Entergy Corporation · NYSE:ETR
Entergy — ELL 3 GW Solar RFP Bidders Conference (September 2024)
30 slides from Entergy's conference presentation, Sep 5, 2024
Slide 1: Entergy Louisiana 3 GW Solar PV RFP Bidders Conference
Entergy Louisiana, LLC 3 GW Alternative Market-Based Mechanism Process Request for Proposals for Solar Photovoltaic Resources Bidders Conference September 5, 2024 1
Slide 2: Introduction
Introduction Purpose of the Conference • To give participants an overview of the Entergy Louisiana, LLC ("ELL") 3 GW Alternative Market-Based Mechanism Process Request for Proposals ("RFP") for Solar Photovoltaic Resources (“ELL 3 GW Solar RFP”) and related processes pursuant to LPSC Order No. U-366
Slide 3: Agenda
Agenda Introductions RFP Scope Summary Procurement Windows & Schedule RFP Process & Evaluations Process Safeguards Q&A Session 3
Slide 4: Additional Entergy Participants
Additional Entergy Participants Entergy Presenters Harry Barton ESL Counsel Tiedra Lewis RFP Administration Team James Miller ESL Counsel Matt Neyland Viability Assessment Team Laura Beauchamp ELL Resource Planning Allie Henson Economic Evaluation Team Shawn Allen ELL Resource Planning Michael Krupa
Slide 5: RFP Scope Summary, Schedule & Process
RFP Scope Summary, Schedule & Process 5
Slide 6: RFP Scope Summary
RFP Scope Summary Scope Item RFP Scope Description Resource Types Must be a Solar PV resource and otherwise be an Eligible Resource (Main Body Sections 1.10, 2.4) Transaction Types BOT transactions and PPA transactions; may also propose a PPA that includes buyer purchase options during and/or at the
Slide 7: Procurement Windows & Schedule
Procurement Windows & Schedule Milestone Procurement Window 1 Procurement Window 2 Procurement Window 3 Procurement Window 4 Bidder Registration September 12, 2024 to March 13, 2025 to September 11, 2025 to March 12, 2026 to Period* September 17, 2024 March 18, 2025 September 16, 2025 March 17, 2026
Slide 8: Bidder Communications
Bidder Communications o Prior to Bidder Registration • Communications via ellrfp@entergy.com • Forms available on the ELL 3 GW Solar RFP Website o Proposal Submission Onward • Communications via PowerAdvocate • Include Bidder, Resource and Proposal ID(s) assigned during bidder registration • Proposa
Slide 9: Bidder Registration
Bidder Registration o Each Procurement Window will have its own Bidder Registration Period o Complete the bidder registration process, including the forms below, for each Procurement Window during which you as the bidder intend to submit a proposal • Bidder Registration Agreement • Bidder Registrati
Slide 10: Proposal Submission Fees
Proposal Submission Fees o $5,000 for each registered proposal • Includes one solar proposal and, if desired, one solar + BESS option • Each additional BESS option for the same proposal will be billed an incremental $1,000 fee • Example: 15-year, 50 MW PPA proposal with one BESS option = $5,000; 15-
Slide 11: Redactions & Initial Threshold Determination
Redactions & Initial Threshold Determination o Purpose • Ensure evaluation teams receive information relevant to their respective areas • Bid price is removed from the information provided to the Viability Assessment Team and the Transmission Evaluation Team (other than specified pricing approved by
Slide 12: Evaluation Process
Evaluation Process o Process is designed to be fair, impartial, and consistently applied. • An overview of evaluation factors and general decision criteria can be found in Main Body Section 5. • Detailed inputs and evaluation scenarios are considered confidential and highly proprietary and will not
Slide 13: Selections
Selections o ELL will seek to make Selections in each Procurement Window • No MW limit per Procurement Window • Bidder(s) with a proposal on the selection list will be invited to negotiate a definitive agreement • Inclusion on selection list is not acceptance of proposal or related contract terms •
Slide 14: Commercial Terms & Viability Assessment
