PECO CHP Call for Projects ( CfP ) Bidders Webinar Presented on September 19, 2017
Disclaimer Any statements in this Webinar presentation describing or referring to CfP-related documents and agreements are summaries only, and are qualified in their entirety by reference to such CfP-related documents and agreements as provided in the following: PECO Call for CHP Projects Program Guide PECO Call for CHP Projects Submission Form 2
Presenter On behalf of PECO: Paul Miles, CHP program Lead 3
Today s Agenda Provide an overview of PECO s Call for Projects (CfP) Discuss the incentives available for CHP projects Review the process to submit your projects to PECO Clarify the evaluation process after bid submission Hold a Q&A session Answer questions to the extent possible, time permitting) PECO will post this presentation on its CHP Web site at www.peco.com/chp following today s session 4
WebEx Ground Rules for Today s Session Click on the Panels drop-down menu in the top-right corner to view the desired WebEx windows (Q&A, Participants, etc.). All phone lines will remain muted until the Q&A session. Please submit questions throughout utilizing the Q&A window. Only PECO will see submitted questions. Will address participant questions during Q&A to the extent possible after all material is presented, unmuting lines of those with questions as needed. PECO will post selected questions and answers in a Frequently Asked Questions document on its CHP Web site at www.peco.com/chp. 5
www.peco.com/chp Visit our CHP Web site for more details on the Call for Projects. 6
Introduction As part of PECO s Act 129 Phase III CHP program offering, PECO developed the CfP as a means for interested customers to compete for financial incentives based on the merits and qualifications of their prospective projects. Customers may apply for incentives by submitting a completed Project Submission Form located on PECO s CfP web portal (www.peco.com/chp) via email to PECO. 7
Introduction There are two incentives available for interested customers to compete for: Capacity Incentives (up to 10 MW max) on a declining tier basis payable after CDO Performance Incentive payable after CDO certification (1 st year power production) Projects are competitively evaluated according to their likelihood of success 8
Introduction Since projects are evaluated based on their likelihood of success, early stage projects may alternatively seek a design incentive not offered under this CfP Please contact the PECO CHP team at pecochp@exeloncorp.com for additional details. 9
Available Incentives Incentive Type Capacity Incentive Incentive Award $300/kW Projects up to 500 kw $150/kW Projects between 500 kw up to 1.5 MW $75/kW Projects between 1.5 MW and 10 MW Capacity incentives must not exceed 40% of the project cost. Performance Incentive $20/MWh in the first year The Performance incentive is based on net electric generation of the CHP system. Maximum Total Incentive No more than 50% of the project cost or $2,000,000, whichever is lower. 10
Eligibility The proposed project site location is in PECO s service territory The commercial date of operation is within the approved program phase to achieve commercial date of operation on or before March 1, 2019 The project satisfies all utility regulation and environmental requirements The project will not export electricity to the grid The submission form: Does not contain intentionally false or misleading information Is complete and signed by the customer 11
Submission Process STEP 1: Verify that your project meets the eligibility requirements specified in this Program Guide. STEP 2: Complete a Project Submission Form available on the CfP portal. To do so, please go to www.peco.com/cfp to download and complete the Project Submission Form. STEP 3: Submit your Project Submission Form to PECO by email (pecochp@exeloncorp.com) prior to the deadline of October 31, 2017 at 5:00 PM ET. 12
Schedule 2nd Round CfP event schedule Date Program open August 21, 2017 Participant webinar September 22, 2017 at 2:00 p.m. ET Deadline for questions September 29, 2017 Questions and answers posted Questions from Webinar Link (website) Deadline for project submission form October 31, 2017 Notifications of Determination Issued By December 15, 2017 After completion of this round, please check back on the peco.com/chp site for announcements relating to future rounds Please contact PECO at any time should you have questions regarding the schedule and timing of future solicitations. 13
Scoring Criteria Category Scoring Criteria Score Project Maturity Project is near or under Construction. 45 A contract for the construction of the project has been executed between the Developer and the Customer, and equipment designated for the project has been ordered by the Developer/Design-Build firm. 40 Design & Build Firm (scored independently) Interconnection Application A contract for the construction of the project has been executed between the 30 Developer/Design-Build firm and the Customer. A formal letter of intent signed by the Developer/Design-Build firm and the Customer 10 has been executed. Project is still under design or in a conceptual phase. 0 Firm has demonstrated project experience with one or more CHP facilities in PECO s 20 service territory. Firm has EPC experience with one or more CHP facilities. 10 Firm does not have EPC experience with CHP facilities. 0 Interconnection application has been approved. 25 The Customer has submitted an interconnection application of the CHP project. 15 The Customer has not yet submitted an interconnection application for the CHP 0 project. Project Timeline Proposed completion within 12 months of call. 10 Proposed completion within 18 months of call. 5 Proposed completion within 24 months of call. 2 14
