Eversource Energy (D/B/A) · NYSE:ES
Eversource Energy (D/B/A) — Eversource Energy — SCEF Program Year 1 Bidder's Conference (June 2020)
77 slides from Eversource Energy (D/B/A)'s conference presentation, Jun 4, 2020
Slide 1: Shared Clean Energy Facilities Program Year 1 Bidder's Conference
Shared Clean Energy Facilities Program (SCEF Program) Year 1 Bidder’s Conference JU N E 4 , 2 0 2 0
Slide 2: Today's Presenters
Today’s Presenters THE UNITED ILLUMINATING EVERSOURCE COMPANY (UI) Laura Perbeck Operations Manager, Renewable Programs Katerina Miller Lead Analyst, Power Procurement Aaron Dubauskas Senior Analyst, Customer Solar Programs CT DEPARTMENT OF ENERGY AND ENVIRONMENTAL PROTECTION Aditee Madkekar Office
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 First year projects selected Summer 2020 Program Customer enrollment begins Spring 2021 Timeline Projects first eligible to generate July 2021 Second yearly solicitation 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 Six-year competitive Section 7(a)(1)(c) of Public Act procurement program that will 18-50 signed on May 24, 2018 support up to 150 MW of new resulted in PURA Docket 19-07- clean power generation in 01 Connecticut SCEF projects will result in Subscriber Organizations will credits that will
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 1 RFP Schedule
Year 1 RFP Schedule Action Item Date Release of RFP April 30, 2020 Bidders Conference – Webinar Only On or About June 4, 2020 Deadline for Submission of Questions On or About June 6, 2020 Bid Forms Due July 13, 2020 by 1:00 p.m. (Eastern Prevailing Time “EPT”), at which time the Pricing shall become
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 eligible for the CT Class I Renewable Portfolio Standard Solicitation ▪ Selected based on bid prices and other criteria Process ▪ Projects have three years for construction ▪ Once generating,
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 •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 1 price cap is $160/MWh •Production-weighted average purchase price cannot exceed cap •Purchase prices may be the same each year
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 1 SCEF RFP
How to Submit a Bid in the Step 1 Year 1 SCEF RFP 20
Slide 21: 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 22: 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 23: UI Bid Form
UI Bid Form Available online - Year 1 RFP for SCEF •The Bid certification Form is under section - Year 1 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 a
Slide 24: 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 scef@eversource.com for account numbers. • UI - if sending ACH or Wire payment, please email S
Slide 25: 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 requirements
Slide 26: 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 27: 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 27
Slide 28: 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 29: Bid Attachments: Bid Price Calculation
Bid Attachments: Bid Price Calculation •Mandatory for Bidders choosing different Bid prices throughout the 20-year term • Eversource: Uploaded during Step 6/6 of the online Bid process, must select option during step 5 of the bid process (checkbox) • UI: Uploaded during the final step of the online
Slide 30: Selection Process
Selection Process ONLY Completed Bids Eligible bids will be ranked by Contracts will be awarded Eligible bids not selected will received will be reviewed to evaluated bid price subject to until MWs are exhausted be placed on standby ensure eligibility the two Bid Preferences Bid preferences determin
Slide 31: Step 2: How to Proceed if your Bid is Selected
How to Proceed if your Bid is Step 2 Selected 31
Slide 32: 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 33: Step 3: Post Execution Obligations
Post Execution Obligations: Step 3 How to get from Tariff Terms Agreement to Commercial Operation 33
Slide 34: 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 34
Slide 35: Step 4: Tariff Administration: The 20-Year Delivery Term
Tariff Administration: The 20- Step 4 Year Delivery Term 35
Slide 36: 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 37: 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 37
Slide 38: Program Contacts
Program Contacts EVERSOURCE: UNITED ILLUMINATING: SCEF@EVERSOURCE.COM SCEF@UINET.COM 38
Slide 39: Key Documents
Key Documents •Final Decision in Docket No. 19-07-01 •Year 1 RFP •DEEP Appendix B •Tariff Rider • Eversource • United Illuminating •Subscriber Organization Tariff Terms Agreement •Subscriber Organization Tariff Terms and Conditions 39
Slide 40: Key Documents – Eversource
Eversource SCEF Website Summary of Required Bidding Information Key Documents SCEF Bid Certification Form – Eversource SCEF Carbon Neutrality Form SCEF CT Licensed Professional Engineer (PE) Certification SCEF Bid Price Calculation 40
Slide 41: Key Documents – UI
United Illuminating SCEF Website UI SCEF Bid Form Instructions Key Documents Year 1 Bid Certification Form (Required for Bid Submission) – UI Carbon Neutrality Certification Year 1 RFP for SCEF SCEF Bid Price Calculation 41
Slide 42: Connecticut Department of Energy and Environmental Protection
Connecticut Department of Energy and Environmental Protection
Slide 43: SCEF RFP Bidder's Webinar
SCEF RFP Bidder’s Webinar Docket No. 19-07-01 June 4, 2020 Connecticut Department of Energy and Environmental Protection
