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Request for Proposals (RFP) No. 916New York State Renewable Portfolio Standard Procurement of Rights to Renewable Energy Attributes |
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Responses to Questions NOTE: The answers to questions that appear below are meant to assist prospective Offerors in understanding the requirements, terms, and conditions of RFP 916 and the RPS Standard Form Contract. In cases of dispute, the actual terms of the RFP and its Attachments, including the RPS Standard Form Contract, will prevail.
GENERAL 1. Will there be another RFP and if so, when would that be?
NYSERDA anticipates issuing a series of offerings. The next is anticipated before the close of 2005. 2. Regarding the development of an evaluation process for existing facilities (Maintenance Tier), is the March 31, 2005 date still in line for a decision by the NYS PSC?
Yes. It is anticipated that the Commission will issue an Order addressing further implementation of the RPS in the Spring of 2005. It is expected that a set of rules and procedures for prospective Maintenance Tier resources will be considered as a part of that Order.
3. Is it possible to obtain copies of Attachments A, B, C, D, E and F that can be filled out electronically (i.e. word format)?
Electronic copies of Attachments A, B, and C have been made available in Word and Excel formats. 4. Do we need to submit a different Bid Proposal Package for each Bid Facility?
Yes, unless the Bid is submitted as a “System Contract,” as defined in the RFP. In such cases a single Bid Proposal Package is sufficient, but separate Attachments B and C should be provided for each generating station. The Bid Deposit and Bid Security should be calculated based on the aggregate Bid Quantity. 5. Please confirm that Offeror may submit multiple alternative bids per bid package and that NYSERDA will only chose one alternative per bid package.
See Section 12 of the RFP. An Offeror may submit multiple alternative Bid Proposals for a single Bid Facility from which only one alternative Bid Proposal can be selected. Such alternative Bid Proposals must be submitted on separate Bid Proposal Forms (see Attachment B to the RFP) but can be submitted with one Bid Proposal Package. A single Bid Deposit will be required, which should be calculated with respect to the highest Bid Quantity among the alternative Bid Proposals. 6. Please confirm that we can have a contract term of less than 10 years; for example, 1 year starting January 1, 2006.
Offerors may propose Contract Delivery Terms of less than 10 years (see item 26 of the Bid Proposal Form, and Section 12 of the RFP).
7. Can you explain what is meant by: "NYSERDA has designed this initial "fast track procurement to: “Take advantage of the current federal production tax credits that are available to certain renewable projects that become operational on or before December 31, 2005." (RFP document, page 1, second paragraph) i.e. is a transfer of tax credits from renewable project to NYSERDA involved?
No transfer of tax credits is sought by NYSERDA. NYSERDA and NYS seek to reduce ratepayer costs by leveraging the current availability and allowing developers to take advantage of the Federal Production Tax Credits. BID DEPOSIT/SECURITY 8. Is the bid deposit based on the entire bid quantity over the entire contract delivery term?
No, it is based on the Bid Quantity for one year. The definition of Bid Quantity in the RFP refers to the number of megawatts in each year of the Contract Delivery Term. The bid deposit is the product of this annual Bid Quantity and $1.00. (Refer to Attachment B , Bid Proposal Form, line 30 for a calculation of the amount). 9. Is the security based on the entire bid quantity over the entire contract delivery term?
No. The security deposit is the product of the Bid Quantity and $3.00. (Refer to Question 8 and Attachment B, Bid Proposal Form, line 31 for the relevant calculation). 10. Are the bid deposit and security based on ten years?
No, they are based on the Bid Quantity (an annual quantity expectation). 11. For the Bid Deposit, we may submit cash rather than a certified check. What are the appropriate wire instructions?
Proposers wishing to pay NYSERDA's bid deposit by wire transfer should use the following wire instructions: Bank: Fleet Bank, Albany ABA/Routing #: 021300019 Acct#: 6010316543 AcctName: NYSERDA, Mac30 12. Under what circumstances would you lose your Bid Deposit?
