Alabama Power RFP September 27, 2016 To Whom It May Concern: Alabama Power Company (“Alabama Power” or “Company”) hereby announces the 2016 Request for Proposals (“RFP”) for renewable or environmentally specialized energy resources (“RFP resources”). This RFP is being issued consistent with the authorization granted to Alabama Power by the Alabama Public Service Commission ("APSC"), by order dated September 16, 2015 in Docket No. 32382 (“September 16 Order”). Qualifying proposals submitted through this RFP will afford Alabama Power an opportunity to review market offerings of RFP resources and determine whether there are economic and viable energy projects suitable for pursuit consistent with the requirements of the September 16 Order. This RFP contains the guidelines and requirements for submitting proposed projects. In general: A project must meet the criteria for a “renewable” or “environmentally specialized” generating resource, as set forth in the September 16 Order. A project must be at least 5 MWac but not greater than 80 MWac in size and be operated as a certified Qualifying Facility. o Alabama Power will accept proposals for turnkey projects as well as for power purchase agreements (“PPA”) for renewable or environmentally specialized energy generation resources. For PPA projects, Alabama Power must receive all of the environmental attributes. A project must be located in the state of Alabama and must be interconnected with Alabama Power’s electric system (either transmission or distribution). The pricing submitted under each proposal should include those costs associated with project facilities up to the point where such facilities will connect to the interconnection facilities to be constructed and owned by Alabama Power (i.e., the point of change in ownership). After proposals are submitted, for each project, Alabama Power will determine the facilities and upgrades needed to interconnect the project to Alabama Power’s electric system and to ensure the reliable delivery of energy to Alabama Power. The costs associated with such facilities and upgrades will be taken into account in Alabama Power’s evaluation, and Alabama Power will assign responsibility for such costs after evaluations are completed. Each proposal must include the applicable non-refundable bid fee as set forth in the RFP. A project, including a bidder’s development and proposal of a project, must comply with all applicable federal, state, and local laws and regulations. All federal, state, and local approvals, permits, licenses, and associated fees or other costs will be the responsibility of the bidder for the entire term of the proposal. This includes any rezoning, land-use permits, and other discretionary approvals that may be required. Complete details regarding this RFP, including the schedule for notice and submission, associated forms and instruments, frequently asked questions and points of contact, are set forth in greater detail herein. Alabama Power appreciates your interest in this RFP and thanks you in advance for your time. Sincerely, Director of Forecasting and Resource Planning Enclosures: RFP with Attachments Alabama Power RFP Request for Proposals September 27, 2016 Forecasting and Resource Planning Alabama Power Company 600 North 18th Street Birmingham, AL 35203 Alabama Power RFP September 27, 2016 TABLE OF CONTENTS General Information ..............................................................................................2 Definition of Renewable Energy Resources and Environmentally Specialized Generating Resources ................................................4 Confidentiality .......................................................................................................5 Communications .....................................................................................................5 Power Purchase Agreements ..................................................................................6 Turnkey Projects .....................................................................................................8 Interconnection Guidance ....................................................................................10 Target Solicitation Schedule ..................................................................................11 Bid Evaluation Fee ................................................................................................11 “Notice of Intent to Bid” Submittal Process ..........................................................12 RFP Submittal Process...........................................................................................13 Attachments Attachment A: Frequently Answered Questions ......................................................................................................... 14 Attachment B: Non-Price and Other Qualitative Considerations ................................................................................ 17 Attachment C: Power Purchase Agreement – General Terms and Conditions ........................................................... 18 Attachment D: Engineering, Procurement, and Construction Agreement – General Terms and Conditions ............. 24 Attachment E: Power Purchase Agreement – “Notice of Intent to Bid” Forms .......................................................... 30 Attachment F: Turnkey Project – “Notice of Intent to Bid” Forms .............................................................................. 40 Attachment G: Power Purchase Agreement – RFP Forms ........................................................................................... 51 Attachment H: Turnkey Project – RFP Forms .............................................................................................................. 66 1 Alabama Power RFP September 27, 2016 General Information Alabama Power Company (“Alabama Power” or “Company”) is issuing this 2016 Request for Proposals (“RFP”) for renewable or environmentally specialized energy resources (“RFP resources”) consistent with the authorization granted the Company by the Alabama Public Service Commission ("APSC") by order dated September 16, 2015 in Docket No. 32382 (“September 16 Order”). This RFP will afford Alabama Power an opportunity to review market offerings of RFP resources and determine whether there are economic and viable energy projects suitable for pursuit consistent with the requirements of the September 16 Order. For a proposal to merit full consideration by the Company and the pursuit of regulatory approval consistent with the requirements of the September 16 Order, it must present the opportunity for exceptional value to the Company’s customers, in the form of lower energy costs and other economic benefits. In furtherance of the Company’s goal of matching, as reasonably as possible, renewable supply resources with customer needs, the Company is interested in both proposals for turnkey Engineering, Procurement, and Construction Agreements (“EPC Agreements”) as well as power purchase agreements (“PPA”) for new generation resources that are located in the state of Alabama and connected directly to the Company’s electric system. The pricing submitted under each proposal should include all costs associated with project facilities up to the point where they will connect to the interconnection facilities to be constructed and owned by Alabama Power (i.e., the point of change in ownership). After a proposal is submitted, Alabama Power will conduct its evaluation, taking into account the total costs and other non-quantitative considerations. Total costs shall include (without limitation) energy prices submitted with the proposal and any other interconnection, transmission, distribution, and ancillary service costs that would be associated with the resource. Alabama Power will assign responsibility for interconnection and transmission costs after evaluations of proposals are completed. Non-quantitative considerations may include (without limitation) those set forth in Attachment B located at the end of this RFP. All proposed resources must satisfy the criteria for a “renewable resource” or an “environmentally specialized generating resource,” which is defined in the following section. Also, the Company must receive all associated environmental attributes for the resource, as the Company will have the rights to sell such environmental attributes (including renewable energy certificates, or RECs) to third parties, separately or bundled together with energy from the facility or elsewhere. Each proposal should assume that any PPA or EPC Agreement entered into by Alabama Power would include the terms and conditions set forth in Attachment C and Attachment D, respectively. Alabama Power reserves the right, however, to require other terms and conditions that are different than, or in addition to, those terms and conditions set forth in Attachment C and Attachment D. Any exceptions or modifications of a bidder to the terms and conditions set forth in Attachment C and Attachment D will affect the value of the bidder’s proposal. Nothing in this RFP or in the associated materials provided should be considered an offer or acceptance of terms or conditions of a PPA, an EPC agreement, an interconnection agreement, or any other contract or business arrangement. Any proposal that does not satisfy the requirements of this RFP may be considered nonresponsive, and the Company reserves the right to reject any such proposal without opportunity for correction or cure. The Company may, but is under no obligation to, contact any bidder 2 Alabama Power RFP September 27, 2016 to obtain additional information regarding its proposal. Each bidder who submits a proposal(s) in response to this RFP waives any and all right of recourse against the Company, its parent, and any of their affiliates for either rejection of the proposal or for failure to execute an agreement with the bidder for any reason. All costs related to each bidder’s preparation of a response to this RFP are the sole responsibility of the bidder. The Company will not reimburse or be held responsible for costs associated with any bidder’s proposal in response to this RFP. A bidder’s submission of a proposal to the Company shall constitute that bidder’s acknowledgement and acceptance of all the terms, conditions, and requirements of this RFP. All proposals submitted shall become the exclusive property of the Company and may be used by the Company for any reasonable purpose. The Company shall have no obligation or liability to any bidder unless and until an agreement with such bidder has been successfully negotiated, fully executed, and all conditions to the effectiveness of such agreement are satisfied. The Company reserves the right, in its sole discretion, to determine whether to pursue negotiation and execution of any agreement with any bidder. Further, any agreement shall be subject to all requisite management approvals of the Company as well as approval by the APSC in a form suitable to the Company, in its sole discretion. As stated above, the purpose of this RFP is to solicit proposals for RFP resources in order to determine the most economic and viable energy projects available to the Company. Proposals submitted pursuant to this RFP will be evaluated in whatever manner the Company deems appropriate, including (but not limited to) on a like-kind basis against each other (independent of technology type) and against other power supply options that may be available to the Company. Such other power supply options may include generation resources owned or developed by the Company, other generation resources located in the service territories of the Company and its affiliates, and other proposals for renewable generation that are provided to the Company outside of this RFP process. The Company is under no obligation to select any project, nor is the Company limited to choosing from the resources submitted in response to this RFP. The Company may determine in its sole discretion to exclusively procure renewable resources outside of this RFP process, or to defer the pursuit of any resources, through proposals identified in this RFP or otherwise, until a future date determined by it. 3 Alabama Power RFP September 27, 2016 Definition of Renewable Energy Resources and Environmentally Specialized Generating Resources For a proposed project to be considered under this RFP, the generation resource must be either a renewable resource1 or an environmentally specialized generating resource. An eligible renewable resource is a resource that generates electricity through the use of a renewable fuel source or as a byproduct of another manufacturing or processing function that uses a renewable fuel resource as an input stock. Examples of eligible resources are: - Solar - Wind - Geothermal - Tidal or ocean current - Low-impact hydro - Gas derived from sewage treatment processes - Gas derived from solid municipal waste or landfill projects - Hydrogen sourced from renewable resources - Biomass materials and/or gases derived from biomass materials: 2 o Wood wastes o Agricultural wastes or residues o Dedicated crop production o Animal by products o Spent pulping liquors or other by-products from the kraft or pulping process An eligible environmentally specialized generating resource is a resource that promotes environmental or other efficiencies, such as combined heat and power. 1 See Section 40-18-1(30), Code of Alabama (1975). 2 Biomass or other materials or resources produced or derived from unauthorized or unlawful removal or destruction of state or federally protected forests, lands, wetlands, or any other protected lands will not be considered eligible renewable fuel resources. 4 Alabama Power RFP September 27, 2016 Confidentiality Participation in this RFP is conditioned on the execution of a standard Confidentiality Agreement, a copy of which is being provided for each category of proposal being solicited. Communications Prior to the “Notice of Intent to Bid” deadline of October 14, 2016, all communications to the Company regarding the RFP should be submitted to G2APCMRERFP@southernco.com . All non-repetitive questions (along with the appropriate responses) will be added to “Attachment A: FAQs” in the RFP document and to the FAQs document located on the RFP webpage ( http://www.alabamapower.com/environment/renewable-energy/rfp.asp). This will allow all interested parties to have access to the information provided. After the “Notice of Intent to Bid” deadline, RFP communications may be submitted to G2APCMRERFP@southernco.com. All questions (along with the appropriate responses) will be posted in a general folder located on a SharePoint site. The SharePoint site will be made available only to bidders who have submitted the required “Notice of Intent to Bid” forms. Alabama Power will allow up to a maximum of three individuals who can have access to their respective company’s project folder(s) and the general folder located on the SharePoint site. The contact information for these individuals must be included in the required NOI forms. Information regarding access to the SharePoint site will be provided to the specified contact(s) for the qualified bidders after the “Notice of Intent to Bid” deadline. 5 Alabama Power RFP September 27, 2016 Power Purchase Agreements (PPA) For a PPA proposal bid to be complete, the following forms must be included in the bid. - General Information Operational Information Production Profile (“8760”) Interconnection Information Summary PPA Bid Price Other Considerations Examples of these forms are available in Attachment G of this document, and electronic versions of these forms will be in the general folder of the SharePoint site that will be made available to the bidders who have submitted the required “Notice of Intent to Bid” forms. Specifics about each form are provided below. “General Information” - All proposed resources must satisfy the criteria for a renewable resource or an environmentally specialized generating resource, as described on Page 4 of this document. The operational date of the project should be targeted for March 31, 2019 or earlier. The requested term is 10 or 25 years. The bidder has the option to submit pricing for one or both. “Operational Information” - The nameplate capacity must be at least 5 MWac and no greater than 80 MWac. A legal description of the land being used for the project must be included. Supporting documentation must be provided to describe the nature of the possession of the real property at the time of construction as either fee simple ownership or lease (e.g., copy of option contract; copy of deed; copy of lease agreement). “Production Profile” - A delivered production profile in an 8760 format (365 days x 24 hours), in Central Standard Time (CST) must be included in the proposal in order for it to be considered. At no time should the expected energy output exceed the proposed maximum capacity of the facility. If so, the profile will be subject to adjustments. For example, at no time can the expected energy output of an 80 MWac facility be greater than 80 MWac. “Interconnection Information Summary” - The proposed generation resources must be located in the state of Alabama and must interconnect with the Company’s electric system. For each project, Alabama Power will determine the facilities and upgrades (and associated costs) needed on its side of the point of change in ownership in order to interconnect the project to Alabama Power’s system, including the cost of metering. Such costs will be taken into account in Alabama Power’s evaluation. After a proposal has been evaluated, Alabama Power will determine how responsibility for such costs should be assigned between the parties. 