47PA0420R0065 Amendment 1 GSA NYCompetitive Electricity 2020 Questions Answers.doc

47PA0420R0065 GSA NY Competitive Electricity Questions and Answers Received as of 5:00 PM ET Friday September 11, 2020 Q1) Section A.13 requests annual load change per pricing group of 20%, while Attachment 2: Price Component Confirmation Table (p 50) lists 15%. Should we go off Attachment 2?

A1) See Amendment 1. Attachment 2 has been updated to reference 20% Q2) The request is for Capacity to be included in the fixed rates. Due to COVID19, load has been down, especially in NY. With each meter’s capacity tag being set this summer for the next planning year (June 2021), it is logical to leave as a pass thru to lower these costs for the next planning year. Would the GSA entertain a capacity pass thru option?

A2) No.

Q3) Please confirm that potential contractors have the ability to bid only on facilities in certain utilities.

A3) Confirmed. Suppliers may choose to bid on as few as one or as many as all pricing groups. See C.1 (8) which states that suppliers must specify in their technical proposal which Pricing Groups they will be bidding on.

Q4) Please verify that the forms provided on pages 54-57 of the RFP will only need to be completed post-contract award.

A4) Confirmed. Attachments one (1) and (2) will need to be completed annually by the winning supplier for all pricing groups except pricing group six (6) which is requesting 0% additional renewable power.

Q5) Are wind or solar RECs from other states, such as Texas, acceptable?

A5) Yes. There are no geographical restrictions regarding where the RECs are generated but they must meet all specifications listed in Section A.12 of the solicitation.

Q6) How are the RECs to be delivered?

A6) See the specifications listed in Section A.12 of the solicitation including Annual Renewable Report and attestations requirements as specified in Attachments 3 and 4.

Q7) Are the RECs based on forecasted volumes or actuals?

A7) Attachments 3 and 4 are based on actual usage for all included accounts.

Q8) If the RECs are to be procured based on actuals, the Annual Renewable Reporting requirements indicate the report must be sent by October 31 of each year for the delivery term of October 1 through September 30. What are the expectations if the actual usage has not been received by October 20 for the period through September 30?

A8) Suppliers will be required to provide RECs based on estimates for any months where actual usage is not yet available from the utility and true up the volume to actuals by December 31st of each calendar year.

Q9) What is the difference between “new renewable power” and “non-new renewable power”?

A9) See Amendment 1, the reference to non-new renewable power has been deleted.

A10) If applicable, what would the formula be for the calculation of the amount of performance assurance?

A10) If requested by the Government, the assurance that the offeror has sufficient financial credit to purchase the volumes of electricity they intend to bid on will be based on the number of pricing groups the supplier plans to bid on, Independent Government Estimates (IGEs) of an estimated award price for each of those pricing groups and the term requested by GSA for each pricing group.

Q11) B.1. 552.212-4: (i) Payment (5). Clarification, we can refund overpayment if notified by the customer.

A11) Yes.

A12) B.2. 52.232-36: Payment by Third Party. What are the references made regarding Purchase Cards? Can you please clarify what exactly that is stating? DE does not accept Card payments.

A12) The Government will not make payments to suppliers through purchase cards for any contracts awarded as a result of this solicitation.

Q13) B.2. 52.212-5: (d) Comptroller General Examination of Record. Please clarify the applicability given the situations set forth in this provision -- "shall comply with the provisions of this paragraph (d) if this contract was awarded using other than sealed bid, is in excess of the simplified acquisition threshold, and does not contain the clause at 52.215-2, Audit and Records – Negotiation”? Is this provision even applicable or there are other standards we should be adhering to like 52.215-2?

A13) 52.212-5 para (d) Comptroller General Examination of Record, is applicable if total estimated contract value is over the simplified acquisition threshold (currently $250,000).

Q14) C.1. Evidence of Technical Acceptability (5). Clarification, our firm is not rated by either Moody's or Standard and Poor's. Our parent firm is rated Baa2 with Moody's and BBB with S&P.

Additionally, our parent company’s financial statements are prepared in accordance with International Financial Reporting Standards and not US GAAP. We would be able to obtain a letter of credit from a bank which is A rated. Could you confirm what the maximum value of Letter of Credit would be?

A14) See answer A.10 above.

Q15) Section A – Scope of Work: A.4. Credit for Default Supply Service. The Company would like to clarify that it will not be responsible for payment of any additional supply costs for accounts forced to accept default supply service from the LDU due to invalid account data being provided to the Company by the Government.

A15) Clarification noted.

Q16) Section A – Scope of Work: A.14. Regulatory Changes. This section does not take into account any changes that may or may not pass legislation for the contract period. The Company would like to clarify that it expects no changes to the regulatory environment from now until then and all changes will be considered a Change in Law.