Example Scoring - #1 The Customer has indicated in the Project Submission Form that it has executed a contract with the Contractor Firm for the construction of the project and submitted a copy of the contract as evidence. The submission provides evidence that the customer retained an experienced Design & Build firm with examples of two CHP projects the Design & Build firm has successfully completed within the PECO service territory. The Customer has indicated and provided evidence that the interconnection application associated with the project has been submitted to PECO but is awaiting approval. The project schedule shows a CDO by a date that is within 18 months of the call. Category Scoring Criteria Scored Points Project Maturity Design & Build Firm Interconnection Process Timeline A contract for the construction of the project has been executed between the Developer and the Customer. Construction has not yet started. The customer has contracted with a Design & Build firm that provides demonstrated project experience with two CHP facilities in PECO s service territory. Customer has submitted an interconnection application to PECO for the CHP project. 30 (2/3 s of available points) 20 (all available points) Average of 20 (Design Firm) and 20 (Build Firm). Both are the same entity. 15 (3/4 s of available points) Project schedule shows a timeline with steps to achieve CDO 5 within 18 months of this CfP. (half of available points) TOTAL POINTS (out of 100) EXAMPLE 70 15
Example Scoring #2 The Customer has indicated in the Project Submission Form that it has a letter of intent with a design & build firm. The submission provides evidence that the customer retained an experienced Design firm with examples of five CHP projects the Design firm has successfully completed within the PECO service territory. However, the build firm that has been retained has no prior CHP experience. The Customer has not yet submitted an interconnection application. The project schedule shows a CDO by a date that is within 24 months of the call. Category Scoring Criteria Scored Points Project Maturity A formal letter of intent has been executed between the developer/design-build firm and the customer. 10 (2/9 s of available points) Design & Build Firm Interconnection Process Timeline The Design firm has demonstrated project experience with five CHP facilities in PECO s service territory. However, the build firm has no prior CHP experience. 10 (all available points) Average of 20 (Design Firm) and 0 (Build Firm). No interconnection application has been submitted to PECO. 0 (none of the available points) Project schedule shows a timeline with steps to achieve CDO 2 within 24 months of this CfP. (2/10th s of available points) TOTAL POINTS (out of 100) EXAMPLE 22 16
Example Scoring #3 The Customer has indicated in the Project Submission Form that it has a project under construction. The submission provides evidence that the customer retained an experienced Design-Build firm with examples of two CHP projects the Design-Build firm has successfully completed, but not within the PECO service territory. The Customer has submitted an interconnection application and received approval. The project schedule shows a CDO by a date that is within 12 months of the call. Category Scoring Criteria Scored Points Project Maturity The Project is under Construction. 45 (all available points) Design & Build Firm Interconnection Process Timeline The Design firm has experience with one or more CHP facilities but not in the PECO service territory. However, the Build firm has experience with one or more CHP facilities in PECO s service territory. 15 (half of the available points) Average of 10 (Design Firm) and 20 (Build Firm). Interconnection application has been approved by PECO. 25 (all available points) Project schedule shows a timeline with steps to achieve CDO 10 within 12 months of this CfP. (all available points) TOTAL POINTS (out of 100) EXAMPLE 95 17
Post-Submission Process PECO will notify customers participating in the CfP regarding the outcome of their Project Submissions and advise on next steps in the process regardless of the score. If a CHP project qualifies for incentives, PECO will send a Preliminary Reservation Letter to the customer indicating the maximum total amount of the incentives that could be paid for the project. 18
Post-Submission Process cont d The full Program Application will need to be completed after receiving the Preliminary Reservation Letter. Detailed requirements are laid out in the Program Application, which include a planned schedule of milestones, measurement and verification, interconnection & operational requirements. The complete application is available on the http://peco.com/chp website. Provided all requirements are met, a final Reservation letter will then be issued Please see the RFP for further detail 19
Partnering organizations and external resources ESC (Energy Solutions Center) http://understandingchp.com/ DOE CHP Technical Assistance Partnership/Mid Atlantic http://midatlanticchptap.org/ EPA Combined Heat & Power (CHP) Partnership https://www.epa.gov/chp 20
Questions? Please submit your questions via the chat function of the Webinar 21