Sargent & Lundy will provide responses to all questions.

Sargent & Lundy requests that all questions concerning this RFP be submitted in writing via the RFP Question Form. Written responses to all submitted questions will be posted to the website. Sargent & Lundy will accept written questions until seven (7) days before the proposal submittal date identified in the project schedule. Respondents should check the website periodically for updates and postings.

If you experience technical issues accessing RFP documentation or submitting documetns, please contact IPL-ASRFP@sargentlundy.com for assistance. Respondents should not contact IPL directly.

Questions & Answers

Q: Is there a limit to the file size in the Proposal Upload link feature on this site?

A: There is no file size limit to the proposal upload.

Q: Also, will there be an email confirmation sent confirming receipt of proposal files?

A: A confirmation email will not be sent after proposal uploads. A confirmation page stating "X file(s) sent to PATRICK DAOU" confirms that your files were uploaded successfully. The respondent is responsible for confirming the number of files uploaded matches the "X" number of files sent.

Q: Does nodal economic analyses (2023, 2028, and 2033) as mentioned in section 3.3.1 and 3.3.2 need to be completed for standalone battery energy storage (not tied to any generation) offers?

A: Yes, nodal economic analyses are needed for standalone battery energy storage proposals.

Q: If yes, does the nodal economic analyses for standalone battery energy storage offers need to be completed by the time of bid submission (02/28/2020)?

A: Nodal economic analyses are requested with the proposal per the RFP. See Appendix B. Proposal Completeness Checklist.

Q: Regarding section 2.6: In such section it is stated that “all proposed pricing terms and conditions must be open for acceptance by IPL through the fourth quarter of 2020”. Can you please clarify if this would prevent a Respondent from withdrawing its proposal prior to such deadline without liability?

A: Consistent with the language in the RFP, it is IPL’s expectation that all proposed pricing, terms and conditions must remain open for acceptance by IPL through Q4 2020 when definitive agreement execution with selected respondents is expected. In addition, IPL reserves the right as referenced in Phase 2 Section L of the RFP to reflect in the scoring any ability or requirement as proposed by a respondent to withdraw their offer.

Q: Regarding section 3.5: Is there anything IPL expects Respondent to provide with their proposals if both the Respondent and prospective guarantor are unrated?

A: If a Respondent is unrated or does not meet this minimum credit rating requirement, the Respondent may provide credit support from a corporate guarantor that meets the requirement. Respondent may also provide credit support in the form of a letter of credit from any United States commercial bank(s) or financial institution(s) or a United States branch or subsidiary of a foreign commercial bank(s) or financial institution(s) having, or guaranteed or confirmed by an entity having, a long-term unsecured senior debt rating of any two of the following: (i) at least A3 or better by Moody’s, (ii) at least A- or better by S&P or (iii) at least A- or better by Fitch. In the event Respondent intends on using a letter of credit, evidence within the proposal of Respondent’s plan to arrange the letter of credit from a provider meeting the requirements set forth (including the name of the letter of credit provider) would be helpful.

Q: Will IPL incur costs for the MISO Study and other requirements after the bid award?

A: As outlined on Page 12 of the RFP, the purchase price indicated in Appendix C, Schedule C shall be inclusive of all costs associated with providing a completed generating asset whose full output will be accredited to the MISO LRZ 6, including transmission interconnection costs, studies, siting, permitting, construction, start-up, testing, and inventories. Terms of payment and interest during construction shall be identified.

Q: [Company Name] would like to submit a proposal to the RFP, however it appears that we missed the first deadline. Can we still submit a proposal or will another RFP potentially be going out? [Company Name] has a large thermal load in downtown Indianapolis that could fit nicely in a proposal to generate power and/or be a potential host site for other third parties.

A: Bidders can late reply to the intent notice, so long as they hold to the RFP proposal submission date.

Q: Regarding the eligibility to bid of projects which are to be interconnected through IPL's distribution system, IPL has stated "Distribution interconnections may not conform to all RFP requirements. IPL reserves the right to consider any and all bids as a part of this RFP. Such non-conforming bids may be subjected to additional requirements or rejected." Could IPL please clarify which RFP requirements a project connected to IPL's distribution system would not meet?

A: To clarify, distribution interconnections do not qualify for MISO Zone 6 Zonal Resource Credits. Distribution interconnections are not deliverable to the IPL 138 kV load-serving transmission system. However, as stated previously, IPL reserves the right to consider any and all bids as a part of this RFP. Non-conforming bids may be subjected to additional requirements or rejected. In this circumstance, IPL may model these bids as a reduction to its load.

Q: Would a utility-scale solar project connected to a distribution level line owned by IPL qualify for this RFP? Are there certain specific requirements that this type of project would need to meet in order to qualify? Will this type of project be eligible for MISO Zone 6 Zonal Resource Credits?

