Trade Ally WPS Bonus Bid Program

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1 Trade Ally WPS Bonus Bid Program

2 Table of Contents Introduction... 3 I. Program Goals... 3 II. Anticipated Funding... 3 III. Timeline... 4 IV. Definitions... 5 Program Information... 7 I. Program Introduction... 7 II. Pre-Qualification Process... 8 III. Reverse Auction... 8 Eligibility Criteria... 9 I. Eligible Providers... 9 II. Eligible Energy Efficiency Projects... 9 III. Identification of Energy Efficiency Projects IV. Energy Efficiency Project Implementation V. Funding Disbursement VI. Leveraged Funding Awards I. Available Awards Auction Award Winner Requirements I. Project Completion Date II. Measurement and Verification III. Pre-Qualification Process IV. Pre-Qualification Criteria V. Notification of Pre-Qualification VI. Pre-Qualification Rejection Available Assistance I. Program Introduction Webinar II. Questions... 14

3 Introduction Focus on Energy and Wisconsin Public Service have partnered to offer several exciting and new energy efficiency and renewable energy programs throughout the WPS service territory in Wisconsin. This Focus on Energy program is funded by Wisconsin Public Service as a result of the "decoupling" rate agreement between WPS and the Citizens Utility Board. Only WPS customers that currently receive service under this rate agreement are eligible for these enhanced program offerings. This includes residential and most small business customers; excluding large commercial, industrial, and seasonal customers. WPS business customers must verify eligibility by calling their account executive or the Business Solutions Center at These program guidelines are meant to provide guidance to potential applicants on how the Trade Ally WPS Bonus Bid Program will be implemented. I. Program Goals The purpose of the Trade Ally WPS Bonus Bid Program is to provide Focus on Energy Trade Allies with the opportunity to realize measurable energy savings which will result in reduced energy costs and increased market competitiveness. The specific goals of the Trade Ally WPS Bonus Bid Program include reducing total energy use, decreasing fossil fuel emissions, creating and retaining jobs, spurring economic growth, and improving Wisconsin energy efficiency. Through these program guidelines, Focus on Energy and Wisconsin Public Service (WPS) will provide awards to energy efficiency service providers to identify and install energy efficiency projects within the various Business sectors. This program is designed to reach Business entities through a rapid deployment program at a market driven lowest cost for energy efficiency savings. II. Anticipated Funding Up to $2,000,000 of WPS funds are available under the Trade Ally WPS Bonus Bid Program. This will be a competitive funding opportunity based on a reverse auction process for pre-qualified bidders.

4 III. Timeline Event Date Release of August 6, 2012 Program Introduction Webinar August 16, 2012 Deadline for Submittal of Pre-qualification Application September 21, 2012 Notification of Pre-Qualification October 16, 2012 Mock Auction and Program Webinar October 25, 2012 Expected Date of Reverse Auction October 30, 2012 Project Start Date November 29, 2012

5 IV. Definitions Auction Award Winner Award Agreement Bid Decrement Bid Price Ceiling Employee Energy Efficiency Leveraged Funds Main Street Pre-qualified Trade Ally Private Company Project Completion Date Renewable Energy Reverse Auction Small Industrial A provider that has won an award under the Trade Ally WPS Bonus Bid Program A contractual agreement provided by Focus on Energy to the Auction Award Winner, that outlines the terms and conditions that the Auction Award Winner must follow The actual amount or percentage by which the next bid submitted in an auction is to be lower than the previous bid The established opening bid price at which providers will start bidding Person employed by a company regardless of hours worked. Measures that reduce the amount of electricity required to achieve a given end use Funds made available to the project from sources other than Trade Ally WPS Bonus Bid dollars to further the objectives of the project e.g. grants or Focus on Energy incentives Micro Commercial buildings (Typically, less than 30 employees, less than 2 million dollars annual revenue, and/or under 500 kw of demand) An approved energy service provider or equipment installer who has been pre-qualified by Focus on Energy to bid in the reverse auction A business firm in the private (non-public) sector of an economy, controlled and operated by private individuals (and not by civil servants or government-employees) The date that all project tasks are complete and equipment is installed and operational Biomass, biogas, geothermal, solar photovoltaic, solar thermal, or wind systems in residential or business locations served by eligible WPS rates. A type of auction in which the role of the buyer and seller are reversed, with the primary objective to drive purchase prices downward. The sellers compete to provide a good or service by offering progressively lower quotes until no provider is willing to make a lower bid Manufacturing companies (food processing included) up to 1,000 kilowatts (kw) demand.