6 Alabama Power RFP September 27, 2016 - - For each project, the project bidder must provide the real estate that would be required for the location of facilities and upgrades required for interconnection. This needs to be included in the price. In addition to determining facilities and upgrades required for interconnection beyond the point of change in ownership, an important consideration in the evaluation of proposals will be whether there is adequate transmission and/or distribution capability to deliver the energy of a proposed project from the proposed point of interconnection to Alabama Power on a reliable basis. The costs of any modifications to the transmission and/or distribution system in order to reliably deliver energy to Alabama Power will be taken into account in Alabama Power’s evaluation. “PPA Bid Price” - - Alabama Power will only evaluate proposals that are priced on a delivered energy basis. No proposal should include capacity or other payments. Each proposal should be priced in nominal $/MWh. The proposed prices should include all costs associated with the proposed project up to the point where the project facilities will connect to the interconnection facilities to be constructed and owned by Alabama Power (i.e., the point of change in ownership), including but not limited to energy, construction costs, variable and fixed operations and maintenance costs, all associated renewable and environmental attributes, costs associated with delivering energy to the Company’s transmission or distribution system, and expected return or mark-up on the project. Each project must comply with all of the applicable federal, state, and local laws and regulations. All federal, state, and local approvals, permits, licenses, and environmental regulations and associated fees or other costs are the responsibility of the bidder for the entire term of the proposal. This includes any rezoning, land-use permits, and other discretionary approvals that may be required by the local, state, or federal governments. 7 Alabama Power RFP September 27, 2016 Turnkey Projects For a turnkey proposal bid to be complete, the following forms must be included in the bid. - General Information Facility Information Land Information Production Profile (“8760”) Interconnection Information Summary Turnkey Bid Price Other Considerations Examples of these forms are available in Attachment H of this document, and electronic versions of these forms will be in the general folder of the SharePoint site that will be made available to the bidders who have submitted the required “Notice of Intent to Bid” forms. Specifics about each form are listed below. “General Information” - All proposed resources must satisfy the criteria for a renewable resource or an environmentally specialized generating resource, as described on Page 4 of this document. The operational date of the project should be targeted for March 31, 2019 or earlier. “Facility Information” - The nameplate capacity must be at least 5 MWac and no greater than 80 MWac. The facility cannot be designed to generate an expected energy output (MWh) at any time greater than the output of the proposed maximum capacity for any hour. “Land Information” - - - A legal description of the land being used for the project must be included. Supporting documentation must be provided to describe the nature of the possession of the real property at the time of construction as either fee simple ownership or lease (e.g., copy of option contract; copy of deed; copy of lease agreement). All documentation that is currently available for the real property must be provided (e.g., Title insurance / Commitment, Title Abstract, ALTA Survey, Boundary and/or Topographic Survey, Phase 1 Environmental Assessment, Wetland delineations, Threatened & Endangered Species report, and Geotechnical Analysis). Any of the above documentation that becomes available at a later date should be supplied at that time. 8 Alabama Power RFP September 27, 2016 “Production Profile” - A delivered production profile in an 8760 format (365 days x 24 hours), in Central Standard Time (CST), must be included in the proposal for it to be considered. At no time should the expected energy output exceed the proposed maximum capacity of the facility. If so, the profile will be subject to adjustments. For example, at no time can the expected energy output of an 80 MWac facility be greater than 80 MWac. “Interconnection Information Summary” - - - The proposed generation resource must be located in the state of Alabama and must be interconnected with the Company’s electric system. For each project, Alabama Power will determine the facilities and upgrades (and associated costs) needed on its side of the point of change in ownership in order to interconnect the project to Alabama Power’s electric system, including cost of metering. The costs of such facilities and upgrades will be taken into account in Alabama Power’s evaluation. For each project, the project bidder must provide the real estate that would be required for the location of facilities and upgrades required for interconnection. This needs to be included in the price. In addition to determining facilities and upgrades required for interconnection beyond the point of change in ownership, an important consideration in the evaluation of proposals will be whether there is adequate transmission and/or distribution capability to deliver the energy of a proposed project from the proposed point of interconnection to Alabama Power on a reliable basis. The costs of any modifications to the transmission and/or distribution system in order to reliably deliver energy to Alabama Power will be taken into account in Alabama Power’s evaluation. “Turnkey Bid Price” - - Each proposal should be priced in nominal dollars. The proposed prices must include all costs associated with the project up to the point where the project facilities will connect to the interconnection facilities to be constructed and owned by Alabama Power (i.e., the point of change in ownership) including but not limited to engineering, construction, equipment, insurance, and land. Each project must comply with all of the applicable federal, state, and local laws and regulations. All federal, state, and local approvals, permits, licenses, and environmental regulations and associated fees or other costs are the responsibility of the bidder. This includes any rezoning, land-use permits, and other discretionary approvals that may be required by the local, state, or federal governments. 9 Alabama Power RFP September 27, 2016 Interconnection Guidance Proposed resources will interconnect to either the transmission or the distribution system of Alabama Power. Bidders are responsible for submitting requests to interconnect their generation resources and to obtain all relevant information regarding the interconnection process. Additional information on the interconnection process, including a list of appropriate Company contact(s), will be shared with bidders who have completed the “Notice of Intent to Bid” (“NOI”) submittal process. Bidders who submitted the required NOI forms can ask general questions about the interconnection process by emailing the questions to G2APCMRERFP@southernco.com. If a bidder has a site-specific question about the interconnection process, the bidder can email the question to G2APCMRERFP@southernco.com with a subject line of “Interconnection Process.” The submission of a proposal in response to this RFP does not constitute an interconnection request. Interconnection requests must be submitted to the Company pursuant to the applicable interconnection process. Additional costs associated with submitting an interconnection request may apply. All such costs are the bidder’s sole responsibility. Bidders selected for the “short list” must promptly submit all required interconnection requests, to the extent not already submitted, in order to remain eligible for further consideration under this RFP. Allowing sufficient lead time for study of an interconnection request and for construction of the required interconnection facilities and upgrades is critical to meeting any target in-service date. Each short list bidder shall provide all relevant information regarding the status of its interconnection request(s), including the interconnection facilities that will be required to interconnect the proposed resource and the costs to interconnect. The Company shall be entitled to make inquiries from time-totime in order to obtain such information. A bidder who enters into a PPA with the Company will be required to be certified as a Qualifying Facility under PURPA and must sell all of the resource’s output to the Company. Each such bidder will be required to enter into a Company interconnection agreement, which carries a monthly administration fee of $5,000. This monthly fee does not vary with project size and is applicable to any bidder proposing a PPA with the Company. This fee should be considered in the bidder’s pricing. In addition to facilities and upgrades required for interconnection beyond the point of change in ownership, an important consideration in the evaluation of proposals will be whether there is adequate transmission and/or distribution capability to reliably deliver the energy of a proposed project from the proposed point of interconnection to Alabama Power for its use. Therefore, the Company, or a designated agent of the Company, will conduct assessments, as appropriate, to determine the costs of any modifications to the transmission and/or distribution system that are necessary to deliver energy from a proposed resource in order for them to be appropriately considered in the bid evaluation. 10 Alabama Power RFP September 27, 2016 Target Solicitation Schedule Date September 27, 2016 October 14, 2016 November 15, 2016 March 10, 2017 Event RFP documents issued. “Notice of Intent to Bid” and associated forms MUST be received by 6:00 pm CDT. Proposals MUST be received by 6:00 pm CST. Short-listed bidders notified. Interconnection agreements requests must be submitted by this time, if not earlier. The Company reserves the right to revise or suspend this schedule at its sole discretion. If schedule changes occur, the Company will notify affected bidders through the website and the email distribution list. Bid Evaluation Fee For each project submitted, there will be a nonrefundable bidder evaluation fee of $5,000. - If the same project is being submitted with a change to the business arrangement, the additional proposal must have a separate bid evaluation fee of $2,500. - If a PPA project is being proposed and there is only a contract term change (i.e., 10 versus 25 year), no additional bid evaluation fee is required. A separate “Notice of Intent to Bid” form also must be submitted for each version of the project, whether or not there is a separate bid evaluation fee. This will allow for the individual project folders in the SharePoint site to be set up properly. Electronic payment for the bid evaluation fee is to be made to Alabama Power through: Wells Fargo Bank Minneapolis, MN ABA # 121000248 Alabama Power Company Acct # 2000700001006 Reference: RFP (Company name and the name of the project) The bid is not complete and will not be evaluated unless the appropriate bid evaluation fee has been received by the RFP deadline of 6:00 pm CST on November 15, 2016. 11 Alabama Power RFP September 27, 2016 “Notice of Intent to Bid” (“NOI”) Submittal Process 1. All bidders must complete the forms listed below for the proposed project. These forms are available in a hardcopy format in Attachment E and Attachment F at the end of this RFP document or in a pdf format located on the Alabama Power website, as follows: http://alabamapower.com/environment/renewable-energy/rfp.asp For a PPA proposed project - NOI Form Contractor Compliance Background Certification Form Bidder’s Questionnaire Confidentiality Agreement Contact(s) for SharePoint Site Access For a Turnkey proposed project - NOI Form Contractor Compliance Background Certificate Form Contractor Statistical Data (Employee Modification Rate or EMR) Bidder’s Questionnaire Confidentiality Agreement Contact(s) for SharePoint Site Access 2. If a bidder is submitting more than one proposal, one NOI form must be submitted for each proposal. This includes every version of the same project that is being proposed. Only one submission of the other required forms is necessary for each bidder unless the information on the other required forms varies among the project(s) submitted. 3. The required forms must be sent by 6:00 pm CDT on October 14, 2016 by either emailing them using the following email address: G2APCMRERFP@southernco.com or by sending a paper copy of the required forms through registered mail, addressed as follows: David Brand Forecasting & Resource Planning 600 North 18th Street / 6N-0603 Birmingham, AL 35203 12 Alabama Power RFP September 27, 2016 RFP Submittal Process All bidders who have completed the NOI submittal process will receive instructions via email on how to access the required RFP bid documents from the SharePoint site. Instructions will also be included on how to upload these documents to the SharePoint site. The SharePoint site will contain a private folder for each project that the bidder is proposing, as well as a general folder that will contain the required RFP documents in electronic format and a Frequently Asked Questions (FAQ) document. If a bidder has any questions after the NOI deadline, they are to be submitted to the general email address G2APCMRERFP@southernco.com. The non-repetitive questions and the answers will be posted in the FAQ document in the general folder so that the information will be available to all bidders. Within one week after the NOI deadline, the instructions to the SharePoint site will be sent to all bidders who submitted the required NOI forms. Only those bidders who provided all of the required NOI forms will receive the instructions. 13 Alabama Power RFP September 27, 2016 Attachment A: Frequently Asked Questions 1. What types of renewable energy projects will be considered? The projects must use either a renewable energy resource or an environmentally specialized generating resource as defined below. - Environmentally specialized generating resource - a resource that promotes environmental or other efficiencies, such as combined heat and power - Renewable energy resources - include those types of resources identified in Section 40-18-1(30), Code of Alabama (1975). These resources generate electrical energy from one of two methods: the direct generation of electrical energy through the use of a renewable fuel resource or the generation of electrical energy as a byproduct of another manufacturing or processing function that uses a renewable fuel resource as an input stock. Renewable energy resources: - Solar - Wind - Geothermal - Tidal or ocean current - Low-impact hydro - Gas derived from sewage treatment processes - Gas derived from solid municipal waste or landfill projects - Hydrogen sourced from renewable resources - Biomass materials and/or gases derived from biomass materials:1 o Wood wastes o Agricultural wastes or residues o Dedicated crop production o Animal by products o Spent pulping liquors or other by-products from the kraft or pulping process 1 Biomass or other materials or resources produced or derived from the unauthorized or unlawful removal or destruction of state or federally protected forests, lands, wetlands, or any other protected lands will not be considered eligible renewable fuel resources. 2. What size of project can be proposed? The projects must be at least 5 MWac but no greater than 80 MWac in size. 3. Where must projects be located? Projects proposed under the RFP must be located in the state of Alabama and interconnected with Alabama Power’s electric system. 4. When must the projects be operational? The operational date of a project should be targeted for March 31, 2019 or earlier. 5. Can the power from these projects be "behind the meter" at a customer location? No. Each proposed project must be connected directly to Alabama Power’s electric system. 6. Is there a benefit for the bidder to have a customer aligned with their bid? No. Alabama Power prefers to use its own resources and relationships to identify interested customers and structure Attachment A: Frequently Asked Questions 14 Alabama Power RFP September 27, 2016 arrangements to accommodate that interest. A structure set up between the Company and an interested customer might vary greatly from what a bidder might propose. 7. Is there a limit to the number of proposals one company can submit? No. There is no limit on the number of proposals from an entity; however, separate bid evaluation fees may be required for each proposal (see “Bid Evaluation Fee”). Regardless of the fee requirement, a separate “Notice of Intent to Bid” form must be submitted for each proposal. 8. Will APC make capacity payments? No. Payments will only be made for delivered energy component. 