11-RFP 25-63 Hydroelectric Generation Development Partner.docx

Montgomery County RFP 25-63 Planning Commission Hydroelectric Generation Development Partner

Objective Montgomery County seeks proposals from private hydroelectric generation developers and consultants to achieve the County’s desired outcome of developing a new hydroelectric generation facility on the County-owned Norristown Dam. This Dam is located on the Schuylkill River in Norristown, Pennsylvania.

This RFP states the County’s desired outcome for the project but will consider alternative options if the respondent feels the desired outcomes are not possible or advantageous to the County.

The County is currently in the Federal Energy Regulatory Commission (FERC) exemption process, and this RFP assumes that the County will receive the exemption from FERC. The FERC Project number is 15347.

Background information The Norristown Dam is located on the Schuylkill River in Norristown and Bridgeport, Pennsylvania. The concrete (over timber crib) and earthen structure is owned by Montgomery County, Pennsylvania (County). Over the past several years, the County’s consultant, Verdantas, has been contracted by the County to complete the following studies:

2017 Feasibility Study – This feasibility study concluded hydropower is technically feasible, but the finances were not favorable at that time.

2022 Permitting Analysis – This analysis of permitting options recommended that the County pursue a FERC exemption. The County began the FERC exemption process with the kickoff meeting on June 5, 2023, and necessary studies are underway.

2023 Feasibility Study – This feasibility study concluded that hydropower is still feasible, and the financial situation has improved since 2017.

The County anticipates continuing to retain Verdantas to assist with the RFP process, continue with the FERC exemption process, and to represent it with the selected respondent during the term of this project. Based on the updated studies and initial consultations with the PA Governor’s Office and FERC, the County will determine the best development process for the Norristown Dam and the County.

Desired outcomes The primary desired outcome is the successful development of a hydroelectric generation facility on the Norristown Dam for a reasonable cost.

The preferred outcome for the County that results in the development of the hydroelectric generation facility on the Norristown Dam would include the following characteristics:

1) The development of a hydroelectric generation facility on the Norristown Dam with minimal, or no, capital investment by the County. The cost of the energy provided by a hydroelectric generation facility on the Norristown Dam should come at a competitive cost to the existing purchasing technique. All initial and ongoing investments by the County should be fiscally, environmentally, and socially responsible.

2) The hydropower generated by the Norristown Dam will directly power the new Justice Center and/or One Montgomery Plaza through a microgrid, wheeling agreement with PECO, or similar technique.

2a) If that outcome is not technically or financially feasible, the County desires the ability to purchase the energy generated by the Norristown Dam. Energy purchasing could be through virtual net metering, purchasing of renewable energy credits, or similar mechanisms.

3) Improvement of the facilities on, and adjacent to, the Norristown Dam and adjacent public space in Bridgeport Borough. This includes ensuring the modification, if necessary, and operation of the existing upstream fish ladder and using the hydroelectric generation facility on the Norristown Dam as an asset for the public space in Bridgeport. Responsibility for the improvements to the adjacent public space will be determined during the development process.

The desired outcomes can be achieved in numerous ways that would be acceptable to the County. This could involve the County leasing the Norristown Dan to a private partner, or team of partners where the private developers finance, build, operate, and maintain the hydroelectric generation facility. If this type of leasing relationship is attractive and the respondent requires the County to take more responsibility in a lease agreement, then respondents should describe that arrangement in their proposals. In any lease agreement, the County must retain first rights for purchasing the energy generated at the dam.

A second outcome may be the respondent purchasing the Norristown Dam with the associated FERC exemption for the development of a hydroelectric generation project. As a term of any sale of the Dam, the County will retain first rights for energy purchasing of any hydroelectric generation facility to be developed there.

The respondent is welcome to provide alternative options and relationships with the County that produce the desired outcomes. The County encourages respondents to think creatively to offer an arrangement that is attractive and financially feasible. The County is not obligated to pursue any of desired outcomes at the conclusion of the RFP process, and at any point afterwards, if it is deemed fiscally or organizationally impudent.

