Eversource Energy (d/b/a) · NYSE:ES
Eversource Energy (d/b/a) — Eversource Energy — SCEF Program Year 2 Bidder's Conference (May 2021)
86 slides from Eversource Energy (d/b/a)'s conference presentation, May 12, 2021
Slide 1: Shared Clean Energy Facilities Program Year 2 Bidder's Conference
Shared Clean Energy Facilities Program (SCEF Program) Year 2 Bidder’s Conference M AY 1 2 , 2 0 2 1
Slide 2: Today's Presenters
Today’s Presenters THE UNITED ILLUMINATING EVERSOURCE COMPANY (UI) Aaron Dubauskas Noreen Leopardi Senior Analyst, Customer Solar Programs Principal Analyst, Wholesale Power Contracts Noah Altamirano Analyst, Wholesale Power Contracts Danielle Shtab Analyst, Wholesale Power Contracts CT DEPARTMENT O
Slide 3: Agenda
Webinar Housekeeping Objectives Background and Overview Agenda Procurement Process Bid Submission and Agreement Execution DEEP: Appendix B Requirements and Submission Q&A 3
Slide 4: Webinar Housekeeping
Webinar Housekeeping • Ask questions via the GoToWebinar question function • General questions will be added to a Q&A document • Q&A at the end of presentation • Lines will be muted until open discussion • Use “Raise Hand” function during discussion • One speaker at a time
Slide 5: Goals of the Shared Clean Energy Facilities Program
Goals of the Shared Clean Energy Facilities Program • Annually and cost effectively allocate up to 25 MW to SCEF • Provide savings to specific categories of customers, particularly customers with low to moderate income, low-income services organizations, and customers who reside in environmental jus
Slide 6: Program Timeline
Program signed into law May 2018 Program approved by PURA December 2019 First year solicitation launched April 2020 Summer/Winter Program First year projects selected 2020 Timeline Customer enrollment begins Spring 2021 Projects first eligible to generate July 2021 Year 2 Approved by PURA April 2021
Slide 7: Key Definitions
Shared Clean Energy Facility ◦ A Class I renewable energy source that generates electricity participating in the SCEF program Subscriber Organization ◦ Owners and operators of SCEF facilities Subscriber ◦ Electric distribution customers participating in the SCEF Key Definitions program Tariff Terms
Slide 8: SCEF Background and Program Requirements
SCEF Background and Program Requirements
Slide 9: Background
Background Section 7(a)(1)(c) of Public Act Six-year competitive 18-50 signed on May 24, 2018 procurement program that will resulted in PURA Docket 19-07- support up to 150 MW of new 01 – Now Docket 19-07-01RE02 clean power generation in for Year 2 Connecticut SCEF projects will result in Subscriber
Slide 10: SCEF Program Model
SCEF Program Model Clean Energy System Owner Clean Energy Finance and construct project Electric Distribution Deliver energy and RECs to EDC Project Company Energy & Receive direct payment for project production Renewable Credits Participating Customers Receive clean energy savings as bi
Slide 11: Subscriber Enrollment
Subscriber Enrollment Managed solely by Eversource and The United Illuminating Company Legislation specified customers that could participate ◦ Low-income Customers and Affordable Housing Facilities ◦ Moderate-income Customers ◦ Small Business Customers ◦ State or Municipal Customers ◦ Commercial Cu
Slide 12: Procurement Process
Procurement Process
Slide 13: Year 2 RFP Schedule
Action Item Year 2 RFP Schedule Date Release of RFP April 30, 2021 Bidders Conference – Webinar Only May 12, 2021 Deadline for Submission of Questions May 18, 2021 Bid Forms Due June 14, 2021 by 1:00 p.m. (Eastern Prevailing Time “EPT”), at which time the Pricing shall become firm, irrevocable and b
Slide 14: SCEF Project Solicitation Process
25 MW yearly procurements for six years Systems from 100 kW to 4 MW are eligible SCEF Project Must be an eligible CT Class I renewable energy source that produces electricity Solicitation Selected based on bid prices and other criteria Process Projects have three years for construction O
Slide 15: Annual MW Allocation
Annual MW Annual MW Allocation 25MW total split 80% Eversource, 20% UI Eversource: 20MW annually UI: 5MW annually At the conclusion of the 6 procurement years: 150 MW total Eversource UI 15
