FAQs
Answers to your Frequently Asked Questions ("FAQs") are posted on this page. To ask a question, please use our automated form. FAQs will be posted every Wednesday. FAQs will be posted daily during the week prior to the deadline for submitting Pricing Proposals and Qualification Materials.”
All FAQs
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FAQ-169:
We heard that there is a lot of interest for this upcoming solicitation. Can you confirm this?
The amount of interest in the upcoming solicitation will not be known until the Proposals are submitted and will not be made public at that time. We believe that you may referring to a presentation by the Market Managers that provided information (types of projects, number of projects, and capacity) for applications to the SRP that are eligible for participation in the EDCs' SREC-Based Financing Program. This presentation can be found here.
02/11/2011 in General
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FAQ-168:
If a customer is located in Vineland Municipal Utility territory, can the customer participate in the SREC-Based Financing Program as an ACE customer?
Unfortunately, a customer served by Vineland cannot participate in the SREC-Based Financing Program ("Program"). One of the requirements of the Program is that the customer must be located in ACE's service territory and must be taking service under an ACE tariff.
02/11/2011 in Requirements for Proposals
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FAQ-167:
I am unsure if the Project will be built at this time. When in the procurement process does the Owner of the Project commit to building the Project?
The first commitment is provided as part of the Qualification Materials (due with the Pricing Proposal). The Owner of the Project must certify at that time that it accepts all the terms of the SREC Purchase and Sale Agreement ("SREC PSA") and that the Owner will sign the SREC PSA within five (5) business days of being given a Final Notice of Award by the EDC.
The second commitment is within fourteen (14) days of awards. If an Owner receives an award for a project, a cash deposit is due fourteen (14) days after the New Jersey Board of Public Utilities' approval of the awards for the solicitation.
The third commitment occurs once the EDC provides a Final Notice to the Owner, which occurs no earlier than forty-five (45) days after the date of service of the Board Order. The Owner must at that time execute the SREC PSA within five (5) days of receipt of this Final Notice. There is no provision to release the Owner from its promise to execute the SREC PSA, regardless of the reason. The Owner is subject to a forfeit of any deposit it has posted if the Project is not completed or if the Owner does not sign the SREC PSA.
02/10/2011 in General
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FAQ-166:
Can I submit a proposal under the SREC Based Financing Program for a Project that is not permitted yet?
We are unsure what you mean by "permitted". If this response does not address your question, please contact us again.
One of the requirements of the SREC-Based Financing Program ("Program") is for the Project to have obtained an NJCEP Application Number. The NJCEP Application Number can be obtained either from the Renewable Energy Incentive Program ("REIP") or from the SREC Registration Program ("SRP"). Please note that currently only applications under the SRP are considered. It is expected that the Office of Clean Energy would only be able to issue an NJCEP Application Number in time for this upcoming solicitation for applications to the SRP that were received by Friday, February 4, 2011, accompanied with an ESFI notice of intent to participate or a cover letter indicating your intention to participate in the Program.
Additional information on this Initial Application process under the SRP is available on the NJCEP web site: www.njcleanenergy.com/renewable-energy/programs/srec-registration-program/registration-forms. No other permits or permissions are required for submission of a Proposal under the Program.
02/10/2011 in Requirements for Proposals
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FAQ-165:
Please confirm that the customer has 5 business days to accept if an offer is given to the customer under this SREC Based Financing Program, and that if the customer does not act, you will forfeit the deposit required under the program.
We assume from your question that the customer would be the Owner of the Project. You are correct that the customer will have five (5) days to act. However, the customer will not receive an offer from the EDC. Rather the customer will submit an offer (the “Pricing Proposal” or bid) to the EDC. If the Project receives an award from the Board, the customer will provide a cash deposit within fourteen (14) days of Board approval. Once the Board Order is no longer subject to appeal, which occurs forty-five days after the date of service of the Board Order, the EDC will provide to the customer a final contract (the SREC Purchase and Sale Agreement or “SREC PSA”). At that point, the customer will have five (5) business days to execute and enter into the SREC PSA with the EDC. If the customer does not enter into the SREC PSA with the EDC, the customer will lose its cash deposit. If the customer enters into the SREC PSA with the EDC, the deposit will be returned, without interest, once the project starts operating. Please see FAQ-106 or our Program Guide (on the documents page of our web site) for more information about the Program."
02/09/2011 in General
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FAQ-164:
Can Appendix C be used to assign SREC ownership from the Property Owner to the Developer who will not own the system, or to assign SREC ownership to a bank or lending institution?
Many commercial arrangements can be accommodated within the Program, including the ownership of the premises, the ownership of the Project, and the benefit of the electricity generated by the Project all belonging to different parties. However, the assignment of SRECs to a party other than the Owner of the Project is not contemplated by the standard contract (the SREC Purchase and Sale Agreement or SREC PSA), which must be used for all awards under the Program. Under the SREC PSA, the party that owns the Project and the party that receives the SRECs and sells the SRECs to the EDC is one and the same. Thus, Appendix C cannot be completed to accomplish the commercial arrangements that you are considering and generally these arrangements are neither contemplated nor permissible under the SREC PSA or the Program. We note, however, that once the Owner of a successful Project has signed the SREC PSA with the EDC (assuming the project is successful), the Owner may assign the benefits of the SRECs (i.e., the revenue from the SRECs received under the SREC PSA) to another party through its own arrangements as long as such an assignment complies with Section I of the SREC PSA.
02/08/2011 in Purchase and Sale Agreement
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FAQ-163:
A client’s project has begun construction and an "application for interconnection" was filed with JCP&L. The client has not been granted final interconnection, but has received a "preliminary review and approval" and appears to be required to submit additional paperwork in the process. Is my client still eligible to participate in the SREC Based Financing Program?
