SCE s Renewable Market Adjusting Tariff (Re-MAT) Bidders Conference September 18, 2013

Transcription

1 SCE s Renewable Market Adjusting Tariff (Re-MAT) Bidders Conference September 18, 2013 WebEx: Meeting number: Meeting password: remat Teleconference: Call-in number: Access code: remat 1

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3 Conference Agenda Conference Overview 10:00 Tony Frontino Conference Agenda Keys to a Successful Application Reminders Re-MAT Overview 10:10 Dan Walker Brief History Re-MAT Capacity Key Dates Program Periods Applying for Re-MAT Pricing Adjustments Key Eligibility Requirements Exhibit E Documents 10:30 Matt Langer Generating Facility and Site Description Re-MAT Web Site 10:50 Melissa Barrett Navigating the SCE Re-MAT web site Grid Interconnection 11:15 Lillian Bass Re-MAT PPA 11:40 Dan Walker High Level Overview Closing Q & A 11:50 3

4 Keys to a Successful Application Familiarize your self with the Re-MAT website Schedule Re-Mat (the Tariff), the PPA, Exhibit samples and other helpful documents can be found on the Re-MAT website: and at Ask questions Complete all sections of the PPR and upload all required documents Follow the Instructions 4

5 Reminders This presentation is intended to provide only summary level information on the Re-MAT Program. To fully understand the Re-MAT program, both the Re-MAT Tariff and Re-MAT Power Purchase Agreement (PPA) must be read. All communications and program materials will be posted on the Re-MAT web site ( Once the web site is available, all questions should be asked, and will be answered, through the web site. To the extent that there are any inconsistencies between the information provided in this presentation and the Re-MAT Tariff and Re-MAT PPA, the Tariff and PPA govern. 5

6 Questions To submit a question: Use the chat function on the bottom right corner of your screen Make sure to direct your question to Marci Palmstrom (Host) Type your question into the box and click Send SCE will read selected questions aloud and answer the questions Time will be left at the conclusion of the conference for additional Q&A After the conference, SCE will compile and post a Q&A document on the Re-MAT website After the conference: You can submit questions via to re-mat@sce.com until October 1, 2013 On and after October 1, 2013, all questions should be submitted through the Re-MAT web site 6

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8 Re-MAT SB 32 (Re-MAT) Re-MAT became effective on July 24, 2013 Renewable Market Adjusting Tariff (Re-MAT) Program Capacity: Re-MAT is being implemented by IOUs (per CPUC Decisions) to comply with the IOU s portion of the 750 MW state-wide feed-in tariff program mandated by SB 32. SCE was allocated 226 MW. Project Size: Re-MAT is available to new and existing renewable energy projects sized up to 3 MW (AC) that are interconnected to SCE s distribution system. Application: A Program Participation Request or PPR (i.e. application) must be submitted to participate in Re-MAT. Re-MAT Queue Numbers are assigned to PPRs based on the date and time a PPR was submitted, with the exception of the first five business days of the program when the queue number sequence will be randomized. Price: The price offered for each Product Type will adjust in each Program Period based on Subscription (i.e. price acceptance). PPA Execution: Non-negotiable PPAs will be awarded each Program Period based on price acceptance and Re-MAT Queue Number. 8

9 Re-MAT Program Capacity 226 MW SCE s Re-MAT Allocation - (minus) = (equals) (divided by) MW MW 3 Product Types Total CREST ( MW) & WATER (2.25 MW) PPAs Initial Program Capacity* Number of Product Types Terminated Capacity From CREST & WATER PPAs Evenly Divided Across Product Types As-Available Peaking 33.1 MW As- Available Non-Peaking 33.1 MW Baseload 33.1 MW Initial Allocations Terminated Capacity from Re-MAT PPAs Returned to Same Product Type *As of July 24,

10 Re-MAT Upcoming Key Dates Date July 24, 2013 Event Re-MAT effective October 1, 2013 Begin accepting Re-MAT applications (PPRs) November 1, 2013 Start of the first bi-monthly Program Period November 18, 2013 Last day to indicate acceptance/rejection of contract price December 4, 2013 January 2, 2014 Last day for applicants to submit an executed Re-MAT PPA Start of the second Program Period 10