An Offeror will forfeit its Bid Deposit only if it its bid is selected and the Offeror fails to provide Bid Security pursuant to the RFP 916 instructions and the RPS Standard Form Contract. If your bid is not selected, your Bid Deposit will be returned. 13. What if something happens during that week? Can you withdraw your bid?
A Bid Proposal may be withdrawn by written instruction until 5:00 p.m. Albany New York time on January 19, 2005. The Bid Deposit will be returned in such cases. 14. In section 12.02, the issuing bank must be a member of the New York Clearinghouse Association. Is there a minimum credit rating associated with this membership?
The issuing bank must be an “owner” of the Clearinghouse Payments Company (see http://www.theclearinghouse.org/tch_v2/about/about.php) OR it must have (1) a credit rating of A- or better assigned by Standard & Poor’s Rating Group; OR (2) a credit rating of Aaa3 or better assigned by Moody’s Investor’s Service, Inc. An issuing bank meeting any one of these three standards is acceptable. 15. If a bidder bids based on building a 30 MW facility, and only builds 20 MW, how will NYSERDA address forfeiture of the security?
Bid Security will be refunded at 100% for any Bid Facility that goes into Commercial Operation at 80% or more of the Nameplate Capacity set forth at Item 4 of the Bid Proposal Form. Bid Security for Bid Facilities going into Commercial Operation at less than 80% of the stated Nameplate Capacity will be refunded at a proportionate amount, calculated as the Item 4 Nameplate Capacity amount divided by the number of MW actually entering Commercial Operation. Thus, in the example provided in the question, two-thirds of the Bid Security would be refunded. If 24 (80% of 30) or more MW entered Commercial Operation, the Bid Security would be refunded in its entirety. DELIVERABILITY 16. It is my understanding that the equivalent amount of energy created when producing the Renewable Energy Certificates offered in a bid must be delivered to the NYISO. Is this correct?
Yes, that is correct. 17. Explain the idea of monthly matching – if you generate a certain amount in one month, you need to provide the same amount?
Yes, within the same calendar month. Refer to the RFP and Appendix C to the Order. 18. If I invoice you for 60 MWh in a month, I have to show I imported 60 MWh?
NYSERDA will pay invoiced amounts, subject to true-up. If the Bid Facility is outside of the NY Control Area, the true-up will include verification that you scheduled and delivered at least that many MWh into a NYISO market, within the calendar month. The September RPS Order (Order) and the RFP make a distinction between intermittent and non-intermittent facilities. Please refer to Section 6 Deliverability and Related Requirements of the RFP and Appendix C to the Order. 19. If you are intermittent, does the electricity have to come from a NY source?
The delivery requirement for intermittent sources requires that an equal quantity of energy be transmitted out of the “affected spot market” and scheduled and delivered into the NYISO market. 20. A Bid Facility must be eligible under the Main Tier Eligible Electric Generation Sources rules, as set forth in Appendix B of the September 24, 2004 Order..." (RFP document, page 7, section 5, paragraph 1, second and third line). Please explain how General Requirement (2) applies to this RFP, i.e. is delivery into NYISO, without evidence of a retail agreement or downstream retail sale of the energy, sufficient to be eligible to this RFP?
Yes, scheduling and delivery into a NYISO market are eligibility requirements. General Requirement 2 refers to the fact that the energy must ultimately be sold in a retail sale by a load serving entity. Sellers will not be expected to provide independent verification of such retail sales. 21. What kind of justification is required to demonstrate that "the electric output of the Bid Facility associated with the RPS Attributes is scheduled and delivered into a market administered by the NYISO (physical bilateral energy contracts do not meet this requirement)" (RFP document, page 7, section 6, first paragraph, lines 3-5).
No “justification” is required, but verification of the delivery through NYISO reporting data and/or data provided by the appropriate transmission utility will be required. 22. Regarding the definition of Delivery in the draft contract, can an Intermittent Bid Facility located outside of the New York Control Area fulfill its requirements for delivery of energy by procuring and delivering energy from an energy resource within the New York Control Area rather than being transmitted out of the affected local spot market where the Attributes were delivered?
