FAQ Archives - Solicitation 2: December 2009
The FAQs on this page are no longer relevant, as they are from past solicitations. These FAQs are posted here only for reference purposes. Do not rely on the information provided on this page for the current solicitation.
All FAQs
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FAQ-128:
What price does a Successful Proponent get paid?
The price that an EDC pays a successful proponent is the price that the Successful Proponent bid.
12/28/2009 in General
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FAQ-127:
I understand that there is a system size maximum (500 kW DC). However, is there a maximum size for the system relative to the expected annual energy? Can a project that is expected to export energy back to JCP&L at wholesale rates qualify?
Only "behind the meter" installations are considered in the SREC-Based Financing Program. All Proponents will be required to agree to net metering arrangements with the EDC.
We also note that under the SREC Purchase and Sale Agreement (“SREC PSA”), the EDC is not required to purchase SRECs in excess of, on an annual basis, the product of (i) the Direct Current (“DC”) nameplate generating Capacity and (ii) 1,300 hours. Please see Paragraph 8 in the SREC PSA, “Quantity of SRECs”, available on the “Documents” page of our web site.
12/28/2009 in Requirements for Proposals , Purchase and Sale Agreement
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FAQ-126:
LLC#1 owns the premises where the Project will reside. LLC#2 owns the Project. The two LLCs are sister companies. The Appendix C “Host’s Acknowledgment and Certification” states the following: “The undersigned has no right, title or interest, including, but not limited to, any third party beneficiary rights…” and must be signed by a representative of LLC#1. Can an individual who is an officer of both LLCs sign this statement in good faith or is there a contradiction from the fact that the individual is a representative of LLC#2?
There is no contradiction. The individual signing Appendix C would be doing so in his or her capacity as a representative of LLC#1 (that owns the building). In that capacity, the individual confirms by signing that LLC#1 does not have any right, title, or interest in the Agreement. The individual is signing on behalf of the LLC#1 and not on his or her own behalf or as a representative of LLC#2.
12/10/2009 in Requirements for Proposals
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FAQ-125:
What are the chances that the March solicitation will procure more or less than the capacities provided in Table 2 of the RFP Rules?
Please note that the quantities in Table 2 of the RFP Rules to which you refer provide “MINIMUM quantities for the third solicitation” (emphasis added). The quantities will not be less than the amounts in that table. The planned quantity in the third solicitation for each EDC is subject to change as explained below and could be more than the amounts in that table.
In general under the Program, two solicitations are planned each year, and each solicitation is for half of the year's planned quantity. A third solicitation is held for the balance of the year's planned quantity that remains uncommitted after the first two solicitations.
The quantities shown in Table 2 are the quantities that remained uncommitted after the first solicitation. The third solicitation may also include quantities that remain uncommitted after this second solicitation. The third solicitation may also include all or a portion of the next year’s planned quantity, based on an assessment of, among other things, the results of the previous solicitations and the market's ability to respond effectively with competitive bids.
The Solicitation Manager makes recommendations to the Board regarding the parameters of each solicitation, including the planned quantity, and the Board makes a decision on these matters. The Board, in its Order after this solicitation, will specify and update the additional quantities that will be procured in the March 2010 solicitation.
12/10/2009 in General
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FAQ-124:
On Page 2 of Appendix 4 for the Qualification Materials, I am having trouble determining my "Customer Utility Tariff Rate Schedule". Where do I find this information?
The tariff rate schedule can be found on your electric bill. For JCP&L, the rate category is a string of letters and numbers that begins with "JC..." (e.g., JC_GS3_03F). For ACE, the "Electric Delivery Charges" section of your bill will contain your tariff rate schedule. Thus it may read, "Current charges for 29 days - Summer Rates in Effect - Residential Service" - in which case "Residential Service" would be the tariff rate schedule.
12/10/2009 in Requirements for Proposals
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FAQ-123:
We included a lengthy Engineering, Procurement, and Construction ("EPC") Agreement as an attachment to our REIP application. Are we required to provide the EPC Agreement in our qualification materials package or would it be sufficient to provide the signature page?
The Program requires a copy of the completed application materials under the REIP or the SREC Registration Program, including all attachments. Please provide the EPC Agreement as you state that it was an attachment to the REIP application.
