2015 Request For Proposals For Long-Term DevelopmentalCombined-Cycle Gas Turbine and Existing Capacity and Energy Resources in WOTAB

Transcription

1 Appendix D Fr Request Fr Prpsals Fr Lng-Term DevelpmentalCmbined-Cycle Gas Turbine and Existing Capacity and Energy Resurces in WOTAB DRAFT Entergy Services, Inc. July 27,September 29, 2015 The statements cntained in this Appendix D are made subject t the Reservatin f Rights set frth in Appendix E f the RFP and the terms and acknwledgements set frth in the Prpsal Submissin Agreement.

2 This draft fr Develpmental Resurces sets frth certain minimum requirements that a new-build, r Develpmental Resurce, must satisfy in the RFP (the ). The draft are specified in the chart belw, and are in additin t ther RFP requirements that a Bidder in the RFP must satisfy. The are designed t ensure that a Develpmental Resurce ffered in a prpsal submitted int the RFP is develped t a degree meriting detailed, full-scale evaluatin by the apprpriate RFP evaluatin teams and ptential selectin f the resurce. Bidders are advised that the RFP will seekseeks infrmatin frm each Bidder related t the Develpmental Resurce(s) included in its prpsal(s) that significantly exceeds the infrmatin necessary fr its prpsal(s) t meet the. Bidders are further advised that satisfactin f the des nt ensure that a prpsal will be eligible fr participatin in the RFP; ther RFP eligibility requirements, t be specified in the RFP, must als be met. This draft dcument is subject t change. Criterin Minimum Requirement Infrmatin Required t Evaluate Prpsals against the Prject Overview Cmplete prject descriptin. Bidder must prvide a reasnably thrugh and accurate summary descriptin f the prject, including, but nt limited t, the prpsed lcatin, site descriptin, generatin technlgy, majr equipment, design basis, water surce(s), fuel supply and transprtatin surces, plan fr engineering, prcurement, and cnstructin, envirnmental cmpliance, and permitting, status f intercnnectin and nn-standard prject cmpnents/ cnsideratins, as well as a summary f the wrk cmpleted n each f the. The prvisin f infrmatin in the summary descriptin des nt limit the requirement fr Bidder t prvide the infrmatin sught belw. Bidder Experience Bidder r Seller must have cmpleted at least ne (1) utility-scale prject with the generatin technlgy t be ffered in Bidder s prpsal (e.g., ne utility-scale CCGT prject) and have prject team The statements cntained in this Appendix D are made subject t the Reservatin f Rights set frth in Appendix E f the RFP and the terms and acknwledgements set frth in the Prpsal Submissin Agreement. Page D-1 Bidder must prvide a summary that includes the key prject team members, their relatinship t Bidder (e.g., emplyee f Bidder r Bidder parent), their backgrunds, current title/psitin, and develpment experience, and a descriptin r

3 Criterin Minimum Requirement Infrmatin Required t Evaluate Prpsals against the Prject Develpment members wh, in the aggregate, have had direct respnsibility fr the develpment f at least three (3) cmpleted utility-scale prjects, regardless f generatin technlgy. Bidder must prvide reasnable evidence that prject develpment fr the prpsed resurce is beynd the cnceptual phase fr design, engineering, and plan fr executin. list f relevant prjects they and Bidder r Seller have cmpleted. Engineering: Bidder must prvide reasnable evidence that the prject has been translated frm the screening and planning phase f develpment int a prject definitin f sufficient detail and quality t ensure the efficient prgressin f detailed engineering and prcurement if the prject is selected. Cst Estimate: Bidder must prvide reasnable evidence that its prject cst estimate is based n frnt-end engineering frm a qualified external and/r internal surce that supprts a Class 3 (as defined by AACE standards) cst estimate (-20% t +30%). At a minimum, the cst estimate shuld accunt fr the fllwing: i) mechanical and electrical equipment; ii) instrumentatin and cntrls; iii) piping; iv) misc. buildings; v) structural steel; vi) site wrk and fundatins; vii) retrfit allwance (if applicable); viii) sales tax; ix) engineering csts; x) indirect csts; xi) spare parts; The statements cntained in this Appendix D are made subject t the Reservatin f Rights set frth in Appendix E f the RFP and the terms and acknwledgements set frth in the Prpsal Submissin Agreement. Page D-2

