Entergy Corporation · NYSE:ETR
Entergy — Technical Presentation (March 2014)
29 slides from Entergy's technical presentation, Mar 26, 2014
Slide 1: 2014 Request for Proposals For Capacity Credits
2014 Request for Proposals For Capacity Credits Technical Conference and Bidders’ Conference MARCH 26, 2014 1
Slide 2: Conference Introduction
Conference Introduction Questions – Please submit all questions in writing to the RFP Administrator either through email at esirfp@entergy.com or through the webcast chat function » Ensures that ESI has an accurate record of each question posed – During the conference participants may also submit
Slide 3: Agenda Items
Agenda Items Introductions Overview of 2014 Capacity Credit RFP – Representative Schedule – RFP Purpose and Planning Targets – Eligible Participants – Summary of Key Purchase Agreement Terms – Commercial Negotiations – Bidder Registration & Proposal Submission Process – RFP Process Safeguards
Slide 4: Introductions
Introductions ESI Presenters – April Phelps Project Manager – Andrew O’Brien Director, Asset Operations – Jaime Williamson RFP Administrator – Phong Nguyen Manager, Financial Analysis – Doug Adair Manager, Credit Additional Entergy Participants – Jason Bilbe Assistant General Counsel - Regulator
Slide 5: Overview of 2014 Capacity Credit RFP
Overview of 2014 Capacity Credit RFP 5
Slide 6: Representative Schedule, RFP Purpose and Planning Targets and Eligible Participants
Representative Schedule, RFP Purpose and Planning Targets and Eligible Participants (April Phelps) 6
Slide 7: Representative Schedule
Representative Schedule Target RFP Schedule* Milestone Date Draft RFP Documents Issued March 5, 2014 LPSC Technical and ESI Bidder’s Conference March 26, 2014 Comments to Draft Documents Due March 28, 2014 Final RFP Documents Issued April 9, 2014 Bidder Registration Period April 9 – 14, 20
Slide 8: RFP Purpose and Planning Targets
RFP Purpose and Planning Targets The RFP is intended to identify opportunities to purchase Capacity Credits (currently in the form of Zonal Resource Credits) for the Included Entergy Operating Companies1 The RFP aims to satisfy important planning objectives of the Included Entergy Operating Comp
Slide 9: Eligible Participants
Eligible Participants ESI invites proposals from all interested parties capable of meeting the conditions and requirements of the RFP Affiliates of Entergy Corporation, including Entergy Competitive Affiliates, are ineligible to participate in the RFP Eligible RFP participants – Other electric
Slide 10: Summary of Key Purchase Agreement Terms and Commercial Negotiations
Summary of Key Purchase Agreement Terms and Commercial Negotiations (Andrew O’Brien) 10
Slide 11: Summary of Key Purchase Agreement Terms
Summary of Key Purchase Agreement Terms Capacity Credit Term: ‒ Minimum Term is one Planning Year ‒ Maximum Term is five Planning Years ‒ Capacity Credits may be offered for one, more than one, or all of the Planning Years Contract Quantity ‒ Minimum Contract Quantity is 50 Capacity Credits ‒ Ma
Slide 12: Summary of Key Purchase Agreement Terms (Continued)
Summary of Key Purchase Agreement Terms (Continued) Pricing and Price Adjustments ‒ Each Capacity Credit will have an associated fixed price ($/MW-Planning Year) ‒ Price adjustments (both positive and negative) will be made if the Capacity Credit is sourced from a MISO Planning Resource not locate
Slide 13: Commercial Negotiations
Commercial Negotiations ESI will not negotiate any of the terms of the Purchase Agreement posted with the final RFP documents Because ESI does not intend to make any modifications to the Purchase Agreement (other than to account for the terms of a Bidder’s proposals), Bidders are urged to carefu
Slide 14: Bidder Registration, Proposal Submission and RFP Process Safeguards
Bidder Registration, Proposal Submission and RFP Process Safeguards (Jaime Williamson) 14
Slide 15: Bidder Registration & Proposal Submission Process
