Call for Tenders Document A/O

Transcription

1 ELECTRICITY SUPPLY FOR QUÉBEC NEEDS Call for Tenders Document A/O MW OF FIRM CAPACITY AND ASSOCIATED ENERGY ADDENDUM #3 Issue date: APRIL 24, 2015 Addendum #3 is issued in French and English. Some changes aimed at correcting typographical or translation errors may have been made in one version while not being required in the other version.

2 ADDENDUM #3 April 24, 2015 CALL FOR TENDERS A/O This addendum #3 is an integral part of the A/O Call for Tenders document and modifies it as follows: 1. Chapter 2: Needs and requirements Section is now void and is replaced by Section appearing on page 3 of this addendum. 2. Appendix 5: Eligible indices Appendix 5 Eligible indices is now void and is replaced by Appendix 5 Eligible indices appearing on page 4 of this addendum. 3. Appendix 9: Standard Contract Section 6.3 is now void and is replaced by Section 6.3 appearing on page 8 of this addendum. Section 10 is now void and is replaced by Section 10 appearing on page 9 of this addendum. Section 31 is now void and is replaced by Section 31 appearing on page 10 of this addendum. 4. Appendix 10: Bid Form Section is now void and is replaced by Section appearing on page 11 of this addendum. The modifications made in Addendum #3 are identified as (revision 3), which appears in the margin to indicate that a paragraph, table or section has been revised or added. Bidders must ensure that they have properly identified the changes made to the paragraph, table or section involved. Bidders must indicate the number of addenda received in Section 1.1 Certification of the Bid Form (Appendix 10). This entry shall serve as acknowledgment of receipt. ADDENDUM #3 p. 2 : April 24, 2015

3 2.1.3 Others A bidder that buys electricity from Hydro-Québec at the Distribution tariff or under a special contract referred to in Section of the Hydro-Québec Act (CQLR, c. H-5) should not use the electricity to provide the requested product and the energy associated with the requested product. Any bidder referred to in the above paragraph shall demonstrate the aforesaid condition before May 5, 2015, at 4:00 PM (Montreal time). If said demonstration is received at a date prior to May 5, 2015 at 4:00 PM (Montreal time) and that it is not to the satisfaction of HQD, the bidder will be notified in writing and, if necessary, may file a new demonstration which must be received no later than the date and time mentioned above. If said demonstration is not at HQD s satisfaction, HQD will notify the bidder in writing before the deadline for the submission of bids provided in Section 4.14, and therefore, the bidder will not submit a bid in this call for tenders. Furthermore, during the performance of the contract, HQD may require the retained bidder to do the same demonstration above and, in the latter case, if it is turns out that it is declared unsatisfactory by HQD, it will notify the retained bidder and may terminate the contract. If applicable, a clause to this effect will be added to the electricity supply contract to be signed. ADDENDUM #3 p. 3 : April 24, 2015

4 APPENDIX 5 ELIGIBLE INDICES ADDENDUM #3 p. 4 : April 24, 2015

5 To establish the pricing formula in its bid, the bidder may use the indices listed in this Appendix. The starting index of the CPI and natural gas being based on indices as of March 31, 2015, the starting price of each component of the price must be specified as of April 1, A bidder wishing to use an index not appearing in this list must obtain written authorization from Hydro-Québec Distribution through the Official Representative identified in Section 4.5 of the Call for Tenders document. Hydro-Quebec Distribution retains the sole discretion to accept or reject a new index. Price indices for the capacity component CPI Consumer Price Index Fixed index Price indices for the energy component Natural gas price CPI Consumer Price Index Fixed index Definitions of indices 1. CPI Consumer Price Index If the bidder decides to use the CPI, then the starting price at April 1, 2015 will be indexed based on the following index and in accordance with the following rules: Consumer Price Index, All Items, Canada, Seasonally Unadjusted, published by Statistics Canada, Series CANSIM V (2002=100) ( CPI ). The starting value of the CPI is the value of the index published by Statistics Canada for March Indexation to the CPI is suspended in the event of a delay on the bidder s part, i.e. when the commencement date of deliveries is later than the guaranteed commencement date of deliveries. Indexation to the CPI For the first contract year, the starting price will be multiplied by the following factor: CPI DGDL CPI 2015 Starting from the second contract year and for subsequent contract years, the starting price component will be multiplied by the following factor: CPI DGDLMES X CPI t CPI 2015 CPI DDL Where: CPI DGDL : Average of the CPI calculated for the 12 months preceding December 1 st of the guaranteed commencement date of deliveries CPI 2015 : Average of the CPI in March 2015, available in April 2015, i.e. 126,3 CPI t : Average of the CPI for the 12 months preceding December 1 st in the contract year t ADDENDUM #3 p. 5 : April 24, 2015