A: To clarify, distribution interconnections do not qualify for MISO Zone 6 Zonal Resource Credits. Distribution interconnections are not deliverable to the IPL 138 kV load-serving transmission system. However, as stated previously, IPL reserves the right to consider any and all bids as a part of this RFP. Non-conforming bids may be subjected to additional requirements or rejected. In this circumstance, IPL may model these bids as a reduction to its load.

Q: Can IPL clarify the “nodal economic analyses” stipulation on p.12 of the RFP? Is it referring to a SCED assessment simulation of MISO market under a Base and transmission outages scenarios? (i.e. two scenarios) Also, is IPL expecting an outage scenario simulation for all three run years?

A: Nodal economic analyses refer to an estimated basis forecast for the project. IPL expects to see at least one year with the project’s COD year.

Q: Can IPL clarify the phrase “... identify expected congestion impacts on energy production”. (p.12)? Is IPL looking at basis and total curtailment risk (incl. reliability risks) associated with the proposed project?

A: To clarify, IPL is looking at both basis and curtailment risks associated with proposed projects.

Q: Will IPL entertain small changes to the non-disclosure agreement?

A: Please refer to a similar question answered previously in the Q&A section, close to the bottom of this list.

Q: Does IPL have the ability to monetize the ITC under an asset transfer / sale scenario? Or does IPL expect the developer to arrange sufficient tax equity financing for a proposed project?

A: IPL expects to use a tax equity arrangement as part of the financing for the proposed project under this scenario. IPL does not require the developer to have a pre-arranged tax equity agreement in place, but bids that include an attractive financing plan acceptable to IPL will be viewed positively.

Q: What is IPL's WACC?

A: Please see page 142 of IPL's 2019 Integrated Resource Plan (IRP) for IPL's WACC.

Q: For projects that will submit an interconnection request during the next DPP Cycle 2020, and therefore, don’t have a MISO interconnection queue yet:

  • Could you confirm that the following requirements in 4.2.1 are not mandatory:
    • Transmission upgrade plans, status of interconnection or transmission service requests, and status of related agreements and approvals.
    • The status and results of all interconnection facilities studies, system impact studies, deliverability tests, and other studies and analyses. These analyses should establish the required interconnection facilities and system upgrades and prove the deliverability of all capacity and associated energy of the resource to the MISO market.

A: The requirements of 4.2.1 are mandatory.

  • Due to the high uncertainty of the projects ahead in the MISO Central DPP 2019 Cycle (17GW and no studies posted), could IPL provide assumptions to include in the required nodal analyses, such as projects / MW to consider?

A: IPL declines to provide additional information with respect to modeling uncertainties. Proposals should include a summary of modeling methodologies and assumptions.

  • Q: Additionally, could you specify what is the format required for the nodal analyses, and what are the outages scenarios (n-1-1) required?

A: PSS/E-style output reports for all BES elements.

Q: Section 3.5 refers to credit support that may be satisfied by posting a letter of credit. Please clarify the amount and timing of that posting, if distinct from the DA security posting requirement described in Section 3.5.1.

A: The credit requirements will be based upon the final contract and structure of the transaction, and we expect any required collateral to be in place at the execution of the DA. It is the expectation the collateral amounts will follow those outlined in 3.5.1; however, IPL reserves the right to require collateral in excess of the amounts set forth in 3.5.1 should the final contract and structure warrant it.

Q: Will IPL accept bids from projects proposing to interconnect to the IPL-owned distribution voltage system, provided the connection is within the MISO footprint?

A: IPL reserves the right to consider any and all bids as a part of this RFP, even though certain bids may not conform to the specification. Such bids may be subjected to additional requirements or rejected.

Q: Would a project which is to be interconnected through IPL's distribution system be conforming for this RFP, or does IPL require that all projects be submitted through the MISO interconnection queue in order to qualify to bid into this RFP?

A: Distribution interconnections may not conform to all RFP requirements. IPL reserves the right to consider any and all bids as a part of this RFP. Such non-conforming bids may be subjected to additional requirements or rejected.

Q: An n-1 and n-1-1 for the required cannot be completed without a standard set of contingent and monitored elements. Can IP&L provide .con & .mon files in PSS/E .raw format, or provide additional guidance and assumptions for the standard set of contingencies that all respondents should employ for these analyses? Thank You.

A: .mon and .con files cannot be provided unless the developer has a MISO NDA executed. Con and mon files are not in .raw format they are in PSS/E format. PSS/E .raw files cannot be provided. Respondents may make assumptions in developing their own files and provide assumptions as part of their proposal.

Q: The RFP material states, "IPL prefers Resources with energy settled or directly delivered to the IPL.IPL node. If the IPL.IPL node cannot be achieved, Resources shall have energy settled or delivered to at least to the Indiana Hub." Does "energy settled" mean financially settled energy or physically delivered and settled?

