Documentos de Académico
Documentos de Profesional
Documentos de Cultura
A. OVERVIEW ................................................................................................ 4
1. Introduction ....................................................................................... 4
2. Resource Need ................................................................................... 4
3. Product Requested .............................................................................. 4
4. Interconnection .................................................................................. 5
5. Transmission and Distribution System ................................................... 6
B. General Minimum Requirements................................................................... 7
1. Commencement of Delivery and Delivery Time Periods ............................ 7
2. Timely Document Submittal ................................................................. 7
3. Eligible Resources ............................................................................... 7
4. Transaction Structure .......................................................................... 8
5. Commercial Viability ............................................................................ 8
6. Technical Characteristics ...................................................................... 9
7. Site Control ...................................................................................... 10
8. Development Security Costs ............................................................... 10
9. Post-Development Security Costs........................................................ 10
10. Duration of Proposal Pricing ............................................................... 11
C. Technology-Specific Minimum Requirements and APS Preferences .................. 11
1. Existing Thermal Generation .............................................................. 12
2. New Build Thermal Generation............................................................ 13
3. Renewable Energy + Energy Storage................................................... 14
4. Energy Storage................................................................................. 16
5. Dispatchable Demand Response ......................................................... 17
D. General Evaluation Process ....................................................................... 19
1. Process Overview .............................................................................. 19
2. Evaluation for Compliance with Minimum Requirements ......................... 19
3. Screening Evaluation ......................................................................... 20
4. Portfolio Analysis .............................................................................. 20
5. Short List Selection of Proposal(s) ....................................................... 21
6. Detailed Evaluation of Short List and Final Selection of Proposal(s) ......... 21
E. RFP Process and Schedule ......................................................................... 22
1. Independent Monitor ......................................................................... 22
2. RFP Website and PowerAdvocate......................................................... 22
APS 2018 Peaking Capacity RFP - Proprietary and Confidential Information Page 2
3. Respondent’s Notice of Intent to Bid .................................................... 23
4. Confidentiality Agreement .................................................................. 23
5. RFP Schedule ................................................................................... 24
F. Bid Submittal Information ......................................................................... 24
1. Schedule and Extensions ................................................................... 24
2. Currency .......................................................................................... 25
3. Reservation of Rights ........................................................................ 25
4. No Liability ....................................................................................... 25
5. Return of Documents......................................................................... 25
6. Proposal Fee .................................................................................... 25
7. Terms, Conditions and Pricing ............................................................ 26
8. PowerAdvocate ................................................................................. 26
Appendix A ............................................................................................... 28
Appendix B ............................................................................................... 29
APS 2018 Peaking Capacity RFP - Proprietary and Confidential Information Page 3
A. OVERVIEW
1. Introduction
2. Resource Need
APS’s resource plan indicates a need for additional flexible summer capacity
beginning in 2021. This need is driven primarily by the expiration of existing
wholesale contracts, the retirement of coal fired generation resources, and
future anticipated load growth. Additionally, to complement its growing fleet
of intermittent generation, APS needs flexible, fast-ramping resources that
are shapeable.
3. Product Requested
APS 2018 Peaking Capacity RFP - Proprietary and Confidential Information Page 4
these periods at the maximum summer rating of the Resource. Proposals
that provide flexible, dispatchable Peaking Capacity provide the highest
overall value to APS and will be considered most favorably. APS will not
consider Proposals that require APS to take energy during the “No
Must Take Energy” time periods specified in Appendix A.
