REQUEST FOR PROPOSALS
Associated Electric Cooperative, Inc.
2016 Renewables RFP
April 29, 2016
associated electric cooperative, inc
2814 S. Golden, P.O. Box 754
Springfield, Missouri 65801-0754
417-885-9381 FAX 417-885-9374
1 Notice of Disclaimer
The information contained in this Request for Proposals (RFP) has been prepared solely to assist
prospective Respondents in making the decision of whether or not to submit a Proposal. This RFP
is being issued by Associated Electric Cooperative, Inc. (AECI).
AECI does not purport this information to be all-inclusive or to contain all of the information that a
prospective Respondent may need to consider in order to submit a Proposal. AECI reserves the
right to modify or supplement this RFP. No part of this RFP and no part of any subsequent
correspondence by AECI, its employees, officers, or its consultants shall be taken as providing legal,
financial, or other advice, nor as establishing a contract or contractual obligation. Contractual
obligations would arise only if and when definitive agreements have been approved and executed
by the appropriate parties having the authority to approve and enter into such agreements.
All recipients of this RFP are responsible for all costs incurred by them when evaluating and
responding to this document, and for any negotiation costs incurred by the recipient thereafter.
AECI may, in its sole discretion and without limitation, refuse to accept any and all Proposals and to
evaluate Proposals and to proceed in the manner it deems appropriate, which may include deviation
from its expected evaluation process, the waiver of any requirements, and the request for additional
information. Rejected Respondents will have no claim whatsoever against AECI, or AECI’s legal
counsel, or against employees, or officers of those entities.
2 Overview
The RFP is being issued to selected and interested companies to solicit sales offers for renewable
energy from wind. To receive final selection and a Purchase Power Agreement, it will be
necessary to have transmission approvals in place to deliver power to AECI, or for substantial
analysis to show that such transmission approval is achievable. AECI is seeking offers for
renewable energy preferably delivered to AECI for a minimum term of 20 years. Nameplate
capacity amounts may vary from 50 to 300 MW.
Proposals received through this RFP will be evaluated based on cost and non-cost factors, and will
be assessed to determine consistency with AECI’s overall renewable energy needs and fit with its
overall supply portfolio. AECI could choose to enter into subsequent discussions should one or more
Proposals appear consistent with AECI’s power supply needs.
This RFP is structured to provide prospective Respondents with sufficient information on which to
prepare a Proposal and is organized in the following manner:
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Section 3.0 provides general RFP information to potential Respondents.
Section 4.0 presents a brief description of the AECI electric system.
Section 5.0 describes the need for renewable energy behind this RFP.
Section 6.0 provides a summary of Proposal requirements and options.
Section 7.0 provides Proposal preparation instructions.
Section 8.0 discusses the evaluation criteria to be applied to Proposals
Section 9.0 includes the RFP Registration Form
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3 General Information
This section contains general information related to the RFP schedule, the preparation and
submittal of Proposals, instructions about communications and other relevant issues.
3.1 RFP ADMINISTRATION
This RFP and resulting bid evaluation will be administered by AECI. AECI considers this RFP to be
confidential, and all communications during the bid evaluation period shall be coordinated through
AECI. Contact information for AECI is listed below:
Associated Electric Cooperative, Inc.
Attn: John P Mayer
2814 S. Golden Ave, PO Box 754
Springfield, Missouri 65801-0754
Email: RFPrespondTo@AECI.org
Phone: 417-885-9381
If one or more offers are selected through the evaluation process, AECI’s renewable
energy team will become engaged to negotiate a final Purchased Power Agreement,
arrangement of transmission service and additional necessary steps.
3.2 RFP SCHEDULE
AECI has established the target schedule for the RFP as shown in Table 3-1. AECI reserves the
right to amend the proposed schedule.
Table 3-1 Target RFP Schedule
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3.3 PREPARATION AND SUBMISSION OF PROPOSALS
Respondents should note the following:
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There will be no Pre-Bid Meeting.
More than one Proposal may be submitted.
There is no bid fee.
Submitted Proposals must be signed by a representative of the Respondent who is
duly authorized to bind the Respondent to a contract.
Proposals must remain valid for 120 calendar days.
To be accepted, an electronic version of the Proposal must be sent to the RFP E-mail address listed
below no later than the close of business, June 10, 2016.
AECI Representative
Associated Electric Cooperative, Inc.
Attn: John Mayer
2814 S. Golden Ave, PO Box 754
Springfield, MO 65801-0754
RFP E-mail Address: RFPrespondTo@AECI.org
3.4 OPENING OF PROPOSALS
Bid opening will not be a public process. Proposals will be screened for responsiveness on an
economic basis; those that do not meet the content requirements specified in Section 7 of this RFP
document may be eliminated from consideration. Subsequent evaluation of bids will follow the
process discussed in Section 8.
