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Requirements for Proposals

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  • Revised FAQ-66:
    What defines a Project?  Can we submit bids for multiple systems in a given location?

    Under the SREC-Based Financing Program ("Program"), a given Project is tied to a given EDC meter (with a given customer account) and to a given NJCEP Initial Application number (either under the Renewable Energy Incentive Program ("REIP") or under the SREC Registration Program ("SRP")).  You may submit bids for multiple systems residing at the same location if the systems are tied to different EDC meters, have different NJCEP Initial Application numbers, and otherwise satisfy all requirements under the Program, including the requirement that Projects be "behind the meter". Please consult the RFP Rules available on the Documents page of our Web site for the complete requirements under the Program.

    We would also note that the Board has established a 20% developer cap across all solicitations in a given RPS Reporting Year for all long term SREC PSAs entered into by JCP&L or ACE in that RPS Reporting Year.

    06/04/2010 in Requirements for Proposals

  • FAQ-65:
    Two separate corporate entities are going to be the owners of our multiple projects. Do I need NJCEP Application Numbers for each company, for each project, or for each customer?

    Our understanding is that the NJCEP Application Number is associated with a Project (rather than a company or a customer). However, we are the Solicitation Managers for the SREC-Based Financing Program only and we do not process the applications under the Renewable Energy Incentive Program (“REIP”) or the SREC Registration Program (“SRP”). As such, we may not be aware of certain details of these programs. If you are unsure of any aspect of your application under the REIP or the SRP, please contact the managers of the NJCEP directly. Their contact information can be found here: http://www.njcleanenergy.com/misc/about-njcep/contact-us.

    06/24/2010 in Requirements for Proposals

  • FAQ-63:
    Where can the EDCs’ net metering documentation be located?

    The documents for JCP&L have been posted to the Documents page of our web site under "Interconnection Agreement Documents". The following links for provide interconnection agreement information for ACE and RECO.

    02/22/2010 in Requirements for Proposals

  • FAQ-60:
    We own a large retail center in New Jersey. In this building each tenant has a separate meter and address. We anticipate signing Power Purchase Agreements (“PPAs”) with the tenants to off-take the power. Please explain if we can participate.

    All eligible projects must be net metered. The project you describe does not appear to qualify. The solar generator must be behind the meter. It would seem that the generator you describe is not behind the meter, but is interconnected to the utility distribution system as a generation facility "upstream" of several meters and that you contemplate distributing power from this facility for retail sale to customers. This would not qualify as behind-the-meter generation. To be eligible, your project would need to be subdivided into individual projects, sized to meet only the energy requirements of each of the individual tenants that agree to participate (to meet the New Jersey net metering requirements), and interconnected behind each of the prospective participant's meter.

    02/22/2010 in Requirements for Proposals

  • FAQ-58:
    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 Sellers 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.

    02/22/2010 in Requirements for Proposals

  • FAQ-55:
    A developer is the seller. If the developer’s project is selected through the SREC-Based Financing Program but the customer subsequently bails out, can the developer substitute another customer and site?

    No. The Final 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 SREC Purchase and Sale Agreement (“SREC PSA”); and (3) completed registration materials with the Office of Clean Energy. Thus, the 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 SREC 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 SREC 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.

    The Stipulation and SREC PSA can be found on the Documents page of the web site.

    02/22/2010 in Requirements for Proposals

  • FAQ-46:
    Is the SREC price paid on all SRECs produced by a Project, or only on the net-metered amount?

    The SREC price is paid for all SRECs produced by a Project, not just for the net-metered amount.

    02/22/2010 in Requirements for Proposals

  • FAQ-37:
    My project is located in JCP&L territory. Can you explain the bid evaluation process?

    Please see the presentation entitled “SREC-Based Financing Program 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 (a sample bid form can be found on the Documents page of the web site). The pricing proposals will be ranked according to the net present value (“NPV”) of payments under the SREC Purchase and Sale Agreement (“SREC PSA”) for each annually delivered SREC. The SREC PSA can be found on the Documents page of the web site. 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.

    10/09/2010 in Requirements for Proposals

  • FAQ-30:
    A Customer is considering developing a solar project under the following arrangement: (1) the Customer will lease the Project from a financing company; (2) the Customer will eventually own the equipment, possibly after the term of the SREC Purchase and Sale Agreement (“SREC PSA”) expires; and (3) the financing company intends to assign the SRECs to the Customer.

    I have spoken to the Office of Clean Energy and it appears that from their perspective, the SRECs could be assigned to the Customer for purposes of the state programs (even though the Customer does not own the Project). I have two questions:

    1) Is the Project eligible to participate in the Program?
    2) If so, who will be the Seller under the SREC PSA?

    In the normal course of events, the entity that owns the Project during the term of the SREC PSA is the Seller because the owner of the Project has title to the SRECs. However, under your particular circumstances, the Customer will be the Seller because only the Customer can sell the SRECs to the EDC.

    The Project is eligible to participate in the Program if the Project satisfies all eligibility requirements and if the Seller provides, as part of its Proposal, an additional document. This additional document will be signed by the Customer and by the Lessor. This document will state that the Lessor assigns the SRECs from the Project to the Customer and will state that the Customer accepts the terms of the SREC PSA.

    The Solicitation Manager is preparing the document that the Seller will be required to submit as part of its Proposal and will make this available well in advance of the Bid Date.

    02/22/2010 in Requirements for Proposals

  • FAQ-29:
    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.

    02/22/2010 in Requirements for Proposals

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