanski 2

Standard Contract is the Controlling Document In the event of any inconsistency between the provisions of the LREC/ZREC RFP or any part this presentation, the provisions of the Standard Contract are controlling. Applicants should review the Standard Contract and all associated documents thoroughly and submit their Bids based upon the Standard Contract, which will solely govern the transactions between the selected Bidder and their counterparty Company through the term of the resulting contract. 3

Procurement Processes 1) Competitive Solicitation - (RFP) Project Type Size Annual Budget Renewable Energy Credit Price Cap Large ZRECs ≥250 kW to 1,000 kW Approximately $2.7 M Max. $302.71/REC Medium ZRECs >100 kW < 250 kW Approximately $2.7 M Max. $302.71/REC LRECs Up to 2,000 kW $4 M Max. $200/REC 2) Small ZREC Tariff Project Type Size Annual Budget Renewable Energy Credit Price Small ZRECs Up to 100 kW Approximately $2.7 M Weighted Average of the Medium ZREC price + 10% up to $302.71/REC 4

LREC & ZREC Eligibility  General Project Eligibility Criteria  Must be eligible to qualify as Class I renewable energy project  Must be located behind contracting utility distribution meter  Must not have received funding/grants from Clean Energy Finance Investment Authority, or its predecessor the CT Clean Energy Fund (other than low cost financing)  Projects must be in service on, or after, July 1, 2011  Must certify site control 5

LREC & ZREC Eligibility  LRECs  No larger than 2,000 kW  Must have low emissions  <0.07 lbs/MWh NOx; <0.10 lbs/MWh CO; 0.02 lb/MWh VOCs, 1 grain per 100 standard cubic feet  May include fuel cells and other low emission Class I resources, as well as all zero emission Class I resources  ZRECs  No larger than 1,000 kW  Must have zero emissions  May include solar, hydro and wind 6

Quantity & Value of RECs  The contract price of RECs from Zero Emission units is capped at $302.71/REC  Example 1: 200 kW Solar System ~ 311 RECs/year  Annual Payment ~ $46,650  $150/REC x 311 RECs/year ~$46,650  Total Payment over 15 years ~ $699,750  The contract price of RECs from Low Emission units is capped at $200/REC  Example 2: 400 kW Fuel Cell ~ 3,312 RECs/year  Annual Payment ~ $264,960  $80/REC x 3,312 ~ $264,960  Total Payment over 15 years ~ $4.0M  Examples show sample REC prices. The market will set actual REC prices. 7

Budget & Commitment Schedule Year #3 Year #2 Year #1 8

CL&P & UI Program Results Category Size Total # Avg Avg $/REC Total # UI Weighted Weighted Avg Projects $/REC (CL&P) Year 2 Projects Avg $/REC $/REC (UI) Year 2 Selected (CL&P) Selected (UI) Year 1 (To Date) Year 1 (To Date) LRECs Up to 2 22 $66 $57 (↓14%) 8 $51.08 $49.43( ↓3%) MW Large 250 – 39 $101 $77 (↓24%) 10 $117.27 $90.43( ↓23% ) ZRECs 1,000 kW Medium +100 – 106 $149 $94 (↓37%) 37 $135.36 $102.31( ↓24% ) ZRECs 250 kW Small 0 – 100 420 $164.22 $103.01 (↓37%) 77 $148.89 $112.54(↓24%) ZRECs kW Total 587 132 All programs have been oversubscribed to date 9

Request for Proposals (RFP)  RFP covers LREC Projects and ZREC Projects >100 kW  Small ZREC Projects are not covered by this RFP  Third year of Small ZREC program will commence after PURA decision approving Year 3 Medium ZREC contracts & Year 3 Small ZREC rates  Open to customers and developers  Projects will be selected, and utilities will enter into 15 year contracts to purchase the ZRECs and LRECs from selected projects  Key Program Documents:  RFP, Standard Contract, Solicitation Plan, PURA Decision – Docket 11-12-06, Question and Answer Document (updated periodically) 10

Year 3 RFP Schedule A CTION ITEM D ATE R ELEASE OF RFP A PRIL 24, 2014 B IDDERS C ONFERENCE M AY 5, 2014 D EADLINE FOR S UBMISSION OF Q UESTIONS M AY 16, 2014 B ID F ORMS D UE J UNE 5, 2014 BY 1:00 P . M . (E ASTERN P REVAILING T IME “EPT”), AT WHICH TIME THE P RICING SHALL BECOME FIRM , IRREVOCABLE AND BINDING . S ELECTION AND N OTIFICATION OF W INNING O N OR ABOUT J ULY 17, 2014 B IDDERS S TANDARD C ONTRACTS E XECUTION & A FTER S ELECTION AND N OTIFICATION OF W INNING B IDDERS . B IDDERS P ROVISION OF P ERFORMANCE A SSURANCE WILL HAVE TO RETURN PARTIALLY EXECUTED CONTRACTS AND P ERFORMANCE A SSURANCE BY THE DATE ESTABLISHED BY THE C OMPANIES WHICH IS EXPECTED TO BE APPROXIMATELY 10 BUSINESS DAYS AFTER TRANSMITTAL OF EXECUTION VERSION OF S TANDARD C ONTRACT . S TANDARD C ONTRACT ( S ) F ILED WITH PURA F OLLOWING SELECTION OF W INNING B IDDER ( S ) AND EXECUTION OF S TANDARD C ONTRACTS DURING EACH R OUND . C OMMENCEMENT OF S ERVICE I N ACCORDANCE WITH S TANDARD C ONTRACTS 11