Slide 16: Project Eligibility
Project Eligibility Must be between 100kW and 4MW in size Final as-built size cannot exceed as-bid nameplate capacity CT Class I Technology Cannot split projects to qualify Located in Companies’ service territory One bid per site per technology Must interconnect to applicable Company’s distri
Slide 17: Project Eligibility Continued
Project Eligibility Continued •LREC/ZREC projects of the same technology must be in-service before submitting a SCEF bid at same site • Section 5.2.12 of the RFP: If an existing SCEF through PA 18-50 or the pilot program, LREC/ZREC, or other PA 18-50 tariff project is present at the Project Site and
Slide 18: Price Cap
Price Cap •Change to the pricing structure in Year 2 of the SCEF Program • ***One bid price for entire 20 year term*** •Purchase Prices must be on a fixed, dollar per megawatt-hour ($/MWh) basis for energy and RECs, subject to the Procurement Price Cap, over the Tariff term •Year 2 price cap is $159
Slide 19: Bid Submission and Tariff Terms Agreement Execution
Bid Submission and Tariff Terms Agreement Execution
Slide 20: Step 1: How to Submit a Bid in the Year 2 SCEF RFP
How to Submit a Bid in the Step 1 Year 2 SCEF RFP 20
Slide 21: Bid Process
Bid Process •Key change from the Year 1 Bid Process • All documents including Appendix B must be submitted to your respective EDC as well as DEEP • EDC bid portals will not have the capability to accept Appendix B – send via email • [email protected] for Eversource • [email protected] for United Illu
Slide 22: Bid Process
Bid Process Complete & Submit Bid Form Online ◦ For Eversource: Click Here to access the online Bid Portal ◦ For UI: https://www.uinet.com/wps/portal/uinet/apps/scefportal ◦ Certifications, Affidavits and Disclosures ◦ Company-specific documents available on the Companies’ websites: ◦ Eversource ◦ F
Slide 23: Eversource Bid Form
Eversource Bid Form •Form is filled out online • New users will need to create an account using the “Sign Up Now” button •Contains information needed for: • Submission verification • Completion of Tariff Terms Agreement •Additional form(s) (i.e. Certifications, Affidavits, and/or Disclosures as appl
Slide 24: UI Bid Form
UI Bid Form Available online – Year 2 RFP for SCEF The Bid certification Form is under section - Year 2 SCEF RFP Documents •Contains information needed for: • Submission verification • Completion of Tariff Terms Agreement •Additional form(s) (i.e. Certifications, Affidavits, and/or Disclosures as ap
Slide 25: Development Period Security
Development Period Security •Due at the time of Bid submission • Calculated by the online Bid systems •Instructions posted on Companies’ websites • Eversource – if sending ACH or Wire payment, please email [email protected] for account numbers. • UI - ACH or Wire payment only. Please email SCEF@ui
Slide 26: Return of Development Period Security
Return of Development Period Security • The EDC shall return the Development Period Security to the bidder if at least one of the following conditions is met: 1. The Selected Project enters commercial operation in a timely fashion and begins producing energy consistent with these Program requirement
Slide 27: Bid Attachments: Bid Certification Form
Bid Attachments: •Mandatory for all Bids Bid Certification Form • Eversource: Uploaded during Step 6/6 of the online Bid process • UI: Uploaded during the final step of the online Bid process •5+ Page Bid Certification Form • Page 1: Instructions • Page 2: Bidder’s signature – Bidder is the individu
Slide 28: Bid Attachments: CT Licensed PE Certification
Bid Attachments: CT Licensed PE Certification •Mandatory for all Bids • Eversource: Uploaded during Step 6/6 of the online Bid process • UI: Uploaded during the final step of the online Bid process •Used to determine expected annual production of the Facility 28
Slide 29: Bid Attachments: Carbon Neutrality Certification
Bid Attachments: Carbon Neutrality Certification •Mandatory for Carbon-Emitting Technologies • Mandatory for fuel cells and anaerobic digestion • Eversource: Uploaded during Step 6/6 of the online Bid process • UI: Uploaded during the final step of the online Bid process •PURA’s April 13, 2020 Corre