A16) Clarification noted.

Q17) Section B – FAR 52.212-4: (i) Payment. The Company would like to clarify that it does not offer any discount for Prompt Payments. Additionally, the Company does not pay interest on amounts due.

A17) Clarification noted.

Q18) Can the Government confirm that it understands and agrees that Contractor reserves Contractor’s right to withdraw its price(s) at any time prior to the bid being awarded?

A18) Confirmed. While GSA strongly encourages all offerors to hold their prices until 1:30 p.m. per the solicitation requirements, Offerors may withdraw bids up until a notice of award via email is sent to the Offeror.

Q19) Can the Government confirm that it understands and agrees that Contractor reserves the right to supplement or amend any of the questions listed in this document?

A19) The Question and Answer period regarding solicitation terms and conditions closed at 5:00 PM EDT on September 11, 2020. If suppliers have additional account or data related questions those can be submitted until 5:00 PM EDT on September 24, 2020.

Q20) Can the Government confirm that the Government understands and agrees that any modification to an awarded contract must be timely executed by both the Contractor and GSA.

A20) Confirmed.

Q21) For purpose of clarification in section A.12, when does title to the REC pass to the Government? Contractor would expect title to pass once delivery and payment for the RECs have been completed. Does the Government agree with the Contractor’s expectation?

A21) Confirmed.

Q22) With respect to section A.12, Contractor is able to provide an annual report verified and certified by an independent third-party auditor beginning with June 1 of the year following the calendar year of delivery of the RECs. If this is not acceptable then what is the Government proposing to accept with regard to this requirement.

A22) GSA accepts this provided the supplier provides an interim report with the information required in Section A.12 by October 31 of each contract year.

Q23) Does the Government intend that any Contractor’s offer is for 100% bandwidth for the products requested? Notwithstanding the foregoing, can the Government confirm this shall not restrict Contractor’s right to enforce Section A.13.? Further, please also clarify whether the Government proposed bandwidth is +/-20% (A.13) or +/-15% as defined in Attachment 2, price component table. How does the Government intend to resolve this apparent conflict.

A23) Per Section A.13, the government is requiring a 20% annual bandwidth at the pricing group level. Amendment 2 will be updated to show 20% to match Section A.13.

Q24) With respect to note 3 of section C.2 Price Proposal, does the Government agree that a Contractor’s contract prices shall be exclusive of all Taxes, and any applicable Taxes shall be passed through to the Government?

A24) Agreed.

Q25) For Pricing Group 5, account number 7121896300 has a calendar month meter read cycle. Can the Government clarify that the start date for this account should be 10/31/2020 rather than a 11/30/2020 as indicated by the Government’s “on or after” language.

A25) Clarification accepted.

Q26) Is the Government going to accept inclusion of the following provisions?

a. Emissions Reduction Disclaimer. In accordance with Green-e Energy certification requirements, RECs sold hereunder include all greenhouse gas emission reduction benefits associated with the renewable generation that produced such RECs, including carbon dioxide (CO2) reduction benefits, but do not include emission reduction benefits associated with capped and traded pollutants, including sulfur dioxide (SO2), mercury (Hg), and the oxides of nitrogen (NOX). Contractor makes no representations or warranties that the RECs sold hereunder can be used as offsets or otherwise for compliance with any emission reduction program, unless otherwise noted on our response.

b. RECs Resale. The Government agrees that it shall not offer for sale any RECs delivered by Contractor pursuant to this agreement.

c. Miscellaneous. If in any circumstance Contractor does not provide notice of, or object to, any default on the Government’s part under this Agreement, such situation will not operate or be construed as a waiver of any future default, whether like or different in character.

d. Miscellaneous (cont’d). If any portion of this Agreement is held legally invalid, the remainder will not be affected and will be valid and enforced to the fullest extent permitted by law and equity, and there will be deemed substituted for the invalid provisions such provisions as will most nearly carry out our mutual intent as expressed in this Agreement.

e. Miscellaneous (cont’d). This Agreement contains the entire agreement between both Parties, supersedes any other agreements, discussions or understandings (whether written or oral) regarding the subject matter of this Agreement, and may not be contradicted by any prior or contemporaneous oral or written agreement.

f. Miscellaneous (cont’d). Contractor is an independent contractor under this Agreement, and nothing in this Agreement will be construed to constitute a joint venture, fiduciary relationship, partnership or other joint undertaking.

A26) No.