9. What is the Bidder's fee for a project submittal? For each project submitted, there will be a nonrefundable bidder evaluation fee of $5,000. If the same project is being submitted with a change to the business arrangement, the additional proposal must have a separate bid evaluation fee of $2,500. However, if a PPA project is being proposed and there is only a contract term change (i.e., 10 versus 25 year), no additional bid evaluation fee is required. Electronic payment for the bid evaluation fee is to be made to Alabama Power through: Wells Fargo Bank Minneapolis, MN ABA # 121000248 Alabama Power Company Acct # 2000700001006 Reference: RFP (and the name of the project) 10. 11. 12. 13. The bid is not complete and will not be evaluated unless the appropriate bid evaluation fee has been received by the RFP deadline of 6:00 pm CST on November 15, 2016. When is the best time to submit an interconnection study request? While an interconnection study request will not be required until a short list is determined, there is a potentially long study time and construction lead time that could impact the commercial operation date of a project. Process steps for submitting an interconnection request will be made available to the bidders who have met the “Notice of Intent to Bid” deadline through the posting of documents on the SharePoint site. Will the environmental attributes associated with the project, such as Renewable Energy Certificates (RECs), be handled separately or as a part of the project proposal? Alabama Power will receive all of the environmental attributes generated from the project as a part of the PPA or EPC agreement. Accordingly, there will be no separate arrangements with respect to such attributes. In addition, Alabama Power will have the rights to sell RECs to third parties, separately or bundled together with energy from the project or elsewhere. Will a value for RECs be considered as part of Alabama Power’s economic evaluation of the project price proposal? No. Currently there are no renewable state mandates or goals applicable to Alabama Power. As such, Alabama Power will not place a specific monetary value on RECs in the evaluation of proposals submitted in response to this RFP. What should the price of the project include? The proposed project price (both PPA and turnkey) should include the land and facilities associated with the project up to the point where such facilities will connect to the interconnection facilities to be constructed and owned by Alabama Power (i.e., the point of change in ownership) and, as applicable, any land on which interconnection facilities to be Attachment A: Frequently Asked Questions 15 Alabama Power RFP September 27, 2016 14. 15. 16. 17. owned by Alabama Power would be located. This price should include all ongoing operation and maintenance costs for the project facilities, up to the point of change in ownership, including the monthly administration fee under the interconnection agreement (applicable to bidders proposing a PPA with the Company) for the term of that agreement. Will there be an opportunity later to change the price offered? No. The best price should be submitted by the proposal deadline. Will the evaluation process consider an energy profile that exceeds in any given hour the proposed maximum capacity? No. For any given hour that the energy profile exceeds the proposed maximum capacity, the energy for that hour will be limited to the maximum capacity. Will evaluation details such as avoided costs and proposal rankings be made available? No. These items are considered confidential and will not be provided to the bidders or to the public. Will affiliates of Alabama Power or Southern Company be allowed to participate in the RFP? No. This RFP is open only to entities unaffiliated with Alabama Power and Southern Company. Additional questions must be submitted prior to October 14, 2016 to the following email address: G2APCMRERFP@southernco.com. Any non-repetitive questions and Alabama Power’s answers will be added to this Attachment A and posted in a timely manner before October 14, 2016 and made available to all interested parties. Attachment A: Frequently Asked Questions 16 Alabama Power RFP September 27, 2016 Attachment B: Non-Price and Other Qualitative Considerations Although the majority of the evaluation will focus on price and reliability considerations, other qualitative and non-price attributes will be considered. Examples of these attributes include: Bidder Qualifications * Financial strength of company making proposal * Financing structure of project (project financed, non-recourse, etc.) * Security provided to purchaser * Bidder experience Environmental Impacts * Particulate and air emissions * Land use and wildlife impacts Resource Attributes * Availability of resource (with emphasis on fuel supply plan, as applicable) * Status of necessary elements for the project (e.g., equipment orders; leases/options for land, etc.) Other * Supplier diversity * Award recipient * Economic development (e.g., use of labor and/or manufacturing) * Reasonableness/feasibility of the development schedule, including interconnection * Potential for electric system reliability risks (e.g., excessive harmonics) Attachment B: Non-Price and Other Qualitative Considerations 17 Alabama Power RFP September 27, 2016 Attachment C: Power Purchase Agreement – General Terms and Conditions Any Power Purchase Agreement (“PPA”) between the Bidder and the Company will contain provisions that incorporate the following terms and conditions, in addition to other terms and conditions that may be required by the Company. The Company reserves the right to modify these terms and conditions, or to require additional terms and conditions, at any time in its sole and absolute discretion. The PPA and contract provisions incorporating these terms and conditions will be provided to certain qualified bidders if selected by the Company at a later date. It should be noted, however, that neither the results of the RFP evaluation nor a Bidder’s ranking relative to other bidders ensures that the Company will enter into a PPA with a Bidder or that any executed PPA will be approved by the Alabama Public Service Commission. RFP Resources The Facility The “Facility” from which energy will be provided under the PPA will be defined as the electric generating facility(ies) designated by the Bidder to provide energy to the Company utilizing only renewable fuel resources. The Facility will include all land, rights-of-way, auxiliary equipment and facilities necessary or used for the production, control, delivery or monitoring of electricity produced on the site by such electric generating facility(ies). The Facility must be located in the State of Alabama and interconnected with Alabama Power’s electric system (either transmission or distribution). Permits and Approvals The Bidder will be responsible, at its sole cost and expense, for all permits and approvals required for the development, construction, ownership, operation, and maintenance of the Facility. Meteorological Stations The Facility must also include meteorological stations at the site, as required by the Company. New Facilities For new Facilities, the PPA will incorporate the following: Development and Construction The Bidder shall be responsible, at its sole cost and expense, for the design, engineering, construction, testing and commissioning of the Facility. The PPA will provide the Company the right to inspect and observe all aspects of development and construction. Milestones The Bidder will be required to demonstrate the achievement of certain development milestones to be set forth in the PPA (e.g., project financing, commencement of construction, obtaining all required permits, interconnection). If such milestones are not achieved by specified dates, the Bidder will be required to pay liquidated damages as specified in the PPA. In the case of extended Attachment C: PPA - General Terms and Conditions 18 Alabama Power RFP September 27, 2016 delays, the Company will have the right to terminate the PPA and collect additional liquidated damages from the Bidder. Delays in Commercial Operation In the event that the Facility does not achieve Commercial Operation by a Required Commercial Operation Date to be set forth in the PPA, the Bidder will be required to pay liquidated damages as specified in the PPA. If Commercial Operation is further delayed for an extended period to be set forth in the PPA, the Company shall be entitled to terminate the PPA and collect additional liquidated damages from the Bidder. Provision of Energy, Electrical Products, and Environmental Attributes Service Term The service term of the PPA will be either 10 years or 25 years. Contract Energy and Electrical Products The PPA will provide the Company with exclusive rights to all energy and electrical products produced by the Facility (including all ancillary and essential reliability services such as reserves, reactive power, frequency support, and ramping capability). Environmental Attributes The Company shall be entitled to all environmental attributes produced by the Facility that may exist presently or at any time in the future, including all fuel-related, emissions-related, air qualityrelated and other environmental-related aspects, claims, characteristics, benefits, credits, reductions, offsets, savings, allowances, certificates, tags, attributes or similar products or rights, whether or not the same qualify for application toward compliance with any local, state, federal and/or international renewable energy portfolio standard, green pricing program or other renewable energy mandate or objective (including without limitation the Clean Power Plan). The Bidder shall be responsible, at its sole cost and expense, for certifying, registering and verifying the environmental attributes as directed by the Company (including certification by Green-e). The Bidder shall bear all costs associated with transferring the environmental attributes to the Company, including all costs associated with uploading such attributes to applicable accounts, registries, and tracking systems. Energy Payments The PPA will set forth a price (in $/MWh) to be paid for energy actually delivered to the Company at the delivery point(s). The Company will not make any capacity payments under the PPA. The energy payments shall be the exclusive compensation to the Bidder for all energy, electrical products and environmental attributes provided under the PPA. Delivery Point(s) The delivery point(s) for energy generated by the Facility shall be determined by the Company through a transmission or distribution evaluation based on the location of the Facility. Attachment C: PPA - General Terms and Conditions 19 Alabama Power RFP September 27, 2016 Energy Forecasts and Information The Bidder will be required to provide energy production forecasts, as well as other information regarding energy production and site conditions, as set forth in the PPA. Such information will include all data obtained from weather stations required to be installed at the Facility site under the PPA. Facility Outages The Bidder will provide the Company with annual schedules for planned outages, as set forth in the PPA. Such planned outage schedules shall be subject to the prior approval of the Company. Curtailments The Company shall be entitled to curtail the production of energy from the Facility for the following reasons, and shall not be required to purchase or make payment for any energy so curtailed: (i) (ii) (iii) (iv) (v) an emergency condition; the interruption, curtailment or unavailability of transmission or distribution capability; a Force Majeure Event; scheduled or unscheduled maintenance of transmission or distribution facilities; and interruptions, curtailments, or disconnections pursuant to the interconnection agreement. In addition, the Company shall be entitled to curtail the production of energy for other operational reasons in the Company’s sole discretion (“Other Operational Curtailments”). If there are more than twenty (20) hours of such Other Operational Curtailments during a given contract year, the Company will compensate the Bidder for the energy that was so curtailed beyond that twenty (20) hour threshold. Annual Energy Threshold In the event that the Bidder fails to deliver, in any given contract year, an amount of energy at least equal to an Annual Energy Threshold (to be set forth in the PPA), the Bidder will pay the Company a “Production Performance Adjustment” for the shortfall. Minimum Annual Delivery Requirement In the event that the Bidder fails, for two (2) consecutive years, to deliver an amount of energy equal to the Minimum Annual Delivery Requirement (to be set forth in the PPA), then there shall be an event of default of the Bidder under the PPA. Interconnection, Distribution, and Transmission Interconnection The Bidder shall be responsible, at its sole cost and expense, for requesting interconnection of the Facility to Alabama Power’s transmission or distribution system pursuant to the Company’s rules, practices, and policies. The Bidder will be solely responsible for all fees, deposits, and other charges in connection with such interconnection request. The Bidder shall also be responsible for entering into an interconnection agreement with the Company pursuant to the Company’s rules, Attachment C: PPA - General Terms and Conditions 20 Alabama Power RFP September 27, 2016 practices, and policies. Note: the estimated cost and expense of interconnection facilities to be borne by the Company will be a material factor in the evaluation of the Bidder’s proposal. In the event that the interconnection agreement will be executed after the execution of the PPA, the PPA will set forth certain terms and conditions regarding interconnection of the Facility. Such terms and conditions will include: (i) (ii) (iii) (iv) Assignment of cost responsibility for interconnection facilities and upgrades between the parties; Bidder will be responsible for the monthly administrative fee during the term of the interconnection agreement; Bidder will provide security for the costs and expenses associated with interconnection facilities and upgrades that Alabama Power will own and for which the Bidder is responsible for the costs; and If the Facility does not achieve Commercial Operation under the PPA, then the Bidder will reimburse the Company for all costs and expenses incurred by the Company in connection with interconnection facilities and upgrades. The Company will require the Bidder to provide security for this reimbursement obligation. Additional Services The Bidder will be responsible, at its sole cost and expense, for all services required to deliver energy to the delivery point. Transmission and Distribution Delivery Upgrades; Designation of the Facility as a Network Resource The PPA will be contingent upon the ability of the transmission and/or distribution system to reliably receive energy from the Facility and deliver such energy to the Company’s retail customers without adverse impacts to the Company’s or its affiliates’ electric systems or any of their customers. This may include a requirement that the Facility be designated as a Network Resource consistent with the Southern Companies Open Access Transmission Tariff, which would require applicable transmission studies. In addition, if the Company determines that the costs associated with necessary transmission or distribution upgrades (including those that may be needed to designate the Facility as a Network Resource) will exceed a threshold amount to be specified in the PPA, the Company may terminate the PPA in its sole and absolute discretion. Note: the estimated cost and expense of transmission and distribution upgrades that may be required (including to designate the Facility as a Network Resource) will be a material factor in the evaluation of the Bidder’s proposal. If the Facility does not achieve Commercial Operation under the PPA, then the Bidder will reimburse the Company for all costs and expenses incurred by the Company in connection with transmission and/or distribution facilities and upgrades. The Company will require the Bidder to provide security for this reimbursement obligation. Laws and Regulations The Bidder is responsible for complying, at its sole cost and expense, with all applicable federal, state and local laws and regulations applicable to the Facility and its performance under the PPA. Attachment C: PPA - General Terms and Conditions 21 Alabama Power RFP September 27, 2016 Changes in Law The Bidder shall be responsible for any increased cost or expense associated with the Facility or its performance that result from changes in laws, rules, regulations, and/or orders of all governmental authorities. The amounts paid by the Company under the PPA shall not be modified as a result of any such changes. Performance Security Simultaneous with the execution of the PPA and thereafter for the term of the PPA, the Bidder shall provide and maintain performance security in a form and amount acceptable to the Company. Such performance security may be in the form of a letter of credit, parent guaranty from a creditworthy guarantor acceptable to the Company, or other security acceptable to the Company. Events of Default The PPA will set forth events of default for each of the Bidder and the Company, as well as applicable remedies should an event of default occur. Regulatory Matters Compliance It shall be the complete and sole responsibility of the Bidder to take all necessary actions to satisfy all laws, regulatory requirements, licenses, and permits that may apply to the Bidder or to the generation, sale, and/or delivery of energy under the PPA. The PPA shall not be conditioned on the receipt of any permit or regulatory approval, except for