11 Re-MAT Program Periods As-Available Peaking As- Available Non-Peaking Baseload Program Periods 33.1 MW 33.1 MW 33.1 MW 1 (Nov-Dec 2013) 5 MW 5 MW 5 MW Each Program Period is two months in duration 2 (Jan-Feb 2014) 3 (Mar-Apr 2014) 4 (May-Jun 2014) 5 (Jul-Aug 2014) 6 (Sept-Oct 2014) 7 (Nov-Dec 2014) 5 MW 5 MW 5 MW 5 MW 5 MW 5 MW 5 MW 5 MW 5 MW 5 MW 5 MW 5 MW 5 MW 5 MW 5 MW 3.1 MW 3.1 MW 3.1 MW Five MWs will be offered in each Product Type per Program Period, unless fewer MWs remain in that Product Type 8 (Jan-Feb 2015) 0 MW 0 MW 0 MW The final Program Period is the Period which ends twenty-four (24) months after the end of the Period in which the total remaining capacity for any Product Type reaches zero or a de minimis amount approaching zero for the first time. 11

12 Re-MAT Program Period Process Completed PPRs Program Period 1 Is price accepted? Yes MWs available based on Queue position? Yes Awarded PPA No No Additional Completed PPRs Program Period 2 Is price accepted? Yes MWs available based on Queue position? Yes No No Additional Completed PPRs Program Period 3 Process repeats NOTE: Applicants keep their Queue Numbers for future Program Periods until they are awarded a PPA or they become ineligible. 12

13 Price Adjustments Minimum of 5 eligible Projects from 5 different Applicants with applications deemed complete by SCE in the applicable Product Type If the Subscription for a Period is less than 20% of the Available Allocation for that Product Type, the Contract Price for that Product Type for the next Period will be increased o 20% of 5 MW = 1 MW If the Subscription for a Period is at least 100% of the Available Allocation for that Product Type, the Contract Price for that Product Type for the next Period will be decreased No change in price if between 20% and less than 100% Adjustments are $4, $8 and $12 o Must be an uninterrupted series of increases/decreases 13

14 An Example Bucket # 1 As-Available Program Period 1 Peaking Program Period 2 Contract Price $89.23 Available Capacity Re-MAT Queue (Price accepted by Applicant) (Price rejected by Applicant) ( PPA executed) 5 MW Project MW Reject Project MW Accept Project MW Reject Project MW Reject Project MW Accept Project MW Accept Project MW Accept Project MW Reject Project MW Accept $85.23 ( ) 5 MW Project MW Project MW Project MW Project MW Project MW Project MW Project MW Project MW Project MW Subscription (% = Total MWs that accepted price / 5 MW) Executed Capacity Capacity Added Back due to Terminations Remaining Program Capacity 100%+ 4.5 MW 0 MW 33.1 MW 4.5 MW executed + 0 MW terminated = 28.6 MW 4.5 MW 0 MW 14

15 Applying for Re-MAT Applicant Applicant creates (or cures) PPR Program Participation Request (PPR) Submitted Online Once submitted, SCE will review the PPR within 20 business days PPRs can be submitted at any time, starting on October 1, 2013 Applicant has 10 business days to cure minor deficiencies No Applicants receive a Re-MAT Queue Number for their completed PPRs based on the date/time that the PPR was initially received (with the exception of PPRs received October 1-7, 2013, during which the sequence of Re-MAT Queue Numbers will be randomized) Once deemed complete, a PPR is eligible to participate in Program Periods within its Product Type Is the PPR Complete? Yes PPR Checklist PPR Form Attachments Non-refundable application fee As-Available Peaking As Available Non-Peaking Baseload #1. PPR (3.00 MW) #5. PPR (3.00 MW) #8. PPR (0.75 MW) #2. PPR (2.00 MW) #3. PPR (1.00 MW) #9. PPR (2.00 MW) #4. PPR (3.00 MW) #6. PPR (3.00 MW) #7. PPR (2.00 MW) PPRs are segmented by Product Type and sorted by Re-MAT Queue Number* 15

16 Key Eligibility Requirements Project Location Eligible Renewable Energy Resource Project Size/Contract Capacity Interconnection Site Control The Project must be physically located within SCE s electric service territory. The Project must be an Eligible Renewable Energy Resource as defined in PUC Section The Contract Capacity for the Project cannot exceed 3.0 MW (AC). Project must be interconnected to SCE s distribution system. Wholesale Distribution Tariff (WDT) or Rule 21 can be used until the CPUC determines otherwise. Must have completed Phase I or System Impact Study, or passed Fast Track screens or Supplemental Review. Must meet definition of strategically located. - Defined as (transmission system) Network Upgrades of $300,000 or less. Applicant must have 100% site control for the Project and submit a map showing the boundary of the Site for which the Applicant has control. 16