A: "Energy settled" means physically delivered and settled.

Q: Will projects in MISO Planning Year 2024-2025 be accepted, and if so, are they to be weighed with the same eligibility as those in PY 2023-2024?

A: IPL will evaluate offers for projects that begin operation after the start of PY2023/2024. The offer would be evaluated for any costs associated with the later start date including MISO Zone 6 capacity that is not available until the operating date of the project.

Q: Will there be proposal data forms for Schedule A (Project Description), Schedule C (Pricing Proposal), Schedule D (Renewable Energy Production Forecast), Schedule E (Guaranteed Performance), and Schedule F (Suppliers for Major Plant Equipment)? Or, should respondents provide this information in the most appropriate format, as determined by respondent? Thank you.

A: The respondents need to use the forms provided in the RFP. For the questions that instruct the respondent to provide supporting information, the respondent may use the most appropriate format for the type of supporting information.

Q: Will IPL accept PPA proposals that use a capacity swap from another MISO Local Resource Zone to provide the requested Zonal Resource Credits in MISO Local Resource Zone 6?

A: IPL needs MISO Zone 6 ZRCs (Zonal Resource Credits) to meet the company's capacity obligation. IPL will evaluate projects outside of the Zone 6 territory, but developers will need to provide Zone 6 ZRCs as part of the proposal.

Q: Please expand on the provision in Section 3.3.1 noting that Developers will not be prohibited from proposing transfer of a development asset – when would IPL consider buying the development rights of a project? When will site control and interconnection studies be required for the sale of the development assets?

A: IPL will consider projects in any stage of development. Conditions precedent to an asset sale will be project specific. The state of the development activities and associated risk of the project will be factored into the project's scoring.

Q: How will energy storage be evaluated during Phase 1, specifically on the LCOE calculation? Are there additional points awarded for the services energy storage systems provide?

A: The Phase 1 evaluation will be as described in Section 3.1 of the RFP. As indicated, the shortlist for each technology category will be developed from the highest scoring proposals within each technology category. The LCOE is one component of the Phase 1 score. The LCOE for storage will be calculated from the Respondent’s information provided in Appendix C, Schedule C – Pricing Proposal and Appendix C, Schedule E – Guaranteed Performance. The LCOE calculation for energy storage in Phase 1 considers the all-in costs over the evaluation period, including capital and O&M. The value of services to the system will be evaluated as necessary in Phase 2 using IPL’s production cost model.

Q: Please specify what substations are considered IPL.IPL nodes.

A: Please see this link to IPL transferred facilities on MISO's website. A list of IPL substations is included in this document. Duke's Gwynneville and AEP's Fall Creek substations are not included in IPL.IPL nodes.

Q: Please confirm if IPL prefers Energy Resource Interconnection Service or Network Resource Interconnection Service projects.

A: IPL prefers Network Resource Interconnection Service projects.

Q: Please confirm if the “Nodal economic analyses (for 2023, 2028, and 2033) under base case (n-1) and outage scenarios (n-1-1) must be performed to identify expected congestion impacts on energy production.” Specified in 3.3.2 Power Purchase Agreement requirement of RFP is a requirement at the time of bid submission or will be required after the proposal is selected?

A: Confirmed. A nodal economic analysis is requested with the proposal per the RFP. See Appendix B. Proposal Completeness Checklist.

Q: Does IPL have land around its substations or its preferred other points of interconnection it is willing to make available to developers?

A: IPL is willing to make available certain land around its existing generation resources in Indiana.

Q: If two companies decided to submit a joint proposal, would both companies need to submit separate Notices of Intent or will one suffice? If one will suffice, will it need to be one form with both companies' information or will one submission from one of the companies suffice?

A: If more than one entity is submitting a joint proposal, each entity needs to be identified. IPL will accept a separate Notice of Intent from each individual entity or a single Notice of Intent containing the information for each of the entities.

Q: Will IPL review/accept changes to the form NDA?

A: IPL will consider reasonable and necessary changes to its form NDA. Please give specific reasons why such changes are necessary in each case.

Q: Would the executed NDA be required prior to proposal submission or along with the proposal submission?

A: The executed NDA may be submitted prior to the submission of the proposal. However, in an effort to streamline the process, the executed NDA may be submitted at the same time as the project proposal.

Q: RFP Appendix C. Schedule B4 - ICE (XLSX file) link is downloading a file Called "Appendix C Schedule B3 - DR". Please review.

A: The correct Appendix C. Schedule B4 has been uploaded.

 

Page last updated March 5, 2020.

Additional Resources

Project Schedule
RFP milestone dates and deadlines. Read More

RFP Documents
Learn how to submit an RFP proposal. Read More

RFP Q&A
Read RFP questions and answers. Read More