approval of the Alabama Public Service Commission. Approval of Alabama Public Service Commission The PPA shall be contingent upon the Alabama Public Service Commission approving the PPA pursuant to a final, non-appealable order that is satisfactory to the Company in its sole and absolute discretion. Qualifying Facility The Facility must be a Qualifying Facility under the Public Utility Regulatory Policies Act of 1978 for the duration of the term of the PPA. Taxes The Bidder shall be responsible for all taxes and governmental charges associated with the Facility and the transfer, delivery and sale of energy, electrical products, and environmental attributes to the Company under the PPA. Assignments, Transfers, and Change of Control The Bidder shall not assign its rights or obligations under the PPA, transfer any interest or operational control of the Facility, or undergo a direct or indirect change of control of the Bidder, without the prior written consent of the Company. Attachment C: PPA - General Terms and Conditions 22 Alabama Power RFP September 27, 2016 Insurance The Bidder shall maintain insurance of the types and amounts to be set forth in the PPA. Financing The Bidder shall be solely responsible for obtaining any financing or other funding necessary to develop and construct the Facility. Variable Interest Entity In the event that the Bidder or any of its affiliates is required to be consolidated as a Variable Interest Entity for purposes of the Company’s or any of its affiliates’ financial statements, the Company reserves the sole discretion to terminate the PPA without further liability or obligation. In addition, the Bidder shall covenant to take and/or refrain from taking certain specified actions to minimize the likelihood of such a consolidation, and the failure of the Bidder to comply with such covenant shall constitute an event of default. Right of First Refusal The Company will have an exclusive right of first refusal (“ROFR”) with respect to any sale or transfer (either directly or indirectly) of the Facility or the ownership interests of the Bidder in the Facility. The terms and conditions of the ROFR will be specifically set forth in the PPA. Purchase Option The Company will have a purchase option with respect to the Facility, the terms and conditions of which will be specifically set forth in the PPA. Confidentiality Appropriate confidentiality provisions will be included in the PPA. The Bidder will also be required to execute a confidentiality agreement as part of a submission to the RFP whereby the Bidder agrees (among other things) not to publicize or otherwise disclose to any other party its participation in the RFP, any information obtained through the RFP, or any portions of an actual or proposed PPA absent prior written consent of Company. Attachment C: PPA - General Terms and Conditions 23 Alabama Power RFP September 27, 2016 Attachment D: Engineering, Procurement, and Construction Agreement – General Terms and Conditions Any turnkey Engineering, Procurement and Construction Agreement (“EPC Agreement”) between the Bidder and the Company will contain provisions that incorporate the following terms and conditions, in addition to other terms and conditions that may be required by the Company. The Company reserves the right to modify these terms and conditions, or to require additional terms and conditions, at any time in its sole and absolute discretion. The EPC Agreement and contract provisions incorporating these terms and conditions will be provided to certain qualified bidders if selected by the Company at a later date. It should be noted, however, that neither the results of the RFP evaluation nor a Bidder’s ranking relative to other bidders ensures that the Company will provide an EPC Agreement to a Bidder, or that an executed EPC Agreement will lead to approval of the turnkey project by the Alabama Public Service Commission. RFP Resources The Facility The “Facility” a Bidder proposes means a fully-integrated electricity generation system, comprising “Equipment” detailed in the bid and EPC Agreement and which utilizes only renewable fuel resources. The Facility includes any equipment, materials, services, documents, and other items or activities, even if not specifically mentioned in project specifications in the EPC Agreement, necessary to achieve completion of the facility in accordance with prudent industry practices. The Facility must be located in the state of Alabama and interconnected with Alabama Power’s electric system (either transmission or distribution). Spare Parts The Bidder shall include within its fixed price any spare parts required for the completion of the Work, including all spare parts required at commissioning. Title to spare parts shall transfer to Company upon completion of all work within the Bidder’s scope under the EPC Agreement (“Work”). Site The Bidder is responsible for taking all steps necessary to ascertain the nature and location of the site of the Facility as well as the location of any Work not on the site and satisfying itself as to all general and local conditions that can affect: access; egress; transportation; waste disposal; handling; laydown; parking and storage of materials; the availability of labor, utilities, and roads; uncertainties of weather; the character of construction aides needed to complete the Work; and all other issues and contingencies that may create difficulty, add time, or make performance of the Work more expensive. Price, Schedule, and Payments Fixed Price, Fixed Schedule The Facility must be offered at a fixed contract price and fixed contract schedule, including guaranteed dates. The contract price shall not be increased and the contract schedule shall not be changed unless the Bidder is entitled to a “Change”, as that term is defined in the EPC Attachment D: EPC – General Terms and Conditions 24 Alabama Power RFP September 27, 2016 Agreement. The fixed price must account for and include any and all costs of land, rights-of-way, professional services, auxiliary equipment, and facilities necessary or used for the engineering, procurement, and construction of the Facility on the fixed schedule proposed. The Bidder shall owe Company liquidated damages if it fails to achieve the guaranteed dates in the fixed contract schedule. Milestone Payment Schedule Payments pursuant to the fixed contract price will be made upon the achievement by the Bidder of specified milestones in the EPC Agreement. A retainage may be withheld from each milestone payment and paid upon final completion of the Facility. Changes The Bidder shall only be entitled to a Change in the fixed contract price or the fixed contract schedule as the result of a change directed by the Company or a Company-caused delay that materially affects the Bidder’s ability to complete construction within the timeframe set forth in the schedule. With the exception of the foregoing, Bidder shall be responsible for the proper and timely completion of all Work. Work Professional Standards All Work (whether undertaken by the Bidder or any subcontractor(s)) shall be done in a first-class, efficient, expeditious, proper, and workmanlike manner. All Work shall be performed in accordance with prudent industry practices and the requirements of the EPC Agreement. All equipment shall be installed in accordance with the applicable vendors’ and/or manufacturers’ instructions and warranty conditions. Sufficient Personnel The Bidder shall employ a sufficient number of skilled and qualified persons, who shall be licensed if required by law, so that the Bidder completes the Work and its other obligations under the EPC Agreement. Design The Bidder shall be responsible for all design services required for the Facility including minimum design, performance, and other requirements for the Facility and separate components, systems, equipment, processes, set forth in the EPC Agreement. The Bidder shall provide all preliminary, interim, and final design documents to the Company in accordance with the document delivery dates set forth in the EPC Agreement. The Facility must not include prototype or first-of-its kind equipment unless the Company gives prior written consent to the use such equipment. Utilities, Consumables, Construction Aides, Sewage The Bidder shall be responsible, and shall not be entitled to compensation above the fixed contract price, for any and all necessary utilities (including back feed power), water supply, construction aids, and other consumables necessary to perform the Work. The Bidder shall also be responsible for the disposal of any sewage effluent at the site. Attachment D: EPC – General Terms and Conditions 25 Alabama Power RFP September 27, 2016 Control of Work The Bidder shall be responsible for all construction means, methods, techniques, sequences, procedures, and labor and all safety, quality assurance, and quality control programs in connection with the performance of the Work. Inspection of Work The Company shall have the right at all times to inspect the Work. The Bidder shall honor and maintain hold points for the Work as required by its quality control plan or otherwise in the specifications of the Facility and Work. Notwithstanding the foregoing, the Company’s inspections or lack of inspections shall not relieve the Bidder of any obligations to complete the Work or the Facility in accordance with the EPC Agreement. Schedule and Project Execution Plan The Bidder shall submit a proposed contract schedule and project execution plan including: the number of shifts to be employed in the accomplishment of the Work; the number of hours to be worked on a daily basis; the number of personnel to be employed each shift; the number of days per week to be worked; an estimated total number of man hours required for completion of the Work; organization charts and resumes for the management team; list of construction aids; and list of subcontractors. Progress Reports Beginning with the notice to proceed, the Bidder shall provide the Company with monthly written progress reports regarding the current status of the Work including, but not limited to, actual progress relative to the proposed contract schedule and any issues or concerns that could potentially impact the Bidder’s future ability to meet such contract schedule. Safety The Bidder shall be responsible for the safe performance of the Work, including Work performed by subcontractors. The Bidder shall be responsible for the safety of its employees and the employees of its subcontractors. The Bidder shall also be required to prepare, provide to the Company, and abide by safety plans, fire protection plans, hazardous material plans, and quality control plans for the Work and the Facility. Training The Bidder shall instruct the Company’s designated personnel in the safe and proper operation and maintenance of the equipment. The Bidder shall also prepare an operating and maintenance manual. Subcontractors Bidder’s Responsibilities The Bidder is responsible for entering into any subcontracts necessary to perform the Work. The Company shall have the right to approve or reject any subcontractor proposed by Bidder. No contractual relationship shall exist between the Company and any subcontractor(s). The Company shall have the right to review copies of any subcontracts, subject to pricing redactions. Attachment D: EPC – General Terms and Conditions 26 Alabama Power RFP September 27, 2016 Subcontractors’ Responsibilities Subcontractors shall be bound to the Bidder by the terms of the EPC Agreement and to assume all obligations and responsibilities of the Bidder to the Company under the EPC Agreement. All subcontracts must be terminable for convenience. Assignment of Subcontracts The Bidder shall comply with any request by the Company to assign the benefit of any subcontract, including any subcontractor’s warranties, to the Company or its designee. Performance Testing, Guarantees Performance Test The Bidder shall conduct, at its expense, the performance testing of the Facility demonstrating the operation of the Facility as a whole in accordance with the operation and maintenance manual, prudent industry practices, and the EPC Agreement; and that the Facility and equipment can meet the requirements of the EPC Agreement while operating within the manufacturers’ specifications, recommendations, and warranty requirements. Minimum Performance Guarantees The minimum performance guarantees shall be “must fix” guarantees. The Bidder shall have an absolute obligation to cause the Facility to satisfy all minimum performance guarantees. Any failure shall not be cured by the payment of liquidated damages, but instead must be remedied (though liquidated damages may also accrue). Output Guarantees Minimum output guarantees shall be measured over the first twelve (12) months period following substantial completion of the facility. Liquidated Damages Document Delays The Bidder shall owe liquidated damages if it does not deliver documents required under the EPC Agreement by a guaranteed date. Substantial Completion Delays The Bidder shall owe liquidated damages if the Facility does not achieve substantial completion prior to the guaranteed substantial completion date. Output Guarantees If the Facility satisfies the minimum performance guarantees but does not achieve output guarantees, the Bidder shall owe liquidated damages. Warranties Bidder Warranties The Bidder shall provide a general warranty for all equipment and Work for a period of at least twenty-four (24) months following substantial completion and, for any Work undertaken after substantial completion (including Work to repair or remedy defects pursuant to a warranty), an Attachment D: EPC – General Terms and Conditions 27 Alabama Power RFP September 27, 2016 additional twenty-four (24) months. The Bidder shall have primary liability to the Company with respect to all warranties. Subcontractor/Supplier Warranties The Bidder shall extend to the Company all subcontractor and supplier warranties including defect warranties and module output warranties. To the extent a subcontractor’s or supplier’s warranty extends beyond the warranty period provided by the Bidder, the Bidder shall assign such warranties to the Company. Laws and Regulations Alabama Public Service Commission The Bidder shall cooperate with Company with respect to certification of the Facility by the Alabama Public Service Commission (“APSC”) and compliance with any rules and regulations of the APSC. Other Governmental Authorities The Bidder shall be responsible for compliance with all laws, rules, and regulations related to the performance of the Work and other obligations under the EPC Agreement. The Bidder shall also be responsible for obtaining and maintaining any and all permits necessary for the design and construction of the site and the performance of the Work. Changes in Law The Bidder shall be responsible for any increased cost or expense associated with the Facility or its performance that result from changes in laws, rules, regulations, and/or orders of all governmental authorities. The fixed price under the EPC Agreement shall not be modified as a result of any such changes. Taxes The Bidder shall be responsible for all taxes and governmental charges associated with the Work, including Work performed by subcontractors. The Bidder shall not be entitled to an increase in the fixed contract price for the amount of any taxes or fees imposed upon it in connection with the site, Work, or Facility. Performance Security Simultaneous with the execution of the EPC Agreement and thereafter until the expiration of the warranty period under the EPC Agreement, the Bidder shall provide and maintain performance security in a form and amount acceptable to the Company. Such performance security may be in the form of a letter of credit, parent guaranty from a creditworthy guarantor acceptable to the Company, or other security acceptable to the Company. Events of Default The EPC Agreement will set forth events of default for each of the Bidder and the Company, as well as applicable remedies should an event of default occur. Attachment D: EPC – General Terms and Conditions 28 Alabama Power RFP September 27, 2016 Assignments, Transfers, and Change of Control The Bidder shall not assign its rights or obligations under the EPC Agreement, transfer any interest or operational control of the Facility, or undergo a direct or indirect change of control of the Bidder, without the prior written consent of the Company. Insurance The Bidder shall maintain insurance of the types and amounts to be set forth in the EPC Agreement. Confidentiality Appropriate confidentiality provisions will be included in the EPC Agreement. The Bidder will also be required to execute a confidentiality agreement as part of a submission to the RFP whereby the Bidder agrees (among other things) not to publicize or otherwise disclose to any other party its participation in the RFP, any information obtained through the RFP, or any portions of an actual or proposed EPC Agreement absent prior written consent of the Company. Attachment D: EPC – General Terms and Conditions 29 Alabama Power RFP September 27, 2016 Attachment E: Power Purchase Agreement – “Notice of Intent to Bid” Forms 1. 2. 3. 