FAQ 13009 Word Document by byrnetown67


									                      2009 PSCo All-Source Solicitation
                           Question and Answers

Q&A Released on 1/30/09
Q013009-1. How does Public Service intend to evaluate projects less than
     30MW in size outside the 2009 PSCo All-Source Solicitation? Please
     clarify the proposal submission requirements, timing, procedures, etc.

A.    Xcel Energy’s Business Development department will evaluate projects
      seeking Company ownership.            Projects seeking a purchase power
      agreement with Xcel should be sent to Jim Hill at 550 15th Street, Suite
      1000, Denver Colorado 80202. For projects provided in the latter manner,
      Public Service will perform project economic evaluation before, during or
      after the performance of the economic evaluation of responses to the
      2009 PSCo All-Source Solicitation. Public Service notes the following:
           Public Service will consider unsolicited proposals at any time;
           Bidders should structure proposals in a similar manner as that
             required in the 2009 PSCo All-Source Solicitation RFP that is
             applicable to their project, e.g. the Wind RFP for a wind proposal.
           Proposals made prior to completion of the All-Source evaluation,
             that are deemed feasible projects and are under avoided costs may
             be considered for contract negotiations while projects over avoided
             cost are not likely to be considered further;
           Proposals made after completion of the All-Source evaluation, will
             be evaluated in comparison with selected All-Source proposals;
           Pursuant to CPUC rules, solar proposals over 100 kW must be
             acquired within a competitive acquisition; i.e., Public Service will not
             evaluate unsolicited solar bids greater than 100 kW under current
             CPUC Rules;
           Public Service plans to issue an On-Site Solar RFP, a competitive
             solicitation, for 100kW to 2 MW resources in September 2009 - see
             Public Service’s 2009 RES Compliance Plan, CPUC Docket No.
           Bidders should follow the CPUC’s RES Rulemaking docket (08R-
             424E) for solar bidding developments.

Q013009-2. What derate will be applied to wind and solar nameplate capacity to
     determine the capacity available to meet the requirements in the RFP?

A.    Appendix B of the RFP for Wind Resources states the following:

             Existing wind facilities and new wind proposals will be given a
             capacity credit in the evaluation process equal to 12.5% of their
             nameplate capacity. Capacity credit for intermittent solar resources
             will be provided to the Commission and prospective bidders no later
             than 60 days prior to the date responses are due to this All-Source
             solicitation. Capacity credit for other intermittent resources will be
             determined on a case-by-case basis.”

Q013009-3. Where can we locate a list of the commercial operation dates of
     transmission lines that Public Service proposes to construct to the Energy
     Resource Zones (ERZs)?

A.    Please use Public Service’s November 24, 2008 SB-100 Report, pages 16
      through 20, (CPUC Docket No. 08M-521E) for guidance on in service
      dates for transmission lines to ERZs and proposed COD for bid facilities.
      The Report lists estimated completion dates (post the CPUC granting a

Q013009-4. If a Public Service proposed transmission line to an ERZ is
     delayed, what are the impacts on a selected seller that planned to use the
     proposed line to deliver contracted energy and/or capacity?

A.    Section 14.4 of the Model PPAs states the following:
            Seller shall be excused from a failure to meet any specified
            Construction Milestone where Seller can establish that such a
            failure is solely attributable to any delay or failure by Company in
            obtaining any consents or approvals from Governmental Authorities
            or third parties required for Company to perform its obligations
            under this PPA, whether or not caused by any conditions or events
            of Force Majeure (“Delay Conditions”). In the event of such a
            failure, the Construction Milestone that is not met due to the Delay
            Condition(s), and any affected Construction Milestones that follow,
            shall be extended for a period of time equal to the period of time
            between (i) the Construction Milestone that is not met due to the
            Delay Condition(s) and (ii) the Day that Company has corrected the
            Delay Condition(s).

Q013009-5. If Public Service accepts a bid based on an SB100 interconnection
     and that SB100 line does not materialize, will a party be able to terminate
     its PPA or cure with another transmission option?

A.    The Force Majeure provisions in the Model PPAs’ Section 14.1 may
      provide Seller relief in this instance.

Q013009-6. When does Public Service anticipate submitting contracts to the
     CPUC for approval?