12/10/2009 in Requirements for Proposals
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FAQ-122:
Must our electric bills be included in the qualification materials package?
All items included in the application to the New Jersey Clean Energy Program ("NJCEP") application (either to the Renewable Energy Incentive Program or the SREC Registration Program) are required. If the electric bills were included in the application delivered to the NJCEP, then these bills must be included as part of your Qualifications Materials. Please note that the Qualifications Materials are due by 5PM on Friday, December 11, 2009 for this second solicitation.
12/10/2009 in Requirements for Proposals
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FAQ-121:
I have submitted an amendment for my project size to the New Jersey Clean Energy Program (“NJCEP”). My acceptance letter from the NJCEP has a lower project size. Is that a problem?
The size of the Project provided in your Proposal must correspond to the size of the Project approved pursuant to the Initial Application process under the REIP or the SREC Registration Program. If you put in a larger project size, you will be required to provide documentation confirming that the NJCEP has approved the change.
12/10/2009 in Requirements for Proposals
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FAQ-120:
The Appendix 5 requires the following, "If the Customer is the Owner of the Project and the Customer leases the premises or facility where the Project is located: One (1) original document to show that the owner of the premises consents to the installation and operation of the Project." Could you please specify the type of documentation that you would require?
Please provide the identity of the owner of the premises as well as a statement from the owner that “I understand that ___________ [name of Customer], who leases the premises at _________________ [address where Project will reside], is planning to install a solar system at that address. I consent to such an installation and operation of the project.” The statement should be signed and dated.
12/10/2009 in Requirements for Proposals
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FAQ-119:
If my project is interconnected after I submit the bid to the Program, but before the results of the solicitation are announced, would my application be compromised?
A requirement of the Program is that the Project can not be interconnected prior to Board Order approving the results of the solicitation. As part of the Qualification Materials, the Proponent is required to certify that the Project is not yet interconnected and that the Proponent will not request interconnection prior to the Board Order on the results of the solicitation.
12/10/2009 in Requirements for Proposals
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FAQ-118:
Will there be an auction for the SRECs that are purchased by the EDCs under this Program? If so, where can I find additional information?
The SRECs purchased through the SREC-Based Financing Program will be sold at auction as directed by the Board. BGS Suppliers, Third Party Suppliers, traders and aggregators will be able to participate in the auction. Please visit this web site that describes the auction process:
http://www.solarrec-auction.com/You may register to receive email updates. At present, the auction is for the purchase by participants of SRECs from PSE&G's Solar Loan Program.
12/10/2009 in General
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FAQ-117:
The customer plans to change the inverter and panel type. The New Jersey Clean Energy Program (“NJCEP”) approves of the change provided that the system output is similar. Please advise on how we should proceed when completing the qualification materials?
As part of your qualification package, you will be required to submit a description of the equipment including the name of the manufacturer and you will be required to provide your completed application materials under the REIP or the SREC Registration Program, including all attachments. As part of your Pricing Proposal, you will be required to provide the size of the Project. The size of the Project must be expressed in kilowatts ("kW") and must correspond to the size of the Project provided in the Initial Application process under the REIP or the SREC Registration Program. If there will be a discrepancy regarding the size of the Project, please provide documentation confirming that the NJCEP has approved the change.
12/10/2009 in Requirements for Proposals
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FAQ-116:
Can you please clarify whether 34.5 kV is or is not transmission voltage for JCP&L? Without having this information, we are uncertain whether our Customer can make the required certification that "the Project will not be interconnected at transmission voltages".
We apologize for the confusion. The situation for JCP&L is complicated because JCP&L uses 34.5 kV in two configurations - Y and delta. The "Y" configuration is considered primary distribution. The "delta" configuration is considered high tension and thus transmission voltage.
Please see the page 301 of the PJM OATT Tariff (www.pjm.com/~/media/documents/agreements/tariff.ashx) which states:
"The annual transmission revenue requirement is [...] per megawatt per year, which reflects the facilities of 34.5 kV delta and higher voltage for Jersey Central Power & Light Company."
We have updated FAQ-113 to state that the transmission voltage for JCP&L is 34.5 kV delta and higher voltage.