4. “Notice of Intent to Bid” Form Contractor Compliance Background Certification Form Bidder’s Questionnaire Confidentiality Agreement 5. Contact(s) for SharePoint Site Access Attachment E: PPA – NOI Forms 30 Alabama Power RFP September 27, 2016 “Notice of Intent to Bid” – PPA Project The following bidder intends to submit a proposal for supplying renewable or environmentally specialized energy resources in conformance with Alabama Power Company's RFP issued on September 27, 2016. A “Notice of Intent to Bid” form must be submitted for each proposal, including every version of the same project that is being proposed. Only one submission of other required forms is necessary for each Bidder unless the information on the other required forms varies among the project(s) submitted. A pdf version of this form is available on the website: http://alabamapower.com/environment/renewable-energy/rfp.asp Bidder Address City State Country Zip Code Contact Name Title Office Phone# Mobile Phone# Email Address Proposal Information Project name Project address City County State Zip Code Latitude/Longitude Type of resource Does this resource meet the requirements under the RFP (y/n)? Nameplate Capacity (MWac) Term of Contract (years) Expected Start Date of Construction (month/year) Expected COD (month/year) ___________________________________________(Signature) __________________________________________ (Print Name) _______________________________________________(Title) _____________________________(Date) Attachment E: PPA – NOI Forms 31 Alabama Power RFP September 27, 2016 Attachment E: PPA – NOI Forms 32 Alabama Power RFP September 27, 2016 Bidder’s Questionnaire All Bidders must supply the following information, as appropriate: 1. Please provide documentation of your company’s previous experience relevant to the proposed project. 2. Please provide the following financial and credit information for your company and for your parent company (if applicable): a. Annual reports and Form 10-K for the past three (3) years. If these documents are not available, then audited financial statements (including management discussion and analysis) for the last three (3) years will be accepted; b. Credit rating of the Bidder’s senior debt securities; and c. Any additional documentation needed to determine your company’s financial strength and/or the strength of any corporate parents. 3. Please identify and describe any disputes in which the Bidder or any of its affiliates has previously been involved with Alabama Power or any of its affiliates (including all direct and indirect subsidiaries of The Southern Company). This list should identify any disputes that that were resolved informally between parties, as well as disputes that have previously been, or which currently are, the subject of a mediation or arbitration proceeding, or any other litigated proceeding before a court or other governmental authority. Attachment E: PPA – NOI Forms 33 Alabama Power RFP September 27, 2016 CONFIDENTIALITY AGREEMENT THIS CONFIDENTIALITY AGREEMENT (“Agreement”), effective as of the ___ day of ____________, 201__ (“Effective Date”), is entered into by and between Alabama Power Company (“APC”) and ______________ (“Counterparty”). APC and Counterparty are referred to individually as a “Party” and collectively as the “Parties”. W I T N E S S E T H: WHEREAS, APC has issued a Request for Proposals on _________, 2016 (“RFP”) to solicit proposals for the supply of electric energy from renewable resources and environmentally specialized generating resources; WHEREAS, Counterparty intends to submit a proposal in response to the RFP regarding a potential transaction for the supply of electric energy from an eligible resource to APC (“Potential Transaction”); WHEREAS, it is anticipated that the Parties will exchange confidential and proprietary information to one another relating to the RFP and the Potential Transaction, including for the purpose of developing and evaluating Counterparty’s proposal, and potentially to negotiate a Potential Transaction; WHEREAS, the Parties have entered into this Agreement in order to assure the confidentiality of all information exchanged and discussions between them with regard to the RFP and the Potential Transaction and to prevent the disclosure of such information to third parties except as permitted herein. NOW, THEREFORE, in consideration of the mutual promises and covenants made herein, and with the intent to be legally bound hereby, the Parties hereby agree as follows: 1. Confidential Information. The term “Confidential Information” as used in this Agreement means the substance and content of: (i) all discussions between the Parties and their respective Representatives (as defined below) relating to the RFP or the Potential Transaction and all information ascertained through such discussions; (ii) any and all written, printed or other materials (regardless of form) previously or subsequently provided by either Party or its Representatives to the other Party or its Representatives relating to the RFP or the Potential Transaction; (iii) the fact that Counterparty is submitting a proposal in response to the RFP; and (iv) the fact that discussions and/or negotiations are taking place between the Parties concerning the RFP or the Potential Transaction. Confidential Information shall include, but not be limited to, all marketing, operational, economic, or financial knowledge, information or data of any nature whatsoever relating to either Party that may have been or will be provided or disclosed in connection with the RFP or the Potential Transaction. Each Party shall have absolute discretion to determine what information it will provide to the other. Notwithstanding the foregoing, Confidential Information shall not include the following: Attachment E: PPA – NOI Forms 34 Alabama Power RFP September 27, 2016 (a) information that at the time of disclosure by a Party (“Disclosing Party”) is publicly available or later becomes publicly available other than through a violation of this Agreement by the recipient (“Receiving Party”); (b) information that was in the Receiving Party’s possession prior to disclosure by the Disclosing Party; (c) information received by the Receiving Party from a third party who, to the best of the Receiving Party’s knowledge, did not acquire such information on a confidential basis either directly or indirectly from the Disclosing Party; or (d) information that was independently developed by or for the Receiving Party without violating its obligations under this Agreement. Specific information shall not be deemed to be within the foregoing exceptions merely because such information is embraced by more general information within such exceptions. 2. Disclosure of Confidential Information. Each Party agrees to keep confidential all Confidential Information provided by the other Party and its Representatives and shall not, without the other Party’s prior written consent, disclose such Confidential Information to any third party, firm, corporation or entity; provided, however, that each Party shall be entitled to disclose such information to its affiliates’ officers, employees, consultants, attorneys, agents, bankers and accountants (“Representatives”) as reasonably necessary for such Party or its affiliates to prepare a proposal in response to the RFP (in the case of Counterparty) and to evaluate, enter into and/or perform under the Potential Transaction; provided further, that each Party’s Representatives shall comply with the terms and conditions of this Agreement, and each Party agrees to be responsible for any breach of this Agreement by its Representatives. In addition, without advance notice to Counterparty, APC shall be entitled to disclose any Confidential Information provided by Counterparty to the Alabama Public Service Commission (“APSC”) or its staff, in APC’s sole discretion, in furtherance of the evaluation of the Potential Transaction or any other proposal(s) submitted in response to the RFP by any other party, and in furtherance or support of any application that may be submitted to the APSC as a result of the RFP. In complying with its confidentiality obligations under this Agreement, each Party shall use the same means it uses to protect its own confidential and proprietary information (but in no event less than reasonable means) to prevent the disclosure and to protect the confidentiality of the Confidential Information provided to it. 3. Use of Confidential Information. Each Party shall use the Confidential Information provided by the other Party only as follows: (a) Counterparty shall use the Confidential Information provided by APC only for the purpose of preparing its proposal in response to the RFP and in furtherance of a Potential Transaction. Attachment E: PPA – NOI Forms 35 Alabama Power RFP September 27, 2016 (b) APC shall use the Confidential Information provided by Counterparty only for the purpose of evaluating Counterparty’s proposal, which will include comparing Counterparty’s proposal to other power supply options of APC (including other proposals received in response to the RFP), consultations with the APSC regarding proposals submitted, and the use of Counterparty’s proposal in order to potentially select one or more of the proposals submitted in response to the RFP. Neither Party shall make any other use, in whole or in part, of any Confidential Information provided without the prior written consent of the other Party. 4. Return of Documents. Either Party may elect at any time to terminate further access to the Confidential Information. Each Party will, upon written request from the other Party, return or destroy (at Receiving Party’s election) any and all Confidential Information received from such other Party, including all originals, copies, translations, notes, or any other form of said material, as well as any and all written, printed, or other material or information derived from the Confidential Information. To the extent a Party elects to destroy the Confidential Information, an appropriate officer of such Party will promptly provide written confirmation that the requirements of this Section have been satisfied. 5. Term. The obligations and commitments established by this Agreement shall remain in full force and effect for four (4) years following the Effective Date or until such time as the Parties have entered into an agreement providing otherwise. 6. Nature of Information. The Parties each hereby accept the representations of the other Party that the Confidential Information of the other Party is of a special, unique, unusual, extraordinary, and intellectual character and that money damages would not be a sufficient remedy for any breach of this Agreement by it or its Representatives and that specific performance and injunctive or other equitable remedies for any such breach shall be available to it. Each Party also acknowledges that the interests of the other Party in such Confidential Information may be irreparably injured by disclosure of such Confidential Information. The remedy stated above may be pursued in addition to any other remedies applicable at law or equity for breach of this Agreement. Should litigation be instituted to enforce any provision hereof, the Party that prevails will be entitled to recover from the other Party all associated costs, including reasonable legal fees. Neither Party will be liable for punitive, exemplary, consequential, incidental, or indirect damages under this Agreement. 7. Governing Law. The validity and interpretation of this Agreement and the legal relations of the Parties to it shall be governed by the laws of the State of Alabama. 8. No Other Agreement. It is expressly understood that this Confidentiality Agreement is not and shall not be construed as any form of a letter of intent or agreement to enter into the Potential Transaction or any other business arrangement. The sole purpose of this Confidentiality Agreement is to evidence each Party’s agreement to maintain the confidentiality of the Confidential Information provided by the other Party and shall not Attachment E: PPA – NOI Forms 36 Alabama Power RFP September 27, 2016 constitute any commitment or obligation on the part of either to enter into any specific contractual arrangement of any nature whatsoever. Each Party acknowledges and agrees that the other Party reserves the right to cease discussions and/or negotiations regarding the Potential Transaction at any time without liability or obligation and that each Party reserves the right to discuss, negotiate and/or enter into any transaction similar to the Potential Transaction with any other person or entity at any time and without prior notice to the other Party. 9. No Representation or Warranties. It is understood and agreed that a Party disclosing Confidential Information makes no representations or warranties under this Agreement as to the accuracy, completeness or fitness for a particular purpose thereof. It is further understood and agreed that neither Party nor its Representatives shall have any liability or responsibility under this Agreement to the other Party or to any other person or entity resulting from the use of or reliance upon any information so furnished or otherwise provided. Neither this Agreement, nor the transfer of Confidential Information hereunder, shall be construed as granting any license or rights to any information or data now or hereafter owned or controlled by a Party to the other and all such Confidential Information shall remain the property of such Party. Notwithstanding the foregoing, the Disclosing Party represents and warrants that it may disclose the Confidential Information to the Receiving Party without breaching any contractual, legal, fiduciary or other obligation to any other person or entity. 10. No Waiver. Subject to applicable statutes of limitation, no failure or delay, in whole or in part, by either Party in exercising any right or power hereunder shall operate as a waiver, full or partial, of such right or power. 11. Integration Clause. This Agreement embodies all of the understandings, and merges all prior discussions and writings, between the Parties concerning the subject matter hereof. 12. Assignment. This Agreement may not be assigned by a Party without the prior written consent of the other Party, such consent not to be unreasonably withheld. Upon any assignment made in compliance with this Section 13, this Agreement shall inure to and be binding upon each assignee of the assigning Party. No assignment permitted hereunder shall relieve the assigning Party of responsibility or liability in respect of any of the obligations assigned. 13. Amendments. No amendment, modification, or change to this Agreement shall be enforceable unless reduced to writing and executed by both Parties. 14. Counterparts: Facsimile and Electronic Copies. This Agreement may be executed by facsimile or PDF (electronic copy) and in counterparts, all of which for all purposes will be deemed to be an original and all of which, taken together, constitutes one and the same instrument. [The next page is the signature page.] Attachment E: PPA – NOI Forms 37 Alabama Power RFP September 27, 2016 IN WITNESS WHEREOF, the Parties hereto have entered into this Agreement as of the Effective Date. ALABAMA POWER COMPANY By: _________________________________ Name: ______________________________ Title: _______________________________ COUNTERPARTY By: __________________________________ Name: ________________________________ Title: _________________________________ Attachment E: PPA – NOI Forms 38 Alabama Power RFP September 27, 2016 Contact(s) for SharePoint Site Access After the “Notice of Intent to Bid” deadline, RFP communications may be submitted to G2APCMRERFP@southernco.com. All questions (along with the appropriate responses) will be posted in a general folder located in the SharePoint site. The SharePoint site will be made available only to bidders who have submitted the required “Notice of Intent to Bid” forms. Alabama Power will allow up to a maximum of three individuals who can have access to their respective company’s project folder(s) and the general folder set up on the SharePoint site. The contact information for these individuals must be listed below. Company Address City State Country Zip Code Contact Name Office Phone# Mobile Phone# Email Address Contact Name Office Phone# Mobile Phone# Email Address Contact Name Office Phone# Mobile Phone# Email Address Attachment E: PPA – NOI Forms 39 Alabama Power RFP September 27, 2016 Attachment F: Turnkey Project – “Notice of Intent to Bid” Forms 1. 2. 3. 4. 5. 6. “Notice of Intent to Bid” Form Contractor Compliance Background Certificate Form Contractor Statistical Data (Employee Modification Rate or EMR) Bidder’s Questionnaire Confidentiality Agreement Contact(s) for SharePoint Site Access Attachment F: Turnkey – NOI Forms 40 Alabama Power RFP September 27, 2016 “Notice of Intent to Bid” – Turnkey Project The following bidder intends to submit a proposal for supplying renewable or environmentally specialized energy resources in conformance with Alabama Power Company's RFP issued on September 27, 2016. A “Notice of Intent to Bid” form must be submitted for each proposal, including every version of the same project that is being proposed. Only one submission of other required forms is necessary for each Bidder unless the information on the other required forms varies among the project(s) submitted. A pdf version of this form is available on http://alabamapower.com/environment/renewable-energy/rfp.asp . Bidder Address City State Country Zip Code Contact Name Title Office Phone# Mobile Phone# Email Address Proposal Information Project name Project address City County State Zip Code Latitude/Longitude Type of resource Does this resource meet the requirements under the RFP (y/n)? Nameplate Capacity (MWac) Expected Start Date of Construction (month/year) Expected COD (month/year) ___________________________________________(Signature) __________________________________________ (Print Name) _______________________________________________(Title) _____________________________(Date) Attachment F: Turnkey – NOI Forms 41 Alabama Power RFP September 27, 2016 Attachment F: Turnkey – NOI Forms 42 Alabama Power RFP September 27, 2016 Attachment F: Turnkey – NOI Forms 43 Alabama Power RFP September 27, 2016 Bidder’s Questionnaire All Bidders must supply the following information, as appropriate: 1. Please provide documentation of your company’s previous experience relevant to the proposed project. 