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Request for Information
printer-friendly version 1 INTRODUCTION The New York Power Authority ("NYPA" or the “Authority”) is the nation's largest state-owned power supplier, providing low-cost electricity to government agencies, municipal electric systems, rural electric cooperatives, and to private utilities for resale—without profit—to their customers across New York State. NYPA operates 18 generating facilities and more than 1,400 circuit-miles of transmission lines. NYPA is also a national leader in promoting energy efficiency and the development of clean and renewable energy technologies, committing over $100 million a year to energy services. As part of its commitment to the environment and in support of New York State’s clean energy goals, NYPA, on behalf of the Metropolitan Transportation Authority and its operating agencies (“MTA”), is interested in purchasing up to 6 MW of power and related energy produced by solar photovoltaic generating systems (“SPGS”) to be installed on the roofs of certain facilities owned or leased by the MTA, in 2 MW phases commencing summer 2009 through 2011. It is anticipated that the following MTA operating agencies will have facility roofs that are suitable for these purposes: New York City Transit Authority (“MTA NYCT”), Staten Island Rapid Transit Operating Authority (“MTA SIRR”), Long Island Rail Road (“MTA LIRR”), Metro North Railroad (“MTA MN”), Triborough Bridge and Tunnel Authority (“MTA B&T”), Metropolitan Suburban Bus Authority (“MTA LIB”), and MTA Bus (“MTA Bus”), (individually and collectively “MTA” or “Host”). All SPGS equipment installed at Host sites will be owned and operated by the solar provider (“Seller”), who will be responsible for all SPGS costs associated with design, permitting, equipment, materials, and labor, including installation and operation and maintenance. The capacity and energy produced by such SPGS will be sold to NYPA (“Buyer”), as set forth in a solar power purchase agreement (“SPPA”) to be executed between NYPA and the Seller. Prior to issuing a formal Request for Proposals (RFP) for solar power, NYPA is issuing this Request for Information (RFI). The purpose of the RFI is to solicit information from the solar power industry in order to prepare an RFP with appropriate terms, conditions and other information to encourage the submission of high quality proposals from capable solar power developers. Responses are due by December 12, 2008. Please direct all questions about this RFI and all responses to this RFI to:
John Markowitz NYPA will entertain telephone discussions with regard to any sensitive information. However, NYPA prefers to receive as much information in writing as possible, so that it can be shared accurately with those who are developing the RFP. Neither NYPA nor the MTA will be responsible for any costs or expenses incurred in preparing and submitting information to this RFI. All material submitted will become the property of NYPA. Submitters are cautioned to clearly label as proprietary and confidential any specific information or other material that is considered to be confidential. NYPA and MTA are subject to the New York State Freedom of Information Law (“FOIL”) which provides, as a general rule, that NYPA and MTA records are accessible to the public, subject only to specific exceptions which include a trade secret exception. If NYPA or MTA were to receive a FOIL request, the submitter would be notified, and NYPA and the MTA, to the fullest extent permitted by FOIL, would seek to deny access to such marked confidential proprietary information. 2 KEY ITEMS FOR RESPONDER FEEDBACK NYPA seeks information from entities that are knowledgeable and experienced in the successful design, installation, operation and maintenance of SPGS. Information, feedback, clarifying comments, questions and specific suggestions from these entities on any and all of the following sections is welcome. These responses will help NYPA develop an RFP that addresses key concerns and facilitates high quality proposals. Responders are requested to provide a point of contact and background information about their company or organization and whether or not they intend to respond to the subsequent RFP. 2.1 SPPA Build-out and Pricing NYPA and MTA performed an evaluation of MTA facilities and identified six initial sites (“Host Sites”) for implementation of SPGS projects in 2009 under an SPPA with a combined capacity of approximately 2 MW. These locations were chosen based on availability of roof space, electric load and age of roof membrane, and are included in Appendix A – RFI Host Site List, attached. The Host Site list is subject to change. Additional MTA sites for the implementation of approximately 2 MW of SPGS capacity in 2010 and an additional 2 MW in 2011 will be identified in cooperation with the Seller(s). These sites are to include new MTA facilities which are scheduled to be completed within that time frame as well as existing MTA facilities currently undergoing roof replacement. Additional