12/10/2009 in Requirements for Proposals
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FAQ-115:
The Appendix C (Host's Acknowledgement and Certification) reads "The undersigned is the owner of the Facility at which ____, the Seller named in the Solar Renewable Energy Certificate Purchase and Sale Agreement dated ____, 20__ with..." This form needs to be signed by the Customer and submitted as part of the qualification materials. Can I confirm with you that I do not need to complete the data because the Solar Renewable Energy Certificate PSA (“SREC PSA”) will not have been signed when we submit the document?
Yes, that is correct. Please submit Appendix C, leaving blank the dated portion of the following section: "... named in the Solar Renewable Energy Certificate Purchase and Sale Agreement dated ____, 20__ with...".
The SREC Purchase and Sale Agreement ("SREC PSA") will be signed after the successful Proponent is notified that the Board has approved the Proponent's Pricing Proposal. According to Section 4.1.7. of the RFP Rules, "... if the Proponent becomes a Successful Proponent, the Owner will sign the SREC PSA within five (5) business days of being given a 'Final Notice of Award' by the EDC. (The EDC will give such notice no earlier than forty-five (45) days after the date of service of the Board Order, as further explained in Article 5)." The date can be filled when the SREC PSA is executed.
12/10/2009 in Requirements for Proposals
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FAQ-114:
I am the Developer and as a courtesy to my Customer (who will be the owner of the Project) I am submitting the Pricing Proposal on their behalf. Who should sign the certifications in the “Certifications and Checklist” included in the Qualification Package, me or the Customer?
The owner of the Project (in this case the Customer) should be the person signing the certifications of the "Certifications and Checklist" form.
12/10/2009 in Requirements for Proposals
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FAQ-113:
FAQ-72 indicates, "Under current regulation, for a Project to be able to generate SRECs, the Customer on whose premises the Project resides must NOT be interconnected at transmission voltages." I am personally aware of a solar project that is connected at 34.5 kV, which is considered to be JCP&L transmission voltage according to FAQ-35. The project is receiving SRECs. Could you please clear up this inconsistency?
FAQ-35 incorrectly states that the transmission voltage for JCP&L is 34 kV and above. In fact, transmission voltage for JCP&L is 34.5 kV delta and higher voltage. Thus there is no inconsistency as it is possible for a Project to be connected at 34.5 kV, not to be interconnected at transmission voltages, and to be producing SRECs.
Please note that FAQ-35 has since been archived and replaced by FAQ-112.
12/10/2009 in Requirements for Proposals
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FAQ-112:
What is considered transmission voltage?
Transmission voltage differs for each company. For ACE, the transmission voltage is 69 kV and above. For JCP&L, the transmission voltage is 34.5 kV and above. For RECO, the transmission voltage is 69 kV and the developer must connect to the distribution system. This must be done at a primary or a secondary voltage.
12/02/2009 in General
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FAQ-111:
Is JCP&L interested in purchasing SRECs from projects that do not qualify for the SREC-Based Financing Program? If so, who is the contact person?
As Solicitation Manager for the SREC-Based Financing Program ("Program"), we can only speak to the opportunity to sell SRECs that qualify under the Program. Contact information for JCP&L can be found here.
12/02/2009 in General
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FAQ-110:
One LLC owns the Project and another LLC owns the premises where the Project resides and is the EDC Customer. For the purposes of presenting our qualification materials, should we consider the project to be owned by the Customer or by the Developer?
The Project that you describe would be considered to be owned by the Developer. This is the case because the Customer (who owns the premises where the Project resides and is the EDC customer) does not own the system or Project. You will be required to submit the appropriate Appendix C Host's Acknowledgement and Certification, which can be found on the Documents page of the Web site.
12/02/2009 in Evaluation of Proposals
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FAQ-109:
The Program identifies a developer cap. Does the Program have a customer cap?
The Program does not have a customer cap. Please note, however, that the Solicitation Manager will apply the developer cap to each Developer, whether or not the Developer is the Proponent. That is, if the Customer submits a Proposal, the Customer will be asked to disclose the identity of the Developer so that the developer cap may be applied. Please note that the developer cap only applies to ACE and JCP&L. There is no developer cap for RECO.
12/02/2009 in General