Slide 30: Bid Attachments: W-9 Form (UI Only)
Bid Attachments: W-9 Form (UI Only) •Due to UI’s new payment system, a W-9 Form is now required to submit Development Period Security. • A Fillable W-9 Form can be found on UI’s Year 2 SCEF RFP Page under Year 2 SCEF RFP Documents • The entity that submits payment must provide this form for UI to co
Slide 31: Selection Process
Selection Process ONLY Completed Bids Eligible bids will be ranked by Contracts will be awarded Eligible bids not selected will received via companies’ evaluated bid price subject to until MWs are exhausted be placed on standby online bid portals are the two Bid Preferences reviewed to ensure eligib
Slide 32: Step 2: How to Proceed if your Bid is Selected
How to Proceed if your Bid is Step 2 Selected 32
Slide 33: If Selected
If Selected •EDC will email you an executable version of the Tariff Terms Agreement •Partially Executed Tariff Terms Agreement must be received by EDC by the Effective Date, or project is disqualified and Development Period Security is sacrificed •EDC will return a fully executed Tariff Terms Agreem
Slide 34: Step 3: Post Execution Obligations
Post Execution Obligations: Step 3 How to get from Tariff Terms Agreement to Commercial Operation 34
Slide 35: Prerequisites for Purchase
Prerequisites for Purchase •Section 6 of the Terms and Conditions • In service after July 1, 2021 but no later than three years after PURA approval of Tariff award • Interconnection agreement required • Must have dedicated Production Meter • Owned by EDC 35
Slide 36: Step 4: Tariff Administration: The 20-Year Delivery Term
Tariff Administration: The 20- Step 4 Year Delivery Term 36
Slide 37: Tariff Administration
Tariff Administration •20 year term • Rate may be the same or may change depending on specifics of Bid • Payments based on actual system production •Operating Period Security • Due within 30 days of In-Service Date • Calculation: ACP*50% of expected production • ACP for years 2021 and beyond is $40/
Slide 38: Delivery Obligations
Delivery Obligations •Delivery Term continues for 20 years from first day of month following In-Service Date •Upon Delivery, ownership of RECs, energy, and all other Energy and Environmental Attributes shall transfer to the EDC 38
Slide 39: Program Contacts
Program Contacts EVERSOURCE: UNITED ILLUMINATING: [email protected] [email protected] 39
Slide 40: Key Documents
Key Documents •Final Decision in Docket No. 19-07-01RE02 •Year 2 RFP •DEEP Appendix B •Tariff Rider • Eversource • United Illuminating •Subscriber Organization Tariff Terms Agreement •Subscriber Organization Tariff Terms and Conditions 40
Slide 41: Key Documents – Eversource
Eversource SCEF Website Summary of Required Bidding Information Key Documents – Eversource SCEF Bid Certification Form SCEF Carbon Neutrality Form SCEF CT Licensed Professional Engineer (PE) Certification 41
Slide 42: Key Documents – UI
United Illuminating SCEF Website UI SCEF Bid Form Instructions Key Documents Year 2 Bid Certification Form (Required for Bid Submission) – UI SCEF Carbon Neutrality Certification SCEF CT Licensed Professional (PE) Certification Fillable W9 Form 42
Slide 43: Connecticut Department of Energy and Environmental Protection
Connecticut Department of Energy and Environmental Protection
Slide 44: SCEF RFP Bidder's Conference
SCEF RFP Bidder's Conference Docket No. 19-07-01 May 12, 2021 Connecticut Department of Energy and Environmental Protection
Slide 45: Disclaimer
Disclaimer No verbal representations preempt or otherwise alter what is in Appendix B (as amended and finalized by the 4/28/2021 Final Decision in Docket No. 19-07- 01RE02) Connecticut Department of Energy and Environmental Protection
Slide 46: Appendix B Submission to DEEP
Appendix B Submission to DEEP Department of Energy and Environmental Protection (DEEP) requires: • Responses to all questions in Appendix B • Veracity of Statements affidavit • Bidder's affidavit of site control • Owner of project site's affidavit of site control (not required when the bidder and th