No. The delivery requirement for intermittent sources requires that an equal quantity of energy be transmitted out of the “affected spot market” and scheduled and delivered into the NYISO market. 23. Is there any limitation on the distance from New York that the renewable energy is produced as long as it is measured by NYISO and enters the New York market?
No. However, the energy must originate in the affected spot market. See previous answers. 24. Could you please verify that resources external to NY, that meet the main tier criteria, and can be delivered to the NYCA, are eligible in this RFP?
Yes, assuming that delivery of the energy and Attributes will be verifiable. Please refer to Section 5 of RFP 916 for determining Bid Facility eligibility. For a Bid Facility to be eligible it must satisfy these requirements including those set forth at Appendix B of the September 24, 2004 NYS Public Service Commission’s Order Regarding Renewable Portfolio Standard issued and effective September 24, 2004 (Order). Refer to section 6 of RFP 916 for requirements related to the delivery of energy from eligible facilities outside of the NYCA. Refer also to Section 7 regarding the need by NYSERDA and the Administrator of the NYS Environmental Disclosure Program to obtain data to verify deliveries of energy into the NYCA. ENVIRONMENTAL DISCLOSURE/ATTRIBUTE VERIFICATION 25. Within the RFP, the determination of a “compatible environmental attribute accounting system” for power from control areas outside of New York appears arbitrary and is left to the discretion of the PSC. More clarification is needed regarding the minimum criteria that the system must meet as there are several configurations that could meet the intent of the accounting and verification required by this procurement. For example, assuming New York continues to use its Environmental Disclosure system, would a system consisting of generator and wholesaler certifications and attestations (similar to the attached used by the Massachusetts Department of Energy Resources for imports in the Mass. RPS) along with ISO meter reports meet the intent of this requirement? Asked another way, would a system that is similar to what is used today for attributes sales from New York into New England and other control areas be deemed compatible or must a ISO-wide attribute accounting system be in place (similar to the NEPOOL GIS)? It is not clear why an expensive GIS-type system, as implied in the RFP documents, would be required when New York is not using this type of system and attestations or certifications appear to meet the intent of the procurement.
The accounting system that is used today to verify attribute sales from New York into New England is sufficient. To be acceptable, any system must be able to confirm that energy and attributes are generated, scheduled, and delivered into a NYISO market, to the satisfaction of the NYISO or the controlling system operator. An accounting system must also be able to provide the Administrator of the NYS Environmental Disclosure Program with sufficient verification that RPS Attributes are not being claimed by any other jurisdiction or entity. 26. Can you better explain what is meant by a “Renewable Energy Credit Registry or Environmental Attribute Accounting System for Verification” which is referred to in Attachment B Question #13. The example given in the “go by” is “NY Environmental Disclosure” and we are not familiar with that name.
“Renewable Energy Credit Registry or Environmental Attribute Accounting System for Verification”are terms that define any system whereby the creation and ownership of attributes (environmental or other) associated with a unit of energy produced are accounted for. Such systems are in operation in the New England Power Pool(see NEPOOL GIS at http://www.nepoolgis.com), the Electricity Reliability Council of Texas (see ERCOT at http://www.texasrenewables.com) and in Wisconsin. A system of accounting for environmental attributes for purposes of customer disclosure does exist in NYS, and it is referred to in the RFP as the NYS Environmental Disclosure Program. Please refer to Section 7 on the RFP document for a description of how the NYS program will be applied. Section 7 also provides a link to the NYS Environmental Disclosure Program Rules. 27. Can you give an example of the Renewable Energy Credit Registry referred to in Attachment B, Question 13?
Refer to response to previous Question(s). 28. Questions 1-4 pertain to electricity generated from anaerobic digestion of farm waste:
1. How is ownership of RPS Attributes treated with regard to PURPA contracts? Could a small generator that sells electricity to the local utility under a new PURPA contract sell the RPS attributes to NYSERDA?
If the energy is sold under a bilateral contract, the Attributes are not RPS eligible. A particular contract may or may not also speak to the ownership of the Attributes associated with the energy. See RFP Sections 6 and 7 and the September RPS Order. See also Attachment C, Bid Facility Self-Certification Form, for further requirements related to customer sited facilities and delivery.
