# Question
1
What level of credit support will be required from the seller for this RFP? If there is a credit support
requirement, when will it need to be posted?
2 Is there a requirement to register ? I did not see anything in your documentation ?
Will bidders need to be prequalified or will they be required to attend to prebid meeting to get approved
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by AE to bid this RFP?
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I expect to submit proposals from multiple facilities. Should each facility submit a completely separate
proposal or is one document with pricing and status of each facility acceptable.
Do projects need to be in ERCOT south region only or simply within ERCOT system ?
Page 4., Paragraph C, Subparagraph 2 – can you further expound on what you mean by “net output
rating?
Page 4., Paragraph C, Subparagraph 5 – can you further expound on what you require regarding
“design/service life of the facility” ?
Will AE provide a PPA term sheet with the expected terms for any PPA for this solicitation?
Section 2.B.2 Metering states: Energy delivered at the Point of Delivery will be metered at an ERCOT Polled
Settlement (EPS) Meter dedicated solely to the measurement of energy sold and purchased under the PPA.
9 AE will not consider proposals containing split or allocated meter arrangements. I am developing a 200 MW
project. For purposes of responding to your RFP, it appears that I will need to limit this project size to 150
MW. Is this correct?
Page 5 ., Section 3 , Paragraph B , Subparagraph 2g. : Can you please expound on what you are requesting
10 regarding “ Profile of qualifications to do business in the State of Texas” ? We are registered to do business
In Texas as a “foreign entity”.
11
Will Austin Energy be providing a proforma PPA prior to the 2017 Solar RfP submission deadline? We’d
need to price in correct security / credit assumptions and other material terms into our bids.
“ Proposers must provide a detailed description of the technology that either exists or will be constructed
on the site to provide the renewable energy and capacity. In addition, Proposers must provide sufficient
12 information on the qualified renewable resource to provide assurance to AE that the generating facility will
be able to meet its projected production estimates for the duration of the PPA.” Is the PVSyst report what
you had in mind ?
Are you able to provide information on where Austin Energy's substations are? Is there a territory
13 map that you are able to provide to help us determine where your distribution and transmission
lines are?
Under Section B. Proposal Format - 2. Business Organization and Financial Capability g) it asks for "Profile of
qualifications to do business in Texas". - Are you looking for proof that we are legally allowed to conduct
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business in Texas or are you looking for examples of work we have done in the State of Texas to show how
we are qualified?
Under Section C. Generating Facility Details/Technology number 9. it asks "Details regarding site location,
coordinates and control, including lease and easement agreements, any local tax abatement agreements or
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applications, and accommodations with mineral owners for surface use." - Do we need to show proof of
site control? 16
With respect to the requirement in Section 4 of the RFP that ‘All proposals must include a
statement that they are valid for a minimum period of ninety (90) days following the RFP
response deadline’ , please confirm that Austin Energy would still consider the proposal to be valid
if proposer substitutes an alternate site location/coordinates, plant layout and/or transmission line
layout during such 90 day period, so long as all other aspects of the proposal (including, without
limitation, pricing, nameplate capacity, interconnection point description, equipment and
technology, projected net output, timelines and milestones, and proposer’s identity and
qualifications) remain the same.
17 Can you quantify the amount of development security which will be required?
The Austin Energy Generation Plan to 2025 projected resources table separates out local solar from solar.
18 Will you please provide a specific defintion of "local" solar and how that is differentiated from other solar
facilities in terms of the geographic parameters for local solar.
19
One of the bulleted items in the Public Information attachment refers to Austin Energy's affordability goals.
Will you please provide a specific defintion of these goals?
20
Will any bid bonds or other securities be required? What is the timing of those securities?
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Is preference given to 138kV vs. 345kV interconnect?
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Is AE averse to contracting another project at the Bakersfield substation given the volume already
contracted at that POI?
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What is the schedule for shortlisting, PPA negotiations, PPA signing, etc.?
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Is preference given to CODs earlier than 12/31/2019?
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Does Austin Energy have a preference regarding the location of projects submitted?
Does Austin Energy have a preference regarding where proposed project settle?
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Does Austin Energy have a preference regarding the term in years for PPAs offered?
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Does Austin Energy have a preference regarding the capacity of proposed projects?
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Will Austin Energy share all questions and responses received about this RFP publicly?
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Does Austin Energy have a preference for shorter/longer terms?
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Would Austin Energy like to see pricing for several term lengths?
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To clarify, is Austin Energy seeking pricing based on two alternatives:
(1) Traditional PPA - settled at busbar
(2) Contract for Differences - settled at hub
Is there a preference for one structure vs the other?
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Does Austin Energy have a preference for settlement hub (e.g. ERCOT South vs ERCOT North)?
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Can AE comment on the weighting of the various Evaluation Factors with respect to selecting short-list
projects and in the final project selection?
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What type of Operational Flexibility is AE looking for specifically?
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What is the definition of “qualified solar renewable technology”?
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Is the 150MW a DC size or AC size?