2. Please provide the following financial and credit information for your company and for your parent company (if applicable): a. Annual reports and Form 10-K for the past three (3) years. If these documents are not available, then audited financial statements (including management discussion and analysis) for the last three (3) years will be accepted; b. Credit rating of the Bidder’s senior debt securities; and c. Any additional documentation needed to determine your company’s financial strength and/or the strength of any corporate parents. 3. Please identify and describe any disputes in which the Bidder or any of its affiliates has previously been involved with Alabama Power or any of its affiliates (including all direct and indirect subsidiaries of The Southern Company). This list should identify any disputes that that were resolved informally between parties, as well as disputes that have previously been, or which currently are, the subject of a mediation or arbitration proceeding, or any other litigated proceeding before a court or other governmental authority. Attachment F: Turnkey – NOI Forms 44 Alabama Power RFP September 27, 2016 CONFIDENTIALITY AGREEMENT THIS CONFIDENTIALITY AGREEMENT (“Agreement”), effective as of the ___ day of ____________, 201__ (“Effective Date”), is entered into by and between Alabama Power Company (“APC”) and ______________ (“Counterparty”). APC and Counterparty are referred to individually as a “Party” and collectively as the “Parties”. W I T N E S S E T H: WHEREAS, APC has issued a Request for Proposals on _________, 2016 (“RFP”) to solicit proposals for the supply of electric energy from renewable resources and environmentally specialized generating resources; WHEREAS, Counterparty intends to submit a proposal in response to the RFP regarding a potential transaction for the supply of electric energy from an eligible resource to APC (“Potential Transaction”); WHEREAS, it is anticipated that the Parties will exchange confidential and proprietary information to one another relating to the RFP and the Potential Transaction, including for the purpose of developing and evaluating Counterparty’s proposal, and potentially to negotiate a Potential Transaction; WHEREAS, the Parties have entered into this Agreement in order to assure the confidentiality of all information exchanged and discussions between them with regard to the RFP and the Potential Transaction and to prevent the disclosure of such information to third parties except as permitted herein. NOW, THEREFORE, in consideration of the mutual promises and covenants made herein, and with the intent to be legally bound hereby, the Parties hereby agree as follows: 1. Confidential Information. The term “Confidential Information” as used in this Agreement means the substance and content of: (i) all discussions between the Parties and their respective Representatives (as defined below) relating to the RFP or the Potential Transaction and all information ascertained through such discussions; (ii) any and all written, printed or other materials (regardless of form) previously or subsequently provided by either Party or its Representatives to the other Party or its Representatives relating to the RFP or the Potential Transaction; (iii) the fact that Counterparty is submitting a proposal in response to the RFP; and (iv) the fact that discussions and/or negotiations are taking place between the Parties concerning the RFP or the Potential Transaction. Confidential Information shall include, but not be limited to, all marketing, operational, economic, or financial knowledge, information or data of any nature whatsoever relating to either Party that may have been or will be provided or disclosed in connection with the RFP or the Potential Transaction. Each Party shall have absolute discretion to determine what information it will provide to the other. Notwithstanding the foregoing, Confidential Information shall not include the following: Attachment F: Turnkey – NOI Forms 45 Alabama Power RFP September 27, 2016 (a) information that at the time of disclosure by a Party (“Disclosing Party”) is publicly available or later becomes publicly available other than through a violation of this Agreement by the recipient (“Receiving Party”); (b) information that was in the Receiving Party’s possession prior to disclosure by the Disclosing Party; (c) information received by the Receiving Party from a third party who, to the best of the Receiving Party’s knowledge, did not acquire such information on a confidential basis either directly or indirectly from the Disclosing Party; or (d) information that was independently developed by or for the Receiving Party without violating its obligations under this Agreement. Specific information shall not be deemed to be within the foregoing exceptions merely because such information is embraced by more general information within such exceptions. 2. Disclosure of Confidential Information. Each Party agrees to keep confidential all Confidential Information provided by the other Party and its Representatives and shall not, without the other Party’s prior written consent, disclose such Confidential Information to any third party, firm, corporation or entity; provided, however, that each Party shall be entitled to disclose such information to its affiliates’ officers, employees, consultants, attorneys, agents, bankers and accountants (“Representatives”) as reasonably necessary for such Party or its affiliates to prepare a proposal in response to the RFP (in the case of Counterparty) and to evaluate, enter into and/or perform under the Potential Transaction; provided further, that each Party’s Representatives shall comply with the terms and conditions of this Agreement, and each Party agrees to be responsible for any breach of this Agreement by its Representatives. In addition, without advance notice to Counterparty, APC shall be entitled to disclose any Confidential Information provided by Counterparty to the Alabama Public Service Commission (“APSC”) or its staff, in APC’s sole discretion, in furtherance of the evaluation of the Potential Transaction or any other proposal(s) submitted in response to the RFP by any other party, and in furtherance or support of any application that may be submitted to the APSC as a result of the RFP. In complying with its confidentiality obligations under this Agreement, each Party shall use the same means it uses to protect its own confidential and proprietary information (but in no event less than reasonable means) to prevent the disclosure and to protect the confidentiality of the Confidential Information provided to it. 3. Use of Confidential Information. Each Party shall use the Confidential Information provided by the other Party only as follows: (a) Counterparty shall use the Confidential Information provided by APC only for the purpose of preparing its proposal in response to the RFP and in furtherance of a Potential Transaction. Attachment F: Turnkey – NOI Forms 46 Alabama Power RFP September 27, 2016 (b) APC shall use the Confidential Information provided by Counterparty only for the purpose of evaluating Counterparty’s proposal, which will include comparing Counterparty’s proposal to other power supply options of APC (including other proposals received in response to the RFP), consultations with the APSC regarding proposals submitted, and the use of Counterparty’s proposal in order to potentially select one or more of the proposals submitted in response to the RFP. Neither Party shall make any other use, in whole or in part, of any Confidential Information provided without the prior written consent of the other Party. 4. Return of Documents. Either Party may elect at any time to terminate further access to the Confidential Information. Each Party will, upon written request from the other Party, return or destroy (at Receiving Party’s election) any and all Confidential Information received from such other Party, including all originals, copies, translations, notes, or any other form of said material, as well as any and all written, printed or other material or information derived from the Confidential Information. To the extent a Party elects to destroy the Confidential Information, an appropriate officer of such Party will promptly provide written confirmation that the requirements of this Section have been satisfied. 5. Term. The obligations and commitments established by this Agreement shall remain in full force and effect for four (4) years following the Effective Date or until such time as the Parties have entered into an agreement providing otherwise. 6. Nature of Information. The Parties each hereby accept the representations of the other Party that the Confidential Information of the other Party is of a special, unique, unusual, extraordinary, and intellectual character and that money damages would not be a sufficient remedy for any breach of this Agreement by it or its Representatives and that specific performance and injunctive or other equitable remedies for any such breach shall be available to it. Each Party also acknowledges that the interests of the other Party in such Confidential Information may be irreparably injured by disclosure of such Confidential Information. The remedy stated above may be pursued in addition to any other remedies applicable at law or equity for breach of this Agreement. Should litigation be instituted to enforce any provision hereof, the Party that prevails will be entitled to recover from the other Party all associated costs, including reasonable legal fees. Neither Party will be liable for punitive, exemplary, consequential, incidental, or indirect damages under this Agreement. 7. Governing Law. The validity and interpretation of this Agreement and the legal relations of the Parties to it shall be governed by the laws of the State of Alabama. 8. No Other Agreement. It is expressly understood that this Confidentiality Agreement is not and shall not be construed as any form of a letter of intent or agreement to enter into the Potential Transaction or any other business arrangement. The sole purpose of this Confidentiality Agreement is to evidence each Party’s agreement to maintain the confidentiality of the Confidential Information provided by the other Party and shall not Attachment F: Turnkey – NOI Forms 47 Alabama Power RFP September 27, 2016 constitute any commitment or obligation on the part of either to enter into any specific contractual arrangement of any nature whatsoever. Each Party acknowledges and agrees that the other Party reserves the right to cease discussions and/or negotiations regarding the Potential Transaction at any time without liability or obligation and that each Party reserves the right to discuss, negotiate and/or enter into any transaction similar to the Potential Transaction with any other person or entity at any time and without prior notice to the other Party. 9. No Representation or Warranties. It is understood and agreed that a Party disclosing Confidential Information makes no representations or warranties under this Agreement as to the accuracy, completeness or fitness for a particular purpose thereof. It is further understood and agreed that neither Party nor its Representatives shall have any liability or responsibility under this Agreement to the other Party or to any other person or entity resulting from the use of or reliance upon any information so furnished or otherwise provided. Neither this Agreement, nor the transfer of Confidential Information hereunder, shall be construed as granting any license or rights to any information or data now or hereafter owned or controlled by a Party to the other and all such Confidential Information shall remain the property of such Party. Notwithstanding the foregoing, the Disclosing Party represents and warrants that it may disclose the Confidential Information to the Receiving Party without breaching any contractual, legal, fiduciary or other obligation to any other person or entity. 10. No Waiver. Subject to applicable statutes of limitation, no failure or delay, in whole or in part, by either Party in exercising any right or power hereunder shall operate as a waiver, full or partial, of such right or power. 11. Integration Clause. This Agreement embodies all of the understandings, and merges all prior discussions and writings, between the Parties concerning the subject matter hereof. 12. Assignment. This Agreement may not be assigned by a Party without the prior written consent of the other Party, such consent not to be unreasonably withheld. Upon any assignment made in compliance with this Section 13, this Agreement shall inure to and be binding upon each assignee of the assigning Party. No assignment permitted hereunder shall relieve the assigning Party of responsibility or liability in respect of any of the obligations assigned. 13. Amendments. No amendment, modification, or change to this Agreement shall be enforceable unless reduced to writing and executed by both Parties. 14. Counterparts: Facsimile and Electronic Copies. This Agreement may be executed by facsimile or PDF (electronic copy) and in counterparts, all of which for all purposes will be deemed to be an original and all of which, taken together, constitutes one and the same instrument. [The next page is the signature page.] Attachment F: Turnkey – NOI Forms 48 Alabama Power RFP September 27, 2016 IN WITNESS WHEREOF, the Parties hereto have entered into this Agreement as of the Effective Date. ALABAMA POWER COMPANY By: _________________________________ Name: ______________________________ Title: _______________________________ COUNTERPARTY By: __________________________________ Name: ________________________________ Title: _________________________________ Attachment F: Turnkey – NOI Forms 49 Alabama Power RFP September 27, 2016 Contact(s) for SharePoint Site Access After the “Notice of Intent to Bid” deadline, RFP communications may be submitted to G2APCMRERFP@southernco.com. All questions (along with the appropriate responses) will be posted in a general folder located in the SharePoint site. The SharePoint site will be made available only to bidders who have submitted the required “Notice of Intent to Bid” forms. Alabama Power will allow up to a maximum of three individuals who can have access to their respective company’s project folder(s) and the general folder set up on the SharePoint site. The contact information for these individuals must be listed below. Company Address City State Country Zip Code Contact Name Office Phone# Mobile Phone# Email Address Contact Name Office Phone# Mobile Phone# Email Address Contact Name Office Phone# Mobile Phone# Email Address Attachment F: Turnkey – NOI Forms 50 Alabama Power RFP September 27, 2016 Attachment G: Power Purchase Agreement Project – Example RFP Bid Submittal Forms These forms are examples of the forms that will be made available through the RFP SharePoint site. 1. 2. 3. 4. 5. 