MTA SPGS project sites may be identified during the 2010 and 2011 phases that would utilize ground mounted SPGS, carport SPGS and/or platform canopy SPGS. NYPA intends to request pricing broken down by fixed monthly capacity price [$/kW-mo] and fixed annual price of energy delivered each month [$/MWh], for SPPA term of 5, 10, 15 and 20 years for each of the following: 2.1.1 Firm pricing for the first set of Host Sites, representing approximately 2 MW of SPGS capacity to be installed with a commercial operation date (“COD”) of 2009. NYPA is interested in receiving comments on the Host Site list including what Host Site information should be included in the RFP, if site inspections will be required as part of the RFP process and what proposers will want to see at each Host Site as part of the site inspection. 2.1.2 Pricing for the 2010 and 2011 phases for each of four SPGS project increments; 100 kW, 250 kW, 500 kW and 1 MW per site. NYPA is interested in receiving comments as to how pricing is estimated for the sites yet to be identified, what variables and assumptions should be allowed in setting the prices and how final pricing should be established once the sites are identified. NYPA intends to allow for proposal terms of 5, 10, 15 or 20 years for one, multiple or all sites for years 2009, 2010 and 2011, or various term and pricing proposals for each site. NYPA is willing to consider a range of payment structures, including buyout terms, and is interested in receiving information about various options recommended by responders as well as a summary of the rationale generally used to justify indexed pricing. Appendix B - NYPA Power Purchase Agreement (“PPA”) is attached for reference. NYPA intends to include a PPA as part of the RFP. NYPA is seeking comments on how the requirements of this PPA document would affect proposals for an SPPA. NYPA is also seeking suggestions on specific changes to this document which may result in a more favorable SPPA, as it is NYPA’s preference not to accept substantive changes to the final PPA from winning proposer(s). 2.2 Other Pricing Assumptions 2.2.1 NYPA intends to request pricing with and without environmental attributes, i.e. the Renewable Energy Credits (REC), and with and without carbon credits. NYPA is interested in comments on how pricing with and without these attributes and credits will affect pricing. 2.2.2 NYPA is interested in receiving clarification on how clean energy tax credits may be applied to SPGS installed on MTA property, how these tax credits will impact SPPA pricing, and any potential circumstances which could jeopardize the tax credits and any associated liabilities. 2.2.3 NYPA shall require that pricing reflect the use of prevailing wages pursuant to New York State Labor Law Section 220 for all on-site labor in implementation of all SPGS projects. 2.2.4 Taxes and Permitting Fees: Generally, the MTA is exempt from all New York State and local taxes and the MTA does not pay any real estate taxes for sites owned by MTA or leased by MTA and used for transportation purposes. In addition: i) generally, MTA is exempt from local building codes, but complies with New York State and other applicable building codes and standards; ii) in some instances MTA voluntarily complies with local building codes; and iii) in general and subject to exceptions, the code compliance function normally performed by a local jurisdiction is performed by designated MTA Code Compliance staff. MTA does not guarantee that a Proposer’s installation at an MTA site will be exempt from local real estate or, if applicable, personal property taxes. If such taxes are assessed, Proposer will be responsible for and pay all such taxes. Proposals should include: i) price estimates for sites located on real property that is exempt from such taxes; and ii) an assessment of the likelihood that such taxes will be imposed on its installations and the estimated cost thereof. A Proposer should set forth in its proposal its assumptions about how such compliance would affect SPGS costs and schedule. 2.2.5 In the event that a Site is identified by a proposer as potentially suitable but for the condition or age of the roof, NYPA may request that Proposers include a plan and methodology for performing roof repair and/or replacement work, as well as the costs of such work, including materials and labor. 2.2.6 NYPA generally requires a form of performance and payment bond or letter of credit to insure timely completion of projects. NYPA is interested in receiving comments on how this requirement may affect proposals and pricing. 