6496 - Utility Scale Solar and/or Wind Purchase Power Agreement, Addendum 4 Q & AQ&A for RFP 6496
Below is a list of questions from potential respondents and the responses provided by City of Denton Materials Management or DME staff. Questions and answers are in no particular order.
Identical or similar questions received from multiple potential respondents, may be consolidated below.
Questions submitted in writing:
1. Does the RFP require “physical steel in the ground” projects to be considered? Are respondents allowed to propose projects of which they are not the owners of the physical
asset?
Response: No, respondents are not required to submit “physical steel in the ground” projects. Yes, respondents may propose projects where they are not the owners of the physical assets,
so long as the project meets the other requirements of the RFP.
2. Who could I talk to at DME to learn more about this project and if they have done any studies.
Response: DME has issued this RFP with the goal to execute a purchase power agreement for renewable energy, wind, solar or a combination of both. This is being done as part of the implementation
of the Renewable Denton Plan. You can learn more about the Renewable Denton Plan at http://www.renewabledentonplan.com/#intro. DME staff will be available to answer any questions regarding
this procurement at the pre-proposal conference on August 10, 2017. Additional questions may be submitted in writing to Rebecca Hunter at Rebecca.Hunter@cityofdenton.com.
3. Are you only looking for power purchase agreements for this project or is the City also considering ownership/partial ownership of the solar/wind project as well?
Response: The City is seeking to purchase renewable energy (wind, solar, or a combination of both) through a purchase power agreement as described in Section 2.
4. Is it acceptable for the respondent to provide firm pricing at the generator bus only?
Response: All proposals will be considered on their merits of economics, operations and best net benefit to the Renewable Denton Plan. If a responder only wishes to propose a bus price,
then that should be accepted as a valid response, but be measured and valued as appropriate to net final outcome to the Renewable Denton Plan.
5. In RFP Section 14, Step 1, paragraph c, the bold text asks for an hourly production profile and makes several mentions of a three year period. Can you confirm if Denton is seeking
one typical-year 8,760 hourly profile based on 3 years of historical on-site measured data, or, is Denton seeking three back-cast 8,760 hourly profiles for calendar years 2014, 2015
and 2016?
Response: Denton is requesting a minimum total of 3 years of back casted 8760 data, not averaged or aggregated. Each 8760 will reflect a separate year of met tower data, along with the
year used. Recent years are preferred, however, earlier years can be used. Consecutive years are also preferred, in order to avoid any response being based on overly selective data
choices.
6. Is the City of Denton Interested in obtaining renewable energy credits as well as energy, or is the City simply interested in energy only?
Response: The City of Denton will need to be owners of the renewable energy credits.
7. In general, will submissions be considered that address the issue of how this (up to) 300 MW can be “firmed” with 100% renewable energy by 2035, by including alternatives to the dependence
on the use of natural gas at the Denton Energy Center? In particular, will submissions be considered that include, either as integral or optional, either an energy storage component
or a demand response component?
Response: The City will consider any submissions that are deemed responsive to the RFP. If a vendor chooses to add additional components, such as firming or storage, those will be evaluated
against all other qualified proposals to determine the best value for the City.
8. Would the City of Denton consider a proposal that utilizes energy storage in conjunction with a solar or wind facility as a means to increase the capacity factor during the high priority
on peak hours of 1500-1900?
Response: The City will consider any submissions that are deemed responsive to the RFP. If a vendor chooses to add additional components, such as storage, those will be evaluated against
all other qualified proposals to determine the best value for the City.
9. Does the project need to be ITC/PTC qualified?
Response: No. The City of Denton has typically asked for projects to be ITC/PTC qualified since those projects have, in general, had lower price points. However, in order to broaden
the list of potential respondents, the City will accept projects that are not ITC/PTC qualified. All proposals
will then be evaluated against all other qualified proposals to determine the best value for the City.
10. Pricing in 25 MW tranches – I am not sure I know what this looks like, is the pricing incremental beyond the initial 25 MW; will the average price be the one considered? Can you
provide an example of that this looks like?
Response: A responder is free to provide any proposal provided it is responsive and meets the RFP criteria. City of Denton prefers that offers are quoted in 25mw increments, however,
each additional price for more than 25mw can be at the same price, an incremental price a decreasing price or an average price, A response can have an ultimate quantity not divisible
by 25 as it will be evaluated, but 25mw ‘trench’ increments are desired. If a responder can offer 25mw and is unable to make another proposal other than for example 187mw, then please
state those limitations.
11. What qualifies for “providing educational opportunities for the public including interactive, online displays communicating energy production, greenhouse gas emission(s) and/or equivalencies?”
Does our website qualify?
Response: As a City with a renewable and green objective, the City prefers responders to be able to demonstrate its experience with educating and informing interested citizens about
projects their benefits and environmental impact. An example of educational opportunities could be via a website:
12. If a 10-year option is chosen, does the developer get the chance to renegotiate pricing before contract renewal for another 10 years; will that be a bilateral negotiation or another
RFP?
Response: The City prefers to retain flexibility in the construction of its portfolio. Each long term PPA transaction must be approved by Council and as such will typically go through
the RFP process. (Update 9/11/17 – The 10 year extension clause has been removed to aid clarity):
13. What bid bonds or other securities are required both pre- and post-COD? Since they are not enumerated in the RFP document should we leave them out of our pricing or make assumptions?
Response: Collateral, Bonding, Credit Assurance or Security will be required under any accepted proposal. The amounts required will be a function of both the credit worthiness of any
successful responder, coupled with the notional portfolio value of the successful response. The City expects that a proposal price will be the total contract price and that responders
will be responsible for their cost of credit assurance: