AUSTIN ENERGY REQUEST FOR PROPOSALS (RFP) FOR THE PURCHASE OF RENEWABLE ENERGY 1. PURPOSE. A. Statement of Intent. B. About Austin Energy

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1 AUSTIN ENERGY REQUEST FOR PROPOSALS (RFP) FOR THE PURCHASE OF RENEWABLE ENERGY 1. PURPOSE A. Statement f Intent The City f Austin, Texas d/b/a Austin Energy ( Austin Energy ) is sliciting prpsals frm cmpanies qualified and experienced in the develpment and peratin f renewable slar energy resurces. In particular, Austin Energy desires t purchase up t 4 MW AC f energy and assciated envirnmental attributes/renewable energy credits fr a term f up t twenty-five years beginning in the secnd quarter 2015 (see Sectin 2.A.2 belw fr mre detail). Prpsals must be fr prjects lcated and intercnnected at Austin Energy s Kingsbury site described herein. Only qualified slar renewable technlgies will be cnsidered under this RFP. Prpsers may submit mre than ne Prpsal. B. Abut Austin Energy Austin Energy is a municipal electric utility, wned and perated by the City f Austin, Texas, engaged in the generatin, distributin, and transmissin f electricity t ver 400,000 residential, cmmercial and industrial custmers in Travis and Williamsn Cunties, Texas. Austin Energy s gverning bdy is the City Cuncil f Austin. Austin Energy has apprximately 3,500 MW f generatin capacity including nuclear, cal, natural gas, bimass, wind, and slar. Austin Energy participates in all aspects f the Electric Reliability Cuncil f Texas (ERCOT) whlesale pwer market fr purpses f serving its lad and maximizing the value f its resurces. In 2010, the Austin City Cuncil adpted the Austin Energy Resurce, Generatin and Climate Prtectin Plan t 2020, a strategic energy plicy which includes gals fr Austin Energy t have 35% f its energy frm qualified renewable energy resurces including 200 MW frm slar, 50% f which will be frm lcal generatin, by Austin Energy is currently n target t meet thse gals. C. RFP Schedule Austin Energy will make a cncerted effrt t maintain the schedule belw, but reserves the right t revise the schedule. RFP Issuance Date: February 24,

2 Mandatry site visits (prpser must attend ne)- Tuesday, March 18, 10:00 a.m. r Wednesday, March 26, 10:00 a.m. The visit will be initiated in the Assembly Rm at Austin Energy s Security Cntrl Center (SCC) building lcated at 2500 Mntplis Rd., Austin, Texas and will prceed frm there t the lcatin f the generatin facility. Attendees must prvide their wn transprtatin. Deadline fr questins will be 5:00 pm CT n March 28, 2014 RFP respnses are due by 3:00 pm CT n May 14, 2014 Austin Energy will review prpsals and arrive at a shrt list f prpsals t cnsider fr further evaluatin. Shrt listed prpsers may be cntacted t prvide additinal infrmatin and dcumentatin regarding their prpsal. D. Cntact Infrmatin, Questins and Answers Prpsers must submit their Prpsal(s) electrnically by the afrementined deadline t EnergySupply@austinenergy.cm. Prpsal frmat and requirements are described in subsequent sectins. During the RFP prcess, any and all questins regarding the RFP must be submitted t EnergySupply@austinenergy.cm. Please nte that any questins submitted after 5:00 pm CT n March 28, 2014 will nt be reviewed r answered. E. Nn-Cllusin, Nn-Cnflict f Interest, and Anti-Lbbying 1. On Nvember 10, 2011, the Austin City Cuncil adpted Ordinance N amending Chapter 2-7, Article 6 f the City Cde relating t Anti-Lbbying and Prcurement. The plicy defined in this Cde applies t Slicitatins fr gds and/r services requiring City Cuncil apprval under City Charter Article VII, Sectin 15 (Purchase Prcedures). During the N-Cntact Perid, Offerrs r ptential Offerrs are prhibited frm making a representatin t anyne ther than the Authrized Cntact Persn in the Slicitatin as the cntact fr questins and cmments regarding the Slicitatin. 2. If during the N-Cntact Perid an Offerr makes a representatin t anyne ther than the Authrized Cntact Persn fr the Slicitatin, the Offerr s Offer is disqualified frm further cnsideratin except as permitted in the Ordinance. Prpsers must cmplete the Nn-Cllusin, Nn-Cnflict f Interest, and Anti- Lbbying Affidavit prvided in Attachment 1 and submit the Affidavit with their prpsal. 2. SCOPE 2 A. Cntractual Arrangement 1. Pwer Purchase Agreement (PPA). Under a PPA structure, Austin Energy will purchase the energy and envirnmental attributes frm up t 4 MW (AC) f slar generatin t be cnstructed at the Kingsbury site.