3.5 QUESTIONS AND ANSWERS
AECI has set up an E-mail box to allow uniform communication to all participants in this bidding
process. The E-mail box is RFPrespondTo@AECI.org and will be used to submit questions during
the bid period. All information provided by AECI through the question and answer process is to be
considered confidential and is not to be further distributed or used for purposes other than for
preparing a Proposal.
AECI requires that all questions concerning this RFP be submitted to the RFP E-mail address listed
above no later than May 27, 2016. AECI will endeavor to answer all questions within approximately
four business days of their submittal. No questions will be responded to other than through the Email process and all questions must be submitted through this process. Unless otherwise decided by
AECI, all registered participants will receive answers to all questions submitted by all potential
Respondents.
3.6 CONFIDENTIALITY
All Proposals shall become the exclusive property of AECI. AECI shall only consider as
confidential, those portions of the Respondent’s Proposal clearly marked “Confidential”.
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3.7 PERFORMANCE SECURITY
AECI may require the successful bidders to establish a Performance Security to minimize AECI’s exposure
to direct and consequential damages due to failure of the bidders to fulfill the terms and conditions of any
contract(s) awarded. If requested, the Performance Security shall be held or backed by a financial
institution(s) acceptable to AECI and shall be in the form of a letter of credit acceptable to AECI that
provides a comparable level of protection to AECI in event of default or failure to perform. This
Performance Security must be directly accessible to AECI at all times and must be irrevocable and
unassignable by the bidders and/or the financial institution(s) without prior consent of AECI. AECI will
consider performance security alternatives proposed by bidders as part of contract negotiations.
3.8 COLLUSION
By submitting a proposal to AECI in response to this RFP, the Respondent certifies that the Respondent
has not divulged, discussed, or compared his proposal with other Respondents and has not colluded with
any other Responder or parties to other proposals whatsoever.
3.9 COMPLIANCE WITH REGULATIONS
It shall be the responsibility of each Respondent to ensure that their proposal is in full compliance with
all OSHA, EPA, federal and state regulations or other requirements as applicable.
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The AECI Electric System
For more than 50 years, Associated Electric Cooperative has provided reliable, wholesale power generation
and high-voltage transmission to its six transmission co-op member-owners. They supply 51 local electric
cooperatives in Missouri, Iowa and Oklahoma serving about 875,000 member homes, farms and businesses.
Further information about AECI including structure and governance, management, service area,
financial considerations and facilities can be on found on the corporate website at
www.aeci.org.
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Basis for the AECI RFP
AECI conducts on-going expansion planning studies to determine how to best meet its projected
power obligations. Obligations include having sufficient capacity and reserves to meet its projected
system peak plus reserve requirements, maintaining a competitive wholesale and retail rate
structure, and operating its system in a safe and reliable manner. AECI also completes ongoing
economic evaluations of its existing generating resources, particularly in light of EPA regulatory
requirements and emissions restrictions.
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Submittal Options and Requirements
This AECI renewable energy solicitation is considered to be an open RFP, except that non-firm
energy delivery will not be considered. Bid requirements allowed by AECI are discussed below.
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Term: 20 year minimum with commercial operation starting in the 2017 to 2019 time frame.
Nameplate Capacity: 50 to 300 MW.
Multiple offers are allowed.
The Proposal is to be for renewable wind energy delivered on a firm basis to the AECI transmission
system. As part of the evaluation process, AECI will assess the deliverability of renewable energy from
resources backing the offers, and/or delivery points specified in the bid, to the AECI’s system. The
evaluation will assess the likelihood of available firm point-to-point transmission service, and/or
deliverability of renewable energy to AECI. Offers should describe Bidder’s anticipated transmission
arrangements.
If a bid is backed by projects located outside of AECI’s transmission system, Respondent
should describe its arrangements and plan for delivering firm energy to a delivery point on
the AECI transmission system.
AECI is not considering proposals from renewable energy sources other than wind.
Respondents should define the beneficiary of any tax credits related to a project used to
generate renewable energy.
As described further in Section 7, offers must include the basic terms and conditions of
the commercial arrangement envisioned.
Submittal Preparation Instructions
A separate proposal package should be prepared for each offer and include the following content.
Project Description
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Name plate capacity
Location
Turbine manufacturer and type
Expected in service date
If the Proposal is based on an existing project, historical operating data for the past five years
(or its operating life if less than five years) must be provided with the proposal.
Type of Sale
The preferred Proposal structure is for a traditional renewable power purchase agreement.
The Proposal must indicate whether the offer involves a project contingent sale to AECI, or an
offer for AECI ownership in a new or existing project
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Technical Information
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The proposal should include a typical hourly generation profile (8760) as an excel or csv file
Expected monthly and annual capacity factor at the interconnection point.