A.    Section 2.6 of the 2009 PSCo All-Source Solicitation RFPs (Section 2.4 in
      Dispatchable) states the following:

             At the completion of the All-Source evaluation process, the
             Company and the IE will each file a report with the Commission that
             identifies proposed resource selections as required in RP Rule
             3610(h). Upon Commission approval of Phase II of the Company’s
             2007 Colorado Resource Plan, Company actions consistent with
             that approval are presumed prudent under RP Rule 3613(d).
             However, the Company reserves the right to inform the
             Commission that the Company could not reach agreement with the
             proponent of a selected resource. The Company further reserves
             the right to request Commission approval of any agreements it
             enters into with successful respondents that vary in any material
             respect from the Model PPA. The Company further reserves the
             right to terminate any agreement if the Company fails to receive
             Commission approval of submitted agreements.

Q013009-7. Can you please state the MW of dispatchable capacity Public
     Service intends to contract for through this RFP process? If a specific
     quantity has not been determined, please provide an explanation of how
     the dispatchable MW needed will be determined.

A.    The amount of Dispatchable capacity selected will be a function of the
      level of DSM and renewable resources ultimately acquired. Public Service
      estimates that roughly 1,000 MW of dispatchable capacity could be

Q013009-8. Please clarify whether a project located within an area to be served
     by a transmission line identified as high priority in Public Service’s recent
     SB100 informational filing can identify that proposed line as an
     interconnection point for purposes of a bid in this RFP?

A.    Yes.

Q013009-9. If a CPCN is granted in 2009 for a new transmission line, before the
     end of the RFP bid evaluation and Phase II process of the resource plan
     but after a bid has been submitted, will costs of the new transmission line
     still be imputed to bidders in those transmission areas?

A.    Yes. However, in it’s Phase II bid evaluation report filed with the
      Commission, Public Service will note portfolios for which a SB100 CPCN
      is pending as well as the cost of that SB100 project that was assigned to
      portfolios in the evaluation process

Q013009-10.       Does Public Service anticipate filing a transmission CPCN
     before the Phase II decision is made by the CPUC in this case?

A.    Yes, Public Service plans to file one or two of the CPCNs for the high
      priority SB-100 transmission lines in 2009.

Q013009-11.      What should be the in-service date on a bid for a project
     dependent on a proposed high priority SB100 proposed transmission line?

A.    Please use Public Service’s November 24, 2008 SB-100 Report (CPUC
      Docket No. 08M-521E) for guidance on in service dates for transmission
      lines to ERZs and proposed COD for bid facilities. The Report lists
      estimated completion dates (after CPUC grants a CPCN). It is difficult for
      the Company to advise bidders in this regard absent knowledge of several
      factors including:
              Generation technology involved
              Size of project and Public Service’s reliance on the COD for
                 reliability purposes
              Availability of existing transmission to deliver a portion of facility
                 output prior to completion of SB100 project

Q013009-12.        What reference data should be used to determine the
     geographical location of an interconnection point on a proposed high
     priority SB100 proposed transmission line?

A.    Please use Public Service’s 2008 SB-100 Report (CPUC Docket No. 08M-
      521E) in addition to the October 31, 2007 and the December 18, 2008
      Reports for guidance on interconnection points.

Q013009-13.       The RFPs state that Public Service targeted increments of
     100-200 MW per year for intermittent resources. Would Public Service
     prefer a 400 MW project be bid as a single 400 MW project or phased
     over a two year period in 200MW increments?

A.    Public Service prefers to add intermittent resources in increments of 100 –
      200 MW a year; therefore, Public Service would seek a phased in project
      with a size of 400 MW.

Q013009-14.       If a bidder does not possess on-site meteorological data
     spanning the years of 2004 and 2005, can the bidder use off-site
     meteorological data to generate of the requested 8,760 hourly energy
     production profile for 2004 and 2005?

A.    Public Service seeks the best meteorological data available to analyze
      your project. To that end, if on-site measured data are available, provide
      as much of that data as possible. If on-site measured data are not
      available, please provide data obtained from the Western Wind Resources
      Dataset (WWRD) mesoscale data sets. If meteorological data is available
      from a nearby site, and you can demonstrate a high level of correlation to

      the proposed project site, Public Service will review that data. See the
      description of “Energy Production Profile” in the Narrative Topics of the
      Wind RFP Section 4.3 for further information regarding wind
      meteorological data.

Q013009-15.         Why does Public Service single out wind projects for PPA
     first year price indexing provision eligibility?

A.    Wind developers actively sought this dispensation in the CRP process that
      was approved by the CPUC. Developers of other resource technologies
      did not.

Q013009-16.         Why does Public Service single out the Wyoming-Colorado
     Intertie transmission project for PPA opt-out provision eligibility?