Yes, from your description of the facts it appears that your client is still eligible to participate.
There are two steps to interconnection. The first step is the filing of an initial application that provides to the EDC the details of the system to be installed. The second step occurs after the system is installed. At that point, an application for authorization to operate and permission to interconnect is filed.
From your description it would appear that only the first step has been completed thus far. A Proponent can complete the first step at any time with affecting the eligibility of the Project under the SREC-Based Financing Program (“Program”). A Proponent cannot initiate the second step until the Board Order on the results of the solicitation.
For JCP&L, the forms required and the timing of the second step of the interconnection are slightly different depending on the size of the system. (Please see the forms on the documents page of our Web site.) If you have further questions regarding interconnection, please reference the size of the system and the form used so that we may provide more detailed information relevant to this particular case.
02/08/2011 in Requirements for Proposals
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FAQ-162:
Please clarify the requirement for the Owner to install an EDC Kilowatt-hour meter, and indicate the party responsible for the installation of such meter and the cost associated for such installation.
Under the SREC Purchase and Sale Agreement ("SREC PSA"), the owner of the project ("Owner") agrees that the EDC will install, own, and maintain an EDC kilowatt-hour meter (the "SREC Meter"). The SREC meter is the only meter used for registering SRECs under the SREC PSA. The EDC is responsible for monthly meter readings from the SREC Meter. The EDC will also be responsible for uploading the monthly meter readings from the SREC meter to the PJM-EIS GATS system.
For JCP&L, in practice, the customer fills out a request for installation of the meter and submits this form to JCP&L (the form will be posted to the Documents page of our Web site and is attached for your convenience). JCP&L invoices the customer for the cost based on the required meter. JCP&L installs the meter once the invoice is paid. The process for the other EDCs is similar. Meter costs will depend on the capacity and service at the site and are different across the three EDCs. The information we have is as follows:
-- for ACE, SREC metering costs are approximately $850 for the self contained sites and $2300.00 for transformer rated sites.
-- for JCP&L, typical costs are provided in the attached form.
-- RECO is in the process of developing updated information.
Please note that the Companies retain the right to calculate and bill metering costs for non-typical installations.
The SREC meter is the meter that measures the production of the Project and that is used for registering SRECs. The customer will also have a meter that measures consumption. This meter will measure the customer’s net consumption (net of the production from the Project). Proponents in the Program are required to agree to net metering arrangements with the EDC.
02/08/2011 in Purchase and Sale Agreement
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FAQ-161:
For a project residing in JCP&L’s service territory, is the signing of an interconnection agreement equivalent to requesting permission to interconnect and operate the system?
The signing of the interconnection agreement is not equivalent to requesting permission to interconnect and operate the system. For JCP&L, the forms required and the timing of the second step of the interconnection are slightly different depending on the size of the system. (Please see the forms on the Documents page of our Web site.) Generally, the second step is not initiated until the system is completed and the Owner has requested from JCP&L the authorization to operate and permission to interconnect (and we assume this is equivalent to what you term the "notice to the EDC that the generator has been installed"). If you have further questions regarding interconnection, please submit an additional question with a reference to the size of your system and the form that you are using so that we may provide more information relevant to your particular case.
02/08/2011 in General
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FAQ-160:
Section 5.1.9 of the RFP Rules suggests that projects associated with any combination of affiliated developers under the same majority ownership will count towards the 20% cap. How are joint ventures that do not have a majority ownership by any single parent entity treated in terms of the developer cap?
The provision you cite is as follows: The Solicitation Manager will apply the developer cap so that the combined awards across all solicitations in a given RPS Reporting Year for a given EDC (ACE or JCP&L) that are associated with any one Developer, or any combination of affiliated Developers under the same majority ownership, do not exceed 20% of the planned quantity for that EDC in that RPS Reporting Year by more than the larger of: (a) 150 kW; or (b) if the Program is undersubscribed in the prior Reporting Year, 30% of the system size of the last accepted Proposal associated with that Developer (or any combination of affiliated Developers under the same majority ownership).
The provision, for a given EDC and a given RPS Reporting Year, applies as follows. If Project 1 is associated with Developer A, if Project 2 is associated with Developer B, and if Developer A and Developer B are under the same majority ownership, both Projects 1 and 2 will count toward the developer cap of the affiliated Developers A and B and their majority owner. The provision also applies in the following case. If Project 1 is associated with Developer C and Project 2 is associated with Developer C, Projects 1 and 2 will count toward the developer cap of Developer C. This is true whether or not Developer C is under majority ownership. The provision states that, if different developers are under the same majority ownership, projects associated with all affiliated developers count toward a single developer cap. The provision does not say that for the developer cap to apply to any one Developer for a given project, the Developer must be under majority ownership.
A "Developer" need not be a single entity and could be a joint venture. Clearly, all projects associated with the joint venture, whether or not the joint venture has a majority owner, would count toward the developer cap of the joint venture. Furthermore, if two or more developers participated in a joint venture associated with Project 1, and one of these Developers (Developer D) also was associated with Project 2, the Solicitation Manager, in its recommendations, would count both Projects 1 and 2 toward the developer cap of Developer D.
Please note that the Board, and not the Solicitation Manager or the EDCs, makes the awards under the SREC-Based Financing Program. The Board examines the Solicitation Manager's recommendations, including recommendations regarding the application of the developer cap, and the Board renders a decision on the basis of the facts, its previous Orders, and these recommendations.
02/08/2011 in Requirements for Proposals
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