Slide 44: Disclaimer
Disclaimer No verbal representations preempt or otherwise alter what is in Appendix B Connecticut Department of Energy and Environmental Protection
Slide 45: Appendix B Submission to DEEP
Appendix B Submission to DEEP Department of Energy and Environmental Protection (DEEP) requires: • Veracity of Statements affidavit • Responses to all questions in Appendix B Submit to DEEP.EnergyBureau@ct.gov on or before the bid due date Connecticut Department of Energy and Environmental Protectio
Slide 46: Veracity of Statement Affidavit
Veracity of Statement Affidavit Connecticut Department of Energy and Environmental Protection
Slide 47: Appendix B Requirements
Appendix B Requirements Section B1 – Financial Experience o Financing plan o Federal Incentive Tax Section B2 – Project Management Experience o Successful development of similar projects Section B3 – Operational Parameters o Maintenance outage o Operating constraints Section B4 – Energy Resource Pla
Slide 48: Appendix B Requirements
Appendix B Requirements Section B6 – Generation Site o Site plan with map of proposed SCEF location Section B7 – Permit Acquisition Plan and Environmental Viability o Plan to acquire all permits o Preliminary environmental assessment of the site and project Section B8 – Project Viability o Prelimina
Slide 49: Appendix
Appendix Connecticut Department of Energy and Environmental Protection
Slide 50: Financial Experience
Financial Experience B1.1 Financing plan for the project with Construction and term financing o Who is financing and how it will be financed o Projected financial structure o Expected sources of debt and equity financing o Estimated construction costs o Projected capital structure o Agreements for e
Slide 51: Financial Experience
Financial Experience B1.2. List of projects developed or currently under construction o Project name and location o Project type and size o Date of construction and permanent financing o Form and amount of debt and equity financing B1.3. Ability to provide the required security, including plan to do
Slide 52: Financial Experience
Financial Experience B1.5. Federal Production Tax Credit or Investment Tax Credit (or other incentives) for financing of the project B1.6. Past or current litigation or disputes related to projects developed, owned or managed by the bidder B1.7. Bidder and all affiliated entities and joint ventures
Slide 53: Financial Experience
Financial Experience B1.8. In the past five years, has bidder or any affiliate: o consented to the appointment of, or was taken in possession by, a receiver, trustee, custodian or liquidator of a substantial part of its assets o filed a bankruptcy petition in any bankruptcy court proceeding o answer
Slide 54: Financial Experience
Financial Experience B1.9. Litigation, disputes, claims or complaints against DEEP or the state B1.10. Litigation, disputes, claims or complaints, or events of default or other failure to satisfy contract obligations, or failure to deliver products relating to the purchase or sale of energy, capacit
Slide 55: Financial Experience
Financial Experience B1.11. Not currently under investigation by any governmental agency, and not convicted or found liable in the last four years by State or Federal law in any jurisdiction involving conspiracy, collusion or other impropriety with respect to bidding on any contract, or have been th
Slide 56: Project Management Experience
Project Management Experience B2.1. Experience in developing, financing, owning, and operating generating or transmission facilities (as applicable), other projects of similar type, size, and technology, and any evidence that the project participants have worked jointly on other projects Connecticut
Slide 57: Project Management Experience
Project Management Experience B2.2. List of projects successfully developed or currently under construction o Location of the project o Project type, size, and technology o Commercial operation date o Estimated and actual capacity factor of the project for the past three years o Availability factor
Slide 58: Project Management Experience
Project Management Experience B2.3. Identify and describe the entity o Construction Period Lender o Operating Period Lender and/or Tax Equity Provider o Financial Advisor o Environmental Consultant o Facility Operator and Manager o Owner’s Engineer o EPC Contractor (if selected) o Transmission, Dist
Slide 59: Operational Parameters
Operational Parameters B3.1. Maintenance Outage Requirements B3.2. Operating Constraints B3.3. Expansion, repowering, environmental investment or other modification of an existing facility o Total cost and cost on a $/kW basis for the existing project and the proposed expansion, repowering or other
Slide 60: Energy Resource Plan
Energy Resource Plan B4.1. Solar o Trends in generation capability over time o Methodology for projected generation o Describe expertise used for the generation estimates B4.2. Hydropower o Monthly water flow and head, seasonal variations assumptions, and conversion of flow into MW and MWh o Monthly
Slide 61: Energy Resource Plan
Energy Resource Plan B4.3. Fuel Cell o Procurement of natural gas – firm or non-firm delivery o Supporting data for the expected generation with the need for restacking Connecticut Department of Energy and Environmental Protection
Slide 62: Operation and Maintenance