4. Interconnection
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c. Resource Interconnection Costs. Each Respondent must include
reasonable Resource interconnection cost estimates, as
appropriate, as part of its submitted Proposal. Respondents may
wish to retain third party services for cost estimating, but this is at
the discretion of each Respondent. A detailed description of such
interconnection costs must be included in each Proposal and should
include a breakdown of the significant equipment costs together
with anticipated system improvement costs including, without
limitation, fault duty mitigation. For interconnection-related
questions or information, please contact:
Robert Bean
(602) 250-4330
E-mail: Robert.Bean@aps.com
URL: http://www.oatioasis.com/azps/index.html
APS 2018 Peaking Capacity RFP - Proprietary and Confidential Information Page 6
B. General Minimum Requirements
All Proposals must provide Peaking Capacity during the period of June 1 –
September 30 each year of the proposed transaction (the “Summer Delivery
Period”). A Proposal must not require APS to take delivery of energy
during the “No Must Take Energy” time periods specified in Appendix
A.
Respondent must complete and submit all deliverables (documents and fees)
required for a complete Proposal as specified in Sections E and F below and
in PowerAdvocate, no later than the due dates detailed in the RFP Schedule
found in Section E(5) below. Any deliverable submitted after its respective
due date will be considered non-responsive and will not be evaluated. APS’s
use of the PowerAdvocate platform for purposes of this RFP is explained in
Section E (2) below.
3. Eligible Resources
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b. Non-Supply Side:
1. Demand Response, both Commercial and Industrial (“C&I”) and
Residential
A Respondent that is considering submitting a Proposal for a technology or
combination of technologies not listed above should first submit a question
via PowerAdvocate to confirm eligibility of the potential Proposal, keeping in
mind that APS is seeking Peaking Capacity resources not energy resources.
4. Transaction Structure
5. Commercial Viability
APS 2018 Peaking Capacity RFP - Proprietary and Confidential Information Page 8
such legal and operational relationship supports the Proposal being
submitted.
6. Technical Characteristics
a. Resource Size:
1. Supply Side Proposal: Proposal must offer a minimum of 25 MW
and a maximum of 800 MW of Peaking Capacity per site. The
maximum capacity for an Energy Storage or a combined Renewable
Energy + Energy Storage Resource is 100 MW.
2. Non-Supply Side Proposal: Proposal must offer a minimum of 25
MW and a maximum of 100 MW of Peaking Capacity and must
aggregate APS customer load accordingly. A demand response
Program may not aggregate more than 25 MW of C&I customers.
b. Interconnection: Supply side Resources must deliver capacity and energy
either by directly interconnecting to the APS transmission system (greater
than 69 kV), sub-transmission system (69 kV), or by means of firm
transmission service through any third party system to the APS system.
Non-supply side Resources must interconnect to the APS distribution
system (less than 69kV). Each Proposal must include Respondent’s plan
to interconnect, at its own cost, to the APS system as described in the
previous sentence in order to support commercial operation by the June
1, 2021 deadline; provided however, that no Respondent is required by
APS to enter the applicable interconnection queue at the time it submits
its Proposal (as described in Section A (4) (a) above).
c. Rights to Product. A Proposal may not offer a partial Resource to be
shared with APS. Proposals must allow APS to have exclusive rights to
dispatch and receive energy from the Resource, provided however that
APS will not require these exclusive rights during the hours when APS is
refusing to accept energy shown as the “No Must Take Energy” hours in
Appendix A.
d. Ancillary Services. A Proposal must describe the capability of the proposed
Resource to provide energy, capacity, and/or ancillary services for
exclusive APS use.
e. Operations. Proposed supply side Resources must be able to operate
autonomously and interface with APS’s Energy Management System
(“EMS”). As set forth in Section C below, some Resources must also be
fully dispatchable by APS via APS’s Automatic Generation Control (“AGC”)
system. For those Resources not required to have AGC capability, APS
will nonetheless consider them to have higher value with such capability
than without it. All Proposals for supply side Resources must allow the
associated capacity and energy purchased by APS to be used by APS in
the California Independent System Operator (“CAISO”) Energy Imbalance
Market (“EIM”).