6 2. Fixed index CPI DDL : Average of the CPI for the 12 months preceding the commencement date of deliveries If the bidder decides to use a fixed index, the starting price will then be indexed based on the indexation rate provided by the bidder, expressed as a percentage and as per the following rules: Indexation at fixed index For the first contract year, the starting price will be multiplied by the following factor: (1+TF) (n/12) Starting from the second contract year, and for subsequent contract years, the preceding contract year s starting price will be multiplied by the following factor: (1+TF) Where: TF: Fixed index provided by the bidder n: Number of months between March 31, 2015 and November 30 preceding the guaranteed commencement date of deliveries In the event of a delay on the bidder s part, i.e. when the commencement date of deliveries (DDL) is later than the guaranteed commencement date of deliveries (DGDL), the fixed indexation rate will then be suspended until the commencement of deliveries. 3. Price of natural gas If the bidder decides to use a natural gas price index, the starting price will be indexed based on the following index and rules: Dawn, Ontario, daily value of the natural gas midpoint price published by Platts Gas Daily (in US$/MMBtu). Bidders may obtain, at their own expense, the daily report published by Platts magazine on the following website: The starting value for the natural gas price index is the average of the price of natural gas for the period of April 1, 2014 to March 31, 2015 (GN2015). Since the natural gas index chosen by Hydro-Québec Distribution is in US dollars, it will be indexed to the exchange rate between the Canadian dollar and the US dollar. The starting value of the exchange rate is the average value of the daily exchange rate between the Canadian dollar and the US dollar for March 2015 (TxUS2015). ADDENDUM #3 p. 6 : April 24, 2015

7 Natural gas price index To establish the price of contract year t, the starting price will be multiplied by the following factors: GN t X TxUS t GN 2015 TxUS 2015 Where: GN t : Average of the index for the 12 months preceding December 1 st of contract year t GN 2015 : Average value of the index from April 1, 2014 to March 31, 2015, i.e TxUS t : Average of the CAD/US exchange rates published daily by the Bank of Canada at noon for the twelve (12) months preceding December 1 st of contract year t TxUS 2015 : Average of CAD/US exchange rates published daily by the Bank of Canada at noon for March 2015, i.e In the event of a delay on the bidder s part, i.e. when the commencement date of deliveries (DDL) is later than the guaranteed commencement date of deliveries (DGDL), the average value of GN t and TxUS t are calculated by excluding the months of delay. ADDENDUM #3 p. 7 : April 24, 2015

8 6.3 Delivery conditions At any time, when the power plant is not undergoing maintenance, as stipulated in Section 22, the Supplier shall deliver to the Distributor the scheduled energy. ADDENDUM #3 p. 8 : April 24, 2015

9 10 ELECTRICITY DURING TESTING The Distributor shall take delivery of the net delivered energy during the compliance test provided for in Section 20 and during the verification tests provided for under the connection agreement or any modification which may be made to such agreement and which provides for tests similar to those listed in the connection agreement, at the price indicated in Section 14.3, provided that the Supplier meets its obligations under the connection agreement. Is also considered as electricity during testing, the electricity delivered throughout offpeak period during which the Supplier conducts pre-approved tests by the Distributor to verify the ability of the power plant to operate. For the purposes of this section, the offpeak period means the period between April 1 and November 30 of a year. ADDENDUM #3 p. 9 : April 24, 2015

10 31 PENALTIES IN THE EVENT OF DEFAULT TO DELIVER Should the Supplier fails to deliver to the Distributor, in whole or in part, the scheduled energy for any given day, the Supplier will pay to the Distributor each of the penalties mentioned in paragraphs a) and b) established as follows: a) For each hour of default: Ppc = [(Epr Eln) / Epr] * 2.5% * (Rpc * PC) where: Ppc = Epr = Eln = Rpc = Penalties for failure to deliver the contract capacity; Scheduled energy expressed in MWh/h; Net delivered energy expressed in MWh/h; Contract capacity price as established in Section 14.1 for the current contract year. PC = Contract capacity as established in Section 6.1. Penalties paid by the Supplier under this paragraph a) shall not exceed the revenues associated with the contract capacity for the relevant contract year. b) In addition to the penalties specified in paragraph a), the product of the replacement cost and the scheduled energy not delivered. For each event resulting from a default to deliver, the Supplier shall submit, no later than five (5) days after the event, a written report to the Distributor demonstrating that the Supplier did all that was reasonably required to deliver the contract quantities provided in Section 6. This report must, among other things, indicate the cause of the event and give the timeframe that the Supplier expects that all obligations are met to the satisfaction of the Distributor. If the cumulative sum of the penalties invoiced by the Distributor to the Supplier is equal to or higher than (Rpc * PC), as defined above, Section 36.2 (i) may apply. ADDENDUM #3 p. 10 : April 24, 2015

11 3.3.6 Others A bidder that buys electricity from Hydro-Québec at the Distribution tariff or under a special contract referred to in Section of the Hydro-Québec Act (CQLR, c. H-5) should not use the electricity to provide the requested product and the energy associated with the requested product. Any bidder referred to in the above paragraph shall demonstrate the aforesaid condition before May 5, 2015, at 4:00 PM (Montreal time). If said demonstration is received at a date prior to May 5, 2015 at 4:00 PM (Montreal time) and that it is not to the satisfaction of HQD, the bidder will be notified in writing and, if necessary, may file a new demonstration which must be received no later than the date and time mentioned above. If said demonstration is not at HQD s satisfaction, HQD will notify the bidder in writing before the deadline for the submission of bids provided in Section 4.14, and therefore, the bidder will not submit a bid in this call for tenders. Furthermore, during the performance of the contract, HQD may require the retained bidder to do the same demonstration above and, in the latter case, if it is turns out that it is declared unsatisfactory by HQD, it will notify the retained bidder and may terminate the contract. If applicable, a clause to this effect will be added to the electricity supply contract to be signed. ADDENDUM #3 p. 11 : April 24, 2015