2. Net Metering: Item 4, Appendix C of the Sept 24th Order reads: “Assuming the quantity of energy is sufficient to be scheduled into a market administered by the NYISO, net electricity produced from customer-Sited generation facilities (that amount produced above the amount used by the customer) is eligible so long as such net electricity is not sold to the local distribution utility under a mandatory net-metering regime.”
a. Under the net metering tariff, the utility purchases net electricity (the amount produced above the amount used by the customer) at avoided cost, similar to a PURPA transaction. Who owns the RPS attributes for this net electricity generation?
If the energy is sold under a bilateral contract, the Attributes are not RPS eligible. NYSERDA takes no position on the determination of who can contractually claim ownership of attributes under any net metering arrangement with a utility. See response to the previous question.
b. Are they treated any differently than a standard PURPA transaction?
If the energy is sold under a bilateral contract, the Attributes are not RPS eligible. See responses above; we are not aware of any “standard” PURPA contract. NYSERDA terms for the purchase and payment of attributes as defined in the RPS Standard Form Contract will prevail.
c. If so, why?
See responses to a. and b. above.
3. Assuming a farmer has an anaerobic digester that produces enough bio-gas to power 1.4MW of generating capacity.
a. Would there be a conflict if the farmer were to install two separate generators: (1) a 400KW unit with the output sold to the utility under the net metering tariff and (2) a 1MW unit with the output scheduled into NYISO market and the RPS Attributes sold to NYSERDA?
No. Consistent with the RFP, and assuming eligibility as a Main Tier Resource, the Attributes associated with the 1MW unit would be RPS-eligible. Remember that delivery of energy must be measured and verified (Refer to Section 6 Deliverability and Related Requirements and Section 7 Verification of Rights to RPS Attributes of the RFP). Also refer to Attachment C Bid Facility Self-Certification Form for further requirements related to customer sited facilities and delivery. Attributes from the 1 MW unit would qualify conditioned on compliance with the aforementioned requirements.
Could you please verify that our interpretation of the RPS attributes for LFG and biomass is accurate?
b. It appears that an LFG or biomass generator is allowed to retain title to future tradable GHG emissions credits (under RGGI or other) arising from the destruction of methane that had otherwise been escaping into the atmosphere – with the exception of an amount that must be transferred to NYSERDA to ensure that the electricity generated is zero emission. Your interpretation is consistent with the intent and language of the RFP.
4. Could you please clarify the requirement that landfill gas and biomass generators provide any tradable credits received in order to ensure that the generation has zero GHG emissions.
a. Which emission sources does this refer to? i. Methane that is not destroyed as a result of incomplete combustion within the generator?
No, this is not what is being referred to. It is assumed that the difference between methane not destroyed in flaring landfill methane, versus combustion in an electric generator, is immaterial.
ii. CO2 resulting from the destruction of LFG or biogas? It is generally accepted that the CO2 bi-product from combusted LFG or biogas is biogenic and therefore would not require offsetting.
Any CO2 benefits associated with the direct destruction of LFG or biomass are considered associated with, and remain with, the party that has the rights to the fuel. The tradable credits or rights associated with zero GHG emission referred to in the RFP, are those deriving from the introduction of a generator into the electric system creating displacement of the marginal generating source in the region. To the extent that such tradable credits may be granted to the generator, by virtue (for instance) of an assumption that the CO2 bi-product is biogenic, or that the “baseline” for landfill methane generation is flaring in the alternative, NYSERDA would lay claim to these credits.
b. Does NYSERDA have any recommended methodologies for calculating emission levels?
See answer to (a) (ii). FACILITY/RESOURCE ELIGIBILITY 29. I plan to build a bio diesel refinery in the southern tier in 2005. Would this qualify?
NYSERDA is looking to acquire RPS-Eligible Attributes, which are created by the generation of electricity. The development of a refinery for eligible fuels in the absence of a means of using such fuel to produce energy for delivery into an energy market administered by the NYISO would not qualify for consideration under RFP 916 as RPS-eligible Attributes would not be produced. 30. Will the New York State Energy Research and Development Authority recognize an existing facility to be RPS eligible if its repowered/converted from burning gas to biomass? Assuming the facility is RPS eligible and only burns biomass fuel, please confirm that all of the power generated would be RPS eligible.