Operation and Maintenance B5.1. O&M plan that demonstrates the long-term operational viability of the proposed project o Staffing levels o Project sponsor or outside contractor o Scheduling of major maintenance activity o Plan for testing equipment B5.2. Proposed O&M funding mechanism and funding le
Slide 63: Operation and Maintenance
Operation and Maintenance B5.3. Status of O&M agreements or contracts o Plan for securing a medium-term or long-term O&M contract, including the expected provider of O&M services B5.4. Bidder’s experience with O&M services for other similar projects Connecticut Department of Energy and Environmental
Slide 64: Generation Site
Generation Site B6.1. Site plan with a map of the site o Location of the SCEF site o Assumed right-of-way width o Total acreage for the SCEF o Anticipated interconnection point o Relationship of the site to other local infrastructure, including transmission and/or distribution facilities, roadways,
Slide 65: Generation Site
Generation Site B6.2. Documentation of the right to use the site, interconnection route, and any rights of way needed for interconnection o Use of site for the proposed term of the approved RFP o Detail the rights to control the SCEF site o Identify any real property rights (e.g., fee-owned parcels,
Slide 66: Generation Site
Generation Site B6.3. SCEF site and interconnection route are properly zoned or permitted B6.4. Description of the local zoning, flood plain information, existing land use and setting (woodlands, grasslands, agriculture, other) B6.5. Map of the proposed interconnection with the path from the generat
Slide 67: Generation Site
Generation Site B6.6. Planned interconnection to the grid by way of a valid interconnection request to the EDC and/or ISO-NE B6.7. Electrical system performance and the impact on the reliability of the utility’s distribution system through interconnection studies with ISO-NE, the transmission owner
Slide 68: Generation Site
Generation Site B6.8. Electrical one-line diagram showing the interconnection facilities and the relevant facilities of the distribution and/or transmission providers B6.9. Current or new interconnection facilities (lines, transformers, switching equipment, system control protection, etc.) to delive
Slide 69: Generation Site
Generation Site B6.12. All environmental impacts, including but not limited to the impact on any endangered, threatened and special concern species and significant natural communities based on the Natural Diversity Data Base Connecticut Department of Energy and Environmental Protection
Slide 70: Permit Acquisition Plan & Environmental Viability
Permit Acquisition Plan & Environmental Viability B7.1. All planned and secured permits, licenses, and environmental assessments and/or environmental impact statements o A list of all federal, state, and local permits, licenses, and environmental assessments and/or environmental impact statements re
Slide 71: Permit Acquisition Plan & Environmental Viability
Permit Acquisition Plan & Environmental Viability B7.3. Preliminary environmental assessment of the site and project, including both construction and operation, and any re-use of a previously disturbed site, such as landfills or brownfields o Impacts to water resources o Transportation infrastructur
Slide 72: Permit Acquisition Plan & Environmental Viability
Permit Acquisition Plan & Environmental Viability B7.4. Existing, preliminary or pending claims or litigation, or matters before any federal agency or any state legislature or regulatory agency B7.5. Site plan with a scale map of the site including the assumed right-of-way width, the total acreage f
Slide 73: Permit Acquisition Plan & Environmental Viability
Permit Acquisition Plan & Environmental Viability B7.7. Satisfy the Connecticut Siting Council requirements through the certificate process or declaratory ruling process, including representation in writing from the Department of Agriculture and DEEP B7.8. Environmental compliance history summary fo
Slide 74: Permit Acquisition Plan & Environmental Viability
Permit Acquisition Plan & Environmental Viability B7.9. Summary of disputes relating to the environmental compliance of the bidder, general and limited partners, officers, directors, managers, members, shareholders, and subsidiaries and the environmental compliance of projects owned or managed in th
Slide 75: Permit Acquisition Plan & Environmental Viability
Permit Acquisition Plan & Environmental Viability B7.10. Relevant experience and expertise to successfully develop, finance, construct, operate and maintain its project o Successful development and construction of a similar type of project o Successful development and construction of one or more pro
Slide 76: Project Viability
Project Viability B8.1. Preliminary engineering plan o Generation technology o Major equipment o Manufacturer of the equipment o Status of acquisition of the equipment o Contract for the equipment or plan for securing equipment and the status of pertinent commercial arrangements o Equipment vendors
Slide 77: Project Viability
Project Viability B8.2. List of the key equipment suppliers under consideration if no generation equipment is selected B8.3. Secured equipment for the project or identification of long-lead equipment options and timing for securing equipment B8.4. Documentation of public support for the project incl
Eversource Energy — SCEF Program Year 1 Bidder's Conference (June 2020) on 6ix