Could AE clarify the language in section 2B part 3 QSE, "Energy delivered from the facility will be offered
into the market in a manner that ensures that AE does not pay for and/or settle, in its role as QSE, any
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energy deliveries during negatively priced ERCOT settlement intervals" 1. Does this mean AE intends to set
an economic bid floor such that the project will be curtailed if prices go negative? 2. Or is AE suggesting
that the PPA would be structured in such a way that negative price risk would be borne by the seller?
39 Is there a specific node or area in ERCOT that is preferred by Austin Energy for a project to connect to?
#
Response
Austin Energy typically requires a $50/kW pre-COD credit support amount delivered upon PPA
execution, increasing to $150/kW upon COD achievement. Credit support will be provided at Seller’s
1 expense in the form of either a) Letter of Credit from creditworthy institution with a long-term debt
rating of at least A3 (Moody’s) or A- (S&P), or b) a payment guarantee from an investment grade
guarantor.
2 No, there is not a registration requirement.
3 No, neither action is required
As long as the same project company is making the offer for all facilities, one document will be
4 sufficient. Along with your offer summary, please provide the necessary technical information for
each separate facility.
5 No. Simply in the ERCOT service region
6 Net power in MWac.
Since this RFP does contemplate some future AE purchase of the facility, this facility detail is more for
informational purposes; please provide if known or available
No. AE does not typically provide standard form PPAs or term sheets under our RFP solicitations. 8
This step typically occurs when a short list is determined.
7
Yes, our current plan and management directive is to purchase up to 150 MW. That said, the final
purchase amount will depend on our overall evaluation of all proposals received so we could possibly
9 purchase more or less depending on that outcome. So, while we prefer a proposal for 150 MW, you
may include a proposal for 200 MW if you would like. In either case, split or allocated metering
arrangements are not acceptable to AE.
10 Some sort of evidence of that registration will be sufficient.
PPAs will not be provided. In any proposal, please footnote the credit/other material assumptions
that your offer may be based upon.
12
That statement just generally refers to the listed items in Section 2C. Please include interconnection
studies and congestion analyses as well.
Please refer to the RFP; we are seeking utility scale solar generation (>10 MW) in the ERCOT service
region which encompasses most of Texas. We are not necessarily looking for solar projects in Austin
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Energy’s service territory but will consider them if proposed and those projects meet the standards
and conditions otherwise set forth in the RFP.
14
Both. Under that specific section (B2), we need the legal proof; under Section B3 we ask for previous
experience and current qualifications, preferably in ERCOT
15
Yes, some general discussion/status regarding existing or planned project site control is requested.
Specific details may be requested once a project is short-listed.
During the 90-day period, we will begin and compete our detailed evaluation of offered projects and
most likely select one or more finalists for PPA negotiations. Our acceptance of a substitute project
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as described (provided that a valid proposal is made before the May 31 deadline) would be
contingent upon the evaluation timeline process.
17
Austin Energy typically requires security in the form of a Letter of Credit from an investment grade
financial institution that ranges from $50/kW as pre-COD security to $150/kW as post-COD security.
In general, local solar are projects located within the Austin Energy service territory and may or may
18 not be classified as ‘utility scale’ (>10MW). NOTE: This RFP is not for local solar projects although we
will consider utility scale projects within the Austin Energy service territory.
19 Affordability goals are twofold: a) limit AE’s average yearly rate increases to 2% or less and b)
maintain AE’s competitive position of having its customer bills as one of the lowest 50% in Texas.
Austin Energy typically requires security in the form of a Letter of Credit from an investment grade
20 financial institution that starts from $50/kW as pre-COD security upon PPA execution, and increases
to $150/kW as post-COD security upon COD achievement.
21
An overall analysis will be performed on all projects which will include a detailed congestion study;
therefore project interconnection and downstream grid capacity will be taken into consideration.
22 See answer to #21.
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We have no definite timetable. Our analysis will depend staff availability and time. However, we
hope to have finalist(s) selected by the end of August followed by PPA negotiations, final AE
Management approval and then Austin City Council approval.
No preference; we are seeking the best value for AE and its customers; CODs are a part of that value
analysis.
No, as stated in the RFP, we are open to any location in the ERCOT service region.
Either the project POI or the regional market hub; we will consider both.
27 No, we are looking for a PPA structure that provides the best value to AE and its customers.
As stated in the RFP, AE is seeking up to 150 MW of capacity. After final evaluation, however, to
reiterate #3 above, we seek the best value to AE and its customers. 29 Yes, questions and answers will be posted to AE’s website.
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No particular preference. Our analysis will seek the best overall value to AE and its customers.
31
Yes, that is acceptable.
32
No preference; we will consider either or both.
33
No particular preference. Our analysis will seek the best overall value to AE and its customers.
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In general, price determines 60-70% of the final score, with experience level, project viability, and
Proposer financial capability comprising the remaining 30-40% with equal weight given to each
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AE is open to any and all concepts that may bring value to AE and its customers.
A facility that meets the requirements of the Public Utility Commission of Texas (PUCT ) Substantive
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Rule 25.173
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AC
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1. Absent a mutually agreeable alternative structure, yes. 2. Any structure that we agree to will
include the Seller bearing negative price risk. In addition, AE does not intend to purchase energy
during negatively priced intervals.
There is not any specific area. However, a significant part of our project analysis will include a
detailed review and assessment of congestion at and near the POI.