Yes, and Yes. Please refer to Section 5 of RFP 916 for determining Bid Facility eligibility. For a Bid Facility to be eligible it must satisfy these requirements including those set forth at Appendix B of the September 24, 2004 NYS Public Service Commission’s Order Regarding Renewable Portfolio Standard issued and effective September 24, 2004 (Order). While the eligibility requirements of Appendix B to the Order appear to exclude facilities in operation before January 1, 2003, they also define co-firing of certain fuels as eligible. It is intended that existing facilities that re-power, or otherwise reconfigure systems to allow co-firing of eligible fuels(up to 100 % ), as such fuels are defined in Appendix B of the Order, would be eligible to offer Attributes for purchase subject to limitations further set forth in Section 1 of RFP 916, in the definitions of Actual Annual Production and Expected Total Annual Production and as to be certified by the Offeror in Attachment C to RFP 916. 31. The only hydro eligible in this RFP is an incremental upgrade? not existing capacity?
New low-impact run-of-river hydro under 30MW is also eligible under the Main Tier. Consistent with the Order, it is expected that a Maintenance Tier will be designed to provide existing resources with an opportunity to demonstrate financial hardship and eligibility going forward.
32. As defined in Section 5 of the RFP, in order to be eligible under the RFP a Bid Facility must be eligible under the Main Tier Eligible Electric Generation Sources of the September 24 Order. Background: A fuel cell generation system located in New York City is customer sited and delivering power to the customer from a third-party under a power purchase agreement. The system is owned by the third-party; the customer is not self-generating. The power is metered using a meter meeting NYISO standards and therefore can be verified as being scheduled and delivered into a market administered by NYISO. The facility meets the criteria of commencing commercial operation between January 1, 2003 and December 31, 2005. 33. Are the renewable attributes of the power produced by the fuel cell and delivered to the customer eligible under this RFP 916?
No, Attributes associated with bilateral contracts are not eligible. Consistent with the RFP, Attributes associated with energy sold into a market administered by the NYISO qualify in so far as delivery of energy can be measured and verified (refer to Section 6 Deliverability and Related Requirements and Section 7 Verification of Rights to RPS Attributes of the RFP). Consistent with the RFP, the Attributes will qualify only if they can be verified under the NYS Environmental Disclosure Program. Note that physical bilateral energy contracts do not meet the deliverability requirements as specified in the RFP and Appendix C of the Sept 24th Order. 34. Can generation from a third party to a retail end user be considered net excess generation under this RFP 916?
No. Excess energy must be sold into a market administered by the NYISO (physical bilateral contracts are not eligible). If the retail end-user has a bilateral contract with the third party supplier, the energy is not being sold into the NYISO market, and cannot be accounted for under the NYS Environmental Disclosure Program; any associated Attributes would not be eligible. Refer to Section 5 Eligibility ,Section 6 Deliverability and Related Requirements, and Section 7 Verification of Rights to RPS Attributes . Refer also to Appendix C to the September 24 th Order.
35. Would the conversion of an existing coal fired boiler to co-fire biomass qualify under this RFP?
Yes, but only the portion of the generation related to the biomass co-firing is eligible for RPS incentives. 36. A facility currently co-fires biomass equal to 10 MWh per day increases to co-firing 25 MWh per day. Would the 15 MWh increase of eligible biomass generation qualify under this RFP?
Only if the facility initially commenced commercial operation on or after January 1, 2003. In that instance, the entire 25 Mwh are eligible for RPS incentives. Otherwise, the facility will be treated as a Maintenance Tier resource. The treatment of Maintenance Tier resources has not yet been determined. 37. Could you please confirm that using eligible sources of biomass in a combustion process is acceptable for the RFP?
