ADDENDUM NO. 1 REQUEST FOR PROPOSALS NO ENERGY SUPPLY AND RELATED SERVICES ANSWERS TO QUESTIONS

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1 ADDENDUM NO. 1 REQUEST FOR PROPOSALS NO ENERGY SUPPLY AND RELATED SERVICES ANSWERS TO QUESTIONS The following are answers to questions submitted by a potential proposer: 1. How many members are buying RECs today, via Region One or other sources? None through Region One at this time, other sources are unknown. 2. What is the anticipated amount of RECs requirements for the pool? 3. Do the RECs have to be for any particular time period? No. The RECs can be spread across each month of the year or retired all in one year. 4. What type of REC energy sources are allowed? All types of sources are allowed. 5. Please list the type of RECs that are acceptable. Texas Green-e Certified. 6. Please list the number of natural gas meters and load for each member? 7. Please list the members that currently participate in demand response programs. We do not have data right now on the school districts currently participating in DR. 8. Please list the members and/or anticipated load for demand response programs. As each member is ultimately the deciding factor in whether to participate in DR, we cannot anticipate the load. However, each member is a potential candidate for DR. So, the anticipated load would be whatever percentage each school could curtail and if the school participates. 9. What is the scoring criteria/weighting? As we understand it, according to of the Texas Education Code, an RFP must provide relative weights. This is a standard RFP for services other than construction services, as permitted by Sec (3). There is no requirement in this kind of procurement that TEC publish the relative weights of each criterion only the criterion on which the evaluation of the proposers will be based. Weights of criterion are only required to be published in connection with construction procurements. In determining the best value for the district, the district is not restricted to considering price alone but may consider any other factors stated in the selection criteria. 10. How will each element be evaluated? The proposal evaluation will be based on the REP s responses to the questions and information provided in the response to the Proposer Questionnaire attached to the RFP as Attachment A. Any information provided therein may be used as part of the evaluation. The evaluation will be based on the criteria set out in the RFP. ADDENDUM NO. 1 RFP NO Page 1

2 11. What is the minimum number of points required to be accepted as part of the REP panel? There may or may not be points awarded for any specific criteria or answer in connection with the evaluation. If a point system is utilized it will be based on a scale of 100 points and the results of the evaluation by the Aggregator and Committee. 12. Will all members buy at the same time? Not necessarily, there will be a large aggregated pool each year which will buy together, and other larger Districts may elect to purchase separately using the REP Panel. 13. These questions pertain to the second full paragraph on page 5 of the RFP (begins with In order to maximize ), a. The sequence of events is very confusing. It seems like there is a combination of several different methods, reverse auction, strike price, RFP. Please clarify. On a given date, after the Panel is selected, approved Panel Members will be invited to provide a Best Value Offer to the TEC and Aggregator. Prior to the reverse auction, the Aggregator will define for the Panel Members what the contract terms and value added items are being requested as part of the pricing proposed. Prior to pricing solicitation, the TEC will have entered into an Acceptance Price Agreement with the Member Districts seeking pricing, which will allow the TEC Representative (with the assistance of the Aggregator) to quickly act on behalf of the Member District (within the stated pricing limits in the Acceptance Price Agreement) to accept the pricing and value added benefits offered by the Panel Member offering the Best Value price. The pricing portion of the evaluation will be handled as a reverse auction; however, and the price offered will include the specific contract terms and value added items requested by the aggregator prior to the start of the auction. b. There is also a statement that TEC will enter into an Acceptance Price Agreement. In the past, TEC was not a party to the agreement since in bound the district. Will the customer not sign this Agreement? TEC will not be a party to the ultimate agreement entered into between the Member District and the REP. The Acceptance Price Agreement will be similar to a strike price agreement which will allow the TEC to act on behalf of the Member District(s) within certain parameters. c. There is mention of Best Value Offer, what criteria will be used for that portion? Please outline that criteria. Which proposal offers the Best Value will be based on price offered by the REP, its ability to meet specific contract terms and provide value added items requested prior to commencement of the auction. d. Will that criteria be different than the criteria used to select the panel? Yes. e. Will the criteria differ by member? Not to the extent that the solicitation is for an aggregated pool of Members. 14. The third paragraph on page 5 of the RFP (begins with TEC reserves the right. ), the last sentence says TEC undertakes no obligation to inform any Respondent of the factors. Which factors are being referred to here? The scoring factors, and if so, doesn t the TEC code require TEC to disclose the factors in a procurement? This paragraph refers to the right of TEC to reject or all proposals submitted to by persons or entities seeking placement on the Panel. The TEC does not have to explain its specific reasons for making a decision to reject all or some of the proposals. The District may, indeed, provide this information but it is not required to do so. The decision to entirely reject some or all of the proposals has nothing to do with the scoring factors or the criteria on which selection is based. If a selection is made it will be based on the criteria specified in the RFP. ADDENDUM NO. 1 RFP NO Page 2

