CenterPoint: Vectren issues RFP for wind, solar, solar plus storage resources for Indiana customers

According to the RFP, the notice of intent with application documents are due on Aug. 27, while proposals are due on Sept. 23. The definitive agreement(s) will be executed — subject to regulatory approvals — with the selected respondent(s) in 1Q21

CenterPoint Energy on Aug. 12 said that its Indiana-based electric and gas business, Southern Indiana Gas and Electric (SIGECO) is opening a new request for proposals (RFP) to seek a combination of wind, solar, and solar plus storage resources to meet the future needs of its 145,000 electric customers in southwestern Indiana.

The RFP will help in identifying replacement generation capacity beginning in 2023, CenterPoint said, adding that SIGECO recently completed its 2019/2020 Integrated Resource Plan (IRP) in which the company announced plans to retire 730 MW of coal-fired generation by 2024, and largely fill its ongoing energy need with renewable generation. SIGECO is seeking 700 to 1,000 MW of solar and solar plus storage, as well as 300 MW of wind resources, CenterPoint said.

The company noted that SIGECO has retained 1898 & Co., a division of Burns & McDonnell Engineering Company, Inc., to act as its agent in managing the RFP process.

According to the RFP, the electric customers of SIGECO (Vectren) are currently served by a mixed portfolio of 1,000 MW of coal-fired generation, up to 160 MW of gas-fired generation, and 4 MW of solar coupled with 1 MW of storage. The portfolio also contains 3 MW from a landfill gas to electric project, as well as purchases from the Ohio Valley Electric Corporation (OVEC) of up to 32 MW, wind purchases of up to 80 MW, and purchases from the Midcontinent ISO (MISO) power pool, as needed, to meet Vectren’s load requirements. The RFP also noted that interruptible load and demand-side management initiatives can reduce load by about 60 MW, if needed.

Discussing the purpose of the RFP, the document noted that for asset purchases and power purchase agreements (PPAs), the capacity is preferred to be fully accredited for the 2023/2024 MISO planning year (PY). Vectren submitted the 2019/2020 IRP to the Indiana Utility Regulatory Commission (IURC) in June, identifying a need for 700 to 1,000 MW of solar — some paired with storage — and 300 MW of wind as part of its preferred resource options to meet capacity and energy requirements.

The RFP also said that Vectren prefers proposals for resources that are directly interconnected to its system, or proposals that reflect all the costs and characteristics of the resource necessary for energy to be financially settled or delivered to Vectren’s load node.

For a proposal to be eligible under the RFP, it must:

  • Offer MISO Local Resource Zone (LRZ) 6 zonal resource credits — using Network Resource Integration Service (NRIS) transmission service — from projects with an installed capacity (ICAP) of no less than 50 MW
  • Offer capacity, energy, and RECs for utility scale wind, solar, and solar paired with storage resources
  • Have an existing MISO Generator Interconnection Agreement (GIA), be in the MISO generator interconnection queue, or provide justification how the resource is able to meet Vectren’s timing needs absent current queue position

The RFP also said that for existing generation facilities, respondents are to provide a detailed breakout of the facility’s actual annual revenues for each of the past five years, including energy, capacity, and ancillary service market revenues, as well as any other revenues that the facility earned, such as congestion revenue and uplift revenues.

Respondents are to provide a detailed breakout of the generation facility’s estimated and actual annual fixed costs for such categories as labor, benefits, and materials for the past five years, the RFP said.

Among other things, the RFP noted that the notice of intent with application documents are due on Aug. 27, while proposals are due on Sept. 23. The definitive agreement(s) will be executed — subject to regulatory approvals — with the selected respondent(s) in 1Q21.

 

 

 

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About Corina Rivera-Linares 3059 Articles
Corina Rivera-Linares, chief editor for TransmissionHub, has covered the U.S. power industry for the past 15 years. Before joining TransmissionHub, Corina covered renewable energy and environmental issues, as well as transmission, generation, regulation, legislation and ISO/RTO matters at SNL Financial. She has also covered such topics as health, politics, and education for weekly newspapers and national magazines. She can be reached at clinares@endeavorb2b.com.