Photovoltaic Program
Power Purchase Agreements
Request for Offers
2011 Solicitation
Bidders Conference
February 8, 2011
Agenda
•
Introduction
•
Commercial Overview
•
Evaluation Methodology
•
Map
•
Interconnection Process
•
Solicitation Documents
•
Offer Form
•
Q&A
•
Afternoon: Detailed Interconnection Application
1
Document Conflicts
• This presentation is intended to be a summary level discussion of the
information and requirements established in the RFO materials (it does not
include all of the detailed information in the RFO Materials)
• To the extent that there are any inconsistencies between the information
provided in this presentation and the requirements in the RFO Materials, the
RFO Materials shall govern
2
Commercial Overview
3
RFO Schedule
Event
Date/Time
February 2
PG&E issues the RFO
February 8
Bidders’ Conference
March 2
1:00 P.M.
Deadline for Participants to submit Offers and to submit applications for
interconnection
March 22
Participants provide proof that interconnection applications have been deemed
complete and that the Project has received a queue position
April 15
PG&E notifies Participants of Selected Offers
June 3
Participants with Selected Offers provide proof that interconnection screens
have been passed or studies completed[1]
TBD
Participants provide documentation on or before 2 weeks of the applicable
resource adequacy forum deadline that they have made the request for full
capacity deliverability status
June 10
5:00 P.M.
Participants with Selected Offers submit signed PPAs
June 17
PG&E executes PPAs
July 15
Target Advice Letter Filing for executed PPAs
4
Independent Evaluator (IE)
•
Primary role of the IE is to:
– Monitor RFO processes to ensure fair and equal treatment of all potential
counterparties
– Monitor evaluation processes to ensure PG&E has implemented
methodology as described and that Offers are treated consistently
– Report on RFO process and proposed transactions to CPUC when filed for
CPUC approval
•
The IE performs an independent review of all proposals
•
The IE may review all proposal data and communications with Participants
•
2011 IE is Wayne Oliver of Merrimack Energy Group, Inc.
5
Eligibility
•
New Photovoltaic systems only
•
Primarily ground-mounted systems in the 1 to 20 MW range. Rooftop systems
also eligible
•
Aggregation of facilities to achieve the 1 MW minimum threshold allowed if each
facility is at least 500 kW and all facilities interconnect within a single PNode*
•
Located within PG&E’s service territory
•
Attest to site control
•
A complete interconnection application filed by the time of offer submission
•
Pre time-of-delivery adjusted contract price no greater than $246/MWh
•
May not participate in the California Solar Initiative or net energy metering
programs
•
Must be scheduled to begin initial operation within 18 months following
Commission approval of the PPA
•
Developer must have previously completed or begun construction of a solar
project that is at least 500 kW
*The CAISO Tariff defines Pricing Node (“PNode”) as “[a] single network Node or subset of network Nodes where a
physical injection or withdrawal is modeled and for which a Locational Marginal Price is calculated and used for
financial settlements.”
6
Filling the 50 MW Solicitation
•
2011 RFO seeks PPAs for a total of 50 MW
•
If the RFO results in the execution of less than 50 MW of PPAs, the remaining
MW will be added to the 2012 solicitation
•
If the most attractive offers result in more than 50 MW, there are three
methods for getting within the 50 MW limit:
Most Attractive Offers
60
50
40
MW
30
20
10
0
1: Request that the last offer to be
added reduce its size while holding
its $/MWh price. This option is
requested in the Offer Form; or
2: Drop the last offer, and add the
shortfall to the 2012 RFO; or
3: Drop the last offer, and pick the next
most attractive small offer that
results in a total of 50 MW or less.
The preferred approach will depend on the
As Offered Method 1 Method 2 Method 3 offers received.
7
Power Purchase Agreements – Terms and Conditions
•
Two form PPAs – one for offers in the 1 MW to less than 3 MW range; another for
offers in the 3 MW to 20 MW range
•
20 year delivery terms
•
Contracts were developed collaboratively with representatives of the solar community
•
Terms and conditions are non-negotiable. No mark-ups will be allowed
•
Project Development Security is required to ensure seller completes its project by the
Guaranteed Commercial Operation Date:
– 1 – <3 MW: $20/kW upon CPUC approval
– 3 – 20 MW: $15/kW upon contract execution. Then upon CPUC approval stepping
up to:
•
•
$20/kW for projects < 10 MW
•
$35/kW for projects 10 MW or greater
Delivery Term Security is required in the 3 – 20 MW PPA to ensure the seller meets its
obligations throughout the 20 year Delivery Term:
– 1 – <3 MW: None
– 3 – 20 MW: Six months revenue
8
Power Purchase Agreements – Offer Specifics
•
Contract terms based on seller’s offer:
– Price
– Guaranteed Commercial Operation Date (there are a few excused delays)
– Contract Capacity (MW)
– Contract Quantity (GWh)
•
Guaranteed Energy Production is set at 160% of annual Contract Quantity over a 2
year period (3 – 20 MW PPA only)
•
Energy deliveries:
– Surplus deliveries – We will pay for energy deliveries up to 120% of the
Contract Quantity in a given year
– Delivery shortfalls – You will be held to the Guaranteed Energy Production
which is based on the Contract Quantity, so provide a realistic estimate of
Contract Quantity
9
Time of Delivery (TOD) Factors
Monthly Period
Jun – Sep
Oct.- Dec., Jan. & Feb.