3 2. Term; Online Date. Austin Energy prefers a PPA term f up t 25 years with an nline date in the secnd quarter f Offers will be cnsidered fr all-in and staged deplyments. See Sectin 2. C. 11. Hwever, in evaluating the ffers as discussed in Sectin 5 belw, Austin Energy des nt intend t assess a favrable weighting t an earlier nline date ver and abve all ther evaluatin factrs. 3. Lcatin. During the term f the PPA, Austin Energy will grant the selected prpser rights t use thse prtins f the Kingsbury site necessary fr the cnstructin, peratin and maintenance f the facility as part f the cnsideratin fr develpment f the prject. 4. Educatin and Marketing. The facility will be used t supprt cmmunity educatin abut slar energy as well as marketing f Austin Energy slar prgrams. 5. Cntractr and Subcntractr Requirements a. Prpsers shall cmply with the City f Austin s Minrity-Owned and Wmen-Owned Business Enterprise (MBE/WBE) Prcurement Prgram (City Cde Chapters 2-9A, 2-9B, 2-9C and 2-9D), Rules, and the Third Party Reslutin ( ) fr the purchase, design and cnstructin csts assciated with the award and cmpletin f the prject. (see attachment 2a- SMBR requirements and 2b- Availability List fr Prfessinal Services). The requirements, standards and principles f the MBE/WBE Prgram will becme a part f the cntract agreement. The successful Prpser will be required t meet the annual ethnic-specific design and cnstructin gals specified in the agreement r in the Cde, r demnstrate a gd faith effrt t meet the gals as defined by the Prgram. Currently, the Cde specifies the gals are as fllws, but may vary depending n the scpe f wrk that is subject t the MBE/WBE Prgram: Prfessinal Services Participatin Gals Chapter 2-9B Cnstructin Participatin Gals Chapter 2-9A African American 1.9% 1.7% Hispanic 9.0% 9.7% Asian/Native American 4.9% 2.3% WBE 15.8% 13.8% Prpsers shuld cntact the Small & Minrity Business Resurces Department (SMBR) at t discuss MBE/WBE Prgram requirements, request availability lists, frms, and reprt submissin deadlines prir t cmmencing any wrk subject t the MBE/WBE Prgram. b. Prpser shall have at least 5 years f experience in slar PV and shall have cnstructed r been invlved in the cnstructin f at least tw medium scale PV facilities (>/= 200kW) in the last 2 years. c. Due t safety cncerns, the medium vltage electrical cntractr shall have at least 5 years f dcumented experience with medium vltage cable and terminatins. 6. Develpment and Staffing. Prpser must prvide a) develpment plan t timely cnstruct the facility with minimal envirnmental impact b) staffing and maintenance plan t supprt lngterm peratins. 7. Other. Austin Energy reserves the right t award a renewable energy cntract in rder t 3

4 satisfy its requirements, r make n cntract award. Austin Energy shall have the right t resell all r part f the energy and envirnmental attributes acquired in this Slicitatin. B. Delivery Cnditins 1. Lcatin. Generating facility will be lcated n Austin Energy s Kingsbury site lcated n Sara Drive in Austin, Texas (see Attachment #3- TCAD Prperty ID ). An aerial site map shwing clearances fr the substatin and all transmissin assets will be made available at the mandatry site visit(s). Clearances will be staked ff fr site visits. Successful prpser will be respnsible fr prviding site survey prir t final design. 2. Pint f Delivery. Austin Energy will take delivery f energy prduced at the intercnnectin pint(s) f the Austin Energy apprved and supplied metering cabinet at kv with wnership f said cabinet being transferred t the custmer fr future peratin, maintenance, and replacement. Facility must cmply with requirements utlined in the Austin Energy Distributin Intercnnectin Guide fr Custmer Owned Pwer Prductin Facilities less than 10 MW (see Attachment #4) and the Austin Energy Design Criteria Manual fr Primary Vltage Services ( ). The exact lcatin f the metering cabinet will be prvided at the mandatry site visit(s). The lcatin will be apprximate t the Kingsbery substatin lcated n the site. The custmer shall make a submissin t Austin Energy fr apprval f the primary metering cabinet adhering t the minimum service requirements attached. 3. Metering. Austin Energy shall prvide a revenue meter enclsed in an Austin Energy apprved and prvided but custmer wned metering cabinet t be used fr revenue metering and ERCOT reprting. Energy delivered at the Pint f Intercnnectin will be metered in cmpliance with ERCOT s prcedures and standards in Sectin 10 f the Ndal Prtcls and the Settlement Metering Operating Guide (SMOG). The revenue meter will be dedicated slely fr the measurement f energy sld and purchased under the PPA. Austin Energy will nt cnsider prpsals cntaining split r allcated meter arrangements. Austin Energy will adhere t respnsibilities as utlined in the primary service requirements attached fr services up 600 primary amps with the exceptin that the cabinet will be prvided by Austin Energy with wnership transferred t the custmer at time f energizatin. 4. Cmmunicatin. The Austin Energy supplied metering cabinet will include cmmunicatin equipment t allw Austin Energy t read the Austin Energy wned meter in real time. The cmmunicatin equipment will meet Austin Energy s equipment and data cmmunicatin requirements including a fiber-ptic cnnectin. Austin Energy shall prvide the cmmunicatin equipment and raceway t the Austin Energy wned meter t prvide real time data t the educatinal kisk. See sectin 2. C. 13 C. Prject Cncept and Operatin Prpsers must prvide a detailed descriptin f the slar technlgy and prpsed facility that will be used t prvide the renewable energy and capacity t Austin Energy. In additin, prpsers must prvide sufficient infrmatin n the qualified slar renewable resurce t prvide assurance t Austin Energy that the generating facility will be able t meet its prjected 4

5 prductin estimates fr the duratin f the generating facility life. All facilities must meet applicable regulatry and industry safety, envirnmental and peratinal standards, including but nt limited t the applicable Public Utility Cmmissin f Texas, ERCOT, Texas Reliability Entity (TRE) and Nrth American Electric Reliability Crpratin (NERC) standards and requirements. Plant and grunds maintenance will be included within the scpe. At a minimum, prpsers shall specify the fllwing: 1. Layut f the prpsed facility at the site. 2. Technical infrmatin fr the facility including: make and mdel numbers fr inverters and slar panels, step-up transfrmer and/r skid infrmatin including manufacturer and vendr warranties cnfiguratin, general layut diagrams, plant layut including methdlgy t minimize vltage variability ne-line diagram t intercnnectin net plant nameplate capacity rating (AC and STDC ratings), annual net utput, prjected capacity factr, in-service date r prjected in-service date, estimated service/design life, etc. 3. Expected annual hurly utput prfile (8760 hurs) s that the prpsal may be evaluated in an ecnmic dispatch mdel. Include net AC utput rating, capacity factrs, frced utage rate, de-ratings, prductin schedule, reasns fr maintenance, etc. 4. Slar irradiatin data fr the site, expressed bth as hurly irradiatin and daily irradiatin ver the curse f a year. Descriptin f surces f irradiatin data. 5. Vegetatin and grunds maintenance will be included within the scpe f the prject. Describe plan/prvisin fr drught tlerant, native grundcver t ensure visibility f site fr visitrs and viability f system prductin. Designed and maintained using City f Austin best practices fr waterwise design and lw carbn maintenance. 6. Prcurement/cnstructin schedule demnstrating critical path and majr develpment milestnes. 