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7. Site Control
APS recognizes that a Respondent’s ability to achieve site control may vary
depending upon the nature of the Proposal and the specific land in question
however; APS does have an expectation that Respondents demonstrate
suitable progress toward achievement of site control prior to September 13,
2018. Accordingly, each Respondent shall provide the following no later than
the Proposal submission deadline (July 20, 2018):
A proposed price for Peaking Capacity shall include all costs for development
security. The proposed development security must be in the form of a letter
of credit or cash deposit and must be submitted to APS following contract
execution as provided in the applicable agreement or term sheet. In the
case of a letter of credit, it must be in the form and from an issuing bank
acceptable to APS in its sole discretion. Development security must be
calculated in accordance with Table 1 below, based upon the Resource type
and amount of Peaking Capacity proposed.
A proposed price for Peaking Capacity shall include all costs for post-
development security. The proposed post-development security must be in
the form of a letter of credit or cash deposit and must be submitted to APS
on or before COD as provided in the applicable agreement or term sheet.
Post-development security must be calculated in accordance with Table 1
below, based on the Resource type and amount of Peaking Capacity
proposed.
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Table 1
Post-
Development/
Development/
Resource Contract
Start of
Execution
Contract Term
Existing
$40/kW $40/kW
Thermal
New Build
$100/kW $40/kW
Thermal
Energy
$100/kW $40/kW
Storage
Renewable
+ Energy $100/kW $40/kW
Storage
Demand
$100/kW $40/kW
Response
A proposed price for Peaking Capacity shall be fixed for the duration of the
proposed term, or it may be a fixed price with a fixed annual escalation rate.
APS will not accept a Proposal with a price escalation rate tied to any
index.
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1. Existing Thermal Generation
Minimum Requirements:
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5. Resources with faster ramp rates will be evaluated more favorably
than those with slower ramp rates.
6. Resources with shorter minimum run, minimum down, and start-up
times will be evaluated more favorably than those with longer
times.
Minimum Requirements:
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exceeding the legal limits for emissions (CO, CO2, NOx, SO2, VOC,
PM10), whether pursuant to an applicable air permit or otherwise.
3. Resource is capable of at least two (2) starts per day.
4. Resources with faster ramp rates will be evaluated more favorably
than those with slower ramp rates.
5. Resources with shorter minimum run, minimum down, and start-up
times will be evaluated more favorably than those with longer
times.
6. Resource is capable of being online and dispatchable in ten (10)
minutes or less (quick-start).
7. Shorter-term transactions are preferred over longer-term
transactions, assuming that the levelized price of the product
delivered over the duration range remains competitive.
Minimum Requirements:
a. Transaction Structure. The proposed transaction must offer a Renewable
Energy + Energy Storage Resource pursuant to a Renewable Energy +
Energy Storage PPA with a term of at least five (5) years and not more
than twenty (20) years. The PPA must give APS ownership of all
Environmental Attributes associated with energy generated and delivered
to APS. “Environmental Attributes” has the meaning given to it in the
Renewable Energy + Energy Storage pro forma agreement which can be
found on the “Download Documents” tab in PowerAdvocate.
b. Technology: The following technologies are examples of eligible
Renewable Energy + Energy Storage Resources:
1. Photovoltaic solar facility combined with a bulk battery energy
storage system located on the same site and behind a common
interconnection point.
2. Wind generation facility combined with a bulk battery energy
storage system located on the same site and behind a common
interconnection point.
3. Other renewable energy technologies combined with an energy
storage system that meet the minimum requirements in Section B
above and this Section C(3), located on the same site and behind a
common interconnection point.
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c. Price:
APS requests respondent to create a pricing structure based on the
following parameters:
d. Technical Characteristics.
1. In any given hour the output of the entire Resource may not
exceed the capacity of the Interconnect Agreement.
2. In any given hour the output of the entire Resource may not
exceed the capacity of the energy storage portion of the Resource.
3. The Proposal must include a forecasted Resource output profile for
the proposed term of the PPA, which profile must conform to the
requirements regarding “No Must Take Energy” specified in
Appendix A.
