RFP Rules

RUL 00001
Published On: 05/17/2018

Question: Will the RFP assign value to generation resources that can provide services that offset the need to invest in transmission and/or other grid stabilization resources?

Answer: Neither CRA or NIPSCO is going to attempt to estimate transmission savings that might arise in association with a project or a bid.

RUL 00002
Published On: 05/17/2018

Question: Are there counterparty credit restrictions that limit participation in the RFP?

Answer: No. Bids from non-investment grade counterparties will be accepted and evaluated. There are collateral requirements for non-investment grade counterparties required in association with any definitive agreement.

RUL 00003
Published On: 05/18/2018

Question: Are solar locations near sub stations more preferred and is there a minimum/maximum/preferred size for solar installations?

Answer: There is no preference on location or size of the existing, or proposed, resource.  All proposals must have firm deliverability into MISO Load Resource Zone 6 and be of sufficient scale to  qualify to receive Zonal Resource Credits for Zone 6 consistent with MISO’s Module E Planning Resource Auction.

RUL 00004
Published On: 05/18/2018

Question: Is grid tied solar without battery storage a qualifying resource?

Answer: Facilities that qualify as MISO internal generation and qualify to receive Zonal Resource Credits for Zone 6 consistent with MISO’s Module E Planning Resource are eligible.  

RUL 00005
Published On: 05/18/2018

Question: If a facility has useful life beyond 20 years, can you confirm that the NPV calculation will still only reflect the initial 20 years as noted in 6.1.2.1?

Answer: Valuations will include a provision for terminal value.

RUL 00006
Published On: 05/24/2018

Question: Would NIPSCO consider a bid for 10 MW+ of capacity using energy efficiency deployment?

Answer: No.  Resources must be qualified to receive Zonal Resource Credits in or delivered to MISO Local Resource Zone 6 consistent with MISO’s Module E Planning or successor.



RUL 00007
Published On: 05/25/2018

Question: For the 600MW of capacity, is there a capacity factor one should assume for these MW? I.e. is there a MWh target being sought?

Answer: There is no specific capacity factor target or MWh for any resource bid into the RFP.  Proposals will be evaluated consistent with Appendix G.

RUL 00008
Published On: 05/25/2018

Question: Is mass-market (residential and small commercial) DR eligible?

Answer: Yes.  NIPSCO will accept bids from curtailment service providers that aggregate DR.  Such suppliers must be able to meet the terms of the draft demand response agreements posted to the Information Website.  NIPSCO will not serve as the aggregator.  Aggregation is the reasonability of the DR Supplier.

RUL 00009
Published On: 05/25/2018

Question: Appendix G - 2.1. Capacity Asset Net Present Value: If we are submitting a wind farm whose construction costs are $ 1,400 per kW of nameplate capacity. MISO gives new wind a 15.2 % capacity factor for 18/19. Therefore would NIPSCO evaluate the cost of my capacity in this way: $1400/.152 = $9,333 per kW capacity?

Answer:

Partially yes.  From a capital component perspective the NPV will take into account the UCAP provided.  In addition, the NPV calculation will also be taking to account the cost of energy, market revenues, O&M, etc. over the life of the asset / contract duration. 

RUL 00010
Published On: 05/25/2018

Question: If two entities wish to co-bid to provide complementary services, will NIPSCO accept bids from two separate project entities for the provision of the relevant services?

Answer: Yes.  Joint proposals will be accepted.

RUL 00011
Published On: 05/29/2018

Question: Can you please clarify in the Credit Qualification and Collateral section - if the bidder does not have the minimum investment grade rating does the bidder need to have either a Parent Guarantee OR post collateral? Or does the bidder have to have both a Parent Guarantee AND post collateral.

Answer: Bidders with investment grade ratings do not need to post Definitive Agreement (DA) collateral.  Bidders without an investment grade rating may rely on a Guarantor's investment grade rating or they can post DA collateral.

RUL 00012
Published On: 06/06/2018

Question: Does having NRIS for an asset physically located in another zone in MISO North qualify as “firm physical delivery” into LRZ6? If not, what transmission product or study is required for providing “firm physical delivery” from another MISO Zone into LRZ6?

Answer: At this time. NIPSCO is only aware of point to point transmission service.  For PPAs coverage of the Zonal Delivery Charge maybe an option over point to point service.

RUL 00013
Published On: 06/12/2018

Question: Regarding the nodal economic analysis referenced in section 4.1.8 of the RFP, please clarify whether providing this nodal analysis is a requirement of all capacity proposals or only proposals from assets that do not have executed MISO interconnection service agreements.

Answer: Section 4.1.8 applies to new or proposed facilities.  All bidders submitting a proposal supported by a new facility or a facility in development should submit all items noted in 4.1.8 to the extent that they are available.

RUL 00014
Published On: 06/12/2018

Question: In Section 6.5 Generation Proposal Evaluation Fee how will NIPSCO/CRA determine the number of proposals? For example if we submit a proposal for a 100 MW project with and without energy storage and with flat and escalating PPA pricing, will this be considered a single proposal or multiple proposals?

Answer: Each proposal that requires a separate economic evaluation of the costs and benefits and/or a separate evaluation of the proposal's underlying assets will be considered a separate proposal.



RUL 00015
Published On: 06/15/2018

Question: Section 7 of the RFP notes that "DR Suppliers must be located entirely within MISO Load Resource Zone 6". MISO Zone 6 extends beyond NIPSCO's service territory (rest of Indiana and northern Kentucky). My question is to confirm: can a demand response proposal include (wholly or partially) customers in MISO Zone 6 who are not NIPSCO distribution customers?

Answer:

DR proposals need to consist entirely of MISO Local Resource Zone 6 load.  DR proposals need to clearly convey how measurement and verification will be accomplished.  Furthermore, proposals need to state how any interface with a host utility will be handled within the product offered.

RUL 00016
Published On: 06/26/2018

Question: Is a bidder allowed to submit one PPA proposal with multiple pricing options based on term and escalator, or would each price count as a proposal? Would a single PPA proposal that offered pricing with storage and pricing without storage, for the same asset, count as one or two proposals?

Answer: The PPA as described would constitute 1 proposal.

RUL 00017
Published On: 06/26/2018

Question: If I am submitting information on three projects with different structures offered for each of the projects, how many bids would it be? For example, for each of the three projects, I am bidding an asset purchase price and a PPA price. Is each project considered a bid or each individual price submitted a different "bid"?

Answer: Please refer to the response to RUL 00014.


In this case, 3 different assets each submitted under 2 fundamentally different deal structures would be 6 proposals.