Request for Proposals To Provide Supply of Energy to
Village of Solvay, New York - September 02, 2009

Questions and Answers

Q. Would NYPA require a load-following product, or would fixed-block energy offers (i.e., 7x24, 5x16) be acceptable?
A. NYPA will accept standard products or load-following offers.

Q. Are the energy products requested the same for physical and financial (CFD) offers?
A. The quantities would be the same.  The difference is that CFDs are sought for only the first three years, as a "bridge" to a longer-term supply.

Q. Would the CFD be settled only in NYISO Zone C, in which Solvay is located?
A. No.  CFD transactions can be settled anywhere within the New York Control Area.  Bidders will be responsibility for all costs and risks associated with delivery of energy to the stated delivery location.

Q. The RFP specifies that "Prices and terms offered by Bidders must remain valid and available until 12/31/2009".  Would NYPA accept indicative non-binding prices, subject to refreshed pricing during the evaluation process?
A. The restriction would only apply to physical offers.

Q. Are historical load shapes for Solvay's incremental energy requirements available?
A. Yes.  On request (addressed to Jordan Brandeis, at (914) 681-6413 or Jordan.brandeis@nypa.gov), these will be provided. 

Q.  How is NYPA addressing exceptions to its ISDA and MPPSA agreements?
A.  While NYPA prefers to use its form ISDA Schedule (the "NYPA ISDA") without material changes, NYPA has considered comments from various potential bidders and is revising its requirements as set forth below.  [As indicated in the RFP, the NYPA MPPSA and the NYPA ISDA are provided on this website.] 

1. If a Bidder does not have an ISDA with NYPA, Bidders may submit exceptions to the NYPA ISDA when they submit their bid.   Exceptions to the NYPA ISDA shall be shown as a "redline" version.  All Bidders must either accept the NYPA ISDA in its totality or submit a redline version.  NYPA reserves the right to reject as non-conforming any Bids submitted without either of the above. 

2. NYPA will consider a Credit Support Annex.  However, there will be no threshold or collateral requirement in the CSA for NYPA except in the case of a downgrade event, as defined within the RFP.   

3. If a Bidder already has an ISDA with NYPA, additional credit terms specific to any transaction awarded under this RFP may be required in a CSA and/or in an amendment to the current ISDA schedule.   

4. Notwithstanding the foregoing, the termination provision set forth in Part 1 (j) of the NYPA ISDA concerning early termination payments:  non-defaulting party (etc.) is a required, non-negotiable term and shall be incorporated into any and all agreements with a counter-party.   

5. With respect to the NYPA form Master Power Purchase & Sale Agreement ("NYPA MPPSA"), NYPA also prefers to use the NYPA MPPSA without material changes.  However, Bidders may submit exceptions to the NYPA MPPSA when they submit their bid.   Exceptions to the NYPA MPPSA shall be shown as a "redline" version.   All Bidders must either accept the NYPA MPPSA in its totality or submit a redlined version. NYPA reserves the right to reject as non-conforming any Bids submitted without either of the above.