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Introduction
This presentation provides a summary level
- verview of key contract attributes contained in
SCE-Proposed QF PPA for Firm Power Contracts (Qualifying Facilities - - PowerPoint PPT Presentation
SCE-Proposed QF PPA for Firm Power Contracts (Qualifying Facilities - - PowerPoint PPT Presentation
SCE-Proposed QF PPA for Firm Power Contracts (Qualifying Facilities with Expiring Contracts) CPUC Workshop November 15, 2007 Introduction This presentation provides a summary level overview of key contract attributes contained in SCEs
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Proposed QF PPA Structures
Term: 1-10 years Capacity Pmt: $91.97/kW-yr Energy Pmt: MIF on all metered energy Performance Requirements: 95% / 90% Capacity Penalties: Applicable Compliance with CAISO Tariff Term: 1-5 years Capacity Pmt: $32.53/kW-yr Energy Pmt: MIF on all metered energy Performance Requirements: None Capacity Penalties: Not Applicable Compliance with CAISO Tariff Above, plus: Development-Period Security Development-Period Milestone Info Operating-Period Security Above, plus: Development-Period Security Development-Period Milestone Info Operating-Period Security
FIRM AS AVAILABLE EXISTING NEW
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KRCC contract is used as the starting point for the following reasons:
Contract is a single, stand-alone PPA appropriate for 1-to-10 year deal structures
contemplated in D.07-09-040
Contract contains commercially proven & contemporary terms Formed as an arms-length transaction Approved by the CPUC
Certain revisions have been applied to the KRCC contract:
Revised as well as added new provisions to be compliant with
D.07- 09-040
Alterations applied to remove non-applicable technology and commercial
specifications (e.g., removal of dispatchability-related provisions)
Exploring impact of AB 1613 and will incorporate provisions as appropriate This presentation includes some contract attributes not included in submission of
IOU draft contract
Background
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Product & Commercial Terms/Structure
Product (exclusively dedicated to Utility)
Electric energy net of station use and site host load Capacity attributes (Resource Adequacy) Green & other environmental attributes
Commercial Terms/Structure
Conditions precedent prior to term start date Monthly payments to seller (as per D.07-09-040)
Energy, Capacity and VOM prices
Performance requirements Operational/scheduling requirements Utility as scheduling coordinator (preferred) Termination provisions Legal and financial provisions
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Conditions Precedent
FERC certification of QF status obtained and maintained Grid connection established and grid connection agreements executed CAISO operational agreements (PGA, MSA, etc.) executed ISO approved metering installed Scheduling coordinator assigned Capacity testing completed Systems configuration for telemetry link, forecast reporting, and scheduling completed
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Monthly Payments to Seller
TOD Energy Payment
Function of: Metered energy Gas Index CPUC-approved heat rate CPUC-approved energy payment allocation factors Seller receives payments for all metered energy (including MWs in
excess of final net contract capacity)
TOD Capacity Payment
Function of: CPUC-approved capacity price ($91.97/kW-year as per D.07-09-040) CPUC-approved capacity payment allocation factors Performance requirements apply (see next slide) Seller receives capacity credit at net contract capacity (if delivered at
net contract capacity or above) for metered energy delivered during each settlement interval – no credit for settlement interval where metered energy is below net contract capacity
Variable Operations & Maintenance Payment (as per D.07-09-040)
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Performance Requirements
In compliance with D.07-09-040, capacity payment penalty for failure to deliver 95% of the net contract capacity during on-peak months and 90% power during
- ff-peak months
Monthly capacity payment penalty evaluated per TOD period Capacity payment penalty exceptions for:
Scheduled outages (limitations apply) CAISO or SCE curtailment
No capacity payment penalty exceptions for:
Outages due to force majeure Forced outages
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Operational Requirements
Initial Demonstration Testing
For final net contract capacity Resource adequacy requirements CAISO resource parameters (PMAX, PMIN)
Annual Demonstration Testing
Resource adequacy requirements CAISO resource parameters (PMAX, PMIN)
Daily Forecast Submittal
30-day rolling forecast Updated as appropriate before operating hour for accurate
energy schedule submittal
QF financially responsible for continued & significant
discrepancy between forecast and actual generation
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Utility as Scheduling Coordinator (SC)
As SC, the Utility shall be responsible for:
Submitting bids and schedules to CAISO Reporting outages and unit status to the CAISO All settlement functions with the CAISO CAISO costs and charges, unless costs or charges are due to actions
- r inactions of seller
Operations Training
Day-to-day ops (e.g., forecast & schedule submittal, derate reporting) MRTU basics PGA, MSA assistance
Commercially reasonable fees for SC services
Start-up fee (training, registration, systems configuration) Monthly fee (volumetric and flat payment options considered)
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Utility as SC (continued)
Scheduling and Delivery Deviation Charges
SDD charges shall be in lieu of assessing all generator-specific
CAISO charges to Seller
“SDD Charge”
Assessed to seller if metered energy is less than schedule (3%
tolerance band)
Calculated as deviated quantity times CAISO real-time price
SDD Administrative Charge
Assessed to seller if metered energy is less than or greater than
Schedule (±3% tolerance band)
Calculated as deviated quantity times GMC rate
SDD charges limited to CAISO settlement interval following
receipt of QF’s derate notification
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Termination Provisions
Rights of Non-Defaulting Party
Designation of termination date Ability to suspend performance Calculation of termination payment
Termination Payment
Calculated as gains minus losses minus costs Traditional two way termination payment calculation
Right to terminate permissible if QF is selected pursuant to native utility RFO solicitation
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Legal and Financial Provisions
Reps and Warranties
Appropriate to D.07-09-040 deal structure
Assignment & Indemnification Mandatory Dispute Resolution
Informal Mediation Binding Arbitration
Seller obligation to provide necessary financial statements
Fin 46 compliance
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