Slide 47: Veracity of Statement Affidavit
Veracity of Statement Affidavit Connecticut Department of Energy and Environmental Protection
Slide 48: Bidder's Affidavit of Site Control
Bidder's Affidavit of Site Control Connecticut Department of Energy and Environmental Protection
Slide 49: Owner of Project Site's Affidavit of Site Control
Owner of Project Site's Affidavit of Site Control Connecticut Department of Energy and Environmental Protection
Slide 50: Appendix B Requirements: Intro Section
Appendix B Requirements Intro Section o [new] FOIA provisions o [new] Redaction of proposals is Bidder's responsibility o [new] Definition of "brownfield" o [new] Definition of "landfill" o [new] Qualification for brownfield/landfill bid preference Connecticut Department of Energy and Environmental
Slide 51: Appendix B Requirements
Appendix B Requirements Section B1 – Project overview narrative Section B2 – Financial Experience o Financing plan o [new] Estimated costs for development and O&M o Federal Incentive Tax Section B3 – Project Management Experience o Successful development of similar projects Section B4 – Operational
Slide 52: Appendix B Requirements
Appendix B Requirements Section B6 – Operation and Maintenance o O&M plan Section B7 – Generation Site o Site plan with map of proposed SCEF location o [new] Affidavits for Bidder / project site owner Section B8 – Permit Acquisition Plan and Environmental Viability o Plan to acquire all permits o Pr
Slide 53: Appendix B Requirements
Appendix B Requirements Bidders should take the necessary steps to ensure that their Appendix B Submittal includes all requested documents and information. Pursuant to PURA’s Final Decision, DEEP may only allow the late submission of documents explicitly required by Appendix B if such documents were
Slide 54: Appendix
Appendix Connecticut Department of Energy and Environmental Protection
Slide 55: Project Overview
Project Overview B1.1. Provide an overview of the proposed project, including but not limited to: I. Resource type II. Project size in kW (AC) III. Project location (town) IV. Estimated average annual output V. Bid price/kWh VI. Whether the proposal is claiming a qualitative preference, and if so, w
Slide 56: Financial Experience
Financial Experience B2.1. Provide a description of the financing plan for the project, including construction and term financing. B2.2. Provide all estimated costs for developing and operating the project for the duration of the program. B2.3. Provide documentation illustrating the experience of th
Slide 57: Financial Experience
Financial Experience B2.5. Provide a description of any current or recent credit issues/credit rating downgrade events regarding the Bidder or affiliate entities raised by rating agencies, banks, or accounting firms. B2.6. Describe the role and the amount of the Federal Production Tax Credit or Inve
Slide 58: Financial Experience
Financial Experience B2.9. Has Bidder, or any affiliate of Bidder, in the last five years: (a) consented to the appointment of, or was taken in possession by, a receiver, trustee, custodian or liquidator of a substantial part of its assets, (b) filed a bankruptcy petition in any bankruptcy court pro
Slide 59: Financial Experience
Financial Experience B2.10. Describe any litigation, disputes, claims or complaints involving the Bidder or an affiliate of Bidder, against DEEP or the state. B2.11. Describe any litigation, disputes, claims or complaints, or events of default or other failure to satisfy contract obligations, or fai
Slide 60: Financial Experience
Financial Experience B2.12. Confirm that Bidder, and the directors, employees and agents of Bidder and any affiliate of Bidder are not currently under investigation by any governmental agency and have not in the last four years been convicted or found liable for any act prohibited by State or Federa
Slide 61: Project Management Experience
Project Management Experience • B3.1. The Eligible Bidder and each of the project participants (including, when applicable, partners, EPC contractor and proposed contractors) must demonstrate that they haves a sufficient amount of relevant experience and expertise, as applicable, to successfully dev
