FAQ Archives - Solicitation 1: August 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-13:
Where are the RFP documents, including Expression of Interest, Pricing Proposal and Purchase and Sale Agreement posted?

The RFP documents, including the forms for the Expression of Interest ("EOI") and Pricing Proposal, were posted on July 30. You can find these forms on the Documents page of our Web site.

Please see Article 2 of the ACE-JCP&L RFP Document ("RFP Rules") for details regarding the requirements of the EOI and the method of submission. Please see Article 3 of the RFP Rules for details regarding the requirements of the Pricing Proposal and the method of submission. Please see Article 4 of the RFP Rules for details regarding the qualification package. There is no single application form; however, as specified in Article 5 of the RFP Rules, the Proponent must use the Project Proposal Summary Sheet as well as the Certifications and Checklist for Qualifications form in submitting to the qualification requirements. Each form required for the submission of Proposals is provided as an appendix to the RFP Rules.

08/04/2009 in General
FAQ-12:
How are SRECs produced as a result of the ACE-JCP&L SREC-Based Financing Program validated?

The number of SRECs credited to the Seller's GATS account will be based on the energy generation from the Project based upon the reading of a meter. This meter will be owned and installed by the EDC at the Seller's expense. The electricity generation will be tracked through monthly meter readings in accordance with PJM-EIS-GATS Operating Rules. Engineering estimates will not be accepted as a basis for establishing the actual amounts of generation and determining the number of SRECs created by the Project.

08/04/2009 in General
FAQ-11:
We are developing a large project (over 500 kW). Can we parcel out a 500 kW portion that would be bid in this RFP?

No projects greater than 500 kW will be considered. A portion (of 500 kW or less) of a project that exceeds 500 kW in the aggregate will not be considered. The size of the project is based on the DC rating of the solar system.

08/04/2009 in Requirements for Proposals
FAQ-10:
If a developer’s project is selected through the SREC Program but the customer subsequently bails out, can the developer substitute another customer and site if the system size and price remain the same?

No. The Stipulation approved by the Board specified particular bid documents that will be required. These include: (1) a Project Proposal Summary Sheet that specifies the project location and identifies the customer; (2) a signed customer acknowledgment, which is available as Appendix C to the Purchase and Sale Agreement (“PSA”); and (3) completed registration materials with the Office of Clean Energy. Thus, the ACE and JCP&L SREC-Based Financing Program (“Program”) clearly identifies a bid SREC price with a particular project for a particular customer at a given location. It does not contemplate a bid for a generic size and price where the developer would then choose the particular project from which SRECs would be delivered to the EDC. If a bidder were to be awarded a PSA under this Program, and the project for which a proposal was submitted was not completed, the bidder would forfeit its deposit and not be able to substitute another project in its stead. Please note that the bidder has one year from the signing of the PSA to complete the project. Please also note that several solicitations are planned under the RFP so that bidders have several opportunities to present bids.

07/24/2009 in Requirements for Proposals
FAQ-9:
I am a JCP&L customer. Can you explain the process for project selection?

Please see the presentation entitled “SREC-Based Financing Update” under the Documents page of this web site for a review of the process for project selection.

The pricing proposal must consist of a single price that will be paid for each SREC delivered to JCP&L. The pricing proposals will be ranked according to the net present value (“NPV”) of payments under the Purchase and Sales Agreement (“PSA”) for each annually delivered SREC. The discount rate applied for JCP&L will be 6.87%. For a term of 10 years, the factor applied to the price of an SREC to determine the NPV is 7.0660. For example, if the price is $375, the NPV would be $2,650 ($375 x 7.0660). Terms of 10 to 15 years will be considered. The factors that would apply for terms of 11 to 15 years are: 7.5475, 7.9980, 8.4196, 8.8141, and 9.1832 respectively. Please note that in addition to ranking the pricing proposals using the NPV, the evaluation used by the Solicitation Manager will entail a 20% developer cap and an assessment of the competitiveness of the pricing. The Solicitation Manager may recommend that the full MW solicited not be awarded based on the competitiveness of the pricing.

07/24/2009 in Requirements for Proposals
FAQ-8:
Is the 500 kW system size requirement AC or DC?

The system size limitations are based on the DC rating of the photovoltaic system.