Commercial Terms & Viability Assessment Matt Neyland 14
Slide 15: Commercial Terms Overview
Commercial Terms Overview o All Proposals • Bidders must include any proposed exceptions to the model contracts in their proposal package • ELL is under no obligation to agree to any exception; significant requested changes could affect viability ratings or eligibility for continued RFP participatio
Slide 16: BOT Commercial Terms Overview
BOT Commercial Terms Overview • Bidders are required to provide an all-in purchase (expressed as a single fixed price) Purchase Price • The purchase price will be payable by Buyer to Seller at three major milestones: Closing, Substantial Completion, and Final Completion • Seller will be required to
Slide 17: PPA Commercial Terms Overview
PPA Commercial Terms Overview • Energy rate (expressed in $/MWh), which will be either fixed for the entire Delivery Term or defined annually (as proposed by Bidder) PPA Pricing • Pricing must reflect an “all-in” energy price (including all related fees and expenses) Delivery Term • Delivery Term ma
Slide 18: Viability Assessment
Viability Assessment o The VAT analysis will include a detailed review of non-price attributes of each proposal to assess the risk of key aspects of individual projects in a pre-defined scorecard, leading to a viability rating for each proposal o The review will be based on Bidder-provided informati
Slide 19: Economic Evaluation
Economic Evaluation Allie Henson 19
Slide 20: Economic Evaluation
Economic Evaluation o The EET will identify proposals that have economic terms that are consistent with the LPSC- approved economic evaluation parameters in Order No. U-36697 o The evaluation will include screening of the following components, as they apply to the proposal being assessed BOTs and Se
Slide 21: Transmission Evaluation
Transmission Evaluation Michael Krupa 21
Slide 22: Transmission Evaluation
Transmission Evaluation o The objectives of the TET evaluations are to: • Ensure that the addition of a resource will maintain (or enhance) the reliability of the transmission system • Identify any upgrades needed to maintain reliability • Assess the costs of all transmission infrastructure-related
Slide 23: Transmission Evaluation
Transmission Evaluation o Bidders will bear the responsibility for all upgrades and costs to secure full deliverability • Confirm that the resource has ERIS and either NRIS or NITS • Alternatively, confirm that the resource has ERIS without either NRIS or NITS • ERIS-only option is not preferred by
Slide 24: Accounting Evaluation
Accounting Evaluation David Batten 24
Slide 25: Accounting Evaluation
Accounting Evaluation o Review each proposal to determine the accounting treatment and impact. The accounting review specifically addresses, but is not limited to, the following areas • Lease accounting guidance • Variable Interest Entity (VIE) guidance • Derivative guidance o As specified in the RF
Slide 26: Credit Evaluation
Credit Evaluation Laura Hamner 26
Slide 27: Credit Evaluation
Credit Evaluation o The CET will evaluate Bidder credit and other credit-related matters o Individual proposals will be evaluated to determine the amount of liquid credit support required at various milestones to mitigate ELL’s potential exposure o Bidders will be assigned a credit rating by the CET
Slide 28: Process Safeguards
Process Safeguards Tiedra Lewis 28
Slide 29: Process Safeguards
Process Safeguards o Code of Conduct • All employees of ESL, any Entergy Operating Company, or any Entergy Competitive Affiliate must adhere to the applicable Affiliate Rules and Codes of Conduct • Links are provided on the ELL 3 GW RFP website o Additional Protocols • Each ELL 3 GW RFP Evaluation T
Slide 30: Q&A Session
Q&A Session Submit questions to the Bid Event Coordinator at ellrfp@entergy.com. Questions may be submitted anonymously by emailing LPSC Staff Arvind Viswanathan at Arvind.Viswanathan@LA.GOV. 30
Entergy — ELL 3 GW Solar RFP Bidders Conference (September 2024) on 6ix