4 Criterin Minimum Requirement Infrmatin Required t Evaluate Prpsals against the xii) escalatin; xiii) cnstructin financing csts; xiv) fuel handling and strage equipment; and xv) any ther categry nt listed here and reasnably expected t be included fr the prpsed technlgy. Prject Schedule: Bidder must prvide, at a minimum, a Level 2 (as defined by AACE standards) prject schedule that supprts all aspects f prject executin, including develpment, design, engineering, financing, prcurement, permitting, intercnnectin, cnstructin, and testing, and prject supprt materials that, alng with the infrmatin prvided in respnse t ESI s due diligence questins in the RFP, demnstrate Bidder s (r Seller s) capability t meet the date by which cmmercial peratin f the Develpmental Resurce is guaranteed by Bidder t have ccurred and related prject milestnes fr the prpsed resurce (financial clsing, partial and full ntices t prceed fr majr prject cntractrs, applicatins fr and receipt f majr permits, majr equipment deliveries, fundatin purs, cmpletin f gas, pwer, water, wastewater, and ther material intercnnectins, etc.). Certain Required Prject Attributes Technlgy: Cmmercially-prven CCGT technlgy. 1 Bidder must identify the riginal equipment manufacturers f the majr equipment being prpsed and detail the 1 Fr the RFP, cmmercially-prven technlgy is technlgy that ESI determines has, as f June 24, 2015 (the date the initial draft f Appendix D was submitted as part f the Cmpanies required advanced ntificatin f the RFP t the LPSC), a sufficient amunt f peratinal and perfrmance data and The statements cntained in this Appendix D are made subject t the Reservatin f Rights set frth in Appendix E f the RFP and the terms and acknwledgements set frth in the Prpsal Submissin Agreement. Page D-3

5 Criterin Minimum Requirement Infrmatin Required t Evaluate Prpsals against the Develpmental Resurce: Single integrated plant. Minimum Size: MW (summer cnditins (97 Fahrenheit and 56% relative humidity ( Summer Cnditins ), at full lad, including duct- firing). Maximum Size: 1,000 MW (Summer Cnditins, at full lad, including duct-firing). 2 Net Unit Heat Rate at Summer Cnditins: N greater than 7,000 Btu/kWh (HHV) at full utput, withut duct-firing. (technlgy-based) perating parameters f each generating unit cmprising the Develpmental Resurce (e.g., net electrical generating capacity, net heat rate, and perating ranges at Summer Cnditins, maximum ramp rates, start times (cld, warm, and ht), start restrictins (if any), minimum dispatch levels, and minimum dwn times) and the Develpmental Resurce as a whle. Nte: Fr any pwer purchase r tlling agreement arising ut f the RFP, EGSL and/r ELL intends t have the flexibility t schedule and dispatch the Develpmental Resurce as if the resurce were its wn generatin resurce having the same r similar type f generatin technlgy. T ensure clarity, the RFP will nt permit a system sale frm multiple resurces. Fr additinal resurce design and perating requirements Bidder must satisfy, please see Sectins 2.7 and 3 f the Main Bdy. infrmatin demnstrating, t ESI s satisfactin, (i) sustained, reliable, and therwise acceptable perfrmance in the CCGT cnfiguratin prpsed and (ii) the CCGT technlgy s suitability fr service in the resurce s intended rles as an EGSL/ELL resurce, as described in Sectin 1.9 f the Main Bdy and Appendix D t this RFP. Examples f CCGT technlgy determined nt t be Cmmercially-Prven CCGT Technlgy fr this RFP include General Electric 7HA technlgy and Mitsubishi JAC technlgy. If a Bidder is unclear whether a CCGT generatin technlgy that Bidder intends t r may prpse in the RFP is cmmercially-prven technlgy fr purpses f the RFP, Bidder may submit a request t ESI and the Independent Mnitr seeking the desired clarificatin and ESI will answer the request. Bidder may be required t supply infrmatin cncerning the subject CCGT technlgy and ptential Develpmental Resurce t ESI and the Independent Mnitr t assist ESI in the develpment f its answer. 2 Subject t the terms f the RFP, fr PPAs and Tlls frm Develpmental Resurces, the maximum amunt f generating capacity t be made available fr purchase by Buyer frm the Develpmental Resurce is 1,000 MW (Summer Cnditins, at full lad, including duct-firing); hwever, in such case, the maximum size f the Develpmental Resurce is nt limited t 1,000 MW (Summer Cnditins, at full lad, including duct-firing). The statements cntained in this Appendix D are made subject t the Reservatin f Rights set frth in Appendix E f the RFP and the terms and acknwledgements set frth in the Prpsal Submissin Agreement. Page D-4