07/24/2009 in Requirements for Proposals
FAQ-7:
Are interconnected projects eligible for the Request for Proposal (RFP)?

Completed projects that are interconnected are not eligible to submit a proposal in the RFP.

07/24/2009 in Requirements for Proposals
FAQ-6:
Are there any opportunities to apply for a loan to finance my residential solar energy project?

ACE and JCP&L are not offering loan programs. Rather, they are contracting to purchase solar Renewable Energy Certificates from solar projects so as to provide a stable revenue stream to facilitate independent financing through loans or other financing mechanisms for renewable projects' development and installation.

More information can be found on the Documents page of our web site.

07/24/2009 in General
FAQ-5:
Where are the solicitation documents posted?

All relevant solicitation documents are posted to the Documents page of the ACE and JCP&L SREC-Based Financing Program web site. These documents are available in downloadable form. The web site provides additional details regarding the Program and you may register to a mailing list to receive updates.

This answer was originally posted on 7/24/2009 has been revised as of 8/4/2009.

08/04/2009 in General
FAQ-4:
On what date was the solicitation issued?

The RFP documentation was released on July 30, 2009.

This answer was originally posted on 7/24/2009 has been revised as of 8/4/2009.

08/04/2009 in General
FAQ-3:
Will the solicitations for ACE and JCP&L be held on the same date or will they be staggered?

The proposals for both ACE and JCP&L will be due on the same date.

07/24/2009 in General
FAQ-2:
Where is more information available regarding the process of submitting bids for SRECs?

This web site focuses exclusively on the ACE and JCP&L Solar Program and the RFP documents will be posted to the Documents page of this web site. This web site will provide additional details regarding the Program and you may register to a mailing list to receive additional updates.

The following documents, which were originally posted to the NJ Clean Energy Program web site under Utility Financing Programs are now available on the Documents page of this web site:
- the Purchase and Sale Agreement that winning bidders would sign;
- preliminary FAQs regarding the Program (additional FAQs will be posted to the new web site);
- the Order from the New Jersey Board of Public Utilities (“Board”) approving the Program;
- and the Stipulation, which describes the main elements of the Program.
All projects considered under the Program will be required to have completed the Initial Application process for solar projects under the Office of Clean Energy’s Renewable Energy Incentive Program. Additional information on this Initial Application process, including a guidebook and forms, can be found on the Renewable Energy Incentive Program page.

This answer was originally posted on 7/24/2009 has been revised as of 8/4/2009.

08/04/2009 in General
FAQ-1:
How does an interested party submit an offer?

Documents necessary for participation in the RFP were posted to the web site on July 30, 2009. These forms can be found on the Documents page of our web site. The planned deadline for proposals following the first solicitation will be August 25 -- as originally scheduled.

For your convenience, we are copying below the entire text of the RFP announcement prior to the launch of the web site:

"On behalf of JCP&L and ACE:

Following is an update on the SREC-based financing program offered by Jersey Central Power & Light (JCP&L) and Atlantic City Electric (ACE):

JCP&L and ACE have selected National Economic Research Associates, Inc., (NERA) to perform the solicitations for the companies' SREC-based financing programs, which were approved by the New Jersey Board of Public Utilities. Currently, NERA is developing the solicitation process, as well as a Web site to disseminate information and documents, and plans to release the RFP documents during the week of July 27 for the first solicitation.

The documents will adhere to the description found in the Stipulation and Order approving the programs, which have been posted since mid-April on the Clean Energy Program Web site, www.njcleanenergy.com/utilityfinancing. In addition, the planned deadline for proposals following the first solicitation will be August 25 -- as originally scheduled.

If you have any questions, please send an email to NERA at NJSolar@nera.com. NERA will reply to your question by email, usually within two business days, and also will post additional answers in the Frequently Asked Questions (FAQ) document at www.njcleanenergy.com/utilityfinancing. NERA will continue to post documents to this Web site until the new site is launched. Once the new site is available, NERA will send an email to the Renewable Energy ListServe and to anyone who contacts NERA with an interest in participating in the solicitation.

Thank you for your interest in the program, and we look forward to your participation.

Chris Siebens

Office 610-921-6694"

This answer was originally posted on 7/24/2009 has been revised as of 8/4/2009.

08/04/2009 in General

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