Frequently Asked Questions 3/14/2012

If the project is still under development and has not applied for or received an interconnect approval, is the project eligible to participate in the application/bidding process?  If so, what is the correct response in the application when asking for this information?

Systems can be completed up to 1 year after a winning bid.  The only extra requirement for systems that haven”t been built is that a bid deposit of $100/kw be paid.  This deposit will be refunded when the system is complete.  Also, the bid application will be completed entirely online, starting on April 2nd.  The sample form in the filing is a good guide for what the online form will look like, but it may change slightly before the final form comes online.

The auction is for 20 year contracts regardless of size.  What happens in the event that an owner needs to remove the system, after say 15 years, and forgoes the last 5 years remaining of the contract?  Are there any clawback provisions of liquidated damages associated with terminating the contract early?

The contract is for 20 years and systems are subject to the remedies outlined in Section 6.13 and Appendex B of the filing.  These include, among other things, the ability of the SEU to “recover damages calculated based on the difference, if positive, between the price for SRECs under the SREC Transfer Agreement and the cost to replace such SRECs in the market.”

What are the damages if a bid is submitted, accepted, and the project fails to get built within the 12 month window?  What happens if it does not get built at all?  Are there any liquidated damages associated with this scenario?  Does the bidder forfeit the deposit of $100/kW?

This is covered in Section 6.5 and Appendix B of the filing.  There are a variety of liquidated damages and conditions listed, among them the bidder forfeits their bid deposit if a contracted system is never built.

How are systems paid for the in-state equipment/workforce bonus.  A 10% or 20% bonus for >50% DE manufactured equipment and/or >75% DE resident/employee workforce essentially says that 1MWh can produce 1.1 SRECs or 1.2 SRECs if both conditions are met.    Are systems paid 1.1 or 1.2 times their contract price if they meet these requirements?

Yes.  If, for example, a system bid $100 and had DE labor and equipment, they would actually be paid $120 for each SREC produced.  If they just had one or the other they would recieve $110.