FirstEnergy Corp. · NYSE:FE
FirstEnergy — 2010 REC RFP Webinar
22 slides from FirstEnergy's conference presentation, Jul 15, 2010
Slide 1: Webinar: Request for Proposals (2010 REC RFP) for Renewable Energy Credits
WEBINAR: Request for Proposals (2010 REC RFP) for Renewable Energy Credits (RECs) In support of the FirstEnergy Ohio Utilities Illuminating solutions requirements under SB 221 for the future Prepared for: FirstEnergy Ohio Utilities July 15, 2010
Slide 2: Good Morning!
Good Morning! » Thank you for attending FirstEnergy Ohio Utilities’ 2010 REC RFP Webinar. Our session will begin shortly • 2010 REC RFP is for SRECs and RECs (hereinafter referred to jointly as “RECs” except where specified) for 2010 and 2011 » Navigant is muting all phone lines » During the Webinar
Slide 3: Disclaimer
Disclaimer Any statements in this bidder presentation describing or referring to documents and agreements are summaries only, and are qualified in their entirety by reference to such documents and agreements. The governing documents are: REC RFP Bidder Rules REC RFP Agreements Other REC RFP document
Slide 4: Agenda
Agenda » Process for the Webinar » REC RFP Website » REC RFP Communications Protocol » REC RFP Objectives » REC RFP Products » Qualifications » Credit » Pricing » Contracts » Evaluation & Selection » Schedule » Required Forms » Questions Confidential and Proprietary © 2010 Navigant Consulting, Inc.
Slide 5: Process for the Webinar Q&A Chat
Process for the Webinar Q&A “Chat” » Webinar Q&A “Chat” • Ask questions any time via chat • You will not be identified to other participants • We will accumulate questions and address in FAQs • All questions and responses from the Webinar will be posted to the website Confidential and Proprietary ©
Slide 6: REC RFP website
www.firstenergycorp.com/OH2010RECRFP Visit the REC RFP website for more details on the REC RFP Confidential and Proprietary © 2010 Navigant Consulting, Inc. All rights reserved. 5
Slide 7: REC RFP Communications Protocol
REC RFP Communications Protocol Important to note that in order to obtain a fair and impartial procurement process, contact with FirstEnergy is restricted during the REC RFP Process. » Navigant is conducting this REC RFP for FirstEnergy’s Ohio Utilities » We are experienced in conducting renewable p
Slide 8: FirstEnergy Ohio Utilities' Objectives for the REC RFP
FirstEnergy Ohio Utilities’ Objectives for the REC RFP » Select qualified bidders at least cost and contract with these bidders for purposes of complying with the renewable energy and solar energy resource requirements of R.C. 4928.01, R.C. 4928.64, and R.C. 4928.65 (“Ohio Law”) Confidential and Pro
Slide 9: REC RFP Products
REC RFP Products » FirstEnergy is seeking proposals for PUCO Certified RECs only (no energy, no capacity) » To comply with Ohio Law, FirstEnergy estimates its need for RECs in 4 REC types and in two 1-year terms (2010, 2011) REC Type First Contract Term Second Contract Term Aug 15, 2010 – Dec 31, 20
Slide 10: Delivery of PUCO Certified RECs
Delivery of PUCO Certified RECs » FirstEnergy is seeking only PUCO Certified RECs: o To be delivered from a renewable or solar facility that has applied for or been qualified by the PUCO; o RECs must have been produced after July 31, 2008; and o RECs must become the sole property of FirstEnergy. REC
Slide 11: REC Requirements
REC Requirements » All RECs must be delivered from PUCO certified, renewable energy facilities; details available on the PUCO web site at: www.puco.ohio.gov/PUCO/Forms » Successful Respondent must assure that all of its RECs are PUCO certified in time for delivery for the appropriate term » For purp
Slide 12: REC Agreements
REC Agreements » 2010 REC RFP has 2 contract types. Bidders must accept either: o REC Agreement (Preferred) o Unit-Contingent REC Agreement Unit (Solar only) » The 2 contract types have the same terms except: o REC Agreement allows for fixed quarterly deliveries without specifying the facility o Uni
Slide 13: Key Points
Key Points » There are no minimum or maximum REC size requirements • FirstEnergy is seeking to meet its benchmarks per SB 221 • At the same price, larger volumes with fixed delivery contracts are preferred » Aggregators are allowed but all bidders will need to provide credit support documentation »
Slide 14: Credit Requirements
Credit Requirements » All applicants must submit a credit application • Credit applications are preferred on July 21 • All credit applications are due no later than August 3 » If total proposal value (RECs X Price) is under $100,000, no credit security requirement except in special circumstances (e.
Slide 15: Pricing and Term
Pricing and Term » Respondent will specify in its Pricing Proposal(s) a contract amount of • RECs to be delivered to FirstEnergy in either: – Term 1 from August 15, 2010 through December 31, 2010 and/or – Term 2 from January 1, 2011 through December 31, 2011; • A single, fixed price for each deliver
Slide 16: Submittal of Proposals Highlights
Submittal of Proposals Highlights All hardcopy or email proposals must be received by Navigant no later than 5:00 pm EPT on August 3, 2010 Hardcopy Proposal Email Proposal » Hardcopy proposals must include one » Email proposals must include separate printed original and one electronic attachments fo
Slide 17: Evaluation Process: Phase 1 Qualification
Evaluation Process: Phase 1 Qualification » Phase 1 is a qualification evaluation of bidder proposal to determine whether the Respondent and its proposed RECs meet the REC RFP requirements » During Phase 1, Navigant may, but is not obligated to, request additional information and materials from any
Slide 18: Evaluation Process: Phase 2 Proposal Sorting
Evaluation Process: Phase 2 Proposal Sorting » Phase 2 is the sorting of pricing proposals to determine what qualified proposals will be offered an Agreement » Only pricing proposals from Phase 1 qualified bidders will be opened during Phase 2 Step 1 Step 2 » Proposed pricing will be sorted in the »
Slide 19: Execution of Agreements
Execution of Agreements The execution of a REC Agreement or a Unit Contingent Agreement by both FirstEnergy and the Respondent will constitute a “Winning Proposal” » Immediately following Phase 2, FirstEnergy shall prepare a REC Agreement or Unit Contingent Agreement, as applicable, with information
Slide 20: Schedule
Schedule Activity Date Issue REC RFP July 1, 2010 RFP Webinar (11:00 AM EPT) July 15, 2010 FAQ Deadline July 21, 2010 Credit Information Due Date (Preferred) July 21, 2010 Proposal Due Date: All materials - Qualifying Application, Pricing Proposal, August 3, 2010 Acceptance of Purchase and Sale Agre
Slide 21: Required Forms
Required Forms 1. Credit Application Including certification to Post Security if Applicable 2. Qualifying Application 3. Each separate Pricing Proposal 4. Confirmation of Firm or Unit-Contingent Agreement 5. Executed Contract (with appropriate signatures) in PDF format or hardcopy NOTE: You may emai
Slide 22: Questions?
Questions? Remember: Submit via “chat” function Confidential and Proprietary © 2010 Navigant Consulting, Inc. All rights reserved. 21