3 15. Under Section 2, Background: Has Region One secured exclusivity with the members? Have all of the members listed in Exhibit 2 committed to the pool via board action? Many of these members are securing pricing via other channels. No. There is no guarantee that the members who are currently Members of the TEC will be soliciting proposals individually or in the aggregate from the Panel Members. The only guarantee is that if you are a selected Panel Member you will be permitted to provide pricing for an aggregated group or individual identified Member based on usage parameters provided at the time of the pricing solicitation. 16. Section 2.2 is confusing. What does this mean? Please describe an example of how this would apply. Please ignore/delete this provision. It should not apply since the REP contracts will be between the individual Members (based upon aggregated price) or separate pricing. 17. In Demand Response services, the RFP has two different services, software and program management. What are the desired capabilities in each of these services? How will the capabilities be evaluated for scoring purposes? Software and program management will be treated the same in terms of evaluation. 18. How many members have expressed an interest in on-site generation? What is the expected load? Each district is responsible for themselves. Region One has no data on the availability of on-site generation for each district. 19. Section 4.3 describes a term that ends on September 11, 2017, what is the significance of this date? TEC will have no contract with the Panel Members. Panel Members will be entitled to exclusively provide pricing until a new solicitation is issued. This date, and the available extension options, coincides with the contract end date for the current aggregator/consultant for Region One/Texas Energy Center. 20. What is the possibility of another early termination by Region One? Our company put a great deal of work into the last stand by agreement, and had expectation of two years. 21. As your RFP for Region One relates to school districts and would fall under the need for compliance with Texas State Legislature rules and regs, how did you want us to respond with the new Form 1295? To complete the form we will need the following information: Agreement Description: Energy Supply and Related Services (is this adequate) Agreement ID#:??? Instructions for completing Form 1295 can be found on page 20 of the attached RFP. If you are referring to box 3 of the Form 1295, you will include the name of the RFP: Energy Supply and Related Services, and the RFP #: Currently reviewing RFP# Already completed majority of the forms in the checklist that are to be attached. We plan on Bidding (On-Site Generation > Turn Key Construction> Solar). With that being said, I cannot find a proposal format guide on the package. Do you have a template that we are to follow? What is your recommendation? The proposal submission format is outlined in Section 5 Proposal Submission and Format, pages 8-9. I do not have a template other than what is provided in the attached RFP. ADDENDUM NO. 1 RFP NO Page 3

4 23. In response to the RFP request for Energy Supply forwarded to me. Will the TEC and region 1 ESC complete an LOE for specific REP Partners for consideration? Why [not]? Is [your] choice based on selected Suppliers that your aggregator already has a relationship with? Region One Education Service Center/Texas Energy Center awarded Texas Energy Aggregation through a competitive proposal process for Energy Aggregation and Consultant Services RFP As our named aggregator and consultant, they will be assisting us through the process of awarding retail energy providers to service our members. At this time we will decline completing the LOE. Our intent at this time is to work directly with Retail Electric Providers that meet the qualifications of the attached Energy Supply and Related Services RFP [We are] a full-service energy consulting firm. It looks like you are already working with a third party, TEA, but we would like to bring other suppliers to the table who offer unique long-term contracts not available through most channels. With that said, is there an opportunity for us to compete for your business? We will review each proposal submission for Energy Supply and Related Services RFP received by the deadline. Please refer to the RFP requirements to determine if your company meets the required elements, in particular, Section 1 - Objective and Process on pages 4-6, Section 3 - Scope of Services on pages 6-7, as well as Section B - General Questions Regarding Evaluation Criteria on pages a. What additional services are you looking to receive outside of procurement? We are a full-service energy management firm who can provide any service needed (i.e. tax and tariff rate analysis, demand response, data management)? Energy Supply and Related Services RFP outlines the Scope of Services requested in section 3, pages 6-7, see attachment. b. Are you currently receiving prices through other suppliers? This way we will know which Tier 1 suppliers we can reach out to. Past suppliers include: Constellation New Energy, Inc.; Gexa Energy, LP; Hudson Energy Services, LLC; MidAmerican Energy Company; MP2 Energy Texas, LLC; Reliant Energy Retail Services, LLC; Source Power & Gas, LLC; Texas General Land Office (GLO); and Tri-Eagle Energy, LP. We do not have current REP Contracts, nor are we soliciting pricing until we get a new REP Panel selected. 25. To fulfilled the RFP we would like to know if the Load information will be available online (bidding portal) or you will send it to us? If the information will be on the portal can you confirm us the link. The school districts usage information is listed on the last page of the attached RFP total load of the aggregation. We are not giving out the IDR or scalar data just yet. The purpose of this RFP is to qualify potential REP s prior to sending out any of the load data. Once we qualify the REP s, we will send out the individual HUDs. 25. What is the grading system how many points go towards pricing, content, etc.? See Questions 9, 10, and When will the award be announced? I didn t see an award date. Our intent is to take a recommendation before the Region One ESC board of directors for approval during the scheduled meeting on May 12, Award notification will follow ROESC board approval. 27. Can we move the deadline to May 18 th? No. We would not meet the scheduled May ROESC board of directors meeting if the deadline is moved to May 18 th. ADDENDUM NO. 1 RFP NO Page 4

5 Sincerely, (signed original on file) Dr. Cornelio Gonzalez Executive Director (signed original on file) Frances Guzman Deputy Director for Business Operations and Finance Support Acknowledgement of Addendum #1 Submit this acknowledgement of Addendum #1 with proposal. Signature Printed Name Company Name Date ADDENDUM NO. 1 RFP NO Page 5