Delivery of Power
The respondent is to provide evidence or technical basis to show that Respondent can
deliver the renewable energy from the project on a firm basis to the AECI transmission
system. This evidence may include:
1. An approved Interconnection Agreement for the project.
2. Sufficient evidence to demonstrate how the Respondent intends to deliver renewable
energy or its proposed method to make-whole AECI for RTO market charges related to
the delivery of renewable energy from a project within an RTO.
Qualifications and Experience
The respondent is to provide a company profile, agency ratings, the company’s (and parent
company’s) annual report for the last two years, a description of the number of megawatts
currently in service and owned by the company, the number of megawatts of the same
technology proposed currently in service and owned by the company, pertinent experience in
the Regional Transmission Organizations and in other states. Please also discuss any current
litigation the company and any of its subsidiaries or off-balance sheet companies in which it
has an interest is involved with regarding a contracted power supply matter.
Pricing
The respondent is to provide the energy rate inclusive of delivery to the AECI system, O&M,
transmission cost, and all other costs associated with the generation and delivery of the
renewable wind energy to the AECI interconnection point. AECI will not accept pricing terms
contingent upon PTC qualification or accept risk of meeting PTC timelines. A flat (nonescalating) PPA price for the term is preferred however AECI will consider alternative
pricing arrangements. This section should also include the applicable term and confirmation
that that the PPA price is inclusive of all renewable energy credits.
Conceptual Contractual Approach
The respondent is to provide a draft power purchase agreement or a summary of the major
terms and conditions that it proposes to include in a power purchase agreement with AECI, if
applicable. The specific topical areas covered should include pricing formulas, delivery point
and scheduling, commercial operation dates and conditions precedents, term and any
applicable renewal options, and other areas considered to be material on the part of the
Respondent.
Performance Guarantees
The respondent shall submit contractual mechanisms to compensate AECI in the event of low
annual energy output or turbine availability.
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Evaluation Procedures and Criteria
All Proposals will be evaluated to ensure that the submittal includes the required contents as
described in Section 7. Submittals deemed to be responsive will be carried forward to a technical,
economic, and commercial evaluation.
From a technical perspective, Proposals will be reviewed to confirm: (i) that the proposed
generation technology is proven, provides firm power, and that the project has achieved or can
achieve a level of reliability and production consistent with that reflected in the Proposal; and (ii)
to assess the level of project development and associated risks.
The commercial evaluation of Proposals will ensure that (i) the Respondent has adequate and
pertinent experience, resources, and qualifications to operate the proposed project(s), and (ii) that
the proposed terms and condition of the sale are reasonable and consistent with AECI’s view of
risk allocation.
Proposals considered feasible from a technical and commercial viewpoint will be carried forward to
the economic evaluation, which may utilize bus-bar screening curves, with selected options
evaluated in a production costing model that depicts AECI system or regional dispatch on an hourly
basis. The Bid Forms are structured to provide the inputs required for the economic modeling and
must therefore be completed according to the instructions.
Proposals will also be evaluated by AECI to assess transmission availability to transfer energy from the
specified delivery point, to the AECI’s system.
The intention of AECI is to make the evaluations and subsequent rankings fair and objective, and to
give an appropriate balance between economic, technical, and commercial features. When all
Proposals have been evaluated, an RFP short-list may be identified and AECI may, at its sole
discretion, enter into discussions or negotiations with one or more Respondents to determine
whether the Proposal fits into AECI’s power supply procurement plan. Unsuccessful Respondents
will be notified in writing through the RFP E-mail process.
AECI reserves the right, in its sole discretion, to reject any and all proposals submitted in
response to this RFP, for any reason(s) whatsoever. In addition, AECI also reserves the right to
accept other than the lowest-cost proposal, to select a combination of proposals, to waive any
technical non-compliance in any proposal, and to conduct further negotiations with any bidder.
The provisions of this RFP do not create any legally binding obligation on the part of AECI, or of
AECI. AECI does not intend to be bound by the terms of this RFP, and associated documents,
unless and until AECI and a bidder(s) negotiate, agree to and sign a definitive written agreement,
with appropriate credit assurances and other terms and conditions, material and otherwise,
which terms and conditions may vary from the information contained in this document.
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9
2017
2018
Notice of Intent to Bid Form
(To be submitted by all potential Respondents who would like to be put on the RFP mailing list and
be provided with responses to all questions and any addenda issued during the bid period. A signed
and scanned copy of this should be submitted to the RFP E-mail address: RFPrespondTo@AECI.org)
Company Name
Company Address
City
State
Zip
Registered Representative
Telephone
Fax
E-mail Address
By submitting this RFP Notice of Intent to Bid Form, the Registered Representative and the
potential Respondent agree to treat all information provided during the Bid Period by AECI in
response to all questions as confidential and agree not to release such information, and to use it
only for the purposes of considering or preparing a Proposal in response to this RFP.
Signed:
Title:
Date:
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