6 Criterin Minimum Requirement Infrmatin Required t Evaluate Prpsals against the AGC: Required. Steam Injectin fr Pwer Augmentatin: Nt permitted. 23 Heat Rejectin Systems, including the main cndenser and mechanical draft cling twer: Must be sufficiently sized t allw cntinued peratin f all cmbustin turbines in the event f a steam turbine trip. Jint Ownership (Acquisitin Resurces Only): Nt permitted. Prject Lcatin The resurce must be electrically intercnnected directly t EGSL (r, after cnsummatin f the pending business cmbinatin, Entergy Gulf States Luisiana, L.L.C.LLC) within the WOTAB planning regin. Please see Attachment 1 belw fr a map f EGSL s service area in WOTAB (indicated in red), with the Lake Charles area indicated in light blue. 34 The resurce must be intercnnected at a transmissin (as ppsed t distributin) level. Bidder must include a map and plat f the prject lcatin. 23 Inlet evaprative cling is nt pwer augmentatin fr purpses f the RFP. 3 If a Bidder is unclear whether a Develpmental Resurce that Bidder intends t r may prpse in the RFP wuld be lcated within WOTAB, Bidder may, after psting f the Draft RFP, request that ESI advise Bidder whether the Develpmental Resurce is within WOTAB and ESI will answer the request. Please the Ntice f RFP r Sectin 1.5 r 1.6 f the Main Bdy fr infrmatin regarding the submissin f questins abut the RFP t ESI and the Independent Mnitr. Bidder may be required t prvide infrmatin cncerning the lcatin and planned intercnnectins f the Develpmental Resurce and ther relevant infrmatin t assist ESI in the develpment f its answer. 4 If a Bidder is unclear whether a Develpmental Resurce that Bidder intends t r may prpse in the RFP wuld be lcated within WOTAB, Bidder may request that ESI advise Bidder whether the Develpmental Resurce is within WOTAB and ESI will answer the request. Please see Sectins 1.5, 1.6, and 7.1 f the Main The statements cntained in this Appendix D are made subject t the Reservatin f Rights set frth in Appendix E f the RFP and the terms and acknwledgements set frth in the Prpsal Submissin Agreement. Page D-5

7 Criterin Minimum Requirement Infrmatin Required t Evaluate Prpsals against the Site Cntrl Bidder must shw that Seller (r an affiliate under Seller s cntrl) has cntrl f the site n which the prject wuld be lcated r has a valid, binding, and enfrceable cntract t btain cntrl f the prject site fr the full delivery term prpsed by Bidder r the expected useful life f the resurce. A letter f intent, memrandum f understanding, r ther similar dcument cntemplating the subsequent negtiatin f a definitive agreement, in each case regarding Bidder s cntrl f the prject site, will nt satisfy the freging site cntrl requirement. Bidder shuld prvide a redacted cpy f the definitive agreements r dcuments establishing the requisite site cntrl. Bidder must prvide its wn prject site. EGSL and ELL will nt ffer t third-party bidders the use r cntrl f any ptential prject site that EGSL and ELL wns r cntrls. Bdy fr infrmatin regarding the submissin f questins abut the RFP t ESI and the Independent Mnitr. Bidder may be required t prvide infrmatin cncerning the lcatin and planned intercnnectins f the Develpmental Resurce and ther relevant infrmatin t assist ESI in the develpment f its answer. The statements cntained in this Appendix D are made subject t the Reservatin f Rights set frth in Appendix E f the RFP and the terms and acknwledgements set frth in the Prpsal Submissin Agreement. Page D-6