4. The Proposal must provide for charging 100% of the energy
storage portion of the Resource with the renewable energy portion
of the Resource (i.e. grid power may not be used to charge the
energy storage portion unless mutually agreed to by both Parties).
5. The energy storage portion of the Resource must be charged first
and fully, prior to using the renewable energy portion of the
Resource for any other permissible purposes.
6. Seasonal Capacity Factor shall not be less than 80% during the
“Tier 3, More Preferred” hours specified in Appendix A for each year
of the term of the Proposal.
7. The Resource must be able to complete at least two (2) dispatches
each day during Tier 2 hours, as detailed in Appendix A.
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9. Proposal must specify either an AC-coupled or DC-coupled solution
in Respondent’s discretion, bearing in mind that APS is seeking the
least-cost/best fit Resources including, but not limited to,
considerations of production volume and the potential future ability
to charge the energy storage system from the grid. Additionally,
Respondent shall provide a narrative explaining why it chose the
proposed configuration.
APS Preferences:
1. The Resource delivers its energy only during the “More Preferred”
and “Preferred” hours shown in Appendix A.
2. The energy storage portion of the Resource has the ability to
discharge partially during an evening peak load period and
complete the full discharge during the following day’s morning peak
load period during Tier 2 hours shown in Appendix A.
3. The Resource is located in close proximity to APS’s Phoenix Metro
Load Pocket.
4. Shorter-term transactions are preferred over longer-term
transactions, assuming that the levelized price of the product
delivered over the duration range remains competitive.
4. Energy Storage
Minimum Requirements:
a. Transaction Structure: The proposed transaction must offer energy
storage pursuant to an Energy Storage Tolling PPA with a term of at least
five (5) years and not more than twenty (20) years.
b. Technology: The following technologies are examples of eligible Energy
Storage Resources:
1. Bulk battery energy storage systems
2. Flywheel
3. Compressed air energy storage system (“CAES”)
4. Pumped Storage Hydro
5. Other energy storage technologies that meet the minimum
requirements specified in Section B above and this Section C (4).
c. Technical Characteristics:
1. The Resource must be capable of operating at 114° F and twenty
percent (20%) humidity, at 100% of the proposed contract Peaking
Capacity for a minimum of four (4) consecutive hours.
2. The Resource must be able to complete at least one (1) full duty
cycle (one full charge and discharge) for each day during the
months of June through September, for a minimum of four (4)
APS 2018 Peaking Capacity RFP - Proprietary and Confidential Information Page 16
consecutive hours during Tier 3 hours defined in the Heat Map
found in Appendix A.
3. APS must have the ability to choose when to charge and discharge
the Resource at its sole discretion.
4. Bulk battery energy storage Resources must allow APS to provide
100% of the charging energy for the Resource.
5. The Resource must be a supply side resource, located in APS’s
service territory and interconnected to APS’s transmission or sub-
transmission system (69kV or higher).
6. The Resource must guarantee a monthly Availability requirement
(as that term is defined in the applicable Energy Storage Tolling
Agreement with APS) of at least ninety-six percent (96%).
APS Preferences:
1. The Resource can deliver the full proposed contract Peaking
Capacity for up to six (6) consecutive hours.
2. Resources with faster charging times will be evaluated more
favorably than those with slower charging times.
3. Resources that can achieve more full duty cycles, preferably for the
full calendar year rather than only during the period of June
through September, will be evaluated more favorably. Resources
that can achieve more than the required one (1) cycle per day will
also be evaluated more favorably.
4. Resources that are located inside APS’s Phoenix Metro Load Pocket
will be evaluated more favorably.
5. Shorter-term transactions are preferred over longer-term
transactions, assuming that the levelized price of the product
delivered over the duration range remains competitive.
Respondents assume the risk and impact of any future APS rate design
changes when submitting a Proposal for a demand response Program. In
addition, nothing in this RFP is intended to limit APS’s ability to offer its own
demand response program of any type in the future, regardless of whether
or not APS enters into a demand response Load Management Agreement as a
result of this RFP.
