Q1) Would a facility that is currently pseudo-tied to a non-MISO market (but is to become a MISO resource in the future) be able to participate in the RFP?
A1) If the resource is going to be registered in MISO and not pseudo-tied when a potential contract with Vectren would begin, it would comply with the requirements of the RFP given that all other accreditation requirements are met.
As stated in Section 3.0 of the RFP document, “For a Proposal to be eligible under this RFP, it must offer MISO accredited or accreditable capacity (including Zonal Resource Credits) of no less than 10 MW to MISO LRZ 6.” Further, stated in Section 220.127.116.11 of the RFP document, “For Proposals to sell an existing generation facility to Vectren, the existing generating facility must be commercially operable, including all facilities and requirements necessary to deliver capacity (Zonal Resource Credits) to MISO LRZ 6.… Proposals for facilities without existing firm deliverability to MISO LRZ 6 should include cost estimates and transmission studies associated with securing such deliverability.”
Q2) Would a non-binding bid be adequate for participation in the RFP?
A2) Per Section 1.2 of the RFP document, eligible Proposals are required to be binding and valid for one year beginning on the Proposal Submittal Due Date (August 9, 2019 – August 9, 2020).
Q3) Would Vectren take into consideration Proposals that are limited to energy for the term set forth in the RFP?
A3) Energy alone is not sufficient to comply with the requirements of the RFP. Per Section 3.0 of the RFP, “For a Proposal to be eligible under this RFP, it must offer MISO accredited or accreditable capacity (including Zonal Resource Credits) of no less than 10 MW to MISO LRZ 6.”
Q4) Would variations of the same project (e.g. Project X PPA, Project X build-operate-transfer, Project X + storage PPA, Project X + storage build-operate-transfer) be considered multiple proposals or one?
A4) Yes, variations of the same project are considered different proposals. The intent of this mechanism is to incentivize Respondents to submit their most competitive offers or provide funding to help offset the additional costs that would be incurred by evaluating multiple variations.
Q5) What temperature and relative humidity should be used for “Summer Peak” conditions specified in Appendix D?
A5) 91.1° F and 55.4% RH
Would Vectren consider a project that is fully deliverable to MISO but located outside of MISO LRZ 6 with the contingency that in the event of a price differential for capacity between the LRZ's, the Seller would adjust the price to reflect the difference in clearing prices between the LRZ's?
Respondents must provide resources with existing physical deliverability to LRZ 6 or provide detailed cost estimates and transmission studies associated with securing such deliverability. Please see Section 18.104.22.168 of the RFP for further detail. A Proposal that only included a financial settlement for capacity market price differences and did not include firm deliverability of capacity to LRZ 6 would not comply with the RFP requirements.
How would Vectren evaluate the following Proposals:
A long-term PPA for a renewable project located outside LRZ 6, with financial settlement at SIGE.SIGW, in which Vectren would buy/keep all associated energy and capacity value; however, most of the Project’s associated MISO Project RECs will not be available to sell to Vectren. However, the Seller would sell Vectren national Green-E RECs for any balance in which Project RECs would not be available.
A long-term PPA for a plant located in outside of LRZ 6, with financial settlement at SIGE.SIGW. In this scenario, all of the Project’s energy, capacity, and RECs would be available to Vectren, hence pricing would be fully bundled to include all energy, capacity, and RECs.
For either of the Proposals listed, if they are an active request in MISO's generator interconnection process, the project must be studied, and generator interconnection agreement executed, as a NRIS resource in order to comply.
From the RFP:
3.0 General Requirements: For a Proposal to be eligible under this RFP, it must offer MISO accredited or accreditable capacity (including Zonal Resource Credits) of no less than 10 MW to MISO LRZ 6.
22.214.171.124 Capacity Availability and Deliverability: For Proposals to sell an existing generation facility to Vectren, the existing generating facility must be commercially operable, including all facilities and requirements necessary to deliver capacity (Zonal Resource Credits) to MISO LRZ 6. … Proposals for facilities without existing firm deliverability to MISO LRZ 6 should include cost estimates and transmission studies associated with securing such deliverability.
RECs are not a requirement as part of this RFP; however, for the benefit of Vectren and their customers, a Proposal including RECs is preferred and may be an evaluation consideration.
Would Vectren consider supplying a site for a facility?
Yes, Proposals that utilize an existing Vectren site would be considered depending on the specific characteristics of the project.
Would Vectren be willing to provide a list of Vectren-owned sites?