Mar. – May
Super-Peak
2.20
1.06
1.15
Shoulder
1.12
0.93
0.85
Night
0.69
0.76
0.64
Payment = Contract Price * TOD Factor * MWh
Super-Peak = Noon – 8:00 PM, Monday – Friday, except NERC Holidays*
Shoulder = 6:00 AM – noon and 8:00 PM – 10:00 PM, Monday – Friday, except NERC
Holidays; and 6:00 AM – 10:00 PM Saturday, Sunday and all NERC Holidays
Night = 10:00 PM – 6:00 AM, all days
Example: A $100/MWh Contract Price would result in payments of $220/MWh for
deliveries in July at 2:00 PM and $106/MWh for deliveries in October at 2:00 PM
*NERC Holidays are New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and
Christmas Day
10
Not Part of PV PPA Solicitation
•
2011 RPS Solicitation
–
Hope to issue it Q2 of 2011
–
Draft documents available at
•
•
•
Renewable Auction Mechanism
–
CPUC decision issued December 2010
–
Open to all RPS-eligible resources 20 MW and less located in the service territories of any
California investor owned utility
–
No schedule at this time for RFO issuance. Proposed protocol will be filed Feb 15 for CPUC
approval. The schedule will depend on how long it takes for CPUC approval
Utility-Owned PV Program RFO
–
50 MW/yr over 5 years
–
Separate from this solicitation
–
Non-public information from this solicitation will not be shared with team conducting the
UOG RFO. Code of Conduct available at
•
•
http://www.pge.com/b2b/energysupply/wholesaleelectricsuppliersolicitation/renewables2010/index.shtml
http://www.pge.com/includes/docs/word_xls/b2b/wholesaleelectricsuppliersolicitation/PV_PPA_Code_of_Conduct.DOC
Feed-In Tariff
–
Up to 1.5 MW
–
Pricing based on Market Price Referent (MPR). Available without a solicitation.
•
http://www.pge.com/b2b/energysupply/wholesaleelectricsuppliersolicitation/standardcontractsforpurchase/
11
Evaluation Methodology
12
Evaluation Methodology
Simplified evaluation methodology to streamline the process
•
Pricing:
– Price must be a single value in $/MWh which will remain constant for the
contract term. Escalating prices will not be allowed
– Best and final price must be submitted with the offer. No price refresh
•
Supplier diversity: We will take into account the Participant’s status as a
WMDVBE and/or an intent or policy of subcontracting with WMDVBEs.
•
We will combine the pricing and supplier diversity evaluations into an overall
score for each offer and rank them from best to worst.
•
Local Capacity Requirements: If needed as a tie-breaker when selecting Offers,
we will favor projects that will be located in CAISO-identified local capacity
requirement (“LCR”) areas
We will select more than 50 MW of offers for consideration, in case some selected
offers don’t make it to the finish line
13
Map
14
PV Program Map
•
Current PV Program Map on PV Program website (herein referred to as PGE.com).
15
PV Program Map
• PG&E is going to replace the existing PV Program map with a new map
which will conform with the CPUC’s December 2010 decision in the
Renewable Auction Mechanism (RAM) proceeding.
• PG&E will use the same map and associated information for both the
PV Program and the RAM.
16
PV Program Map
•
PG&E plans to update the current map to include more information. Here
is a representative sample of what we plan to make available:
17
PV Program Map
Key features of the new map:
•
Orange Lines – Primary distribution lines in a Millbrae neighborhood.
•
Distribution substation locations will also be provided.
•
Transmission facilities currently are not shown.
•
Scroll mouse over to obtain an identification number for a specific
substation or line.
•
Use identification number to find specific substation and circuit data in an
MS Excel spreadsheet, which will also be on the PGE.com to obtain the
info on the next slide.
•
The current schedule for the new map appearing on PGE.com is March
2011.