Minimum Requirements:
APS 2018 Peaking Capacity RFP - Proprietary and Confidential Information Page 17
count any energy savings that results from the proposed Program toward
any of APS’s regulatory requirements.
b. Technical Characteristics.
1. The Program must pass the Societal Cost Test (“SCT”) as defined
by the ACC Energy Efficiency Standards. APS will screen the
Program using the SCT as prescribed by the ACC. A Proposal must
include all the necessary input assumptions and calculations for the
Program to pass the SCT.
2. The Program must be APS-branded.
3. The Program may only aggregate customers within the APS service
territory.
4. The Proposal must include a proposed Measurement and
Verification Plan (“M&V Plan”) for the Program to verify actual MWh
& MW savings delivered, including estimated costs for
implementing the M&V Plan. Load reductions must be verifiable by
APS by using then-available APS metering.
5. The Program must not exceed 25 MW of load reduction from C&I
customers. Total residential and C&I load reduction under the
Program may not exceed 100 MW. Resources included in a
proposed Program must be dispatchable by APS.
6. The C&I component of the Program must be able to deliver the
proposed Peaking Capacity upon two (2) hours prior notice and in
accordance with APS dispatch instructions. The residential
component of the Program must be able to deliver the proposed
Peaking Capacity upon four (4) hours prior notice and in
accordance with APS dispatch instructions. In each case the
Peaking Capacity must be available to APS for at least twenty (20)
events over the Summer Delivery Period, for a minimum of four (4)
consecutive hours per event.
7. The Program must provide 100% of the proposed Peaking Capacity
seven (7) days a week for a minimum of any four (4) consecutive
hours, if and as dispatched by APS, during the summer months of
June through September hours ending 1600 – 2100 Arizona time
(Tier 3 of the Heat Map found in Appendix A).
8. If an energy storage system is implemented, APS requires
exclusive dispatch rights to the entire storage system (entire
nameplate rating) and the system cannot be used for purposes
other than the proposed demand response purpose during the
summer months of June through September, hours ending 1600 –
2100 Arizona time (Tier 3 of the Heat Map found in Appendix A).
9. The storage system must be fully charged at the beginning of the
“Tier 3, More Preferred” hours shown in Appendix A.
APS 2018 Peaking Capacity RFP - Proprietary and Confidential Information Page 18
10. Proposal shall include recommendations of how to minimize impact
of “snap back” to participants who utilize APS retail rates which
include a demand component.
APS Preferences:
1. Process Overview
APS will use both quantitative and qualitative criteria to evaluate Proposals.
APS will first determine if a Proposal satisfies the General Minimum
Requirements specified in Section B and the Technology-Specific
Requirements in Section C. APS will then perform the screening evaluation
process described below. Proposals that satisfy both the minimum
requirements and the screening evaluation will then be further evaluated
through a portfolio evaluation, which considers the fit of a Proposal relative
to APS’s existing resources, other Proposals, projected resource needs, and
additional qualitative criteria. If at any time during the evaluation process
APS determines that a Proposal does not meet its requirements, including
timely submission of all documents and fees required pursuant to this RFP,
fails to remain competitive with other Proposals, or fails to satisfy APS’s
needs in the course of subsequent portfolio and qualitative analyses, such
Proposal may no longer be considered and APS will notify the Respondent
accordingly during its notification process.
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b. Failure of Proposal to Meet Minimum Requirements. APS may reject any
Proposal that fails to meet the minimum requirements specified in
Sections B and C, or otherwise contains incomplete or inaccurate
responses as determined by APS in its sole discretion. APS may, in its
sole discretion, ask a Respondent for clarification or remediation of its
Proposal prior to making a final determination regarding acceptance or
rejection of the Proposal.
