Q2) I am writing in regards to
Duke Energy
Ohio
’s recent RFP for Peaking/Intermediate Power Supply resources. Specifically, I am
interested to learn whether Duke would consider dispatchable demand response resources
under this RFP.
A2) A separate RFP for Renewables Resources has been issued
to address the renewable aspects of Ohio Senate Bill 221, therefore this RFP is
focused on traditional supply side resources. (page 1, 3rd paragraph)
Information for the Duke Energy Ohio Renewable RFP can be found at:
http://www.duke-energy.com/environment/ohio-rfp.asp
Q3) Is bid security required? If so, how much or how is it
to be calculated?
A3) No bid security is required initially, but could be
revisited during short list negotiations.
Q4) Will
this customer entertain a bid for 5 - 10 years instead of life of the unit or 30
years?
A4) No.
Proposals must be for the life of the asset or at least 30 years.
Q5) Is this solely a physical asset RFP or are market purchases
allowed?
A5) This RFP is solely for physical assets.
Q6) Will hydropower be eligible under the new traditional
supply RFP?
A6)
Duke Energy
Ohio
currently has two RFPs underway. One
is this Supply Side RFP, and the other is a Renewable Energy RFP.
Ohio Senate Bill 221 specifically defines hydroelectric resources as renewable
energy resources, therefore they would clearly be considered in the Renewable Energy
RFP. The original intention of this
Supply Side RFP is for peaking and intermediate resources that are outside the Renewable
Energy RFP.
Even though
the intent of the Supply Side RFP is for resources outside the Renewable Energy
RFP, the Supply Side RFP has no verbiage that prevents a hydropower resource from
bidding, as long at it is peaking or intermediate and meets the other required criteria
as outlined in the RFP.
For reference, the Renewable
Energy RFP may be found at:
http://www.duke-energy.com/environment/ohio-rfp.asp
Q7) The first "Whereas" sentence in the Certification and Indemnity Agreement appears to be a carryover from the renewable energy RFP. Will you be sending out a corrected Exhibit for review?
A7) Yes. The Revised Exhibit C can be found at
http://dukeenergyohiorfp.com/download.aspx
Q8) Will Duke consider proposals that begin in the year 2013?
A8) Duke will not consider proposals that begin in 2013 during this RFP, but could consider them in future RFP's.
Q9) Can we offer two units out of four units or do you require the entire facility?
A9) You can offer two units, but explain the dispatch rights. You must also still meet the minimum requirement of 50 MW.
Q10) Will Duke consider proposals that start can start on December 1, 2012?
A10) Yes. That is within the 2009 to 2012 timeframe.
Q11) Could you please expand on what is meant in 3.5.1 of the RFP by, “No special pricing terms or conditions shall be permitted.”
A11) This simply means the prices should be clearly defined as fixed, or tied to a widely publicized index. All proposals shall provide a fixed or indexed price for the capacity and energy for all of their proposed term. Prices must include the cost for all losses, congestion costs, ancillary services, transmission delivery fees, MISO or other associated fees, taxes, duties, and any other costs associated with the furnishing of the capacity and associated energy to the proposed DUKE ENERGY Delivery Point.
Q12) Could you please clarify why ancillary services are included in section 3.5.1 of the RFP and not included in section 4.2.2.1 of the RFP?
A12) “Ancillary services costs” should also have been included in Section 4.2.2.1. It is expected that the capacity price should include all losses, congestion costs, ancillary services, transmission delivery fees. MISO or other associated fees, taxes, duties, and any other costs associated with the furnishing of the capacity and associated energy to the proposed DUKE ENERGY Delivery Point.
Q13) If I have a plant that only has 10 years remaining life must this be an ownership offer or can I offer it as a PPA for the 10 years?
A13) If the presented proposal is for less than 30 years, but represents the remaining life of the asset, then a PPA is acceptable.
Q14) Are you accepting changes to Exhibit C or does it have to be signed the way you have it posted?
A14) Minor changes that do not materially affect the intent will be considered.
Q15) In reading through the RFP coal is mentioned as a source fuel, does this mean that offers for baseload coal units will be explored?
A15) This RFP is only intended for peaking and intermediate resources.
Q16) What are the determinants that Duke Ohio will use to evaluate the electric transmission feasibility of transmitting power from one area of MISO in Ohio to the CIN.CGE commercial pricing node? For example, does Duke Ohio want to pay for firm point to point transmission in order to purchase power from a peaking power plant or is non firm MISO network transmission adequate?
A16) Bidder must be able to demonstrate compliance of (i) the ability of the Capacity Source to satisfy the definition of Generation Resource; as such term is defined in the MISO TEMT and MISO Business Rules, and (ii) the MISO market deliverability test.
Q17) It is clear that for new resources exhibits E-G are being requested as stated in 4.2.1.1, though for existing resources, are you requesting Exhibit G information be provided as stated in 4.1 Technical Information?
A17) No, Exhibit G is only intended for new resources.