Assuming that the “combustion process” produces MWh of electricity that are delivered into a NYISO market, yes. 38. If a generator fueled by coal is converted to eligible biomass fuel in 2005, would that satisfy the RFP's stated preference of "targeting those projects first commencing commercial operation between January 1, 2003 and December 31, 2005"?
Yes. 39. Does it matter at what date the existing fossil-fueled combustion generator (in which the eligible biomass fuel will be co-fired) came online? For example, does a coal-fired generator that commenced commercial operation in 1988 but does not begin to co-fire with eligible biomass fuel until 2006 satisfy for the RFP's stated preference of "targeting those projects first commencing commercial operation between January 1, 2003 and December 31, 2005"?
Assuming the eligible biomass co-firing began on January 1, 2006, the proposal would meet the target. 40. The percentage increase in expected average annual energy production resulting from the upgrade or Repowering of a hydroelectric facility will be based on an independent engineer's report, submitted as part of our bid package. The RFP states that NYSERDA's verification of this report will be done prior to any payment. However, is it possible that the verification of this engineer's report be completed as part of the bid evaluation, in order to avoid continuing with the process unnecessarily? Or, is the verification of the engineer's report simply a formality?
The Engineer’s Report and the Progress Reports provided under Section 4.04 of the contract will be analyzed as they are provided. The Engineer’s Report is not expected to demonstrate, on its own, the RPS-eligible portion of the generation. 41. Is there a specific format available for the independent engineer’s analysis?
NYSERDA does not have a particular format in mind. NYSERDA needs the report to serve the purpose of demonstrating that there has been an incremental upgrade. Refer to the RFP Section 1 Definitions and Attachment C, Bid Facility Self-Certification Form for further guidance on the requirements associated with hydro upgrades and repowered facilities. 42. Would you please provide as complete a definition as possible of eligible sources of Renewable/Biomass fuels and biomass energy generation processes? Also, what fuels and biomass energy generation processes do not qualify?
Please refer to the Order, and particularly to Appendix B. PROPOSAL PACKAGE 43. With regards to Project Planning Information, is it compulsory that you have a NYISO approved Scope of Work? Note: If you submit a NYISO Interconnection Request between now and the NYSERDA proposal due date, the NYISO referenced timeline does not facilitate a Scoping Meeting schedule which would yield an approved SOW in time for the proposal submission.
A NYISO approved Scope of Work is required. 44. Is there any minimum bid quantity amount?
No. 45. Resource assessment plan – Could you please lay out more specifically what you are looking for in this? We are nervous that we will spend time and money on this and have it rejected by NYSERDA.
This information must be included with, but will NOT be used in evaluating Bid Proposals. NYSERDA is looking for reports, engineer’s opinions or other information that support a bidder’s claim regarding fuel supply and energy production for the Bid Facility. NYSERDA would expect that in most instances, such information would comprise a part of the data package that the Bidder would use in support of its project pro forma for purposes of financing. NYSERDA acknowledges that some, if not all of this information may be confidential and refers the Bidders to the RFP Section 14 Confidentiality , for instructions on how sensitive materials would be protected from disclosure. 46. If an Offeror can fulfill its Quantity Obligation of RPS eligible attributes from two or more eligible Bid Facilities, the bid price will likely be lower because the Offeror would have ability to hedge against REC production and price risk with a portfolio of REC supply. Is it possible for an Offeror to fulfill its Quantity Obligation of RPS eligible attributes from two or more eligible Bid Facilities?
See RFP Section 1, Definitions, System Contracts, and the answer to Question 4. STATE ENVIRONMENTAL QUALITY REVIEW ACT (SEQRA) 47. Does the expedited procurement or resulting contract carry a discretionary implication and thus trigger SEQR?
Yes. However, it will not delay entry into the RPS Standard Form Contract. Under the contract, Sellers are required to obtain all necessary permits and approvals, which may include SEQR. 48. Will NYSERDA become the lead agency in SEQRA?
Not necessarily. First, the project must be classified under SEQR as Type 1, Type 2, or unlisted. Only under Type 1 projects will any agency become involved. In cases where there is local planning and zoning authority, local authorities will do the initial classification and will, if Type 1, act as the lead agency on any SEQRA action. 49. Will NYSERDA apply the SEQRA review for out-of-state or out-of-country facilities?