•
This is a tool only, based on a snapshot in time. Your actual
interconnection application will determine if capacity is available.
18
PV Program Map
•
Information that will be available when the new map goes live:
– Nominal circuit voltage (i.e., 12kV, 17kV or 21kV)
– Maximum normal circuit capacity (summer)
– Projected circuit peak load for summer 2011
– Amount of distributed generation existing on the circuit (circuit
allocated capacity)
– Difference between the maximum normal circuit capacity and the sum
of the allocated capacity
– Substation transformer bank number that the circuit is connected t
o (e.g., 1, 2, etc.)
– Maximum normal substation transformer bank rating (summer)
– Projected peak load for the substation transformer bank for summer
2011
– Amount of distributed generation existing on the substation
transformer (substation allocated capacity)
19
PV Program Map
•
Information we hope to provide in near future.
– Amount of distributed generation in the queue for the circuit (circuit
queued capacity)
– Amount of distributed generation in the queue for the substation
(substation queued capacity)
– Difference between the maximum normal substation transformer
capacity and the sum of the allocated and queued capacity
– Local capacity requirement area (if the substation is located in a local
capacity requirement area)
20
Generation Interconnection Study Processes
Mark Esguerra
Generation Interconnection Services
February 8, 2011
21
Topics to Cover
• Overview of Wholesale Generation
Interconnection Process
• Interconnection Processes
– Transmission Connections
– Distribution Connections
• Study Milestones for First Year RFO Program
• Timelines for Study Processes
22
Wholesale Generator Interconnection Study Processes
• Interconnection process must be complete for generator to
deliver power to grid and meet obligations of PV contract
• Generator responsible for timely applications and timely
completion of applicable process
– Not part of RFO solicitation
– Interconnection study process (excluding Fast Track Process)
should be underway already to meet milestones in 2011 round of
the PV RFO
23
Overview of Wholesale Generation Interconnection Process
Application
Processing
Technical
Scoping
Meeting
Technical
Studies
Interconnection
Agreement
Project
Implementation
Transmission Interconnections
–
Governed by California Independent System Operator Corporation (CAISO) Tariff
•
PG&E’s transmission interconnections are for 60 kV and higher
•
All applications must be submitted to the CAISO
•
These slides are per CAISO Tariff which is subject to the CAISO
Distribution Interconnections
–
Governed by PG&E’s Wholesale Distribution Tariff (WDT)
•
PG&E’s distribution voltage level is defined as facilities operating below 60 kV
•
All applications must be submitted to PG&E
•
These slides assume FERC approval of the proposed WDT to be filed in
February 2011
24
Study Milestones to Qualify for First Year RFO
Application
Processing
Technical
Scoping
Meeting
Technical
Studies
Interconnection
Agreement
Project
Implementation
•
One of the criteria for PG&E’s 2011 PV RFO is to have a completed technical
study (Final Report) by June 3, 2011
•
Technical Study Process and Report
 Fast Track Process – Initial Review Technical Final Report
 Serial (Independent Study) Process – System Impact Study Final Report
 Cluster Process – Phase II Technical Study Final Report
25
Transmission Interconnection Study
Process Criteria
Initial and
Supplemental
Review
Fast Track
•
5 MW Limit
•
6 Test Screens
• Electrical Independence Screens
System Impact
and Facilities
Study
Independent Study
Process
• Commercial Operation Date Screen
• No MW limit
• Financial security requirements
• Default process, no MW limit
Phase I and II
Studies
Cluster Study
• One annual study
• Financial security requirements
• All processes may apply for full capacity. Deliverability assessment will be
conducted by CAISO in CAISO’s cluster process.
26
Distribution Interconnection Study
Processes Criteria
PG&E plans on filing the reformed Wholesale Distribution Tariff end of February
seeking approval for a March 1 effective date.
Initial and
Supplemental
Review
System Impact
and Facilities
Study
Fast Track
• 2 MW on 12kV and 3 MW on 21 kV and 5 MW on higher
voltages
• 10 Test Screens
Independent Study
Process
• Electrical Independence Screen (no COD
screen)
• No MW limit
• Financial security requirements
• Default process, no MW limit
Phase I and II
Studies
Cluster Study
• One annual study, timelines match
CAISO
• Financial security requirements
• All processes may apply for full capacity. Deliverability assessment will be
conducted by CAISO in CAISO’s cluster process.
27
Who is Likely to Qualify for June 3, 2011 Final Report
Milestone?