Slide 62: Project Management Experience
Project Management Experience B3.2. Provide a listing of projects the project sponsor has successfully developed or that are currently under construction. Provide the following information as part of the response: i. Name of the project ii. Location of the project iii. Project type, size and technol
Slide 63: Project Management Experience
Project Management Experience B3.3. With regard to the Bidder’s project team, identify and describe the entity responsible for the following, as applicable: i. Construction Period Lender, if any ii. Operating Period Lender and/or Tax Equity Provider, as applicable iii. Financial Advisor iv. Environm
Slide 64: Operational Parameters
Operational Parameters B4.1. Maintenance Outage Requirements – Specify partial and complete planned outage requirements in weeks or days. Also, list the number of months required for the cycle to repeat (e.g., list time interval of minor and major overhauls, and the duration of overhauls). B4.2. Ope
Slide 65: Energy Resource Plan
Energy Resource Plan Bidder is required to provide an energy resource or fuel supply plan for its proposed project, including supporting documentation. The fuel supply/energy resource profile information should be consistent with the type of technology/resource option proposed and the term proposed.
Slide 66: Energy Resource Plan: Hydropower
Energy Resource Plan B5.2. Hydropower i. Describe the project characteristics in terms of water flow (on a monthly basis) and head, and state the assumptions regarding seasonal variations, and a conversion of such flow into megawatts and megawatt-hours. ii. Provide monthly flow duration curves based
Slide 67: Energy Resource Plan: Fuel Cell
Energy Resource Plan B5.3. Fuel Cell i. Describe how the natural gas for the Fuel Cell will be procured and whether its energy will be delivered on a firm or non-firm basis for the term of the agreement. ii. Provide supporting data that illustrates the expected generation from the fuel cell over the
Slide 68: Operation and Maintenance
Operation and Maintenance B6.1. Provide an O&M plan for the project that demonstrates the long term operational viability of the proposed project. The plan should include a discussion of the staffing levels proposed for the project, the expected role of the project sponsor or outside contractor, sch
Slide 69: Operation and Maintenance
Operation and Maintenance B6.4. Provide examples of the Bidder’s experience with O&M services for other similar projects. Connecticut Department of Energy and Environmental Protection
Slide 70: Generation Site
Generation Site B7.1. Provide a site plan including a map of the site that clearly identifies the location of the Shared Clean Energy Facility site, the assumed right-of-way width, the total acreage for the Shared Clean Energy Facility, the anticipated interconnection point, and the relationship of
Slide 71: Generation Site
Generation Site B7.2. Provide an affidavit by the Bidder that affirms that the Bidder has control of the generation site, or an unconditional right, granted by the property owner, to acquire such control to use the site and interconnection route, including, for the Shared Clean Energy Facility, and
Slide 72: Generation Site
Generation Site B7.3. Provide evidence that the Shared Clean Energy Facility site and interconnection route is properly zoned or permitted. If the Shared Clean Energy Facility site is not currently zoned or permitted properly, identify present and required zoning and/or land use designations and per
Slide 73: Generation Site
Generation Site B7.5. For a Shared Clean Energy Facility, describe and provide a map of the proposed interconnection that includes the path from the generation site to the ISO-New England pricing node. B7.6. Please describe the status of any planned interconnection to the grid. Has the Bidder made a
Slide 74: Generation Site
Generation Site B7.7. Describe the Proposal’s electrical system performance and the impact on the reliability of the EDC’s distribution system. Provide the status of any interconnection studies already underway with ISO-NE, the transmission owner and/or the distribution owner. Provide a copy of any