3. Screening Evaluation
4. Portfolio Analysis
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5. Short List Selection of Proposal(s)
b. Final Evaluation and Selection. Following the meeting and potential re-
evaluation process described above, APS may make a final selection of
one or more Proposals for negotiation of an agreement in a form
substantially similar to that set forth in the relevant pro forma agreement
or based on the terms contained in the relevant term sheet. APS will
notify Shortlisted Respondents whose Proposals are eliminated from
further consideration in accordance with the RFP schedule, set forth in
Section E(5) below.
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d. Regulatory Approval. APS performance under an executed agreement
resulting from this RFP is conditioned upon actions and/or approvals by
regulatory authorities, satisfactory to APS in its sole discretion.
E. RFP Process and Schedule
1. Independent Monitor
APS 2018 Peaking Capacity RFP - Proprietary and Confidential Information Page 22
Arizona Public Service Company
Attention: Sonja Schroder
Email: Sonja.Schroder@aps.com
4. Confidentiality Agreement
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5. RFP Schedule
RFP Issued/PowerAdvocate
Registration Open April 26, 2018
Final Selection
October 25, 2018
Contract Execution
December 14, 2018
Proposals shall be submitted in strict accordance with the RFP schedule. APS
will not grant any extensions to the RFP schedule and will not accept late
Proposals. Any Proposal received after the scheduled date will be disqualified
and the Respondent will be notified of its elimination.
APS 2018 Peaking Capacity RFP - Proprietary and Confidential Information Page 24
2. Currency
3. Reservation of Rights
APS reserves the right to accept or reject in its sole discretion any or all
Proposals for any reason at any time after submittal. APS also reserves the
right to select an offer that is not the lowest price, if APS determines that in
its judgment the overall Proposal may result in the greatest value to APS’s
customers.
4. No Liability
5. Return of Documents
6. Proposal Fee
APS 2018 Peaking Capacity RFP - Proprietary and Confidential Information Page 25
If any of the foregoing characteristics of Respondent’s Proposal change, then
the changes amount to a separate Proposal for which Respondent will be
required to submit a separate Proposal Fee.
APS must receive the Proposal Fee by the response date shown in
Section E(5) above. The only form of payment APS will accept is a
Fed Funds Wire Transfer using the information below. Any costs or
fees associated with wiring the funds shall be paid directly by the
Respondent.
Company: Arizona Public Service Company
Bank: Wells Fargo
ABA/Routing No.: 121000248
Account No.: 4159540921
OBI Field: 114903; AR114903555; 2018 Peaking RFP Bid Fee;
Respondent’s name
8. PowerAdvocate
APS 2018 Peaking Capacity RFP - Proprietary and Confidential Information Page 26
e. Executed certification page which demonstrates that the signatory has full
authority to bind the Respondent to all of the terms and conditions
contained in its Proposal. Respondents must use the certification page
posted by APS on PowerAdvocate;
f. For a new build supply side Resource, a Resource development schedule
shown in weeks, based on an assumed date for contract execution (which
shall be stated in the schedule);
g. For a supply side Resource, a preliminary one-line diagram for the
Resource showing meter location and specified delivery location, which
shall be the Delivery Point as that term is defined in the contract;
h. Completion of the entire Technical Data form(s), found on the “Download
Documents” tab in PowerAdvocate, which identifies certain criteria used to
calculate the expected energy production for the Resource. Although APS
has provided certain default assumptions based on industry standards, a
Respondent may use criteria that differs from these assumptions if it
identifies the difference and reason for this variation. The energy
production profile submitted via PowerAdvocate must be calculated based
on the same set of technical criteria supplied by the Respondent in the
Technical Data form(s);
i. A copy of the relevant pro forma agreement or term sheet, redlined to
reflect Respondent’s required modifications, if any. APS expects minimal,
if any, redlines to the posted pro forma agreements and/or term sheets.
Proposals that contain significant substantive changes will be viewed less
favorably by APS and may be eliminated from further consideration.
APS 2018 Peaking Capacity RFP - Proprietary and Confidential Information Page 27
Appendix A
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Appendix B
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Appendix B (continued)
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