17 Key Eligibility Requirements (continued) Developer Experience Daisy-Chaining Metering At least one member of the development team must have completed at least one project of similar technology and capacity. The Project must be the only exporting project being developed, owned, or controlled by the Applicant on any single or contiguous pieces of property. Projects must be electrically independent and separately metered. Qualifying Facility The Project must be a Qualifying Facility, as defined by the Federal Energy Regulatory Commission. This classifies Re-MAT as a PURPA PPA. Other Incentives Project cannot have received California Solar Initiative (CSI) or Self Generation Incentive Program (SGIP) incentives within the past 10 years. 17

18 Key Eligibility Requirements(continued) Net Energy Metering (NEM) If awarded a Re-MAT PPA, Applicant must terminate participation in NEM for the Project prior to the Re-MAT PPA s Execution Date. 18

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20 Exhibit E: Generating Facility and Site Description What is included in Exhibit E? Generating Facility Description Site Plan Drawing Single Line Drawing Legal Description of the Site Site Map Why is Exhibit E important? SCE expects the as-built Generating Facility and Site to be exactly as described There are opportunities to cure deficiencies but remember, you cannot elect to accept a contract price for a PPA until your entire submittal (including Exhibit E) is deemed complete. 20

21 Exhibit E: Generating Facility and Site Description (continued) General Issues Project name on PPA does not match project name in some or all Exhibit E docs Equipment and related details are inconsistent among the various Exhibit E docs Mismatch in project size or other major details with Interconnection Study Any known discrepancies should be explained in a letter accompanying the offer If generating facility design varies from what appears in the Interconnection Study, Transmission Provider must provide an assurance letter that design changes will not impact COD or network upgrades costs Even if GIA is executed, the Interconnection Study should still be included with the offer Site Plan Drawing Equipment locations must be clear (e.g., inverters, solar arrays, wind turbines, interconnection equipment, etc.) Clearly illustrate the boundaries of the site and any adjacent generating facilities Legal Description of the Site and Site Map Clearly illustrate the boundaries of the site and any adjacent generating facilities Equipment locations must be clear (e.g., inverters, solar arrays, wind turbines, interconnection equipment, etc.) In legal description, only list APNs that are part of the Site or include a note linking the site map to the legal description 21

22 Exhibit E: Generating Facility and Site Description (continued) Single Line Drawing Be sure to include and adequately describe all major equipment Common missing items are: Key Takeaways Interconnection point (substation name, equipment type and number, circuit name, etc.) Transformer specifications Substation station light and power Generating Facility station service (auxiliary) transformer Metering (Transmission Provider, CAISO, SCE, Seller) Number of PV modules and number of inverters (or wind turbines, etc.) Typical generating unit diagram Type of generator (synchronous, asynchronous, inverter, etc.) Refer to the Re-MAT instructions when preparing your documents Label everything and err on the side of inclusiveness Pay attention to the details, we look at these documents very closely 22

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27 Key PPA Terms Commercial Operation Date Contract Capacity Contract Quantity TOD Factors Curtailment The Project must achieve Commercial Operation within 24 months of signing the PPA. There is a possible 6 month extension for permit or transmission delays and for delays caused by force majeure. Seller can also pay liquidated damages to extend the date. SCE is not obligated to pay for any delivered energy, in any hour, that exceeds 110% of the Contract Capacity. Seller fills in the amount of expected energy to be delivered for each year of the contract term. In any year, if the delivered energy exceeds 120% of the Contract Quantity, SCE pays 75% of the Contract Price for the amount in excess of 120%. The Price is adjusted by TOD factors. Energy Only or Fully Deliverable SCE can curtail without any payment obligation in the event of a CAISO or Transmission Owner instruction to curtail or system emergency. SCE can order curtailment for any other purpose but will have a payment obligation for energy that could have been delivered. 27

28 Key PPA Terms Guaranteed Energy Production Over a 2 year period: 140% for wind 170% for other as available 180% for baseload % to be agreed upon for hydro Collateral Requirement Due 30 days after execution date. $20 per kw of contract capacity. Example: 3 MW = $60,000 28

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