2017 All Source Request for Proposals for Electric Power Supply and Load Management Resources. Pre-Bid Meeting

Transcription

1 2017 All Source Request for Proposals for Electric Power Supply and Load Management Resources Pre-Bid Meeting July 19, :00 PM MST 100 N. Stanton

2 Safety and Basics Emergency Escape Routes Facilities Sign-In list Recording of Presentation Submitting Questions 2

3 Safe Harbor Statement Certain matters discussed in this Pre-Bid Meeting presentation other than statements of historical information are "forward-looking statements" made pursuant to the safe harbor provisions of the Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to a variety of risks, uncertainties and other factors, most of which are beyond El Paso Electric Company's ("EPE" or the "Company") control, and many of which could have a significant impact on the Company's operations, results of operations, and financial condition, and could cause actual results to differ materially from those anticipated. Additional information concerning factors that could cause actual results to differ materially from those expressed in forward-looking statements is contained in EPE's most recently filed periodic reports. Any such forward-looking statement is qualified by reference to these risks and factors. EPE cautions that these risks and factors are not exclusive. Management cautions against putting undue reliance on forward-looking statements or projecting any future assumptions based on such statements. Forward-looking statements speak only as of the date of this Pre-Bid Meeting Presentation, and EPE does not undertake to update any forward-looking statement contained herein. 3

4 Meeting Agenda Project Team Introduction El Paso Electric Overview RFP Overview Process Proposal Submittal Options Requirements Instructions Proposal Evaluation Criteria Open Question Forum 4

5 Introduction RFP Project Team and EPE Staff Resource Planning System Planning Environmental Land Management Independent Evaluator Review and monitor the competitive bidding process Ensure that self-build or affiliate options do not have any undue preferential treatment and to ensure the process is fair and transparent Identify and resolve any issues as they arise Oversee the evaluation and selection process Review all modeling results and analysis Monitor and participate in contract negotiation process, including all negotiation sessions with any affiliates 5

6 El Paso Electric Overview Engaged in the generation, transmission and distribution Approximately 10,000 square miles service territory 2,153 MW net in Generating Facilities Serve load via a mix of natural gas, nuclear and solar generation and purchase power Approximately 410,000 customers Retail principally in El Paso, Texas and in Las Cruces, New Mexico Operate in WECC Regulated by the Public Utility Commission of Texas ( PUCT ) and the New Mexico Public Regulation Commission ( NMPRC ). 6

7 El Paso Electric Overview 7

8 2017 All Source RFP Overview Timing of Capacity Need No earlier than May 1, 2022 and no later than May 1, MW in MW in 2023 EPE will consider proposals < 370 MW in combination with other proposals to aggregate 370 MW Shorter timelines for COD prior to May 1, 2022 may be submitted as secondary alternatives Operational requirements Preference for Summer peaking: May-Sep Firm Resource Guarantee a minimum generation output Proposals subject to state regulatory and board approval 8

9 RFP Process Mandatory Requirements Notice of Intent to Bid $2,500 Filing fee with up to 4 options. $500 Additional proposal 1 Hard Copy 2 Electronic Bids due on October 4, 2017 Maintaining bid open for 360 days following initial submittal and best and final RFP Important Milestones Notice of Intent to Bid: August 4, 2017: Final Submission of Questions: August 25, 2017 Response to Questions: September 13, 2017 Proposal and Proposal Fee due: October 4, 2017 Shortlist Notification: March 7, 2018 Tentative Individual Meetings with Shortlisted Bidders: March 19-23, 2018 Best and Final Proposal: April 4, 2018 Tentative Date for Execution of any Contract(s): July

10 RFP Process Submitting Questions Clarify general and Project specific Q/A process Submit in writing as Per Section 1.3 RFP Communication: s: EPE will prepare written responses to questions received and periodically post on: Doing Business with EPE Resource Planning 10

11 Proposal Submittal Options EPE will consider Supply-side and demand side alternatives including distributed generation Self-build option Proposal arrangement to include one or a combination of the proposal Transactions listed below: Power Purchase Agreement: Capacity and Energy Build Transfer for EPE Purchase - Solar, Energy Storage and Conventional Generation Tolling Power Purchase Agreement for conventional, gas-fired thermal generation Purchase or equity participation in the Bidder s existing generation facility Agreements for Load Management to supply energy efficiency or demand response programs Resource Types Conventional Intermediate Generation with cycling capability Renewable (Prefer ability to dispatch/curtail on an hourly basis) Energy Storage Load Management Resources 11

12 Proposal Submittal Requirements Location and Transmission Requirements Evidence to EPE of a feasible site(s) selected All capacity and energy must be delivered to the EPE transmission system to ultimately serve EPE s load center. Interest in general vicinity of EPE s Balancing Authority Area If the Bidder s project will not be directly interconnected to the EPE transmission system, the proposal must be accompanied by a demonstration that the Bidder has [or will] secure firm transmission capacity on third-party systems, from the location of the resource to the EPE transmission system. Interconnection Awarded projects will be required to secure Network Resource Interconnection Service laid out in the EPE Large Generator Interconnection Procedures, and sign a Generator Interconnection Agreement as specified in the EPE s OATT ( Capacity and Energy Limitations The Bidder must clearly define dispatch capabilities Must outline any and all capacity and energy limitations Communication All supply-side proposals will be required to establish real-time communications with EPE s Energy Management System in order to provide status information and also be able to receive control. Government Approvals Bidders are responsible for acquiring and maintaining all present and future federal, state and local approvals, licenses, permits or variances, and the specific requirements to construct and/or operate any generation facilities and associated interconnection facilities. 12

13 Proposal Submittal Instructions Section-1 All applicable forms RFP Section 9 Submittals RFP Excel Workbook EPE 2017 all Source RFP Table and Input Templates Section-2 Proposal Overview Section-3 O&M Plan Section-4 Fuel Supply and Fuel Transportation Section-5 Regulatory and Environmental Compliance Section-6 Project Schedule Section-7 Financial Capability Section-8 Capability and Experience 13

14 Proposal Evaluation Criteria Viability Threshold Evaluation EPE will initially review each proposal to determine whether it satisfies the threshold criteria of responsiveness, technical viability, and Bidder financial ability and capability. 1 st Stage Economic Evaluation Levelized Cost of Energy basis and will be compared to proposals within their resource type group Non-Economic Evaluation Development Feasibility and Completion Risk Financial and Operational Viability Operating Characteristics Other Factors EPE Financial Impact Determined Network Upgrade Costs 2nd Stage Short List Bidders Best and Final Proposals 14

15 Useful Links EPE System Expansion Plan Generator Interconnection Link to EPE Service Territory Transmission map Link to EPE s NM IRP Plan

16 Open Question Forum *Official responses will be in writing and posted on EPE website. 16