6 Trade Allies Energy efficiency companies including, but not limited to, Energy Service Companies (ESCOs), equipment installers, and engineering and consulting firms

7 I. Program Introduction Program Information The Trade Ally WPS Bonus Bid Program provides awards to energy efficiency companies (trade allies) that competitively bid for energy efficiency award through a reverse auction. Award dollars will be allocated based on a lowest-price obtained through a reverse auction open only to pre-qualified trade allies. The reverse auction will be executed through an online platform, and will allow pre-qualified trade allies to bid on award on a $/kwh saved basis for expected energy efficiency projects. The reverse auction will have predetermined starting bid amounts and bid decrement limitations. This will ensure that grant dollars are distributed to numerous pre-qualified trade allies. The lowest bidder(s) in each auction award block will become Auction Award Winners, who will then be tasked with identifying customers to implement eligible energy efficiency projects with energy savings equivalent to their winning bids. For example, an auction award winner with a winning bid of $0.05/kWh in a $100,000 auction would then to deliver projects equivalent to 2,000,000 kwh; $100,000 $0.05/kWh = 2,000,000 kwh. Auction Award Winners awards will be distributed funds as they bring in energy saving projects. Using the same example, if the Auction Award Winner submitted projects equivalent 500,000 kwh they would be distributed $25,000 of their $100,000 award; 500,000 * $0.05/kWh = $25,000. They would be eligible to receive the remaining award when they submit more energy saving projects.

8 Figure 1. Program Process II. Pre-Qualification Process Trade Allies interested in participating in the reverse auction must submit a pre-qualification application to Focus on Energy by September 21, Only pre-qualified trade allies will be able to participate in the online reverse auction and will be given a login and password, as well as a set of instructions. Focus on Energy will pre-qualify as many trade allies as possible who meet the pre-qualification criteria established in these program guidelines. III. Reverse Auction Four (4) online reverse auctions will be held on October 30, These auctions will allow pre-qualified trade allies to bid on the available incentive amounts by specifying the minimum $/kwh on fixed auction incentive awards to provide energy efficiency or renewable energy services. A trade ally may only win up to one (1) award in Main Street/Small Industry and one (1) award in Renewable Energy. The following price ceiling and minimum bid decrement will be set prior to the reverse auction:

9 Electric Energy Reduction Units Energy Efficiency Project Bid Price Ceiling Renewable Energy Project Bid Price Ceiling $0.15 $/kwh $0.60 $/kwh Minimum Bid Decrement $ $/kwh Focus on Energy reserves the right to modify the price ceiling, bidding decrement, and the number and of each award prior to conducting the reverse auction. IV. Eligible Providers Eligibility Criteria Under the Trade Ally WPS Bonus Bid, eligible trade allies must be located and/or provide energy related services specifically in Wisconsin Public Service territory. Trade allies need to be a current Focus on Energy trade allies to qualify. For more information on becoming a Focus on Energy trade ally visit Eligible trade allies must be also pre-qualified by Focus on Energy in order to participate in the reverse auction. Focus on Energy reserves the right to investigate each provider s current and past compliance with local, state, and federal laws, rules, regulations and policies, and the provider s status may be used to determine eligibility. Prequalification applications must be received by September 21, 2012, and trade allies must also be current or in the process of becoming a Focus on Energy trade ally in order to bid in the reverse auction. V. Eligible Energy Efficiency Projects The Trade Ally WPS Bonus Bid auctions and accompanying target customers will follow the three main areas below. Auction Award Winners will be responsible for making sure that all efficiency projects meet the eligibility defined below. Small Industrial Main Street Renewable Energy Manufacturing companies (food processing included) up to 1,000 kilowatts (kw) demand. Micro Commercial buildings (Typically, less than 30 employees, less than 2 million dollars annual revenue, and/or under 500 kw of demand) Biomass, biogas, geothermal, solar photovoltaic, solar thermal, or wind systems in residential or business locations served by eligible WPS rates.

10 A. All energy efficiency projects must be physically located at facilities served by WPS and under an eligible WPS rate. B. Projects must meet all Focus on Energy standard requirements and must produce verifiable energy reductions through increased energy efficiency. C. Projects must be approved by Focus on Energy prior to implementation. D. All projects must be completed within 12 months of auction award. VI. Identification of Energy Efficiency Projects After executing an award agreement with Focus on Energy, Auction Award Winners shall identify targeted and qualified customers to implement energy efficiency projects equivalent to their bid in order to receive award funds. Prior to implementing an energy efficiency project, Auction Award Winners must submit a pre-installation application for approval to Focus on Energy. The pre-installation application will identify the customer type; include a description of the energy efficiency project, plans and specifications for the project, and a calculation of the energy savings that will result from the project. VII. Energy Efficiency Project Implementation Upon completion of an approved energy efficiency project, Auction Award Winners will submit a postinstallation application that includes a description of the completed energy efficiency project, provides a revised estimate of the savings associated with the project, and includes a request for reimbursement based on the bidding price and the target energy reductions achieved. VIII. Funding Disbursement Funds will be disbursed to the Auction Award Winners as eligible energy efficiency projects are completed and target energy reductions are achieved. Focus on Energy reserves the right to reallocate funds to other Auction Award Winners if it is determined an Auction Award Winner will not meet the project implementation deadlines. Funds not allocated to specific customer projects after a determined date may be reallocated to other Auction Award Winners on a lowest bid basis. IX. Leveraged Funding Auction Award Winners are encouraged to offer customers incentives available through Focus on Energy or other grant sources to mitigate incurred customer costs.