7. Public invlvement plan fr planning and cnstructin t engage neighbrs f facility befre and during cnstructin f facility. Successful Prpser shall wrk with Austin Energy Public Invlvement and Real Estate Services grup n final develpment and executin f public invlvement plan. 8. Descriptin f metering arrangement, if available. Austin Energy will nt cnsider prpsals cntaining split r allcated meter arrangements. 9. Identificatin f majr equipment suppliers and descriptin f manufacturers and vendrs warranties, if any, in effect fr the facilities. 10. Descriptin and cnfirmatin f prpser s ability t prcure an adequate supply f panels t supprt its prpsal. Dcumentatin t assure Austin Energy that prpser has prcured r will prcure such panels. 11. If pssible, a descriptin f any ptins prpser can prvide that wuld allw fr 5

6 installing/energizing panels in installments between Q and Q t track the pace f Austin Energy custmer subscriptins, and any pricing adjustment related t such ptins. 12. Descriptin f the envirnmental, tree and ersin as well as getechnical/sil analysis cmpliance plan and all regulatry permits, licenses r apprvals required by the facility t supply renewable pwer. 13. Verificatin that the facility will cnfrm t ERCOT Prtcl Requirements including thse relating t resurce testing and qualificatins. 14. Renderings and specificatins fr a visitr center and visitr parking. Austin Energy plans t use the prject as an educatinal shwpiece highlighting the ptential fr slar generatin within the cmmunity. Design plans shuld accmmdate prject visibility and public educatin. At a minimum, the prpsal shuld adhere t the fllwing requirements: The visitr center will include an educatinal kisk cntaining a flat screen TV that scrlls thrugh an educatinal piece develped by the successful Prpser regarding the cnstructin f the plant and the Austin Energy Cmmunity Slar Prgram. Names f participants in the cmmunity slar prgram will scrll at the end prviding recgnitin t thse participants. The list f names will be prvided by Austin Energy and updated quarterly. Visitr center will be pwered by retail pwer. Real time prductin data frm the custmer-wned meter shall be displayed at the kisk and n the Austin Energy website fr marketing purpses. A webcam will be lcated at the site prir t and during cnstructin. The webcam utput will be available n the Austin Energy website fr marketing purpses. A tilet will be supplied and maintained by the selected prpser fr use by visitrs t the site. Visitr access and parking must be accmmdated within the design f the prject, fr bth unattended viewing thrugh the fence and fr (Austin Energy) guided turs. Access and parking fr guided turs must be able t accmmdate a minimum f ne full sized schl bus in additin t parking fr ther vehicles. Austin Energy requires un-regulated access t educatinal facilities t prepare fr and cnduct turs. The entire facility must be securable when unattended. Update, refresh r replace flat screen display and cntent at a minimum f 5 year intervals and r as needed t keep in perating cnditin. Maintenance plan fr the visitr center. 15. Any ther significant infrmatin, maps, r drawings regarding the facility. 6

7 3. PROPOSAL FORMAT A. Prprietary Data in Prpsal. The prpser shall identify the page number(s) in which prprietary infrmatin is presented. All materials submitted t the City f Austin (City) becme public prperty and are subject t the Texas Public Infrmatin Act upn receipt. If a prpser des nt want prprietary infrmatin t be disclsed, each page must be identified and marked Prprietary at the time f submittal. The City will, t the extent allwed by law, endeavr t prtect such infrmatin frm disclsure. The final decisin as t what infrmatin must be disclsed, hwever, lies with the Attrney General f Texas. Failure t identify prprietary infrmatin will result in all unmarked pages being deemed nn-prprietary and available t the public upn request. B. Prpsal Frmat 1. Term Sheet A summary f the principal features f the Prpsal, including ffered pricing, term length and/r a financing structure as well as critical develpment and peratinal aspects f the prpsal. 2. Prpser s Financial Strength and Structure Prpser must present sufficient dcumentatin fully supprting financing and develpment f the prpsed slar facility t assure its successful cnstructin, cmmissining and lng-term peratin. The Prpsal shall, at a minimum, prvide: a. Full name and address f the prpsing rganizatin. Identity f parent cmpany if the entity is a subsidiary; b. Cmpany wnership structure, frm f rganizatin (partnership, crpratin, jint venture, limited partnership, limited liability cmpany, r sle prprietr, etc.); c. Names f principal fficers f the rganizatin and general partner, if any; d. Descriptin f the financial structure f the cmpany; e. Descriptin f the financial capability f the cmpany t meet its bligatins in the Prpsal, including relevant infrmatin n the prpser, any parent cmpany and any partners invlved in the Prpsal; f. Evidence f ability t btain and secure financing fr the prject, surces f equity and lng-term debt, bank/financial institutin references (including, if applicable, letters f interest frm investment banking firms, private investrs r ther financial r lending institutins); g. Prfile f qualificatins t d business in the State f Texas; h. Primary cntact infrmatin fr individuals respnsible fr the Prpsal and authrized t manage cntract negtiatins; and i. Other infrmatin deemed apprpriate by prpser. 7 This infrmatin will be used by Austin Energy t assess the financial strength f the prpser. 3. Crprate and Prfessinal Experience The amunt f crprate and prfessinal experience in the design, develpment, cnstructin and maintenance f generatin facilities,

8 and particularly slar technlgies, will be a determining factr in the evaluatin prcess. The Prpsal shall at minimum address the fllwing: a. Experience with the prpsed technlgy, develpment, management, perating and maintenance experience with prjects f a similar type, size and scpe. Include thirdparty vendrs and/r sub-cntractr qualificatins and experience; b. Descriptin f the generating facilities f the same technlgy type (including nameplate, grss and net capacities) that have been cnstructed, wned and/r perated by prpser and/r parent cmpany that are in service, prjected t be cnstructed and/r t be placed int cmmercial peratin; c. Permitting, engineering, cnstructin, perating and envirnmental team qualificatins that will be assigned t the prject; including experience wrking with ERCOT, municipal, c-p and investr-wned electric utilities in the develpment f renewable facilities; d. Descriptin f previus experience perating similar facilities, including an rganizatin chart detailing key persnnel invlved with the administratin and dayt-day management; e. A list f persnnel that wuld be invlved in the prject with their names, qualificatins and experience; and f. Other pertinent infrmatin deemed apprpriate by prpser. 4. Prject Cncept and Operatin Prpser must present supprting dcumentatin/references describing the reliability f the prpsed slar technlgy, its cmmercial applicatin, its peratinal viability, speed f implementatin and expected prductin. In additin t the items listed in sectin 2.C prpsers shall prvide: a) develpment plan t timely cnstruct the facility with minimal envirnmental impact; b) staffing and maintenance plan t supprt lng-term peratins; and c) letters f intent frm prpsed vendrs prviding majr equipment and cnfirmatin f prpser s ability t secure ptins t purchase all principal renewable equipment and cmpnents t supprt the cmmercial peratin date. 5. Prpsal Cst Prpsers must identify all pricing elements that are included and will determine the cst f supplying the renewable capacity and energy t Austin Energy. Austin Energy prefers a fixed, nn-escalating price fr the term f the agreement fr all energy and assciated capacity delivered at the Pint f Delivery. Prpser shuld state a fixed price in U.S. dllars per megawatt-hur ($/MWh) fr renewable energy including all envirnmental attributes/renewable energy credits fr the term f the cntract. If an escalatin is prvided, the price shall be stated as a schedule f annual prices r adjusted using the Grss Dmestic Prduct Implicit Price Deflatr, an index published by the U.S. Department f Cmmerce Bureau f Ecnmic Analysis. 4. PROPOSAL SUBMITTAL 8 Prpser must submit a pdf (prtable dcument frmat) f the prpsal tgether with