8 Criterin Minimum Requirement Infrmatin Required t Evaluate Prpsals against the Fuel Supply & Transprtatin Bidder must have a viable plan fr fuel supply and transprtatin capable f meeting the RFP s requirements fr the resurce, and prvide reasnable supprt fr the viability f the plan. The fuel supply and transprtatin plan shuld include (and prvide reasnable supprt fr the viability f) the prject s fuel supply, surce(s), transprtatin, strage (if applicable), and infrastructure fr the delivery and prcessing f fuel fr the resurce. Bidder must identify all available natural gas pipelines that wuld reasnably be cnsidered candidates fr intercnnectin with the prject. Bidder must prvide an estimate f the cst t intercnnect the resurce with each natural gas pipeline that wuld be directly intercnnected t the prject. Bidder must identify the natural gas pipeline intercnnectins cvered in and supprted by the prject cst estimate, including the pipeline perating pressures and whether firm transprtatin capacity is available. Fr the RFP, the resurce, if and when cnstructed, will be required t be intercnnected t a minimum f tw separate natural gas pipelines that wuld prvide fully redundant gas transprtatin service fr the resurce. Bidder must prvide reasnable evidence that the natural gas pipelines that wuld serve the prject can prvide adequate flexibility t ensure lad-fllwing capability f the prpsed resurce (e.g., nn-ratable service, swing capability, imbalance prvisins), and adequate reliability. Bidder must identify the pipeline easements and rights-f-way necessary fr each pipeline intercnnectin cvered in and supprted by the prject cst estimate. The statements cntained in this Appendix D are made subject t the Reservatin f Rights set frth in Appendix E f the RFP and the terms and acknwledgements set frth in the Prpsal Submissin Agreement. Page D-7

9 Criterin Minimum Requirement Infrmatin Required t Evaluate Prpsals against the Envirnmental Cmpliance, Assessment & Permitting Electric Intercnnectin/ Transmissin Service Bidder must prvide a viable envirnmental cmpliance plan, including reasnable descriptins f Bidder s plan t engineer, design, develp, prcure, build, test, wn/lease, perate, maintain, and repair the prject (including the prject site) in cmpliance with all applicable envirnmental laws, permits, authrizatins, and ther requirements, and prvide reasnable supprt fr the viability f the plan. Bidder must shw that due diligence has been cmpleted and actin plans established t a level sufficient t supprt all permitting activities. Bidder must have submitted a cmplete generatr intercnnectin applicatin ( IA ) fr the prpsed resurce in accrdance with the MISO generatr intercnnectin prcess. The resurce must be able t be qualified as The statements cntained in this Appendix D are made subject t the Reservatin f Rights set frth in Appendix E f the RFP and the terms and acknwledgements set frth in the Prpsal Submissin Agreement. Page D-8 Bidder must prvide a reasnable summary f the plan fr cmplying with envirnmental laws and requirements applicable t the prject. Bidder must shw that all permitting due diligence necessary t prepare t apply fr all required permits has been cmpleted (e.g., a cpy f the draft permit applicatin(s) r a summary f the permit applicatin requirements, including descriptins f the plan t meet thse requirements and btain the permit(s)). Bidder must prvide reasnably detailed plans t cmplete a Phase I envirnmental site assessment in accrdance with ASTM E and evidence and dcumentatin f due diligence specific t the prpsed site sufficient t supprt such an assessment (e.g., dcumentatin f wrk necessary t meet the primary cmpnents required under a Phase I accrding t ASTM E1527) r, if cmpleted, an accurate summary f such assessment. Bidder must disclse any reasnably anticipated material permitting bstacles and any pending claim, actin, r dispute related t permitting activities related t the resurce. Bidder must submit its reasnably detailed lcal cmmunity engagement and actin plans related t permitting activities related t the resurce. Bidder must prvide a cpy f the IA applicatin submitted t MISO and MISO queue number. Bidder s IA applicatin must have sught (i) a quantity f energy resurce intercnnectin service ( ERIS ) frm