11 Awards I. Available Awards Each of the ten auctions will be segregated by customer type and award size, as seen in the table below. Auction 1 Customer Type Main Street / Small Industrial Award Amount Maximum Number of Winners $300,000 2 Auction 2 Renewable Energy $300,000 1 Auction 3 Main Street / Small Industrial $100,000 6 Auction 4 Renewable Energy $125,000 4 Focus on Energy may provide an award up to $300,000 per Auction Award Winner based on the results of the reverse auction. Auction Award Winners will each be eligible for the full award amount. Therefore, Auction 1 will have 2 Auction Award Winners, each eligible for up to $300,000 in awards. Awards will be committed to the pre-qualified trade allies who submit the lowest bids until all funds are allocated. At this point, trade allies will become Auction Award Winners and will have to comply with all requirements as outlined in these program guidelines.

12 Auction Award Winner Requirements I. Project Completion Date All energy efficiency projects that receive funding under the Trade Ally WPS Bonus Bid program must be completed within 12 months from auction award. Focus on Energy reserves the right to terminate a grant agreement and de-obligate non-committed awarded funds. In such case, the Auction Award Winner shall not be reimbursed for costs incurred at their risk. II. Measurement and Verification Measurement and verification (M&V) activities may be conducted for all projects in order to verify efficiency savings. The level of M&V rigor will be assessed for each project based on the measure type and expected savings amount. Mature technologies, such as lighting projects, may use predetermined deemed savings approach. All M&V activities will be performed by Focus on Energy and will not incur costs to the Auction Award Winner or the customer. III. Pre-Qualification Process Trade allies interested in participating in the reverse auction must be pre-qualified by Focus on Energy. Trade allies must follow the specified deadlines, format and requirements provided in these program guidelines. Be sure to submit the pre-qualification application, relevant information, attach appropriate supporting documents and have the pre-qualification applications signed and dated. Submission may be mailed or ed to: Focus on Energy Attention: Trade Ally WPS Bonus Bid 1 S. Pinckney St Madison, WI bpforms@focusonenergy.com The pre-qualification application must be received by 4 p.m. CDT on September 21, 2012 Focus on Energy will evaluate timely submitted pre-qualification applications and will determine whether, based on the information supplied, the provider has financial viability, sufficient energy efficiency expertise, qualified staff and customer reach.

13 IV.Pre-Qualification Criteria The following, pre-qualification criteria have been developed to assist the department in identifying the providers that display the most potential for achieving the goals of the program: Financial Viability: the general financial, staff, and company viability to meet the program requirements. Project Experience: past project experience with relevance to developing, designing and implementing energy efficiency projects. Personnel Experience: staff experience in developing, designing and implementing energy efficiency projects. Proposed Implementation Strategy: proposed strategy that the providers will follow for delivering the target energy savings, if awarded a grant under the Trade Ally WPS Bonus Bid Program. V. Notification of Pre-Qualification Trade allies meeting the pre-qualification criteria will be added to a list of pre-qualified trade allies, will be notified of their pre-qualification status, and will receive log in information for the online platform, and instructions to participate in the reverse auction. Unsuccessful providers will be informed via . Pre-qualification applications will not be returned. VI.Pre-Qualification Rejection Focus on Energy reserves the right to reject any provider. The submission of the pre-qualification Applications under these program guidelines confers no right upon any provider. Pre-qualification applications will be rejected if: A. Pre-qualification application is not received by the due date and time as specified in these program guidelines. B. The provider does not meet the pre-qualification criteria. C. The provider is not a Focus on Energy Trade Ally or is not currently applying to be so, or if eligibility criteria of these program guidelines is not met. D. The pre-qualification application does not include the signature of an authorized individual.

14 Available Assistance I. Program Introduction Video A program introduction video will be held to describe the Trade Ally WPS Bonus Bid Program, discuss the program guidelines, the pre-qualification process, the reverse auction, and to answer general inquiries about the program. The presentation will be available at II. Questions Interested providers may submit questions at any time during the pre-qualification process. For questions, please the Trade Ally WPS Bonus Bid program at focusinfo@focusonenergy.com. A frequently asked questions (FAQ) document will be posted, and updated frequently, on the Focus on Energy website, The person and organization submitting a question will not be identified.

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