2018 Capacity RFP
Alabama Power has issued a 2018 Request for Proposal (RFP) for firm capacity to meet future energy and reliability needs.
The company will consider proposals with a project capacity rating between 100 and 1,200 megawatts. Qualifying proposals can be power purchase agreements (PPAs) or asset purchase and sales agreements (existing or new-build/transfer) proposals. PPA terms can be five, 10, 15 or 20 years in length. Bidders are permitted to propose multiple projects.
All projects must be dispatchable and available to meet Alabama Power’s future summer and winter capacity needs. Capacity could be added beginning as early as November 2019 and as late as November 2023. Any project considered by the company would ultimately require approval by the Alabama Public Service Commission.
All bids require a non-refundable bidder’s fee. Proposals that pass an initial evaluation are subject to additional, due diligence analysis fees.
If you are interested in submitting a project, all Notice of Intent to Bid (“NOI”) forms must be received by 5 p.m. CDT on Oct. 5, 2018 and all bids must be received by 5 p.m. CST on Nov. 9, 2018.
Frequently Asked Questions
What types of generation projects will be considered?
A project must be fully dispatchable and available year-round, with an emphasis on availability in both the summer (June-September) and winter (December-February) seasons. Energy storage and any combination thereof is acceptable for this RFP as long as the operating requirements specified in this document are met.
Should I bid a solar facility in this firm capacity RFP or in the Renewable RFP?
A solar facility can be proposed in this Capacity RFP; however, it must be paired with some type of energy storage or other type of generator and must be dispatchable, have Automatic Generation Control (“AGC”), and meet other operating requirements, as applicable, specified in this RFP document.
What size project can be proposed?
Each project proposal, including an aggregate of units at a facility, must be at least one hundred megawatts (100 MW) in total capacity for the resource proposed and no single resource should exceed twelve hundred megawatts (1,200 MW).
Example 1: If Facility A has two 70 MW units then a bidder must bid both units as a complete resource for a total resource capacity of 140 MW.
Example 2: If Facility B has Unit 1 with a capacity rating of 1,300 MW and Unit 2 with a capacity rating of 1,000 MW, only Unit 2 qualifies to be proposed in this RFP.
Where must projects be located?
For Power Purchase Agreements (“PPAs”), Alabama Power’s preference is that at all times during the PPA service term facilities must be directly interconnected to the Southern Company transmission system (this is a non-quantitative factor in the evaluation); however, for facilities not interconnected to the Southern Company transmission system at any time during the service term must obtain firm transmission service to the Southern Company transmission interface and provide the name of the balancing authority area in which the project is located. For Asset Purchase and Sales Agreements (“APSAs”), the project must be interconnected or have the ability to interconnect to the Southern Company transmission system and must be located in the state of Alabama.
When must the projects be operational?
For PPAs, the service commencement date should be December 1, 2023. However, an early service commencement date as early as December 1, 2019 may be offered as a PPA option. For APSAs, existing facilities may be acquired as early as November 1, 2019, subject to receipt of required regulatory approvals. No proposal will be accepted with a commercial operation date after December 1, 2023.
Is there a limit to the number of proposals one company can submit?
No. There is no limit on the number of proposals from an entity; however, separate bid evaluation fees may be required for each proposal as described in the Capacity RFP document. Regardless of the fee requirement, a separate “Notice of Intent to Bid” form must be submitted for each proposal.
What is the Bidder's fee for a project submittal?
For each project submitted, there will be a nonrefundable bidder evaluation fee of $10,000. If the same project is being submitted with a change to the business arrangement, the additional proposal must have a separate bid evaluation fee of $10,000. However, if a PPA project is being proposed and there is only a contract term change (e.g., 5-year versus 20-year), no additional bid evaluation fee is required.
Electronic payment for the bid evaluation fee is to be made to Alabama Power as specified in the RFP document.
The bid is not complete and will not be evaluated unless the appropriate bid evaluation fee has been received by the RFP deadline of 5:00 pm CST on November 9, 2018.
When is the best time to submit an interconnection study request?
While an interconnection study request will not be required until a short list is determined, there is a potentially long study time and construction lead time that could impact the commercial operation date of a project. Information for submitting an interconnection request is available to the bidders in the “Interconnection Guidance” section under PPA proposals in the RFP document.
What should the price of the project include?
The proposed project price (for PPAs, and APSAs) should include the land and facilities associated with the project up to the point of interconnection. This price should include all ongoing operation and maintenance costs for the project facilities up to the point of interconnection, including the monthly administration fee under the interconnection agreement (applicable to bidders proposing a PPA with the Company) for the term of that agreement.
Will there be an opportunity later to change the price offered?
Only as a result of extraordinary circumstances as determined solely by the Company.