A.    Public Service determined--and the Commission approved--the
      assumption that the potential diversity value of Wyoming wind resources
      warranted making provision for the projects to be developed conditional to
      transmission development. Wyoming-Colorado Intertie proponents actively
      sought this provision in the CRP process that was approved by the CPUC.
      Developers of other resources did not.

Q013009-17.        The RFP doesn’t state how long a proposal’s price should be
     held as firm (unchangeable). What is that period?

A.    The bid price should be valid for the 120-day term of the 2009 PSCo All-
      Source Solicitation bid evaluation, the subsequent 90-day Commission
      review and throughout any subsequent contract negotiation periods.
      Public Service believes that overall this time period could extend into mid-

Q013009-18.       Can Public Service provide a web site URL to obtain
     information on prior transmission studies and its current interconnection

A.    The Transmission Function within Public Service maintains a public web
      site as part of its OASIS where it posts, among other items, its Generation
      Interconnection Request list and the results of previously conducted
      transmission studies.      Transmission studies may be found in the
      “Transmission Studies Available Online” link; these studies are listed by
      their Queue Number. Queue Numbers may be found in the “PSCo
      Generation Interconnection Requests” link. The URL to access this
      information is: http://www.rmao.com/wtpp/psco_studies.html.

Q013009-19.       Would Public Service be able to accept energy at Ault for
     wind energy as described under the 2009 RFP for Wind Resource?

A.    Public Service has no available transmission capacity (ATC) from Ault into
      the Denver load area. Public Service has proposed to upgrade this path
      as indicated in its November 24, 2008 Senate Bill 07-100 informational
      filing with the CPUC. However, the Company has not filed a Certificate of
      Public Convenience and Necessity for that project and therefore has no
      estimated in-service date for that project.

Q013009-20.        Will Public Service refund bid fees for proposals it does not
     select in one of the RFPs in the 2009 PSCo All-Source Solicitation?

A.    No. Bid fees compensate the Company for expenses incurred in
      evaluating the generation proposal.

Q013009-21.        Is the bid fee the only fee that Public Service requires of
     respondents submitting proposals in the 2009 PSCo All-Source

A.    Yes. Public Service notes that a respondent that seeks a transmission
      interconnection to Public Service’s system may be required to pay an
      Interconnection Request deposit to the Public Service Transmission
      Function to cover the cost of Feasibility and/or System Impact studies.

Q013009-22.        If a bidder bids a generation project at the full production
     value even thought the project phases in generation potential over a three
     year period, i.e. staged in-service dates, is the proposal one or multiple
     proposals for Bid Fee purposes?

A.    Public Service would evaluate such a bid as one for one project
      and require one bid fee. If on the other hand you are proposing a bid of
      three projects with three CODs the RFPs specify that three bid fees are
      required for the three projects?

Q013009-23.      Is the 200 MW set-aside for solar thermal with storage or for
    Section 123 resources?

A.    The CPUC ordered that each portfolio developed will contain
      approximately 200 MW solar thermal with storage subject to reasonable
      cost considerations. The CPUC instructed Public Service to present
      multiple portfolios for their review; one set of portfolios exams different
      levels of Section 123 resources and their impact on customer rates.

Q013009-24.        Please explain whether any resources requested in this RFP
     are subject to the 2% annual rate cap, and if so, what Xcel projects that
     rate cap to be in the years covered by this RFP.

A.    Eligible energy resources (i.e., Section 124) acquired through the 2009
      PSCo All-Source Solicitation will be subject to the rate cap. Section 123
      resources are not. The 2% rate cap is estimated to be in $60 million
      range for years 2013-2015.

Q013009-25.        Do all generation resources need to be physically located in
     the State of Colorado or just deliverable to the Public Service system?

A.    No projects located outside Colorado can be bid but all projects must
      procure transmission service and include all costs for that service that is
      needed to deliver power from the project to the Public Service
      transmission system. Section 2.3 of the Wind RFP states (the other RFPs
      also state) the following:

             Respondents, however, will be responsible for procuring
             transmission service and any associated third-party transmission
             costs needed to deliver power from the project to the Point of
             Delivery on the Public Service transmission system. All pricing in
             respondents' proposals should reflect those costs (to the extent
             applicable) at the time of submittal.

Q013009-26.      If they can be outside of Colorado, would such a project be
    ranked lower than a like project within Colorado?

