The deadline for developers to submit proposals “for innovative alternatives to necessary upgrades at” New York State Electric & Gas’ (NYSEG) Java substation in the Town of Java in New York has been extended to April 29, the company said on its website.
As the company noted in a February statement, it is seeking innovative solutions to address the need for electricity system upgrades in Wyoming County, and has issued a request for proposals (RFP) for bidders offering distributed generation, demand response or energy efficiency programs, energy storage or other resources to ensure continued reliable service to the 1,600-plus residential and small commercial customers served by the company’s substation.
NYSEG said that it issued the request as an alternative to making direct investments in its system to serve the area.
“In alignment with the state’s Reforming the Energy Vision initiative, we strongly support innovative approaches to addressing reliability challenges,” Mark Lynch, president and CEO of NYSEG and Rochester Gas and Electric (RG&E), said in the statement. “We are eager to work with qualified and experienced developers who can deliver results and help us defer the significant cost of upgrades to our substation.”
Successful proposals, determined based on their ability to meet reliability requirements at a reasonable cost, will be expected to be in service on Jan. 1, 2018, the company said. At the time, the company said that the deadline for developers to submit their proposals was April 8, but, as noted, that date has been extended.
“Some of the developers who have indicated that they intend to bid asked for an extension, so NYSEG granted a three-week extension to all potential bidders,” a company spokesperson told TransmissionHub on April 15.
According to the Feb. 8 RFP, the NYSEG project is being offered for consideration of potential non-wires alternatives to accomplish these objectives:
- Establish sufficient quantities of distribution energy resources (DER) into the area served by the Java substation to reduce the peak loading on the individual transformer bank to below its nameplate rating of 5 MW
- Establish sufficient quantities of DER to address reliability and power quality issues that exist on the Java 280 circuit
- Establish sufficient quantities of DER to address the potential risk of failure of the existing transformer
The company said it will not consider any existing sources of DER located within the service area, and with the exception of natural gas and propane, it will not consider any proposals using fossil fuels.
Discussing project economics, NYSEG noted that the total cost of the distribution solution (the Java substation project) is about $28.5m.
As applicable, the resource is to be required to meet NERC requirements; comply with New York ISO interconnection requirements, including metering and ancillary service provisions; and demonstrate that it can obtain and comply with all required environmental and operating permits while meeting the requested reliability needs.
NYSEG further noted that interconnection of a resource to the electric system grid and the ability of the grid to deliver the resource to serve load reliably will be integral components of NYSEG’s evaluation of proposals.
Among other things, NYSEG said that to evaluate proposals, it may primarily consider reliability and ratepayer cost, and it may also consider such factors as environmental and economic impacts, electric market competitiveness, developer qualification and project viability.
NYSEG and RG&E are subsidiaries of AVANGRID (NYSE:AGR), which was formed by a merger between Iberdrola USA and UIL Holdings Corporation in 2015. Iberdrola S.A. owns 81.5% of AVANGRID, as noted on the company’s website.