Application
Processing
Technical
Scoping
Meeting
Study Process
Technical
Studies
Interconnection
Voltage
Interconnection
Agreement
Technical Study Final
Report Required
Project
Implementation
Application Date
Deemed Complete by
Fast Track
Distribution
Initial Review
March 22, 2011
Fast Track
Transmission
Initial Review
March 22, 2011*
Serial (Independent Study)
Distribution
System Impact Study
January 31, 2011
Serial (Independent Study)
Transmission
System Impact Study
December 18, 2010*
Cluster
Distribution
Phase II
Does not qualify for
2011 PV RFO
Cluster
Transmission
Phase II
ISO Transition Cluster
* Subject to CAISO
28
Application Processing Timeline
Application
Processing
Technical
Scoping
Meeting
Technical
Studies
Interconnection
Agreement
Project
Implementation
Application Process Milestone
Duration
Responsible Party
Application Submission
Clock Start
Customer
Application Deemed Complete or Notice of
Outstanding Items
10 Business
Days (BD)
PG&E or CAISO*
Customer to provide outstanding items or
request extension
10 BD
Customer
Customer to provide outstanding items if
extension requested
20 BD
Customer
Application Deemed Complete
* Subject to CAISO
PG&E or CAISO*
29
Solicitation Documents
30
Offer Submittal
• Offers must be received by PG&E in electronic form by Wednesday,
March 2, 2011 no later than 1:00 PM
• E-mail Offers to PG&E at PVProgram@pge.com and to the I.E. at
waynejoliver@aol.com
• Electronic documents must be in Microsoft Word or Excel (standard
edition 2003 SP3) as specified in the solicitation documents
• Hardcopy or facsimile transmission of Offers is not acceptable
• Documents have been updated during the RFO development process.
Please make sure you are using the latest forms from the website
31
Information due March 2
• Fully Completed Offer Form (Appendix A)
• Applicable Form of PPA (Appendix B1 or Appendix B2), including only
the Offer facility details and pricing. Mark-ups of the non-price terms and
conditions are not permitted
• Site Control Questionnaire and Attestation (Appendix C)
• Demonstration of Interconnection Application Submission (Appendix D)
• Acknowledgement and Commitment of Site Owner (Appendix E)
• Supplier Diversity Questionnaire (Appendix F)
Submit the above information using only Microsoft Word and Excel,
standard edition 2003 SP3
32
Additional Documents if Offer is Selected
• By April 19 – Written notification by Participants whose Offers are
selected that they accept the Offer selection and continued
participation in the RFO
• By June 3 – Documentation that the Offer facility has completed an
interconnection system impact study or initial review, as applicable
• By June 10 – Provide a signed PPA with completed appendices
33
Communications and Website
• All RFO documents are available on PG&E’s website at
www.pge.com/rfo. Click on Solar PV PPA Program RFO, or paste
and bookmark the following in your browser:
http://www.pge.com/b2b/energysupply/wholesaleelectricsuppliersolicitation/PVRFO/index.s
html
• Announcements, updates and Q&As will also be posted on the
website
• Communications should be directed to: PVProgram@pge.com
with a copy to the I.E. at Waynejoliver@aol.com
34
Offer Form
35
Offer Form
• Instructions tab contains a list of detailed instructions and useful
references/definitions
• Some cells have additional drop down choices or information upon
clicking
• Fill out the whole thing
• Some cells will be auto-calculated for you
36
Offer Form – Product Description
37
Offer Form – Product Description
38
Offer Form – Product Description
39
Offer Form – Product Description
40
Offer Form – Product Description
41
Offer Form – Aggregated Facilities
•
Complete this tab for offers where there is aggregation of facilities. Input data for the projects
being aggregated.
•
Per the Protocol, aggregation of facilities to meet the minimum 1 MW size requirement is allowed
only if each facility is no less than 500 kW and the project comprised of the aggregated facilities
interconnects with a single CAISO PNode. Up to 6 sites can be aggregated for a total no greater
than 3 MW.
42
Offer Form – Aggregated Facilities
43
Offer Form – Developer Experience
•
Per CPUC Resolution E-4368, the IPP company and/or member of the project development
team must have either completed or begun construction of solar project that is at least 500 kW.
44
Offer Form – Contract Quantity
•
When entering contract quantity below, take into consideration the following:
•
The contract quantity should be the expected output of the facility.
•
Degradation should be taken into consideration when entering the contract quantity for
each contract year.
•
Contract quantity should be net amount of energy delivered, net of station use.
•
For offers where there is aggregation of facilities, input the TOTAL contract quantity of the
aggregated facilities. No more than 6 sites can be aggregated for a total no greater than 3
MW. The tab Aggregated Facilities must also be completed.
45
Q&A
46
Detailed Interconnection Session
Begins at 1:15 PM
47