Key changes for Year 3 RFP  Performance Assurance due at the same time as the Partially Executed Contract  NEW Bid Certification Form (4 pages including affidavit)  ZREC price cap = $302.71  20% PA return 12

Instructions for Bid Submission and Contract Execution/Management 13

Step 1 How to submit a bid for the LREC/ ZREC program 14

Bid Process  Complete & Submit Bid Form Online  For CL&P: www.cl-p.com/rec  For UI: www.uinet.com/powerprocurement, click on RFP for LRECs and ZRECs (April 24, 2014)  Certifications, Affidavits, and Disclosures  Bid Certification Form (4 pages including affidavit - mandatory)  LREC/ZREC CT Licensed Professional Engineer (PE) Certification  Pending CEFIA Grant and/or Rebate Disclosure Statement  CT Manufactured, Researched or Developed Affidavits  The Companies online Bidding systems will acknowledge receipt of Bid and provide you with an individual Bid ID. 15

CL&P Bid Form  CL&P Bid Form:  Form is filled out online  Contains information needed for  Bid qualification and evaluation  Completion of Standard Contract  Additional form(s) (i.e., Certifications, Affidavits, and/or Disclosures, as applicable) will be required to be submitted as part of the bid process. *There will be a demonstration of CL&P’s online Bid Form today . 16

UI Bid Form  UI Bid Form:  Online Bid Form that you will fill out and submit electronically  Additional form(s) will be required to be submitted via email in addition to the bid  Submitted to lrec.zrec@uinet.com  User assigned Bid ID number in forms  Double check and triple check to avoid errors which may invalidate the Bid Form *There will be a demonstration UI’s online Bid Form today. 17

Bid Certification Form  4 Page Certification Form  Page 1: Instructions  Page 2: Bidder Signature - Bidder is defined as the individual or business submitting a proposal (“Bid”)  Page 3: Contract Counterparty Signature - Contract Counterparty is defined as the legal entity desiring to enter into a Standard Contract  Page 4: Owner of the Project Site Signature - Owner of the Project Site is defined as the legal owner of the Project site (Notarized Affidavit) 18

Affidavits for CT M/R/D Generation Technologies  Two affidavits required (if seeking M/R/D designation):  Bidder affidavit that project uses CT Manufactured, Researched or Developed Generation Technologies  Must constitute no less than 50% of the total value of Generation Technology to be used by its’ project.  Technology supplier’s affidavit that it supplies CT Manufactured, Researched or Developed Generation Technologies  Amended R & D definition in RFP 19

PE Certification  LREC/ZREC CT Licensed Professional Engineer (PE) Certification  PE Certification only required if:  seeking alternate capacity factor  not using 1 of the technologies with a capacity factor defined in the IRP  one bid combines multiple technologies 20

Selection Process  ONLY Completed Bids received will be reviewed to ensure eligibility  Eligible bids will be ranked by evaluated bid price in each of the three categories  Contracts will be awarded until funding is exhausted in each category  Eligible bids not selected will be placed on standby 21

Step 2 How to proceed if your Bid is selected 22

RFP Year 3 Change  NEW: Partially Executed Contract AND Performance Assurance due back within 10 Business days  Performance Assurance due back at the same time as the Partially Executed Contract 23

If Your Bid is Selected  Partially Executed Standard Contract & Provide Performance Assurance  Company will email you an executable version of the Standard Contract  Partially executed contract must be received by Company by the Effective Date of Standard Contract, or project is disqualified  Performance Assurance must be received by Company by the Effective Date of Standard Contract, or it automatically terminates  Amount of Performance Assurance will be listed on the Cover Sheet of the Standard Contract (Section 9.1)  Company will return a fully executed contract 24

Sample Performance Assurance Calculations  MAQ x Contract Price x [10% for Med/20% for Lg/LREC]  Example 1: 175 kW solar PV (Med ZREC) project  272 RECs x $120.00/REC x 10% = $3,264.00  Example 2: 600 kW solar PV (Lg ZREC) project  932 RECs x $90.00/REC x 20% = $16,776.00  Example 3: 1 MW fuel cell (LREC) project  8,279 RECs x $50.00 x 20% = $82,790.00 25