2.3 Occupancy Agreement and Liability Appendix C - Current MTA Occupancy Agreement is attached for reference and provides the existing terms and conditions defining the installation, operation and maintenance of any equipment by a third party on MTA property. NYPA is seeking comments on how the requirements of this document would affect proposals for an SPPA. NYPA is also seeking suggestions on specific changes to this document which may result in a more favorable SPPA. Note, a Seller that enters into the occupancy agreement will not be obligated to pay license fees or rent to MTA. NYPA and MTA are interesting in receiving comments on how Host imposed reductions in SPGS performance should be addressed under various circumstances, including lost revenue, additional labor costs, early termination (as well as a buy-out option) buy out, and their remedies, and specifically how the RFP (pricing, outage times) should be structured to adequately address this. A Host imposed reduction may entail a portion of an SPGS being put out of operation, or asking that the SPGS be moved or removed permanently, or on a temporary basis. 2.4 Technical Specifications For the first set of Host Sites with COD 2009, listed in Appendix A, NYPA intends to require that proposals submitted in response to the RFP include: 2.4.1 Performance: for each Host Site describe the performance of the SPGS, including: (a) anticipated monthly energy and peak power values for the duration of your proposed term(s); (b) identification and discussion of any variables identified that would affect your response to (a), and the impact thereof, such as system degradation, scheduled and unscheduled system downtime, and (c) where applicable, your proposed approaches to minimizing the adverse impact of the variables. Note, listing in the Host Site List does not constitute a warranty or representation by NYPA or MTA that such site is suitable for a proposer’s purposes. NYPA intends to provide a site walkthrough of each Host Site and require that the Proposer be responsible for evaluating and determining the suitability of a specific site for installation of the SPGS based upon its own independent investigation. A proposer may submit a request for additional information about a site to the NYPA point of contact. The Host Site List is subject to change. As part of this RFI NYPA is interested in feedback on how multiple site inspections should be coordinated, what facility information should be provided and which parts of each facility should be inspected. In addition, NYPA is interested in feedback about the apparent suitability of the sites listed in Appendix A for installation of an SPGS. 2.4.2 Design and Schedule: Appendix D – Implementation Scope of Work is attached for reference. NYPA intends to include a photo-voltaic (PV) implementation scope of work similar to Appendix D in the RFP. Please comment on this document highlighting any concerns about how this document would affect proposals. 2.4.3 A full and complete description of proposer’s operation and maintenance plan (e.g., company and/or individuals involved; how such operation will be performed; type of access required to the Site; anticipated role of MTA in operation and maintenance phase). 2.4.4 Detailed plans for interconnection, net metering and billing. NYPA intends to require that the Seller be responsible for all interconnection costs, requirements and risks and for completing all requisite interconnection arrangements with the applicable transmission company, Consolidated Edison Company of New York, Inc. (“Con Edison”) or the Long Island Power Authority (“LIPA”). Con Edison’s interconnection standards and guidelines are available at www.conedison.com; LIPA’s are available at www.lipower.org. NYPA seeks comments on this requirement and also on a potential requirement for the Seller to identify any impact to the Host Site’s existing electric utility bills incurred as a result of the expected operation of the SPGS. For sites that will be identified in partnership with the winning proposer and NYPA and MTA to be implemented in 2010 and 2011, NYPA intends to require that proposals include the following: 2.4.5 Performance for each of four SPGS project increments; 100 kW, 250 kW, 500 kW and 1 MW per site, including: (a) anticipated monthly energy and peak power values; (b) identification and discussion of any variables identified that would affect your response to (a), and the impact thereof, such as site specific location/condition, system specifications, system degradation, weather, and scheduled and unscheduled system downtime, and (c) where applicable, your proposed approaches to minimizing the adverse impact of the variables. 3 ADDITIONAL ITEMS 3.1 NYPA and the MTA are interested in learning about solar PV technologies that may be suitable for installation at MTA facilities. These technologies may be installed as part of a SPPA or under an equipment purchase contract only. Examples include technology that is specifically designed for use on railway platform canopies or bus shelters. 3.2 NYPA and MTA are interested in receiving information about the status of the solar power industry as it relates to availability of solar panels, inverters and qualified labor in order to complete the build-out plans of this initiative. Appendix A - RFI Host Site List Appendix B - NYPA Power Purchase Agreement (Draft) Appendix C - Current MTA Occupancy Agreement Appendix D - Implementation Scope of Work
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