6. General Information Facility Information Production Profile (“8760”) Interconnection Information Summary PPA Bid Price Other Considerations Information For each project submitted, there will be a nonrefundable bidder evaluation fee of $5,000. If the same project is being submitted with a change to the business arrangement, the additional proposal must have a separate bid evaluation fee of $2,500. If a PPA project is being proposed and there is only a contract term change (i.e., 10 versus 25 year), no additional bid evaluation fee is required. Attachment G: PPA - Example RFP Submittal Forms 51 Alabama Power RFP September 27, 2016 General Information Date of Submittal Bidder Name Bidder Address City State Country Zip Code Bidder Contact Name Title Bidder Office Phone# Mobile Phone# Bidder Email Address Project Name Project Address City County State Zip Code Latitude/Longitude Type of resource Does this resource meet the requirements under the RFP (y/n)? Expected Start Date of Construction month/yr) Expected COD (month/yr)* * The operational date of the project should be targeted for March 31, 2019 or earlier. Attachment G: PPA - Example RFP Submittal Forms 52 Alabama Power RFP September 27, 2016 Facility Information Project Name Nameplate Capacity (MWac) * Expected Annual Energy (MWh)* Expected Capacity Factor (%) Forced Outage Rate (%) Plant Life (years) * Proposals are for projects at least 5 MWac but no greater than 80 MWac in size. The “Expected Annual Energy” should match the provided Production Profile. Technology Biomass Technology (i.e., anaerobic digestion, gasification) Primary Fuel Source Secondary Fuel Source Landfill Gas Technology Do you have gas rights? (n/y) Low-Impact Hydro Technology Water body Solar PV (NOTE: A PVSYST analysis must be submitted with each solar PV proposal, using TMY2 weather data) Array Type (fixed tilt, single or dual axis tracking) Racking (ballasted or non-ballasted) DC to AC Ratio** System Degradation rate (%/yr) For fixed tilt or single axis tracking : Array Tilt (degrees) Azimuth (degrees with south being 180 degrees) Panel Technology Panel Manufacturer/Model Inverter Manufacturer/Model ** Nameplate DC capacity divided by the inverter's nameplate AC capacity Attachment G: PPA - Example RFP Submittal Forms 53 Alabama Power RFP September 27, 2016 Solar Thermal System Manufacturer Configuration Wind Turbine Manufacturer Turbine Model Number of Turbines Met Tower Data Included (n/y) Source & Basis of Met Data Other Technology*** Technology Description *** Refer to the "Definition of Renewable Energy Resources and Environmentally Specialized Generating Resources” for a listing of other applicable technologies. Land Do you have site control for total project (y/n)? Owned or Leased? **** Term of Lease (yrs) Legal description of land **** Supporting documentation must be provided to describe the nature of the possession of the real property at the time of construction as either fee simple ownership or lease (i.e., copy of option contract; copy of deed; copy of lease agreement). Attachment G: PPA - Example RFP Submittal Forms 54 Alabama Power RFP September 27, 2016 Production Profile A delivered production profile in an 8760 format (365 days x 24 hours) must be included in the proposal in order to be considered. In generating the production profile: the hour 0 should be the energy production from midnight to 1:00 am CST; no correction for daylight savings time should be made in the profile; the production should be shown as the first twelve (12) months of production (no degradation); and at the point of delivery, the production should be reported under Standard Test Conditions; and at no time should the energy output (MWh) exceed the proposed maximum capacity of the facility. If so, the profile will be subject to adjustments. For example, the expected energy output (MWh) of an 80 MWac facility cannot be greater than 80 MWac at any time. An example of the input form is listed below. Month 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Day 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Hour 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Energy Production (MWac or kWac) Attachment G: PPA - Example RFP Submittal Forms 55 Alabama Power RFP September 27, 2016 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 ………………………………….. 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 31 31 31 31 31 31 31 31 31 31 31 31 31 31 31 31 31 31 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Attachment G: PPA - Example RFP Submittal Forms 56 Alabama Power RFP September 27, 2016 Interconnection Information Summary Proposals submitted in response to this RFP must have the projected generation resources located in the State of Alabama and interconnected with the Company’s transmission or distribution system. NOTE: THIS INTERCONNECTION DATA SUBMITTAL FORM WILL BE USED TO ASSIST IN PERFORMING BID EVALUATION(S) IN THE RFP, PARTICULARLY IN ASSESSING TRANSMISSION AND/OR DISTRIBUTION COSTS. ALTERNATIVE OR ASSUMED INTERCONNECTION DATA MAY BE UTILIZED IN THE BID EVALUATION PROCESS IF SUCH DATA IS NOT PROVIDED BELOW, OR IS OTHERWISE DEEMED APPROPRIATE OR INADEQUATE FOR USE IN THE TRANSMISSION AND/OR DISTRIBUTION EVALUATIONS. FURTHERMORE, THIS FORM DOES NOT CONSTITUTE AN INTERCONNECTION REQUEST. INTERCONNECTION REQUESTS MUST BE SUBMITTED SEPARATELY TO THE COMPANY PURSUANT TO THE APPLICABLE INTERCONNECTION PROCESS. I. Interconnection Location (Applicable to all generator types) Distribution or Transmission Proposed Interconnection Proposed Location/Substation Address City County State Latitude/Longitude A map indicating the Facility location and known or proposed interconnection to the transmission or distribution system. All known descriptions, drawings or details are beneficial in the evaluation of bids. II. Interconnection Costs (Applicable to all generator types) Provide the assumptions regarding the interconnection costs included in the bid price (i.e. costs up to the change in ownership at the interconnection location on the transmission or distribution system). Each Bidder is encouraged to provide details of these costs. III. Status of Interconnection Agreement (Applicable to all generator types) Interconnection Request Submitted? (y/n) If yes, date of submittal: If yes, interconnection request number: Detailed description of the interconnection arrangements that have been or will be made to effect delivery to Alabama Power’s electric system. Attachment G: PPA - Example RFP Submittal Forms 57 Alabama Power RFP September 27, 2016 IV. General Interconnection Data (Applicable to all generator types) Provide a site single line diagram showing the configuration and interconnection for equipment up to the point of change of ownership with the existing transmission or distribution system. (For inverter based generation, include all PV Panel sets, inverters, interposing/inverter step-up transformers, etc.) What is the maximum kW-AC at the point of delivery? Will the Facility meet Alabama Power’s Generator Operating Requirements (e.g., reactive power, power quality)? Note: such requirements for generators interconnecting to the transmission system can be found on Southern Company’s OASIS site. Describe the Facility’s reactive power capability: Provide a copy of the site relay list and trip scheme, which shall include all protection, synchronizing, and auxiliary relays required to operate in a safe and reliable manner. V. Generator Interconnection Tie Line Data (Applicable to all generator types) NOTE: If specific requested data below is not applicable, indicate by marking "N/A”. If the facility is located directly adjacent to the proposed interconnection location, such that any generator tie length is negligible, also indicate by marking "N/A”. a) b) c) d) e) f) g) Line voltage: kV, line rating at 95F ambient: MVA, line length: R1 = ohm or pu on 100 MVA and line kV base (positive sequence) X1 = ohm or pu on 100 MVA and line kV base (positive sequence) B1 = F or pu on 100 MVA and line kV base (positive sequence) R0 = ohm or pu on 100 MVA and line kV base (zero sequence) X0 = ohm or pu on 100 MVA and line kV base (zero sequence) B0 = F or pu on 100 MVA and line kV base (zero sequence) Miles/Feet VI. GSU/Main Transformer Data (Applicable to all generator types) NOTE: If specific requested data below is not applicable/available, indicate by marking "N/A”. Number of GSU/Main transformers: Two-Winding GSU/Main Transformer Data (as applicable): a) Rating (OA/FA/FA): / / MVA b) Nominal Voltage for each winding (Low/High): / kV c) Winding Connections (Low/High): Delta or Wye / Delta or Wye d) Available tap positions: / / / / kV or % # of taps. e) Positive sequence impedance Z1: %, X/R on self-cooled (OA) MVA rating above. f) Zero sequence impedance Z0: %, X/R on self-cooled (OA) MVA rating above. g) For pad mount transformer, construction: 3 / 4 / 5 -legged Three-Winding GSU/Main Transformer Data (as applicable): h) GSU/Main transformer connection and diagram and mark to reference this form. Attachment G: PPA - Example RFP Submittal Forms 58 Alabama Power RFP September 27, 2016 H Winding Data Full load ratings (i.e., OA/FA/FA) / Rated high side voltage base Tap positions available Present Tap Setting (if applicable) Neutral solidly grounded? (or) Neutral Grounding Resistor (if applicable) BIL rating / / Y Winding Data / / / MVA MVA MVA kV Delta or Wye connected kV Delta or Wye connected kV Delta or Wye connected / / X Winding Data / / / kV / / / / kV / / / kV kV kV kV ohms ohms ohms kV kV kV Three-Winding GSU/Main Transformer Impedance Data (as applicable): H-X Winding Data Transformer base for impedances provided Positive sequence impedance Z1 Zero sequence impedance Z0 H-Y Winding Data MVA X-Y Winding Data MVA MVA % X/R % X/R % X/R % X/R % X/R % X/R VII. Inverter-Based Generator Interconnection Data (Inverter Based Generators e.g., Solar PV) NOTE: If specific requested data below is not applicable/available, indicate by marking "N/A”. Generator is inverter based (YES/NO): Inverters are UL1741 certified (TRUE/FALSE): Inverters meet IEEE1547 Standard (TRUE/FALSE): Number of Inverters: Inverter Manufacturer: Inverter Nominal AC Power: Inverter Model: Inverter grounding method: Will inverters be programmed to limit the output capability? Attachment G: PPA - Example RFP Submittal Forms 59 Alabama Power RFP September 27, 2016 Minimum Short Circuit Ratio to which the Facility is designed to reliably operate? Short Circuit Ratio is calculated by dividing the short circuit MVA capacity at the Point of Interconnection by the maximum MW output of the Facility. Will the Facility have the capability to curtail its output without disconnecting? Describe the Facility’s capability to curtail its output if called upon. How will the output be reduced? What will be the response time for curtailment? Can/will the output be controlled remotely? Submit a copy of expected inverter manufacturer’s specification sheet. Maximum Three Phase Fault Current (amps): Maximum Three Phase Fault Duration (milliseconds): Maximum Single Line to Ground Fault Current (amps): Maximum Single Line to Ground Fault Duration (milliseconds): Total percent Harmonic Current Distortion found at the Point of Interconnection: If simplified one-line diagram is different than below, please mark the difference(s). Generator Interconnection Tie Line Main Transformer(s) Collector System Equivalent Inverter Step-up Transformer PV Inverter Point of Interconnection Dynamic Reactive Device Collector System Equivalent Model a) b) c) d) e) f) g) h) Fixed Reactive Device Collector system voltage = kV Collector system equivalent model rating at 95F ambient = MVA R1 = ohm or pu on 100 MVA and collector kV base (positive sequence) X1 = ohm or pu on 100 MVA and collector kV base (positive sequence) B1 = F or pu on 100 MVA and collector kV base (positive sequence) R0 = ohm or pu on 100 MVA and collector kV base (zero sequence) X0 = ohm or pu on 100 MVA and collector kV base (zero sequence) B0 = F or pu on 100 MVA and collector kV base (zero sequence) Inverter Step-Up Transformers a) Number of inverter step-up transformers: Rating: MVA Two-Winding Inverter Step-Up Transformer Data (as applicable): b) Nominal Voltage for each winding (Low/High): / kV c) Winding Connections (Low/High): Delta or Wye / Delta or Wye d) Available tap positions: / / / / kV or % e) Positive sequence impedance (Z1) %, X/R on MVA rating above. f) Zero sequence impedance (Z0) %, X/R on MVA rating above. # of taps. Three-Winding Inverter Step-Up Transformer Data (as applicable): g) Provide step-up connection and winding diagram and mark to reference this form. Attachment G: PPA - Example RFP Submittal Forms 60 Alabama Power RFP September 27, 2016 H Winding Data Full load ratings (i.e., OA/FA/FA) / Rated high side voltage base Tap positions available / / Y Winding Data / / / MVA MVA MVA kV Delta or Wye connected kV Delta or Wye connected kV Delta or Wye connected / / X Winding Data / / / Present Tap Setting (if applicable) Neutral solidly grounded? (or) Neutral Grounding Resistor (if applicable) BIL rating kV / / / / kV / / / kV kV kV kV ohms ohms ohms kV kV kV Three-Winding Inverter Step-Up Transformer Impedance Data (as applicable) H-X Winding Data Transformer base for impedances provided Positive sequence impedance Z1 Zero sequence impedance Z0 H-Y Winding Data MVA X-Y Winding Data MVA MVA % X/R % X/R % X/R % X/R % X/R % X/R VIII. Rotating Generator Interconnection Data (e.g., Biomass fueled Facilities) NOTE: If specific requested data below is not applicable/available, indicate by marking "N/A”. Unit Rating Data MVA °F Power Factor Voltage Speed (RPM) Connection (e.g., Wye) Short Circuit Ratio Frequency, Hertz Stator Amperes at Rated MVA Field Volts Attachment G: PPA - Example RFP Submittal Forms 61 Alabama Power RFP September 27, 2016 Maximum Gross Turbine MW at 95°F Maximum Gross Reactive production at Maximum MW output (95°F) and rated voltage Maximum Gross Reactive absorption at Maximum MW output (95°F) and rated voltage Combined Turbine-Generator-Exciter Inertia Data Inertia Constant, H kW sec/kVA or Moment-of-Inertia, WR2 lb. ft.2 Reactance Data (per unit-rated kVA) MVAR MVAR DIRECT AXIS QUADRATURE AXIS Synchronous – saturated Xdv Xqv Synchronous – unsaturated Xdi Xqi Transient – saturated X'dv X'qv Transient – unsaturated X'di X'qi Subtransient – saturated X"dv X"qv Subtransient – unsaturated X"di X"qi Negative Sequence – saturated X2v Negative Sequence – unsaturated X2i Zero Sequence – saturated X0v Zero Sequence – unsaturated X0i Leakage Reactance Xlm Field Time Constant Data (SEC) Open Circuit T'do T'qo Three-Phase Short Circuit Transient T'd3 T'q Line to Line Short Circuit Transient T'd2 Line to Neutral Short Circuit Transient T'd1 Short Circuit Subtransient T"d T"q Open Circuit Subtransient T"do T"qo Armature Time Constant Data (SEC) Three Phase Short Circuit Ta3 Line to Line Short Circuit Ta2 Attachment G: PPA - Example RFP Submittal Forms 62 Alabama Power RFP September 27, 2016 Line to Neutral Short Circuit Ta1 Armature Winding Resistance Data (per unit) Positive R1 Negative R2 Zero Rotor Short Time Thermal Capacity I22t = Field Current at Rated MVA, Armature Voltage and PF = amps Field Current at Rated MVA and Armature Voltage, 0 PF = amps Three Phase Armature Winding Capacitance = microfarad Field Winding Resistance = ohms °C Armature Winding Resistance (Per Phase) = ohms °C Excitation System Data Identify appropriate IEEE or PTI model block diagram of excitation system and power system stabilizer (PSS) for computer representation in power system stability simulations and the corresponding excitation system and PSS constants for use in the model. Curves Provide Generator Vendor Data Sheets, Reactive Capability Curve @ 95°F, and Generator Saturation Curves, as available. Attachment G: PPA - Example RFP Submittal Forms 63 Alabama Power RFP September 27, 2016 PPA Bid Price Bids will be evaluated on an energy only pricing basis (i.e., no other payments or charges for capacity, ancillary services, environmental attributes, or any other aspect of the project). Each proposal should be priced in nominal $/MWh. The project should have a COD date targeted for March 31, 2019 or earlier. A contract term of either 10 or 25 years (or both) can be proposed. For each year a fixed price in $/kWh with the annual expected energy output will need to be provided as shown in the example table below. The proposed prices must include all costs associated with the proposed project up to the point where the project facilities will connect to the interconnection facilities to be constructed and owned by Alabama Power (i.e., the point of change in ownership), including but not limited to energy, variable and fixed operations and maintenance costs, all associated renewable and environmental attributes, and expected return or mark-up on the project. Year # Year Annual Energy Delivery (kWh/year) Price($/kWh) Price ($/kWh) 1 $0.00 $0.00 2 $0.00 $0.00 3 $0.00 $0.00 4 $0.00 $0.00 5 $0.00 $0.00 6 $0.00 $0.00 7 $0.00 $0.00 8 $0.00 $0.00 9 $0.00 $0.00 10 $0.00 $0.00 11 $0.00 12 $0.00 13 $0.00 14 $0.00 15 $0.00 16 $0.00 17 $0.00 18 $0.00 19 $0.00 20 $0.00 21 $0.00 22 $0.00 23 $0.00 24 $0.00 25 $0.00 Attachment G: PPA - Example RFP Submittal Forms 64 Alabama Power RFP September 27, 2016 Other Considerations Attachment B lists a few examples of non-price and other qualitative attributes that may be considered during the evaluation process. Please discuss below (in 150 words or less) any qualitative attributes that you feel should be considered in the evaluation of your proposed project. These attributes will be considered if there are projects with economic analyses that yield very similar results. Attachment G: PPA - Example RFP Submittal Forms 65 Alabama Power RFP September 27, 2016 Attachment H: Turnkey Project – Example RFP Bid Submittal Forms These forms are examples of the forms that will be made available through the RFP SharePoint site. 1. 2. 3. 4. 5. 6. 