A.    Section 2.5 of the Wind RFP states (the other RFPs also state) the
             Colorado sited eligible energy resources (wind, solar, etc.) receive
             a 1.25 multiplier (MWh produced X 1.25). Public Service will
             include the REC multiplier in the economic screening of proposals.

      All generators (eligible energy resources or otherwise) not interconnecting
      to Public Service transmission must include their costs to interconnect to
      the transmission provider and wheel energy to the Public Service system.

Q013009-27.       Does PSCo anticipate needing RECs for compliance with
     the Colorado RPS?

A.    Please see Public Service’s 2009 RES Compliance Plan (CPUC Docket
      No. 08A-532E.

Q013009-28.       When previous utility-scale experience is mentioned, is it the
     same technology as being proposed or just the fact that the company and
     individuals had successfully completed a utility-scale project (e.g., the
     developer had previously developed, built and operated a gas plant and is
     now proposing a CSP plant)?

A.    Section 4.2 of the RFPs reads in part as follows:
                 For non-Section 123 proposals, the respondent’s project
                    development team must demonstrate that it has successfully
                    completed      the   development,       construction      and
                    commissioning of at least one utility scale and utility-grade
                    project with technology similar to the proposed project.
                 For Section 123 proposals, the respondent’s project
                    development team must demonstrate that it has successfully
                    completed      the   development,       construction      and
                    commissioning of at least one utility scale and utility grade

      Bidders should adhere to the "technology similar to the proposed project”
      requirement. Having said that, Public Service will take several factors into
      account when performing due diligence screening including the depth and
      quality of the bid pool that offers similar technology, the size of bids, the
      pricing of bids etc.

Q013009-29.       Please identify the Public Service representatives that I
     should contact to present my organization’s abilities.

A.    Should your proposal include Public Service ownership participation,
      please contact the Business Development group as indicated in the RFPs.
      For projects bid into the All-Source RFP, Public Service strongly
      encourages all contact occur through the All-Source email address.
      Developers should present their organization’s abilities in their proposals
      pursuant to the instructions under the Narrative Topics.

Q013009-30.       Will bids that are jointly submitted by Public Service/Xcel
     Energy Inc. and another party be evaluated as a company owned project
     and count towards the company’s ownership targets or would it be
     evaluated as an IPP project or some combination?

A.    Generally, Public Service will evaluate all joint venture proposals in the
      same manner as it will all other proposals submitted into the 2009 PSCo
      All-Source Solicitation. Public Service will not perform financial due
      diligence on the Company-owned projects and Public Service will evaluate
      turn-key projects submitted to Business Development differently than JV
      projects which by necessity require a blend of Company revenue
      requirements and purchased power. As it concerns the ownership
      percentage that would be included in the Company ownership total, the
      portion of the project that is owned by Public Service will be counted
      toward Public Service Company ownership total in the portfolio of concern.

Q013009-31.         Please define “Recycled Energy.”

A.    The Colorado Revised Statutes (CCR 40-2-124(1)(a)(II)) define recycled
      energy as follows:

              "Recycled energy" means energy produced by a generation unit
              with a nameplate capacity of not more than fifteen megawatts that
              converts the otherwise lost energy from the heat from exhaust
              stacks or pipes to electricity and that does not combust additional
              fossil fuel. "Recycled energy" does not include energy produced by
              any system that uses energy, lost or otherwise, from a process
              whose primary purpose is the generation of electricity, including,
              without limitation, any process involving engine-driven generation
              or pumped hydroelectricity generation.

Q013009-32.         What RFP should I bid into?

A.    Each RFP provides guidance in Section 1. Please consult with Public
      Service at PSCo2009AllSource@xcelenergy.com for further guidance.

Q013009-33.        Concerning the instance of a potential respondent that
     desires to bid into an RFP who also has an existing contract for sale of
     energy or energy and capacity to Public Service, can this potential
     respondent propose a contract extension and what document should a
     potential respondent use to propose exceptions?

A.    Concerning Section 2.2 of the RFPs that contains the phrase “extension to
      an existing PPA,” with this phrase Public Service meant that the sale of
      energy or energy and capacity from an existing facility could be proposed
      for a different term (period of time) under the terms and conditions of the
      Model PPAs. Therefore, the Model PPAs are the documents that
      respondents should use to note exceptions.

Q013009-34.        Please describe the evaluation of proposals that make a
     Section 123 resource claim and/or provide and describe Non-Quantifiable
     Externality benefits in their proposal.

A.    Public Service will abide by the instructions provided by the CPUC in
      Decision No. C08-1153 at Pages 6 and 7.


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