Response Requirements Each respondent should articulate information about the proposal to enable the County to evaluate each proposal against all others in sufficient detail. The county has determined that the following information is critical to compare how the respondent proposes to achieve the desired outcomes. Respondents are welcome to provide additional information to fully justify their method of achieving the desired outcomes.

a) Company name, representative, and contact information.

b) Pertinent credentials including previous hydropower generation facility development experience, previous experience working with FERC and with Pennsylvania agencies, similar facilities owned or operated by the respondent, and relationships with infrastructure owners. Respondents can optionally include credentials such as minority-owned, woman-owned, a Pennsylvania-based company or other pertinent information.

c) The recommended process, partnership, and/or commercial arrangement for achieving the County’s desired outcomes. The recommendation should include, with as much detail as possible, including but not exclusively:

a. A narrative description of the recommended development process and the anticipated outcome(s).

b. A description of the role(s) the County will play in achieving the desired outcomes, and a description of the role(s) of other entities. This should include obligations and deliverables for all entities as presented in the proposal.

c. The business relationship that the respondent has with any other proposed entities listed in the respondent’s proposal.

d. The respondent’s role in the ongoing FERC exemption process.

e. The role that the respondent envisions for Verdantas in the FERC exemption process.

f. A description of the hydropower development, to the extent it has been developed, including type of generating equipment, equipment arrangement, modifications to the dam, and recreation improvements.

g. A timeline of the proposed development process.

h. Estimated costs to achieve the desired outcomes based on the recommended process broken down by source of funds; and specifically estimated costs for the County. This would include capital costs for the project, County’s capital costs, operations and maintenance costs and responsibilities, estimated energy costs for the life of the project, and other costs that should be considered by the County

i. Benefits of the recommended process for the County government and the citizens of the County; including economic, social, and/or environmental.

j. Potential funding assistance programs such as grants, loans, etc. available for the proposed process.

d) The County is advancing the FERC exemption application which specifies the equipment, arrangement installed capacity, and dam modifications which were included in the Initial Consultation Document (ICD). It is critical that, if the respondent proposes alternatives to what is proposed in the ICD, that the respondent provides sufficient information on the alternative equipment and arrangement to not delay the FERC application process.

Value-Added Considerations Include any relevant services or products that will be provided to the County, which are not priced in this proposal, but which enhance the acquisition process.

Although the County has provided a detailed statement of needs and mandatory requirements for Respondents to meet in order to be selected for these services, it is not intended to limit the Respondent’s innovations or creativity in preparing a Proposal to accomplish these goals. Innovative ideas, new concepts and partnership arrangements will be considered. Please provide with your Proposal any additional services that your Company can provide at no additional cost to the County.

Confidentiality of Responses Respondents should be aware that the evaluation team that accesses the proposals is required to sign both Non-Disclosure and Conflict of Interest prior to having access to the proposals. The County will not share or post the proposals, and if there is an information request via Right to Know, the respondents have the ability to redact any proprietary information prior to sending to the requestor.

The following documents have been posted with this solicitation:

A) 2017 Feasibility Study – This feasibility study concluded hydropower is technically feasible, but the finances were not favorable at that time.

B )2022 Permitting Analysis – This analysis of permitting options recommended that the County pursue a FERC exemption. The County began the FERC exemption process with the kickoff meeting on June 5, 2023.

C) 2023 Feasibility Study – This feasibility study concluded that hydropower is still feasible, and the financial situation has improved since 2017.

D) A memo describing the county’s current energy procurement method, the county’s overall energy consumption, the current energy consumption of One Montgomery Plaza, the current energy consumption of the Courthouse and the estimated consumption of the new Justice Center, and the county’s current energy cost per kilowatt hour.

The Initial Consultation Document is available from the FERC e-library. The FERC Project number is 15347.

Questions All questions related to this Request for Proposal are to be submitted through the Bonfire Portal.

Proposal Submittal Offeror must submit their Proposal electronically through the Bonfire Portal. In addition, a current W9 and completed Appendix “A” document must also be uploaded as separate documents.