7. General information Facility Information Environmental Assessment Questionnaire Production Profile (“8760”) Interconnection Information Summary Turnkey Bid Price Other Considerations For each project submitted, there will be a nonrefundable bidder evaluation fee of $5,000. If the same project is being submitted with a change to the business arrangement, the additional proposal must have a separate bid evaluation fee of $2,500. Attachment H: Turnkey - Example RFP Submittal Forms 66 Alabama Power RFP September 27, 2016 General Information Date of Submittal Bidder Name Bidder Address City State Country Zip Code Bidder Contact Name Title Bidder Office Phone# Mobile Phone# Bidder Email Address Facility Name Facility Address City County State Zip Code Latitude/Longitude Type of resource Does this resource meet the requirements under the RFP (y/n)? Expected Start Date of Construction month/yr) Expected COD (month/yr) * * The operational date of the project should be targeted for March 31, 2019 or earlier. Attachment H: Turnkey - Example RFP Submittal Forms 67 Alabama Power RFP September 27, 2016 Facility Information Facility Name Nameplate Capacity (MWac) Expected Annual Energy (MWh)* Expected Capacity Factor (%) Forced Outage Rate (%) Plant Life (years) * Proposals are for projects at least 5 MWac but no greater than 80 MWac in size. The “Expected Annual Energy” should match the provided Production Profile. Technology Biomass Technology (i.e., anaerobic digestion, gasification) Primary Fuel Source Secondary Fuel Source Landfill Gas Technology Do you have gas rights? (n/y) Term of gas rights? (years) Low-Impact Hydro Technology Water body Solar (NOTE: PV A PVSYST analysis must be submitted with each solar PV proposal, using TMY2 weather data) Array Type (fixed tilt, single or dual axis tracking) Racking (ballasted or non-ballasted) DC to AC Ratio** System Degradation rate (%/yr) For fixed tilt or single axis tracking: Array Tilt (degrees) Azimuth (degrees with south being 180 degrees) Panel Technology Panel Manufacturer/Model Inverter Manufacturer/Model ** Nameplate DC capacity divided by the inverter's nameplate AC capacity Attachment H: Turnkey - Example RFP Submittal Forms 68 Alabama Power RFP September 27, 2016 Solar Thermal System Manufacturer Configuration Wind Turbine Manufacturer Turbine Model Number of Turbines Met Tower Data Included (n/y) Source & Basis of Met Data Other Technology*** Technology Description *** Refer to the "Definition of Renewable Energy Resources and Environmentally Specialized Generating Resources”- for a listing of other applicable technologies. Land Do you have site control for total project (y/n)? Owned or Leased? **** Term of Lease (yr) Legal description of land **** Supporting documentation must be provided to describe the nature of the possession of the real property at the time of construction as either fee simple ownership or lease (i.e., copy of option contract; copy of deed; copy of lease agreement). Attachment H: Turnkey - Example RFP Submittal Forms 69 Alabama Power RFP September 27, 2016 Please select all of the following types of information currently available for the real property. If selected, please include a copy of supporting documentation. Title Insurance / Commitment Phase 1 Environmental assessment Title Abstract Wetlands Delineation ALTA Survey Threatened & Endangered Species Report Boundary and/or Topographic Survey Geotechnical Analysis If information is not currently available, please select all of the following types of information that could be provided prior to execution of the contract. Title Insurance / Commitment Phase 1 Environmental assessment Title Abstract Wetlands Delineation ALTA Survey Threatened & Endangered Species Report Boundary and/or Topographic Survey Geotechnical Analysis Attachment H: Turnkey - Example RFP Submittal Forms 70 Alabama Power RFP September 27, 2016 Attachment H: Turnkey - Example RFP Submittal Forms 71 Alabama Power RFP September 27, 2016 Attachment H: Turnkey - Example RFP Submittal Forms 72 Alabama Power RFP September 27, 2016 Production Profile A delivered production profile in an 8760 format (365 days x 24 hours) must be included in the proposal to be considered. In generating the production profile: the hour 0 should be the energy production from midnight to 1:00 am CST; no correction for daylight savings time should be made in the profile; the production should be shown as the first twelve (12) months of production (no degradation); and at the point of delivery, the production should be reported under Standard Test Conditions; and at no time should the energy output (MWh) exceed the proposed maximum capacity of the facility. If so, the profile will be subject to adjustments. For example, the expected energy output (MWh) of an 80 MWac facility cannot be greater than 80 MWac at any time. An example of the input form is listed below. Month 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Day 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Hour 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Energy Production (MWac or kWac) Attachment H: Turnkey - Example RFP Submittal Forms 73 Alabama Power RFP September 27, 2016 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 23 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 ………………………………….. 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 31 31 31 31 31 31 31 31 31 31 31 31 31 31 31 31 31 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Attachment H: Turnkey - Example RFP Submittal Forms 74 Alabama Power RFP September 27, 2016 Interconnection Information Summary Proposals submitted in response to this RFP must have the projected generation resources located in the State of Alabama and interconnected with the Company’s transmission or distribution system. NOTE: THIS INTERCONNECTION DATA SUBMITTAL FORM WILL BE USED TO ASSIST IN PERFORMING BID EVALUATION(S) IN THE RFP, PARTICULARLY IN ASSESSING TRANSMISSION AND/OR DISTRIBUTION COSTS. ALTERNATIVE OR ASSUMED INTERCONNECTION DATA MAY BE UTILIZED IN THE BID EVALUATION PROCESS IF SUCH DATA IS NOT PROVIDED BELOW, OR IS OTHERWISE DEEMED APPROPRIATE OR INADEQUATE FOR USE IN THE TRANSMISSION AND/OR DISTRIBUTION EVALUATIONS. FURTHERMORE, THIS FORM DOES NOT CONSTITUTE AN INTERCONNECTION REQUEST. INTERCONNECTION REQUESTS MUST BE SUBMITTED SEPARATELY TO THE COMPANY PURSUANT TO THE APPLICABLE INTERCONNECTION PROCESS. I. Interconnection Location (Applicable to all generator types) Distribution or Transmission Proposed Interconnection Proposed Location/Substation Address City County State Latitude/Longitude A map indicating the Facility location and known or proposed interconnection to the transmission or distribution system. All known descriptions, drawings or details are beneficial in the evaluation of bids. II. Interconnection Costs (Applicable to all generator types) Provide the assumptions regarding the interconnection costs included in the bid price (i.e. costs up to the change in ownership at the interconnection location on the transmission or distribution system). Each Bidder is encouraged to provide details of these costs. III. Status of Interconnection Agreement (Applicable to all generator types) Interconnection Request Submitted? (y/n) If yes, date of submittal: If yes, interconnection request number: Detailed description of the interconnection arrangements that have been or will be made to effect delivery to Alabama Power’s electric system. Attachment H: Turnkey - Example RFP Submittal Forms 75 Alabama Power RFP September 27, 2016 IV. General Interconnection Data (Applicable to all generator types) Provide a site single line diagram showing the configuration and interconnection for equipment up to the point of change of ownership with the existing transmission or distribution system. (For inverter based generation, include all PV Panel sets, inverters, interposing/inverter step-up transformers, etc.) What is the maximum kW-AC at the point of delivery? Will the Facility meet Alabama Power’s Generator Operating Requirements (e.g., reactive power, power quality)? Note: such requirements for generators interconnecting to the transmission system can be found on Southern Company’s OASIS site. Describe the Facility’s reactive power capability: Provide a copy of the site relay list and trip scheme, which shall include all protection, synchronizing, and auxiliary relays required to operate in a safe and reliable manner. V. Generator Interconnection Tie Line Data (Applicable to all generator types) NOTE: If specific requested data below is not applicable, indicate by marking "N/A”. If the facility is located directly adjacent to the proposed interconnection location, such that any generator tie length is negligible, also indicate by marking "N/A”. a) b) c) d) e) f) g) Line voltage: kV, line rating at 95F ambient: MVA, line length: R1 = ohm or pu on 100 MVA and line kV base (positive sequence) X1 = ohm or pu on 100 MVA and line kV base (positive sequence) B1 = F or pu on 100 MVA and line kV base (positive sequence) R0 = ohm or pu on 100 MVA and line kV base (zero sequence) X0 = ohm or pu on 100 MVA and line kV base (zero sequence) B0 = F or pu on 100 MVA and line kV base (zero sequence) Miles/Feet VI. GSU/Main Transformer Data (Applicable to all generator types) NOTE: If specific requested data below is not applicable/available, indicate by marking "N/A”. Number of GSU/Main transformers: Two-Winding GSU/Main Transformer Data (as applicable): a) Rating (OA/FA/FA): / / MVA b) Nominal Voltage for each winding (Low/High): / kV c) Winding Connections (Low/High): Delta or Wye / Delta or Wye d) Available tap positions: / / / / kV or % # of taps. e) Positive sequence impedance Z1: %, X/R on self-cooled (OA) MVA rating above. f) Zero sequence impedance Z0: %, X/R on self-cooled (OA) MVA rating above. g) For pad mount transformer, construction: 3 / 4 / 5 -legged Three-Winding GSU/Main Transformer Data (as applicable): h) GSU/Main transformer connection and diagram and mark to reference this form. Attachment H: Turnkey - Example RFP Submittal Forms 76 Alabama Power RFP September 27, 2016 H Winding Data Full load ratings (i.e., OA/FA/FA) / Rated high side voltage base Tap positions available Present Tap Setting (if applicable) Neutral solidly grounded? (or) Neutral Grounding Resistor (if applicable) BIL rating / / Y Winding Data / / / MVA MVA MVA kV Delta or Wye connected kV Delta or Wye connected kV Delta or Wye connected / / X Winding Data / / / kV / / / / kV / / / kV kV kV kV ohms ohms ohms kV kV kV Three-Winding GSU/Main Transformer Impedance Data (as applicable): H-X Winding Data Transformer base for impedances provided Positive sequence impedance Z1 Zero sequence impedance Z0 H-Y Winding Data MVA X-Y Winding Data MVA MVA % X/R % X/R % X/R % X/R % X/R % X/R VII. Inverter-Based Generator Interconnection Data (Inverter Based Generators e.g., Solar PV) NOTE: If specific requested data below is not applicable/available, indicate by marking "N/A”. Generator is inverter based (YES/NO): Inverters are UL1741 certified (TRUE/FALSE): Inverters meet IEEE1547 Standard (TRUE/FALSE): Number of Inverters: Inverter Manufacturer: Inverter Nominal AC Power: Inverter Model: Inverter grounding method: Will inverters be programmed to limit the output capability? Attachment H: Turnkey - Example RFP Submittal Forms 77 Alabama Power RFP September 27, 2016 Minimum Short Circuit Ratio to which the Facility is designed to reliably operate? Short Circuit Ratio is calculated by dividing the short circuit MVA capacity at the Point of Interconnection by the maximum MW output of the Facility. Will the Facility have the capability to curtail its output without disconnecting? Describe the Facility’s capability to curtail its output if called upon. How will the output be reduced? What will be the response time for curtailment? Can/will the output be controlled remotely? Submit a copy of expected inverter manufacturer’s specification sheet. Maximum Three Phase Fault Current (amps): Maximum Three Phase Fault Duration (milliseconds): Maximum Single Line to Ground Fault Current (amps): Maximum Single Line to Ground Fault Duration (milliseconds): Total percent Harmonic Current Distortion found at the Point of Interconnection: If simplified one-line diagram is different than below, please mark the difference(s). Generator Interconnection Tie Line Main Transformer(s) Collector System Equivalent Inverter Step-up Transformer PV Inverter Point of Interconnection Dynamic Reactive Device Collector System Equivalent Model a) b) c) d) e) f) g) h) Fixed Reactive Device Collector system voltage = kV Collector system equivalent model rating at 95F ambient = MVA R1 = ohm or pu on 100 MVA and collector kV base (positive sequence) X1 = ohm or pu on 100 MVA and collector kV base (positive sequence) B1 = F or pu on 100 MVA and collector kV base (positive sequence) R0 = ohm or pu on 100 MVA and collector kV base (zero sequence) X0 = ohm or pu on 100 MVA and collector kV base (zero sequence) B0 = F or pu on 100 MVA and collector kV base (zero sequence) Inverter Step-Up Transformers a) Number of inverter step-up transformers: Rating: MVA Two-Winding Inverter Step-Up Transformer Data (as applicable): b) Nominal Voltage for each winding (Low/High): / kV c) Winding Connections (Low/High): Delta or Wye / Delta or Wye d) Available tap positions: / / / / kV or % e) Positive sequence impedance (Z1) %, X/R on MVA rating above. f) Zero sequence impedance (Z0) %, X/R on MVA rating above. # of taps. Three-Winding Inverter Step-Up Transformer Data (as applicable): g) Provide step-up connection and winding diagram and mark to reference this form. Attachment H: Turnkey - Example RFP Submittal Forms 78 Alabama Power RFP September 27, 2016 H Winding Data Full load ratings (i.e., OA/FA/FA) / Rated high side voltage base Tap positions available / / Y Winding Data / / / MVA MVA MVA kV Delta or Wye connected kV Delta or Wye connected kV Delta or Wye connected / / X Winding Data / / / Present Tap Setting (if applicable) Neutral solidly grounded? (or) Neutral Grounding Resistor (if applicable) BIL rating kV / / / / kV / / / kV kV kV kV ohms ohms ohms kV kV kV Three-Winding Inverter Step-Up Transformer Impedance Data (as applicable) H-X Winding Data Transformer base for impedances provided Positive sequence impedance Z1 Zero sequence impedance Z0 H-Y Winding Data MVA X-Y Winding Data MVA MVA % X/R % X/R % X/R % X/R % X/R % X/R VIII. Rotating Generator Interconnection Data (e.g., Biomass fueled Facilities) NOTE: If specific requested data below is not applicable/available, indicate by marking "N/A”. Unit Rating Data MVA °F Power Factor Voltage Speed (RPM) Connection (e.g., Wye) Short Circuit Ratio Frequency, Hertz Stator Amperes at Rated MVA Field Volts Attachment H: Turnkey - Example RFP Submittal Forms 79 Alabama Power RFP September 27, 2016 Maximum Gross Turbine MW at 95°F Maximum Gross Reactive production at Maximum MW output (95°F) and rated voltage Maximum Gross Reactive absorption at Maximum MW output (95°F) and rated voltage Combined Turbine-Generator-Exciter Inertia Data Inertia Constant, H kW sec/kVA or Moment-of-Inertia, WR2 lb. ft.2 Reactance Data (per unit-rated kVA) MVAR MVAR DIRECT AXIS QUADRATURE AXIS Synchronous – saturated Xdv Xqv Synchronous – unsaturated Xdi Xqi Transient – saturated X'dv X'qv Transient – unsaturated X'di X'qi Subtransient – saturated X"dv X"qv Subtransient – unsaturated X"di X"qi Negative Sequence – saturated X2v Negative Sequence – unsaturated X2i Zero Sequence – saturated X0v Zero Sequence – unsaturated X0i Leakage Reactance Xlm Field Time Constant Data (SEC) Open Circuit T'do T'qo Three-Phase Short Circuit Transient T'd3 T'q Line to Line Short Circuit Transient T'd2 Line to Neutral Short Circuit Transient T'd1 Short Circuit Subtransient T"d T"q Open Circuit Subtransient T"do T"qo Armature Time Constant Data (SEC) Three Phase Short Circuit Ta3 Line to Line Short Circuit Ta2 Attachment H: Turnkey - Example RFP Submittal Forms 80 Alabama Power RFP September 27, 2016 Line to Neutral Short Circuit Ta1 Armature Winding Resistance Data (per unit) Positive R1 Negative R2 Zero Rotor Short Time Thermal Capacity I22t = Field Current at Rated MVA, Armature Voltage and PF = amps Field Current at Rated MVA and Armature Voltage, 0 PF = amps Three Phase Armature Winding Capacitance = microfarad Field Winding Resistance = ohms °C Armature Winding Resistance (Per Phase) = ohms °C Excitation System Data Identify appropriate IEEE or PTI model block diagram of excitation system and power system stabilizer (PSS) for computer representation in power system stability simulations and the corresponding excitation system and PSS constants for use in the model. Curves Provide Generator Vendor Data Sheets, Reactive Capability Curve @ 95°F, and Generator Saturation Curves, as available. Attachment H: Turnkey - Example RFP Submittal Forms 81 Alabama Power RFP September 27, 2016 Turnkey Bid Price Bids will be evaluated on the total cost of the project and submitted as nominal dollars. Each proposal must include all costs associated with the proposed resource, up to the point where the project facilities will connect to the interconnection facilities to be constructed and owned by Alabama Power (i.e., the point of change in ownership), including but not limited to costs associated with land, site preparation, delivering energy to the Company’s transmission or distribution system, and expected return or mark-up on the project. The following is a breakdown of costs, by component, in dollars that will be required along with the total cost of the bid submittal: Site Preparation ($) Interconnection ($) Fencing (equipment & labor) ($) All other costs (including racking, panels, inverters, wiring, construction labor) ($) TOTAL Project Costs excluding land ($) Land (acres) Land (lease or purchase) Land Cost if purchase ($) Land cost if lease First year cost ($/year) with Escalation (%) Years = In addition to the cost of the project, an annual energy projection for all years of the expected life of the project will be required. An example input form is shown below. The first twelve (12) months (i.e., Year 1) should match the production profile provided and match the production profile calculated using the system degradation. Year # Year Expected Annual Energy Delivery (MWh or kWh) 1 2 3 ………………. Last year of project life Attachment H: Turnkey - Example RFP Submittal Forms 82 Alabama Power RFP September 27, 2016 Other Considerations Attachment B lists a few examples of non-price and other qualitative attributes that may be considered during the evaluation process. Please discuss below (in 150 words or less) any qualitative attributes that you feel should be considered in the evaluation of your proposed project. These attributes will be considered if there are projects with economic analyses that yield very similar results. Attachment H: Turnkey - Example RFP Submittal Forms 83