NYSERDA will assess the impact on NYS, under the SEQR regulations. We will not assess environmental impacts outside of our jurisdiction. EVALUATION/AWARDS 50. During evaluation of bids, will there be an attempt to differentiate by technology?
No. 51. Will there be any weight given based on resource diversity? i.e. if the majority of resources bid are wind, will any weight be given to other resource types?
No. 52. Will the successful bidders and the details of the successful bids such as bid price and bid quantity percentage be disclosed after the bid award? If so, how soon after the bid award?
We do not anticipate any announcement of individual Bid Prices or Bid Quantities. 53. I want to know if you plan to establish any sort of best practice standards and if your grants will then depend on the level of adherence to them?
No. However, selection under RFP 916 does not affect any local or state permitting or approval requirements. Under the RPS Standard Form Contract, the Seller is required to obtain any permit and/or approval necessary to operation of the Bid Facility, and hence performance under the contract. 54. Will the bid prices be kept confidential? If a bidder wishes to keep their bid price confidential, can it protect the bid price using the confidentiality procedure outlined in Section 14 of the RFP?
Protection under the Freedom of Information Law is described at Section 14 of the RFP. Bid Proposers wishing to keep information confidential should request such protection in writing at the time the information is submitted to NYSERDA. 55. Does NYSERDA have a price threshold that it will not exceed? Is the 1.4 million MWh target flexible?
The procurement quantity target is flexible. NYSERDA may contract for more or less than this quantity. There is no set price threshold. However, as is described in the RFP in Section 10, Evaluation, NYSERDA will assess bid prices and make selection decisions based on its own economic analysis. 56. Is there flexibility on quantity and the delivery of RECs?
Please Refer to the RFP Section 6 Deliverability and Related Requirements and Section 12 Preparation of Bid Proposal Package for requirements related to delivery and contract delivery flexibility. Note that the maximum contract term is ten years; a Contract Delivery Term will in no event terminate later than December 31, 2015. Accordingly, if, for example, you propose under Item 27 of the Bid Proposal Form a commencement date for the Contract Deliver Term of January 1, 2009, the maximum length of the Contract Delivery Term will be 7 years. 57. If NYSERDA procures less than 1.4 million MWh, will the shortfall be rolled forward?
The target for the RPS, as well as the targets for individual years, are subject to adjustment based on actual results and updated State Energy Plan forecasts. 58. Do bidders get bid price or clearing price?
NYSERDA will pay winning bidders their Bid Price except in cases where NYSERDA elects to extend a counter offer. 59. How will the Net Present Valuation be applied?
NYSERDA will use Net Present Valuation to place bids of differing Contract Delivery Terms on a comparable basis for purposes of evaluation and selection. 60. Are CFDs being allowed or considered?
No. The use of a Contracts for Differences (CFD) payment structure is not permitted in this RFP. 61. What role does Project Planning Information play in bid evaluation? Also, what is the role of technology and location in bid evaluation?
Project planning information called for in Section 11 Project Planning Information will NOT play a role in evaluation. However, this information must be provided and a Bid Proposal will be considered non-responsive without such information. 62. In what basis will NYSERDA make a counter offer or negotiate?
NYSERDA may elect to make a counteroffer to any Bidder based on our analysis of costs and reasonableness. PAYMENT/CONTRACT TERMS 63. If you produce more than 115% of your bid amount, can you bank the balance and carry it forward?
Not from one YEAR of the Contract Delivery Term to the next. 64. Section 8 of the RPS Standard Form Contract - Assignment by seller of attributes is prohibited. What is the difference between that and the ability of the seller to assign other rights in the future?
Article V of the contract addresses the assignment of contract rights as collateral. The particular clause referred to restricts the Seller from assigning the rights to RPS attributes offered under an RPS contract to anyone other than NYSERDA. 65. Why the selection of dates in Section 11.01 the RPS Standard Form Contract?
These dates were selected as a matter of convenience to Offerors because of the holiday. 66. If the bidder submits a certain volume of energy, there are two revenue streams, one from the ISO for the electricity, one from NYSERDA for the attributes. Is the attribute payment based on volume delivered?
