Questions and Answers from Marin Clean Energy S 2015 Open Season Webinar Hosted February
Questions and Answers from Marin Clean Energy’s 2015 Open Season webinar hosted February 5th, 2015. The following questions were receivedprior tothe submittal deadline:5 PM PST Friday, February 13th.
Q. I participated in your webinar but I am having trouble locating the presentation. Where can I find this file?
A.TheMCEOpen Season 2015Kick-off presentation and audio recordingare posted on the Open Season Website:
Q.What is the process for certifying products as “renewable”? What are the criteria that will be used to make such determinations?
A.MCE is requesting twospecific renewable energy products through the 2015 Open Season:
•RPS eligible, Portfolio Content Category 1 (“Bucket 1”) renewable energy
•RPS eligible, Portfolio Content Category 2 (“Bucket 2”) renewable energy
With regard to the aforementioned RPS eligible renewable energy products, any generating resource supplying such products must be certified as California RPS Eligible by the California Energy Commission (CEC) and must be registered with the Western Renewable Energy Generation Information System (WREGIS) to enable renewable energy certificate transfers to MCE. Identification numbers will be assigned by each organization (the CEC and WREGIS) following successful completion of the respective certification and registration processes.
For more information regarding the CEC’s certification process, please review the California RPS Eligibility Guidebook by accessing the following link: .Additional information regarding the WREGIS registration process may be reviewed by accessing WREGIS’ website: .
All respondents should familiarize themselves with applicable eligibility criteria, as described in these sources.
Q.Will there be an opportunity to ask/submit questions after the February 13 deadline for question submittal?
A.To ensure a fair and equitable process for all participants MCEstipulated a deadline for question submittal of February 13, 2015(by 5:00 P.M. PST). This deadline will allow sufficient time for MCE to prepare and post responses to all questions and allow for public review prior to the response deadline of March 2. Any questions submitted after February 13 will not be reviewed.
Q. Can MCE provide a draft confirm for the carbon free energy for respondents to review?
A. Yes, it is posted on the Open Season website.
Q. Would you accept Wind or specified nuclear as carbon free energy,
A. MCE does not purchase nuclear. MCE will consider wind for its Carbon Free portfolio.
Q.Is there any preference for firming capabilities? May a respondent combine/pair intermittent generators (such as a generator with a solar fuel source) with baseload generators (such as a generator with a biomass fuel source) to offer firm energy and/or capacity deliveries? Would such an offering need to be proposed as two separate products/projects?
A.As a general rule, all responses should include sufficient detail to promote an informed evaluative process by MCE. MCE’s Open Season response templates are designed to accommodate single project proposals. To the extent that the provided response templates do not include sufficient space and/or data fields to accommodate pertinent project information, respondents are encouraged to provide accompanying detail (e.g., documents, attachments, etc.) in a form that will allow for MCE to complete a detailed review of the proposed product and evaluate such proposals in this competitive process.
In the event that a respondent is proposing a “project” comprised of two disparate generators, the respondent must provide sufficient detail to effectively demonstrate the value-added synergies that are embedded in the proposed energy/capacity product. For example, if a respondent is proposing the use of two, disparate generators to promote the delivery of a firm energy product, sufficient detail must be provided in the proposal to allow for a clear and competitive evaluation of the response. Note: firm energy/capacity products may add value to MCE’s supply portfolio, subject to other evaluative criteria, including price, by eliminating the planning uncertainty typically associated with intermittent resources, but such products must be clearly and completely described to promote an accurate assessment by MCE. Again, responses referencing firm products must fully describe the manner in which product firming will be achieved. In the event that two projects/generators will be used to promote firm energy delivery, both generators must meet the previously referenced California RPS-eligibility criteria, and the respondent must fully describe the manner in which scheduling, metering and settlement as well as other administrative and operational concerns will be addressed during the contract term.
Q.Can you provide insight into how PCC 1 REC volumes may increase over time ordiffer from MCE’s projections due to potential MCE membership expansion?
A. At this point in time, MCE has included anticipated expansion in preparing this Open season RFQ. Projected resource needs reflected in MCE’s2015 Open Season materials are based upon MCE’scurrent Integrated Resources Plan (IRP; November 2014update), which reflects the resource requirements of MCE’s current membership. Any potential increase in MCE’s renewable energy requirementsresulting from membership expansion will be addressed in future procurement efforts, which may include subsequent Open Season processes and/or alternative procurement mechanisms.
