Entergy Corporation · NYSE:ETR
Entergy — 2010 Renewable RFP ESI's Bidders' Conference
49 slides from Entergy's conference presentation, Aug 18, 2010
Slide 1: 2010 Renewable RFP ESI's Bidders' Conference
2010 Renewable RFP ESI’s Bidders’ Conference ENTERGY SERVICES, INC. August 18, 2010 This presentation summarizes certain matters related to ESI’s 2010 Renewable Generation Resource Request for Proposals (as it may be amended or modified, the “2010 Renewable RFP”). For the full terms and conditions p
Slide 2: Agenda Items
Agenda Items Introductions Entergy Corporation Overview of the 2010 Renewable RFP Development Basis, Key Objectives and Product Solicitation Overview Credit/Collateral Requirements Representative Schedule and Process Safeguards/Design Proposal Evaluation Process Overall Evaluation Process Economic E
Slide 3: Introductions
Introductions Entergy Services, Inc. Drew Marsh Vice President, System Planning Andrew Owens Director, Regulatory Affairs Stuart Barrett Director, Commercial Operations Tony Walz Director, Supply Planning & Analysis Lee Kellough Director, Power Delivery & Technical Services Jon Long Vice President,
Slide 4: Renewable Energy and Entergy Services, Inc.
Renewable Energy and Entergy Services, Inc. Andrew Owens 4
Slide 5: Background on Entergy Corporation
Background on Entergy Corporation Employs 15,000 people Fortune 500 company with 2009 revenues of $10+ billion Owns and operates power plants with 30,000 MW of generating capacity Second-largest nuclear generation operator in the U.S. Six regulated utilities with 2.7 million customers in Arkansas, L
Slide 6: Demonstrating Corporate Leadership
Demonstrating Corporate Leadership Industry Leadership Storm Restoration Leadership t on lis year th 10 tility er y Top U E v e ption inc since Award of Excellence Emergency Awards: Extraordinary – 2000, 2001, 2003, 2004, 2005, 2006, 2007, Track Record of Standout 2008, 2009 (Assistance) Performance
Slide 7: Striving to be the Cleanest Power Generator in America
Striving to be the Cleanest Power Generator in America Entergy is the second-cleanest utility generator among the top 10 U.S. generators, due largely to our portfolio of clean nuclear and natural gas generation resources Entergy aspires to be the cleanest power generator in America by conducting our
Slide 8: Benchmarking Air Emissions: Largest Power Producers in the U.S.
Benchmarking Air Emissions: 100 Largest Power Producers in the U.S. Lbs/MWh from all generating sources SO 2 Lbs/MWh from all generating sources NO x 4 .5 18.0 4 .0 16.0 3 .5 14.0 3 .0 12.0 2 .5 10.0 2 .0 8.0 6.0 1 .5 y rg te 4.0 1 .0 En y rg te 2.0 0 .5 En - - Lbs/GWh from all generating sources Hg
Slide 9: Welcome: 2010 Request for Proposals for Renewable Generation Resources
WELCOME 2010 Request for Proposals for Renewable Generation Resources 9
Slide 10: Development Basis, Key Objectives/Overview and Product Package Overview
Development Basis, Key Objectives/Overview and Product Package Overview Stuart Barrett 10
Slide 11: Development Basis
Development Basis LPSC Renewable Energy Pilot Program Reviewed LPSC research findings Reviewed and provided feedback to pilot program development documents Market Research Reviewed Request For Proposals (RFPs) from more than 10 other companies across the United States Engaged an outside consultant r
Slide 12: Key Objectives
Key Objectives To procure the lowest reasonable cost, reliable and viable renewable generation resources to meet Entergy’s overall goal of portfolio transformation and fuel diversification, as well as the LPSC Renewable Energy Pilot Program LPSC has ultimate authority to approve/disapprove a utility
Slide 13: Eligible Resources for the RFP
Eligible Resources for the RFP New Generation (as defined by the LPSC) Resources must be located within the state of Louisiana Technologies (subject to change/pending LPSC definitions) Biologically derived methane gas (including landfill gas) Biomass energy Black Liquor Combined Heat and Power (“CHP
Slide 14: Overview of ESI RFP
Overview of ESI RFP Participation The 2010 Renewable RFP will be on behalf of the following Entergy Operating Companies Entergy Gulf States Louisiana, L.L.C. (“EGSL”) Entergy Louisiana, LLC (“ELL”) No Entergy competitive affiliate or self build, self-supply participation allowed Capacity (based on L
Slide 15: Baseload Product (Product Package A)
Baseload Product (Product Package A)* Products and Technologies Baseload long-term energy, capacity and ancillary services intended to operate on a 7x24 basis (see product terms for specifics) Technologies expected to submit a proposal for the Baseload product include: CHP based on non-fossil fueled
Slide 16: Baseload Product (Product Package A)