10 Criterin Minimum Requirement Infrmatin Required t Evaluate Prpsals against the a designated netwrk resurce and fully deliverable. The statements cntained in this Appendix D are made subject t the Reservatin f Rights set frth in Appendix E f the RFP and the terms and acknwledgements set frth in the Prpsal Submissin Agreement. Page D-9 MISO sufficient fr the resurce t be fully deliverableequal t the winter capacity rating that crrespnds t the required amunt f NRIS set frth in clause (ii) belw and (ii) a quantity f netwrk resurce intercnnectin service ( NRIS ) frm MISO (x) sufficient t allw the resurce t receive the maximum capacity credits a resurce f its capacity size culd receive under applicable MISO rules (fr prpsals ffering the full amunt f the capacity f the Develpmental Resurce) r (y) that can and will be allcated and priritized such that the NRIS level assciated with the Develpmental Resurce s capacity under cntract t Buyer cannt limit the amunt f MISO capacity credits that Buyer wuld receive fr any planning perid during the delivery term f a PPA r Tll (fr prpsals ffering less than the full amunt f the capacity f the Develpmental Resurce). Bidder must prvide a cpy f the IA acknwledgement letter and/r IA study results frm MISO. Bidder must identify the substatin(s) t which the prject wuld be directly electrically intercnnected. Nte: Electrical intercnnectin and deliverability csts and risks assciated with a resurce may be an imprtant part f the evaluatin f prpsals in the RFP. Bidders shuld be prepared t develp and prvide detailed infrmatin abut the electrical intercnnectin and deliverability csts and risks assciated with their resurces/prpsals. Sme f this infrmatin culd require significant time and the expertise f ne r mre third parties t develp and prepare. Bidders will bear exclusive respnsibility fr btaining and paying fr electrical intercnnectin and

11 Criterin Minimum Requirement Infrmatin Required t Evaluate Prpsals against the Water Surce, Treatment, and Dispsal Prject Structure & Finance Bidder must have a viable plan fr access t adequate and sustainable supplies f water capable f meeting the maximum design requirements f the prpsed resurce at Summer Cnditins, the treatment f water fr the resurce, and dispsal f waste water, and prvide reasnable supprt fr the viability f the plan. Bidder must have a viable plan fr prject structure and financing that is supprted by recent experience and/r market intelligence. The statements cntained in this Appendix D are made subject t the Reservatin f Rights set frth in Appendix E f the RFP and the terms and acknwledgements set frth in the Prpsal Submissin Agreement. Page D-10 transmissin service fr their prpsed resurce, including, withut limitatin, the csts f intercnnectin upgrades and upgrades necessary fr the required amunts f ERIS and/r NRIS fr the resurce, and fr develping their prpsals t include and accunt fr, withut limitatin, all such upgrades. Bidder must describe the prpsed primary surce(s) and quality f the prject s raw water supply, the physical and cntractual requirements necessary t secure and prperly utilize the water supply, the adequacy and availability f the water supply t meet the generating resurce requirements at full lad during Summer Cnditins, the applicable water quality specificatins fr the resurce and chemical r physical treatment requirements, and any reasnable available water supply and treatment alternatives. Bidder must als describe its wastewater dispsal plan, which shuld include reasnable descriptins f the surce(s) and type(s) f wastewater t be dispsed f and the means and manner f dispsal. Bidder must describe the plan t finance the prject, including a detailed descriptin f any applicatin fr publicly subsidized lans, debt guarantees, tax relief, bnds, r ther public funding. Bidder must describe the prjected wnership structure f the Develpmental Resurce prir t the delivery term cmmencement date r clsing (as applicable) and, if prpsing a pwer purchase r tlling agreement, after the delivery term cmmencement date. Bidder must be able t prvide evidence f at least ne recent successful prject financing cmpleted by Bidder, Seller, r the parent f Seller r that ptential lenders have been