9 supprting dcumentatin and infrmatin requirements t the address specified in Sectin 1.D. n r befre the RFP respnse deadline. Please d nt submit any single cntaining mre than 20MB f data. If the prpsal and supprting dcumentatin cntains mre than 20 MB f data, please divide and submit multiple s in rder t stay belw the 20 MB data limit. As an alternative, prpsers may prvide prpsals and/r supprting dcumentatin and infrmatin requirements via an FTP (File Transfer Prtcl) site. In such case, yu will still need t submit an by the RFP respnse deadline that cntains access instructins t the FTP site. Please Nte: Prpsers will receive an autmatic reply that the Energy Supply mailbx received yur prpsal. If yu d nt receive ne, please cntact Stephanie Ritter at Stephanie.Ritter@austinenergy.cm immediately t investigate. All prpsals must include a statement that they are valid fr a minimum perid f ninety (90) days subsequent t the RFP respnse deadline. 5. EVALUATION FACTORS AND AWARD A. Cmpetitive Selectin/Evaluatin Factrs: This prcurement will cmply with applicable City f Austin prcurement plicies. The evaluatin factrs utlined belw shall be applied t all eligible, respnsive prpsers. Qualifying prpsals will be assessed in rder t identify the best prpsal in Austin Energy s discretin. Austin Energy may chse t award a cntract under this slicitatin r may chse t nt award any cntract. B. Evaluatin Factrs: 100 pint scring basis (1) Crprate and Prfessinal Experience: 10 Pints (2) Prpser s Financial Strength & Structure: 15 Pints (3) Prject Cncept and Operatin: 15 Pints (4) Ttal Evaluated Cst: 60 Pints Factrs cnsidered in determining the Ttal Evaluated Cst f a prpsal shall include: The Prpsal Cst The facility s peratinal flexibility The energy prfile f the facility s utput The design and service life f the facility The annual and net present value f facility s energy utput The availability f warranties, guaranties, cllateral security and ther financial supprt C. Prpsal Recmmendatin: Austin Energy shall evaluate all Prpsals in accrdance with the abve evaluatin factrs and make a recmmendatin t the executive management f Austin Energy. Upn their cncurrence, Austin Energy may seek apprval frm the Austin City Cuncil t execute an agreement. 9

10 Austin Energy reserves the right t cnsider any ther factrs that it deems relevant and t request additinal infrmatin r supplemental materials frm prpsers t thrughly evaluate prpsals submitted in respnse t this RFP. Such ther relevant factrs may include, but are nt limited t previus dealings and business relatinships f the prpser r any parent, subsidiary, affiliate, jint venture, r partner f the prpser with Austin Energy, and such factrs as determined by Austin Energy in its sle discretin. 6. NEGOTIATION AND AWARD OF CONTRACT(S) Cntract dcuments will be prepared by Austin Energy, incrprating all applicable prvisins f the best evaluated prpsal(s) and which will include terms and prvisins subject t ERCOT Prtcls and Operating Guides. Under the terms f the PPA, the Seller will be expected t agree t minimum perfrmance threshlds and will be required t pst sufficient perfrmance security fr the term f the PPA as well as maintain adequate prperty insurance cverage fr the value f the prject cvered by the PPA. Any executed PPA may nt be assigned withut the express cnsent and apprval f Austin Energy. 10