Bidder Registration & Proposal Submission Process Registration and Submission will utilize forms and templates posted to the 2014 Capacity Credit RFP Website, including: – Bidder Registration Form and Questionnaire – Proposal Submission Template – Proposal Submission Agreement All proposal-relat
Slide 16: Bidder Registration & Proposal Submission Process
Bidder Registration & Proposal Submission Process Bidder Registration Fees – $1,000 for each registered Bidder – Bidder invoiced within three business days after the end of the Bidder Registration Period – ESI must receive the Bidder Registration Fee for each Bidder no later than 5:00 p.m. CPT on
Slide 17: RFP Process Safeguards
RFP Process Safeguards Codes of conduct – Employees of ESI, any Entergy Operating Company, or any Entergy Competitive Affiliate must abide by applicable Affiliate Rules and Codes of Conduct – Links provided on the 2014 Capacity Credit RFP Website Additional protocols – Interactions between Evalu
Slide 18: Proposal Evaluation Process
Proposal Evaluation Process 18
Slide 19: Evaluation Overview and Economic Evaluation
Evaluation Overview and Economic Evaluation (Phong Nguyen) 19
Slide 20: Evaluation Overview
Evaluation Overview Primary Objective ‒ To select a proposal or proposals that meet the requirements of the RFP and the needs of the Included Entergy Operating Companies at the lowest reasonable cost, taking into account risk mitigation and other relevant factors The evaluation process is design
Slide 21: Economic Evaluation
Economic Evaluation The EET is responsible for the evaluation of the economics of proposals received in response to the RFP and the ranking of the proposals The EET may assess and factor into its evaluation any costs, risks and matters that the EET determines to be relevant to an estimate of the
Slide 22: Credit Review/Collateral Requirements
Credit Review/Collateral Requirements (Doug Adair) 22
Slide 23: Credit Evaluation Overview
Credit Evaluation Overview Following the Bidder Registration Process, the CET will begin its credit assessment for the RFP, using the information provided by Bidders in the Bidder Registration Form and Questionnaire The credit evaluation process seeks to assure that the credit quality of Bidder
Slide 24: Determination of Credit Support Requirements
Determination of Credit Support Requirements The CET will apply its own internal procedures to determine, for each conforming proposal submitted by Bidder, the CET Credit Rating of Seller (and, if applicable, its Credit Support Provider), including a credit analysis of financial statements utilizi
Slide 25: Credit Support Requirements General Guidance
Credit Support Requirements General Guidance Buyer’s anticipated maximum potential exposure to Seller can be generally estimated based on the table below Buyer’s Anticipated Maximum Potential Exposure $100,000 per Capacity Credit per Planning Year to Seller The CET’s determination of Seller’s in
Slide 26: Break
= = Entergy Break 26
Slide 27: Q&A Session
Q&A Session ESI requests that Bidders submit all questions in writing to the RFP Administrator at esirfp@entergy.com or through the webcast chat function. During today’s conference participants may also submit questions anonymously to the LPSC representative Ann Hill at Ann.Hill@LA.gov 27
Slide 28: Q&A Session
Q&A Session Participant Questions and/or Feedback Questions received during today’s conference will be posted to the RFP Website: https://spofossil.entergy.com/ENTRFP/SEND/2014CapacityRFP/Index.htm All RFP related questions following the conference must be emailed to the RFP Administrator by Mar
Slide 29: For Additional Information on MISO
For Additional Information on MISO MISO Website - https://www.misoenergy.org/Pages/Home.aspx MISO Markets and Operations Website - https://www.misoenergy.org/MARKETSOPERATIONS/Pages/MarketsOperations.aspx Becoming a Market Participant Website - https://www.misoenergy.org/StakeholderCenter/Mark