Xcel Energy’s (NYSE: XEL) Southwestern Public Service subsidiary is seeking proposals for additional solar energy resources as a component of its resource planning process.
Through this Sept. 12 solicitation, SPS is requesting proposals for up to 200 MW of solar photovoltaic resources that could begin delivery to SPS on or before Dec. 31, 2016, and that would be contracted through a power purchase agreement. Bids will be accepted until 5 p.m. CDT on Oct. 10.
Southwestern Public Service is a wholly owned subsidiary of Xcel, serving 383,000 customers in the Panhandle and South Plains regions of Texas, and the eastern and southeastern counties of New Mexico. The company’s transmission system also extends into Oklahoma and Kansas.
Solar generation proposals are to be either: to-be-built generation resources to be interconnected at certain distribution facilities and 10 MW (ac) in size for each distribution interconnection location; and resources to be interconnected at distribution or transmission at site(s) proposed by the developer.
SPS requires that bidders provide in their proposals SPS’s ownership of 100% of the environmental benefits and renewable energy credits (RECs) associated with the energy generated by the project and purchased by SPS, and a proposal under which bidder retains ownership of 100% of the RECs.
All pricing must be in terms of current year dollars, also referred to as escalated or nominal dollars. For example, a $25 per MWh energy price bid for 2017 means that in 2017, energy from the facility will be purchased at a rate of $25/MWh. SPS’s preference is for fixed price proposals.
Eligible bidders may propose one contract term length for each proposal. Bidders may propose contract term lengths of 10, 15, 20 or 25 years. SPS’s objectives with respect to contract term lengths are to avoid the concurrent expiration of multiple contracts.
The schedule from here is:
- Proposals due Oct. 10, 2014
- Evaluation and Due Diligence, October 2014
- Negotiations with Selected Bidder(s), November 2014
- Finalize/Sign Contracts, December 2014
- Application for Regulatory Approval, January 2015