Q. MCE’s open position volumes fluctuate by year and we would like to sign a multiyear PPA. Does MCE prefer that offered energy volumes fluctuate every year or would it contract for all energy generated from a discrete project capacity throughout the term? If it is the latter would we expect the desired energy to be for the Max, Min, or somewhere in between the published open position range 2019-2023?
A. MCE will purchase all generation, as available, from a specific project capacity. Respondents should align offered capacities to match MCE’s requested energy volumes in the early years of the contract term. MCE expects that energy volumes may exceed its open positions in later years of the term .
Q.Would MCE have any interest in procuring Bucket 1 RECs and not the bundled energy product?
A. No. Under the 2015 Open Season, MCE will only consider bundled Bucket 1 product offers.
Q.If a proposed resource would exceed Marin’s specified PCC1 renewable energy requirement and/or would be available sooner than 2018, can the respondent propose a PCC1product at a lower PCC2 price, even if the entire output qualifies for bucket 1? For instance, can a project be submitted for a 3 year term starting in 2015 as a PCC2 resource and then transition into PCC1 resource for a longer term (e.g. 20 years)?
A. MCE will consider bundled PPC1 product offeringswith initial delivery dates occurring prior to 2018 and/or with expected energy volumes that exceed specified PPC1 needs (but not MCE’s aggregate renewable energy needs – PCC1 + PCC2 – as quantified in MCE’s Open Season materials) to the extent that such offerings (early energy deliveries and/or excess volumes) arecompetitive with other PCC2 offers that may be received by MCE in response to the 2015 Open Season.
Q.Can you describe your bid ranking methodology? For instance, would a PCC1 offer witha 1-year delivery term (2018, for example) rank lower than a longer-term offer;alternatively, would aproject with a buyout option rank higher for MCE than a similar offer without a buyout option.
A.In an effort to avoid proposals that may attempt to “game” a prescribed ranking or weighting methodology, MCE has determined that it will not publish such information for the 2015 Open Season. Respondents are encouraged to prepare their best product offer(s), including any/all project attributes that may provide value/benefit to MCE. All responses will be evaluated in consideration of the various criteria that have been identified in MCE’s Open Season materials.
Q. Can you describe how you calculate capacity values? Are you using NQC or ELCC methodology to do that? Does MCE have a strong preference for Full Capacity Deliverability Study (FCDS) projects?
A.The CEC Net Qualifying Capacity (NQC) value is recognized by the CEC for validating MCE’s Resource Adequacy filings. MCE does prefer resources qualified for Full Capacity Deliverability over energy-only products.
Q. Most solar projects will have a problem with waiting until 2019 to begin energy deliveries because the solar tax credit will not apply to any facility put into production after 12/31/2016. Is there any flexibility for MCE to accept PCC1energy earlier than 2019?
A. MCE appreciates the broad range of uncertainties facing renewable energy project developers. However, MCE will only accept product deliveries that conform with published Open Season requirements.
Q.The “single, flat price/MWh throughout the contract term” without an escalator makes it difficult to maintain operations and maintenance in the out years. Is the price submitted on March 3rd firm?
A. All offers must include a firm, fixed price option. Once this requirement has beensatisfied, a respondent may offer any alternative pricing options that may provide additional value to MCE.
Q. May a respondent request a meeting before the March2 deadline to introduce itself to MCE, provide project details, ask questions, etc.?
A. No. Prior to March2 ,MCE staff will not schedule any meetings with project developers that may submit proposals under the Open Season. In an effort to maintain procedural fairness and integrity for all prospective respondents, any requests for such meetings and/or calls will not be accepted. However, MCE staff hasreviewed and responded to all process-specific questions that were submitted prior to the February 14th deadline.
Q. Does MCE engage in bilateral agreements or is all energy procurement conductedthrough competitive processes?
A. Our Open Season and Feed-In Tariff programs are the primary venues for all long-term renewable energy procurement.
Q. In the situation where the project will likely have more than one off-taker, does MCE requireadditional facilities other than a separate CAISO revenue meter?
A. All projects must conform to CAISO requirements for scheduling and settlement while ensuring clear and transparent accounting for delivered energy volumes, associated capacity benefits and related renewable energy certificates.
Q. What are MCE’s criteria for designating a proposed product as "firm"?
A. The proposed energy product must be available and delivered according to the schedule provided by seller. Please review Section 4.1 through 4.7 of MCE’s Standard Form PPA.
Q.Have the noted procurement targets been broken down by delivery profile, including base-load, peak and intermittent?
A.At this point in time, MCE has not specified detailed procurement targets for specific delivery profiles. However, MCE is interested in assembling a diverse renewable energy resource portfolio, including various generating technologies and delivery characteristics, and will consider this overarching interest when evaluating responses submitted under the 2015 Open Season process.