Baseload Product (Product Package A)* Pricing Capacity Price (i.e. Option Premium) ($/kW-year) Base Option Premium with an Escalator (PPI/CPI) or Fixed Option Premium (specified annually) Energy Price ($/MWh) Fixed Energy Price (specified annually) or Fixed Heat Rate multiplied by the Fuel Price: Fu
Slide 17: As-Available (Product Package B)
As-Available (Product Package B)* Products and Technologies Intermittent energy and capacity not directly amenable to scheduling or controllable by the resource Technologies expected to submit a proposal for the As-Available product include: Wind Solar Other technologies that ESI determines to quali
Slide 18: As-Available (Product Package B)
As-Available (Product Package B)* Pricing (Annually) Summer On-Peak Energy Price ($/MWh) June, July, August, and Sept. (excluding NERC Holidays) Monday through Friday, hour ending 7-22 Non-Summer On-Peak Energy Price ($/MWh) January, February, March, April, May, Oct., Nov., and Dec. (excluding NERC
Slide 19: Additional Considerations
Additional Considerations Contract Terms and Conditions ESI will not post Model Contracts ESI will use the term sheets to the RFP as the basis for negotiation Bidders should take the terms and conditions specified in the applicable term sheet into consideration in the pricing of their proposals The
Slide 20: Credit/Collateral Requirements
Credit/Collateral Requirements Pam Meaux 20
Slide 21: Credit Requirements and Collateral Timeline
Credit Requirements and Collateral Timeline No Bidder will be excluded or prohibited from participating in this RFP on the basis of credit There are no credit requirements at time of proposal submission or proposal awards Letter of Credit (“LOC”) at execution of a Letter of Intent (“LOI”) between ES
Slide 22: Credit Review
Credit Review Bidder Credit Rating (or Bidder’s Credit Support Provider’s Credit Rating) will be assigned by the Credit Evaluation Team (“CET”) for all proposals, when proposals are received, based on, among other things: S&P and Moody’s ratings 10K/10Q/8K evaluation Balance sheet and income stateme
Slide 23: Representative Schedule and Process Safeguards
Representative Schedule and Process Safeguards Antonette Harvey 23
Slide 24: Proposed Schedule
Proposed Schedule* Milestone Date Issue full set of RFP documents On or about Sep 29, 2010 Respond and Post Q&A to Website Through Oct 11, 2010 Bidder Registration Oct 18 – 21, 2010 Proposal Fees Due Nov 5, 2010 Non-refundable $5,000 Proposal Submission Period Nov 8 - 11, 2010 Announce Preliminary S
Slide 25: Process Safeguards and Design
Process Safeguards and Design Code of Conduct Employees of ESI, any Entergy Operating Company, or any Entergy Competitive Affiliate, must adhere to the appropriate Affiliate Rules and Codes of Conduct as applicable Link provided on ESI RFP Website FERC 717 (effective November 26, 2008) In light of a
Slide 26: Process Safeguards and Design (continued)
Process Safeguards and Design (continued) RFP Process Design and Implementation The RFP process has been designed to assure fair and impartial treatment of all Bidders ESI personnel involved with the 2010 Renewable RFP evaluation process will be subject to a confidentiality agreement that governs ac
Slide 27: Proposal Evaluation Process
Proposal Evaluation Process Antonette Harvey 27
Slide 28: Proposal Evaluation Process Objective
Proposal Evaluation Process Objective Identify the proposal(s) that achieve the planning objectives of reliability, cost, and risk mitigation in a balanced manner The planning objectives are achieved through proposals that, among other things: Result in reasonable System production costs that are re
Slide 29: Proposal Evaluation Process Controls
Proposal Evaluation Process Controls ILLUSTRATIVE Prior to submitting proposals, Bidders will receive sufficient information to allow it to understand the evaluation factors and general decision criteria. However, ESI’s detailed inputs and evaluation scenarios will be considered confidential and hig
Slide 30: Proposal Evaluation Process Controls
Proposal Evaluation Process Controls ILLUSTRATIVE A multi-stage evaluation process (3 Phases) will be used to evaluate proposals Phase I – Information received by each Evaluation Team will be limited to information required to determine if proposals meet the RFP minimum threshold requirements Phase
Slide 31: Proposal Evaluation Process Flow
Proposal Evaluation Process Flow ILLUSTRATIVE 31
Slide 32: Economic Evaluation Team (EET)
Economic Evaluation Team (EET) Tony Walz 32
Slide 33: 2010 Renewable RFP – Proposal Economic Evaluation