12 Criterin Minimum Requirement Infrmatin Required t Evaluate Prpsals against the engaged in initial, bna fide cmmercial discussins t ascertain interest, market cnditins, and indicative terms. Bidder must describe hw it intends t meet the applicable credit/cllateral requirements that will be specified in the RFP. Bidders that fail t meet ne r mre f the may be required, at ESI s electin (in cnsultatin with the Independent Mnitr), t prvide, r t have Seller prvide, supplemental security (i) as a cnditin t cntinued participatin in the RFP and (ii) t supprt any letter f intent entered int by Seller (r a party acting n its behalf) in cnnectin with the RFP (see Sectin 6.2 f the Main Bdy and Appendix F). The security wuld be separate frm, and in the case f clause (ii) abve, incremental t, any letter f credit required t be psted in cnnectin with clause (ii). The purpse f the enhanced cllateral supprt wuld be t hedge the risk that Bidder (r Seller) will withdraw the prpsal, will substantially change the material terms f the prpsal, r will be unable r chse nt t hnr the terms f the prpsal prir t cmpleting the negtiatin f a Definitive Agreement between Seller and the Buyer. The amunt f the supplemental security wuld be determined by ESI n a case-by-case basis and wuld be dependent upn its assessment f the nt satisfied by Bidder. ESI s assessment wuld take int cnsideratin evidence prvided by Bidder that it has been using, cntinues t use, and will cntinue t use gd faith effrts t meet the that Bidder has failed t satisfy. The amunt f supplemental security a Bidder may be required t pst wuld nt exceed $5 millin. If called upn t pst supplemental security, Bidder will have the ptin either t pst (r have Seller pst) the required amunt f supplemental security r t withdraw the prpsal(s) that failed t meet the frm the RFP. The prpsal(s) f any Bidder that psts the required amunt f supplemental security accrding t the terms f the RFP will be allwed t remain in the RFP, subject t cmpliance with the ther participatry terms f the RFP. Supplemental security psted as a cnditin t cntinued participatin in the RFP may be replaced with ther security upn executin f a definitive agreement between Seller and Buyer. If Bidder is required t pst supplemental security pursuant t clause (i) abve and (a) is nt selected fr negtiatin r ptential negtiatin f a definitive agreement with Buyer r (b) is selected but is subsequently released frm its prpsal(s) as allwed fr in the RFP, the supplemental security will be returned t Bidder, subject t and The statements cntained in this Appendix D are made subject t the Reservatin f Rights set frth in Appendix E f the RFP and the terms and acknwledgements set frth in the Prpsal Submissin Agreement. Page D-11

13 in accrdance with the terms f the RFP and the letter f credit. Buyer will have n bligatin t return and may retain any and all funds drawn under the letter f credit in accrdance with the terms theref. The statements cntained in this Appendix D are made subject t the Reservatin f Rights set frth in Appendix E f the RFP and the terms and acknwledgements set frth in the Prpsal Submissin Agreement. Page D-12

14 Attachment 1 t MAP OF EGSL S SERVICE AREA IN WOTAB The statements cntained in this Appendix D are made subject t the Reservatin f Rights set frth in Appendix E f the RFP and the terms and acknwledgements set frth in the Prpsal Submissin Agreement. Page D-1314

15 Dcument cmparisn by Wrkshare Cmpare n Tuesday, September 29, :11:49 AM Input: Dcument 1 ID Descriptin Dcument 2 ID Descriptin Rendering set file://c:\users\jpietra\dcuments\rfps\wotab\draft Dcuments\Draft_Appendix D(MinimumRequirements)_Final.dcx Draft_Appendix D(MinimumRequirements)_Final file://c:\users\jpietra\dcuments\rfps\wotab\final Dcuments\Appendix D(MinimumRequirements).dcx Appendix D(MinimumRequirements) Standard Legend: Insertin Deletin Mved frm Mved t Style change Frmat change Mved deletin Inserted cell Deleted cell Mved cell Split/Merged cell Padding cell Statistics: Cunt Insertins 22 Deletins 27 Mved frm 0 Mved t 0 Style change 0 Frmat changed 0 Ttal changes 49