Q.When attempting to fill in certain fields within the response template, I received an error message.
A. Many of the fields within the response template include drop-down selection options to facilitate form completion. If an error is received, please review the options presented in the applicable drop-down menu and select the option that applies to your response. If you continue to have difficulties during this process, please email with your concern, including yourpreferred contact information so that MCE staff can respond to your inquiry; you will be contacted by MCE procurement staff to assist in resolving the issue.
Q.What are the energy/certificate quantities that you will be considering during the 2015Open Season process?
A. Please reviewMCE’s Renewable Energy (RE) Procurement websitefor information related to the 2015 Open Season process, including requested energy/certificate volumes and product requirements.
Q. Are there any development stage criteria that have been established for projects participating in MCE’s 2015 Open Season process (i.e., interconnection or permitting progress)?
A.While MCE has not established specific criteria for project development progress, the evaluative process observed by MCE will exhibit preference towards proposals that demonstrate/document a clear and reasonable understanding of the development schedule related to the proposed project and have completed reasonable development progress in consideration of the proposed commercial operation date.
In order to effectively demonstrate pertinent development progress, each respondent should clearly articulate:
a) Interconnection status, including a detailed discussion of completed studies (and related results), queue positions and executed agreements, if any.
b) Siting and permitting status, including a detailed discussion of site control, zoning issues, applicable permits and jurisdictional authorities, progress completed to date, permits received (and an indication of date received), if any, and the expected date of permit receipt for all outstanding permits.
Q.Can MCE provide any guidance related to product pricing that may be considered during the Open Season process?
A.MCEwill not discuss contract pricing prior to the March2 response deadline. All Open Season participants should deliver the best, commercially viable project proposal, including price. MCE will consider all project attributes, including price, during proposal evaluation.
Q. Based on the amount of time (a few months) between RFP response submission and when MCE intends to transact, does MCE expect participants to submit a price that is non-binding and subject to market movement, management approval, and finalization of documentation?
A. For the requested renewable energy products, MCE expects to receive firm/binding energy pricing, subject to final agreement on contract terms and conditions. If respondents choose to provide alternative pricing options (in addition to the required flat/levelized energy price), MCE will also evaluate such pricing options as part of the 2015 Open Season process.
Q. The Response Template and Standard Form PPA are based on a traditional project PPA. Is MCE open to contract structures that would address renewable energy deliveries from more than one project?
A.To the extent that MCE’s form PPA will not accommodate a proposed project/delivery structure, respondents may propose alternative contract structures – related documents and/or noted exceptions to MCE’s form PPA must be provided at the time of proposal submittal without exception. Alternative product proposals, which may entail portfolio renewable energy supply (multiple projects) options, may be submitted so long as sufficient information is provided to allow for an informed evaluation by MCE. Please note that all projects included in such alternative proposals must meet applicable requirements for such products, including project location and delivery, as specified in the Open Season Overview. Also, respondents presenting such alternative proposals should provide a list of all prospective project locations that may be used to fulfill product delivery under the proposed transaction and must fully describe the anticipated product delivery structure.
Q. If MCE is open to structured renewable energy transactions that are not a traditional project PPA, will MCE consider using a different form of contract more appropriate to the product type, as long as it incorporates the key terms from the PPA like credit? If so, may we include a term sheet with our submission?
A. As previously noted, MCE will consider alternative product proposals, which must include sufficient information to allow for an informed evaluation by MCE. To the extent that alternative contracting language/structure will be used for such transactions, the respondent must provide applicable changes/forms/documents at the time of response submittal. Regarding applicable credit provisions for alternative transactions, please review the Open Season Overview for applicable requirements, as MCE will not accept modification to such specifications. As long as all other requirements are met, MCE will consider a term sheet provided with your submission.
Q. Understanding the base response requirement to offer level fixed-price energy and RECs, is MCE interested in seeing index-based offers as well?
A. Yes, MCE will consider alternative price proposals, including index-based pricing options. Note that all responses must include flat/levelized pricing in addition to any alternatives.
Q. Could MCE sign a non-disclosure agreement to protect financial/credit information provided as part of the open season?
A.MCE cannot sign a non-disclosure agreement covering information provided as part of the Open Season. As a public agency, MCE is subject to the Public Records Act. Materials that fall under the category of “pre-negotiation” or “negotiation” are not subject to the Public Records Act and will not be disclosed.Clearly mark any material that you wish MCE to review, but not be subject to public disclosure as “CONFIDENTIAL”.