Vectren would direct Respondents to publicly available information about Vectren-owned sites. See https://www.vectren.com/electric-system/about.
As part of the RFP, would Vectren have any interest in projects located outside LRZ 6 that have good basis to Vectren's load zone, with control of nearly all land, and are in the process of getting DPP results?
Generation facilities are not required to be physically located in LRZ 6. However, they must provide at least 10 MW of accredited capacity to LRZ 6. Respondents must provide resources with existing physical deliverability to LRZ 6 or provide detailed cost estimates and transmission studies associated with securing such deliverability. Please see Section 126.96.36.199 of the RFP for further detail.
In Section 7.2.3 of the RFP, what is meant by a completed MISO System Impact Study? And how will this impact scoring?
Points for completing a MISO System Impact Study will be awarded if a DPP1 and/or DPP2 study has been completed.
In Section 7.2.5 of the RFP, does "Nameplate MW in service" refer to a total capacity or only the capacity of the technology type being bid on?
Please provide both the total of all generation types and the breakdown by technology type. The formula in 7.2.5 will use the "Relevant technology development experience" nameplate capacity for each Proposal.
In regard to Section 7.2.5 of the RFP, will Power Purchase Agreement Proposals be eligible for Vectren operational control and the full 20 points?
Yes, Power Purchase Agreement Proposals could be eligible for the operational control points. Partial points in this category may be given based on the level of operational control offered.
Appendix D does not support the ability to allocate a specified percentage of the plant capacity and energy to Vectren when it dispatches. Can Vectren provide clarity regarding this?
Minor changes were implemented in Appendix D - Rev1 to address this. Respondents may include specifications for the unit as a whole with an option to apply a percentage allocated to Vectren. This can be applied to both a purchase offer and a PPA.
In an Asset Purchase Proposal, shall bidders assume that Vectren can take all of the Investment Tax Credit? Will Vectren utilize all of the value of the Investment Tax Credit in year one of the project or will it be normalized over the life of the asset?
Yes, Respondents can assume that the investment would be eligible for Investment Tax Credit and subject to normalization requirements; however, Vectren asks that the Proposal be transparent in the identification of the benefits or assumptions related to the tax treatment such that, if Vectren evaluates it in the future and deems these credits to be unavailable, the impacts can be adjusted in the bid structure.
Should O&M pricing be provided for build–transfer Proposals?
Yes, please provide O&M and all other cost estimates associated with the project in the Appendix D submittal.
Section 3, Page 3-1 of the RFP states, “Vectren has a preference for Proposals that provide Vectren with operational control of the asset, regardless of ownership position.” Does "operational control" mean full operations and maintenance (O&M) of the asset or only the energy scheduling operations into MISO?
Operational control provides the ability to make prudent operational decisions when it makes economic sense for Vectren’s customers, such as dispatch parameters used for the scheduling of energy into MISO and approval for maintenance outage periods.
Section 4.1.7, Page 4-9 of the RFP states, "Respondents submitting Proposals for new or planned facilities should review the Development Risk evaluation metric and be sure to discuss key development milestones in their Proposal." What is the "Development Risk evaluation metric"?
Please see Section 7.2.3 Interconnection and Development Status and Section 7.2.5 Project Risk Factors, which include discussion of the evaluation of projects based on their development status and risk factors.
Is the bid fee per Proposal or per project/asset? For example, if a Respondent has 3 pricing options/variations for 1 project, is that considered one Proposal or three Proposals?
Pricing variations of the same project are considered different Proposals. So, this example would result in three Proposals. The intent of this mechanism is to incentivize Respondents to submit their most competitive offers or provide funding to help offset the additional costs that would be incurred by evaluating multiple variations.
Please confirm that only an electronic copy of the Proposal needs to be sent and not a hard copy.
Correct, no hard copies are required.
Does 2023/2024 go from June 1, 2023 to May 31, 2024?
Yes, the dates correlate with the MISO planning year.
For energy settlement location, we interpret the scoring to be 100 points for either (i) physical delivery to Vectren’s load node (SIGE.SIGW) or (ii) financial settlement at a market hub such as the MISO Indiana Hub. Is this correct that either (i) or (ii) will earn the 100 points?
Per section 7.2.2 of the RFP, Proposals that include all costs to have energy financially settled or directly delivered to Vectren’s load node (SIGE.SIGW) will receive 100 points. Financial settlement at MISO Indiana Hub, or any other location, will receive zero points.