Invitation to Potential Bidders:  Procurement of Renewable Energy Attributes for Executive Order 111 Compliance - October 18, 2007 (Schedule A as amended October 22, 2007)

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Overview of Request and Executive Order 111 Requirements
The New York Power Authority (“NYPA” or “Authority”) is hereby issuing a request for price quotes for the purchase of Renewable Energy Attributes (hereinafter, “Attributes” or “REC”s) for itself and/or resale to its customers.

Attributes will be purchased for compliance with New York State Executive Order 111 dated June 10, 2001 (and continued by Governor  Spitzer on January 1, 2007) (hereinafter, “EO 111”).  Bidders are referred to the Guidelines for Executive Order III, Section 5, Requirements for the Purchase of Renewable Power, for a description of the products sought under this solicitation.  Please see the link to the Guidelines to the Executive Order, shown below.
(http://www.nyserda.org/programs/State_Government/exorder111guidelines.pdf.)

The Renewable Energy Attributes solicited must be associated with electrical energy delivered into the New York Independent System Operator (NYISO) spot market directly from a supplier and/or marketer.

The Authority will be purchasing REC’s for each of 2008, 2009 and 2010, and may consider longer terms based upon bid economics and NYPA customer needs.  Specific quantities and terms are shown on Attachment A.  All purchases will be in the Authority’s name.

Bids are due by close of business October 31, 2007 and are to be submitted via email to robin.shanen@nypa.gov.

Bidder shall provide, along with pricing for REC’s, location and name of associated facility(ies) and eligible resource type for Attributes bid.  In addition, Bidder shall provide a brief description of its business organization and history, financial condition and most recent audited financial statements.

Eligible Resource Types
Eligible resource types are defined by EO 111 as those facilities generating energy from the following technologies:

• Wind

• Solar thermal

• Photovoltaics

• Sustainable managed biomass, which for these purposes shall include all wood resources, with the exception of contaminated waste wood, and shall exclude utility-scale facilities that co-fire with coal

• Tidal

• Geothermal

• Methane waste (from landfills or anaerobic digesters)

• Fuel cells

Hydro production will not be considered.

The generation source for any resource type specified in a response to this bid solicitation must qualify as an acceptable source of renewable generation under guidelines established by the New York State Department of Public Service (“NYS PSC”).  (Please refer to: www.dps.state.ny.us/EnvDisclosureLabel.html for more information.)

New York State Environmental Disclosure Program
The successful bidder must satisfy the requirements of the Environmental Disclosure Program Rules and Procedures for Conversion Transactions, or any successor rules, established by the NYS PSC.  A Conversion Transaction documents the sale of qualifying renewable energy into the New York Independent System Operator (“NYISO”) Spot Market by an eligible generating facility and the purchase from the NYISO Spot Market of a like amount of energy by an eligible entity during the same six month settlement period.  Conversion Transaction procedures are described in more detail on the Department of Public Service website at: http://www.dps.state.ny.us/Final_Rules_and_ProceduresCTnov5.htm.

Bidders may also be asked to furnish proof of prior or current contracts for the commodity stated herein to demonstrate their ability to satisfactorily operate in the renewable energy market.

After Contract Award: Verification of Rights to Attributes
Throughout the contract term, NYPA will require certification/ verification of delivery of all rights to the Attributes purchased by NYPA as follows:

• Each invoice submitted by the successful bidder requesting payment must be accompanied by an appropriate Certification, which will identify the number and vintage of all Attributes for which payment is requested,  bear an appropriate certification as to the eligibility of such Attributes and transfer all rights and assignments to NYPA.

• In the event the NYS PSC solely or in conjunction with others, creates, sanctions, adopts or begins participation in a Generation Tracking System in the New York Control Area (“NYCA”) during the term of the agreement contemplated in this bid solicitation, each Attribute associated with fulfillment of the selected bidder’s requirements must be transferred to an account designated by NYPA.

• Facilities providing products that are not located in the NYCA, but are located in a control area with a compatible generation tracking system at the time of submittal of the Bid Proposal, must deliver REC’s associated with the Attributes to an account designated by NYPA.  For example, the NEPOOL Generation Information System and the PJM GATS system are deemed compatible systems by the administrator of the NYS Environmental Disclosure Program.

• For facilities outside the NYCA, NYPA will require verification of the electricity market of origin through “NERC” tags for each delivery.

No Double Counting: In no event shall the Attributes of the generation associated with a contract with NYPA under this solicitation be assigned or sold by the seller to any entity other than NYPA.  Any assignment or application by the seller of the Attributes associated with a contract with NYPA to any other entity, program or jurisdiction, whether associated with a publicly administered program or a voluntary transaction, is strictly prohibited.

Required Contract Agreement
Selected bidders shall be required to execute a contract substantially similar to the contract set forth in Attachment C. No material changes to this contract will be accepted.

Submission of Proposals
Bids are to be submitted via email to robin.shanen@nypa.gov by close of business October 31 2007.  Bidders should use the form of Attachment B included herein, or provide substantially similar information.

Evaluation process and Criteria
Proposals must be complete, in conformance with the specifications and other requirements of this solicitation (including the requirements of EO 111 and NYS PSC Environmental Disclosure rules, and must and include all documentation, evidence or verification requested. Bids will be evaluated according to price, with consideration given to creditworthiness, and customer policy goals, if applicable.

Basis for Disqualification
A bidder may be disqualified and the bid not considered for reasons including, but not limited to, the following:

• receipt of the bid after the deadline for submission;

• failure to meet all eligibility requirements;

• incomplete bid;

• willful misrepresentations in the bid;

• illegal or undue attempts to influence the bid review process;

• a determination by NYPA, in its discretion, that some or all bids should be rejected.

Communication during the RFP Process
NYPA’s contact for this solicitation is:

Robin Shanen, Analyst, Power Resource Planning and Acquisition
Telephone:       914-287-3764
Fax:                914-390-8155
Email:             robin.shanen@nypa.gov