Slide 75: Generation Site
Generation Site B7.9. Specify and describe the current or new interconnection facilities (lines, transformers, switching equipment, system control protection, etc.) that Bidder owns or is intending to construct or have constructed in order to deliver the proposed energy. B7.10. Provide the impact th
Slide 76: Generation Site
Generation Site B7.11. Attest that the generation site of the Shared Clean Energy Facility neither impacts, in whole or in part, Core Forest. B7.12. Provide a detailed explanation of all environmental impacts known or anticipated for the Shared Clean Energy Facility, including but not limited to the
Slide 77: Permit Acquisition Plan & Environmental Viability
Permit Acquisition Plan & Environmental Viability B8.1. Provide a viable plan to acquire all permits. Provide a list of all the permits, licenses, and environmental assessments required. If a Bidder has secured any permit or has applied for a permit, please identify in the response. i. Provide a lis
Slide 78: Permit Acquisition Plan & Environmental Viability
Permit Acquisition Plan & Environmental Viability B8.2. Provide the anticipated timeline for seeking and receiving the required permits, licenses, and environmental assessments and/or environmental impact statements and any documentation supporting such anticipated timeline. Include a project approv
Slide 79: Permit Acquisition Plan & Environmental Viability
Permit Acquisition Plan & Environmental Viability B8.3. Provide a preliminary environmental assessment of the site and project, including both construction and operation, as applicable. In addition, identify environmental impacts associated with the proposed project, any potential impediments to dev
Slide 80: Permit Acquisition Plan & Environmental Viability
Permit Acquisition Plan & Environmental Viability B8.4. Identify any existing, preliminary or pending claims or litigation, or matters before any federal agency or any state legislature or regulatory agency that might affect the feasibility of the project or the ability to obtain or retain the requi
Slide 81: Permit Acquisition Plan & Environmental Viability
Permit Acquisition Plan & Environmental Viability B8.6. Provide a description of the Eligible Project site and the surrounding area and interconnection route, including but not limited to a description of the local zoning, flood plain, topography, existing land use, and setting (e.g., woodlands, gra
Slide 82: Permit Acquisition Plan & Environmental Viability
Permit Acquisition Plan & Environmental Viability B8.7. Indicate how the Bidder intends to satisfy the Connecticut Siting Council requirements. Indicate whether the Bidder intends to go through the certificate process or declaratory ruling process and how the Bidder intends to get a representation i
Slide 83: Permit Acquisition Plan & Environmental Viability
Permit Acquisition Plan & Environmental Viability B8.9. Include a summary of any disputes relating to the environmental compliance of the Bidder (including any general and limited partners, officers, directors, managers, members, shareholders, and subsidiaries), including the environmental complianc
Slide 84: Project Viability
Project Viability B9.1. Provide a reasonable but preliminary engineering plan that identifies the type of generation technology, if applicable, and the major generation equipment to be used for each identified item of major generation equipment, include the following information: i. Manufacturer of
Slide 85: Project Viability
Project Viability B.9.2. Provide the following: i. Documentation identifying the level of public support for the project including letters from public officials, newspaper articles, etc. Include information on specific localized support and/or opposition to the project of which the Bidder is aware.
Slide 86: Questions and Answers
Questions and Answers P L EA SE U S E “ R A I SE HA N D” F U N C T I O N V I A G OTOW E BINA R 86
Eversource Energy — SCEF Program Year 2 Bidder's Conference (May 2021) on 6ix