Yes. Attributes are created upon generation. We will pay on your invoice, subject to verification that the quantity of Attributes invoiced was actually created, and that the associated energy was delivered. 67. Is the bidder taking the production volume risk?
NYSERDA payments are based on actual volume. The Bidder will receive no payment from NYSERDA unless it actually produces and delivers energy. 68. If a wide range of production volumes is anticipated, should one base one’s bid on an average?
Variability in actual production is addressed in RFP Section 4 Payment. Section 4 specifies that “should a Bid Facility’s Quantity Obligation fail to achieve 85% of the Bid Quantity for three (3) consecutive years, the Expected Total Annual Production will be modified for the remainder of the Contract Delivery term, for purposes of establishing the Bid Quantity, to equal the average actual annual output over that three-year period.” 69. For any quantity generated above the 115% amount, who retains title to those attributes?
The Seller does. NYSERDA acquires the rights to Attributes for which it makes payment; NYSERDA will not pay for Attributes beyond 115% of the Bid Quantity. 70. Is the seller obligated to invoice up to 115%?
The Bidder (as Seller) may invoice only for actual production, up to 115% of the Bid Quantity, which is an annual amount. The Seller is not obligated to invoice for the full production of the Bid Facility, but should refer to the provisions of RFP Section 4. 71. Section 15.2 of the RPS Standard Form Contract refers to seller and taxes - will this transaction be subject to taxes?
Please consult a tax professional as to the applicability of any taxes, including income and/or sales taxes. 72. Do the provisions of Article 8 of the Labor Law regarding public works contracts and prevailing wage rates apply in this case?
Please consult an attorney. The RPS Standard Form Contract is not a construction contract.
73. For billing purposes, how do you treat an ISO enforced non-run condition?
NYSERDA will pay only for attributes created and delivered. 74. Are attributes not delivered because of an ISO enforced no-run condition counted in calculating the 85% floor on the Bid Quantity?
If it could be demonstrated that the no-run condition was imposed by the NYISO and that the no-run condition was the overwhelming factor in each of the 3 consecutive years of sub-85% production, we would consider that situation on a case-by-case basis. 75. So you would entertain discussion of the no-run condition and how it is treated it if it occurs, but will not consider an amendment to the contract right now?
Correct. 76. Please confirm that "perpetual and exclusive rights to all RPS attributes" (RFP document, page 6, section 2, paragraph 1, second line) are conferred to NYSERDA only for attributes sold under the terms of the contract (i.e. if term is from Jan 1, 2006 to Dec.31, 2006, then NYSERDA only got rights to attributes associated with output generated during that period).
That is correct. NYSERDA would own all rights, present or future, associated with any Attribute for which NYSERDA made payment. 77. What happens if Seller generates less than Quantity Obligation? Must it make-up for the shortfall of attributes? How?
The Seller will not be obligated to make up the shortfall. NYSERDA addresses the issues of variability in actual production in RFP Section 4 Payment. Section 4 specifies that “should a Bid Facility’s Quantity Obligation fail to achieve 85% of the Bid Quantity for three (3) consecutive years, the Expected Total Annual Production will be modified for the remainder of the Contract Delivery term, for purposes of establishing the Bid Quantity, to equal the average actual annual output over that three-year period.” 78. Can Seller replace attributes sold to NYSERDA under the terms of this RFP by attributes generated by another eligible asset in Seller's portfolio during the term of the contract?
No. See Question and Answer 4. 79. Should Seller generate attributes in excess of 115% of Quantity Obligation: does Seller retain all rights on these excess attributes?
Yes. Seller retains all rights to Attributes for which it does not receive payment from NYSERDA. 80. What are the implications of being an "Intermittent Bid Facility" under the terms of this RFP?
Implications of being an “Intermittent Bid Facility” in terms of quantity, quality delivery, verification and other criteria or requirements specific to such resources are as defined by the RFP document and the September 24 th Order. 81. Can we ask for any change in the Standard Form Contract?
No. |
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