2010 Renewable RFP – Proposal Economic Evaluation ILLUSTRATIVE The evaluation will identify proposals that meet the requirements of the LPSC pilot program at Baseload Product As-Available Product the lowest reasonable cost while considering reliability and risk mitigation Capacity Payment All-in ene
Slide 34: Delivery Assessment Team (DAT)
Delivery Assessment Team ( DAT) who Lee Kellough 34
Slide 35: Proposal Deliverability Evaluation Process
Proposal Deliverability Evaluation Process ILLUSTRATIVE Entergy’s Delivery Assessment Team (DAT) will perform the Deliverability Evaluation DAT will simulate the ICT’s formal System Impact Study process and utilize the Distribution Standard to evaluate the distribution system impact DAT will also si
Slide 36: RFP Proposal: Threshold Requirements – Interconnection/Delivery
RFP Proposal: Threshold Requirements* Interconnection/Delivery ILLUSTRATIVE Bidders must file a complete Large Generator Interconnection Procedures (LGIP), Small Generator Interconnection Procedures (SGIP), or Entergy’s “Connecting Small Electric Generators to the Entergy Distribution System” Standa
Slide 37: Deliverability Analysis
Deliverability Analysis ILLUSTRATIVE Evaluation of Developmental Resources Deliverability: proposal evaluations will include interconnection cost estimates for resources, along with cost estimates for transmission upgrades required to obtain network resource status Interconnection-related informatio
Slide 38: Special Considerations for Developmental Resources
Special Considerations for Developmental Resources ILLUSTRATIVE Interconnection Considerations Bidder assumes all electric interconnection risks for the resource, including interconnection costs (including system upgrades necessary to support the interconnection facility); if the resource is interco
Slide 39: Viability Analysis Team (VAT)
Viability Analysis Team (VAT) Jon Long 39
Slide 40: Viability Assessment Overview
Viability Assessment Overview ILLUSTRATIVE The Viability Assessment Team (“VAT”) has been established to determine the overall viability of proposals for existing and developmental resources received in response to the RFP The VAT will consist of Subject Matter Experts from 4 core subject matters cr
Slide 41: RFP Proposal: Threshold Requirements – Viability
RFP Proposal: Threshold Requirements* Viability ILLUSTRATIVE Viability Proposals will be evaluated to identify potential project risks (e.g. performance, permitting, financing, construction, execution, operational, environmental, fuel, legal, commercial, etc.) Buyer will have the discretion to rejec
Slide 42: RFP Proposal: Threshold Requirements – Viability (continued)
RFP Proposal: Threshold Requirements* Viability (continued) ILLUSTRATIVE Viability Project Development Bidder must provide evidence that it has translated the project from the screening and planning phase of development that led to a design basis into a project definition of sufficient detail and qu
Slide 43: RFP Proposal: Threshold Requirements – Viability (continued)
RFP Proposal: Threshold Requirements* Viability (continued) ILLUSTRATIVE Viability (continued) Production Profile and Fuel Supply Bidders must provide verifiable profile data to substantiate expected production levels and the adequacy of fuel supply For wind, solar, hydro, or other similar as-availa
Slide 44: Bidder Registration, Proposal Submission Process and Web Portal Overview
Bidder Registration, Proposal Submission Process and Web Portal Overview April Phelps 44
Slide 45: Bidder Registration & Proposal Submission
Bidder Registration & Proposal Submission For the 2010 Renewable RFP, ESI will utilize a secure, electronic Web Portal ESI will require all Bidders to utilize the RFP Web Portal to complete the Bidder Registration and Proposal Submission Process The benefits of this process include: Consistent data
Slide 46: Bidder Registration & Proposal Submission
Bidder Registration & Proposal Submission PHASE 1 ILLUSTRATIVE Prior to October 18, Bidder registers to Summary of Bidder reviews and gathers 2010, Bidder should access RFP Web registration information detailed in RFP review RFP documents Portal and log in to and appendices for information documents
Slide 47: Web Portal Overview
Web Portal Overview 47
Slide 48: Q&A Session
Q&A Session ESI requests that Bidders submit all questions in writing to the RFP Administrator at [email protected] 48
Slide 49: Participant Questions and/or Feedback
Participant Questions and/or Feedback ESI will accept written questions/feedback about the RFP or term sheets from market participants and other interested parties. Questions must be emailed to the RFP Administrator by October 11, 2010 at [email protected]. In addition, questions received dur
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