Q27) With respect to fixed commodity supply components: (i) New York Renewable Energy Standards (RES) compliance costs, (ii) Clean Energy Standards (CES) compliance costs including zero emission credits

New York State issued the Clean Energy Standard (CES) in August of 2016 (Case 15-E-0302) with a target of 50% by 2030. The order established programs for:

· Renewable Energy Standard (TIER 1) = Enacted

· Renewable Energy Standard – Maintenance (TIER 2) = Proposed, but not enacted to date

· Zero Emissions Credits (TIER 3 or ZEC) = Enacted

· Offshore Wind Standard (OSWS) = CES order modified July 12, 2018 and established an Offshore Wind Renewable Energy Certificate (OREC) cost obligation. Uncertainty remains around project completion and obligation costing.

Does the Government intend to provide definitions to the “Standards” referenced above. If so, when can Contractor expect to receive such definitions for review, or is the Government willing to accept the following definitions:

· “New York Renewable Energy Standards (RES) compliance costs” is referring to CES TIER 1 obligations?

· “Clean Energy Standards (CES) compliance costs including zero emission credits” is referring to CES TIER 3 or ZEC obligations?

· Does the Government expect that the CES proposed “Renewable Energy Standard – Maintenance (TIER 2)” is not included as a cost component because the regulations pertaining to this obligation have not been finalized?

· Are CES OREC costs to be included by a Contractor in its bid price?

A27) The Government will not be providing additional definitions regarding the above items. Costs for the above referenced items should be based on implemented costs at the time of the auction. Changes in regulatory compliance costs for the above referenced items post-auction will be handled through Section A.14 Electricity Regulatory Changes.

Q28) With respect to fixed commodity supply components: (i) New York Renewable Energy Standards (RES) compliance costs, (ii) Clean Energy Standards (CES) compliance costs including zero emission credits

· New York State issued the Clean Energy Standard (CES) in August of 2016 with a target of 50% by 2030

· On July 18, 2019, Governor Cuomo signed the Climate Leadership and Community Protection Act (CLCPA), which went into effect January 1, 2020

· The State’s renewable energy resource requirement was changed from 50% by 2030 to 70% by 2030.

· On June 18, 2020, NYSERDA issued “White Paper on Clean Energy Standard Procurements to Implement New York’s Climate Leadership and Community Protection Act” (NYSERDA Whitepaper) to “identify a proposed regulatory structure to address the CLCPA requirements for a renewable energy program”. To date, the proposed regulatory structure has not been approved.

· http://documents.dps.ny.gov/public/Common/ViewDoc.aspx?DocRefId={E6A3B524-6617-4506-A076-62526F8EC4CB} Does the Government agree that proposed changes to the CES for the below components will be treated as a “Regulatory Change” pursuant to the terms of the Solicitation:

· Modifications to the current TIER 1 obligations to meet the change in the State’s renewable target to 70% by 2030?

· TIER 2 cost obligations if the program is implemented?

· NYSERDA filed a TIER 2 petition on Jan 24, 2020 in addition to NYSERDA addressing TIER 2 program implementation in the above NYSERDA Whitepaper.

A28) Yes. Changes in regulatory compliance costs for the above referenced items post-auction will be handled through Section A.14 Electricity Regulatory Changes.

Q29) Does the Government agree that the below proposed cost obligation from the NYSERDA Whitepaper will be treated as a “Regulatory Change” pursuant to the terms of the Solicitation:

· Tier 4 = RECs delivered to Zone J

A29) Yes. Changes in regulatory compliance costs for the above referenced items post-auction will be handled through Section A.14 Electricity Regulatory Changes.

Q30) Given the potential number of Regulatory Changes associated with CES and CLCPA, would the Government consider passing through cost associated with: “New York Renewable Energy Standards (RES) compliance costs and Clean Energy Standards (CES) compliance costs including zero emission credits?”

A30) No.

Q31) With respect to “Transmission Owner Transmission Solutions (TOTS)”, these costs were approved under a Public Policy Transmission Need process. NYISO has since identified two similar infrastructure projects, which are expected to begin construction during the term of the contract, identified as:

· “Western NY Public Policy Transmission Need”

· “AC Transmission Upgrade Public Policy Transmission Need”

Does the Government agree that “Western NY Public Policy Transmission Need” and “AC Transmission Upgrade Public Policy Transmission Need” cost obligations will be treated as a “Regulatory Change” pursuant to the terms of the Solicitation?

A31) Yes. Changes in regulatory compliance costs for the above referenced items post-auction will be handled through Section A.14 Electricity Regulatory Changes.

Q32) Does the Government intend that the price hold would only be until “September 28, 2020 until 2:00 p.m EDT” to coincide with email award notice?

A32) See answer A.18 above.

Q33) Does the Government have any current or additional planned generation installations associated with the accounts included in this RFP? If yes, for the accounts associated with the generation when does the Government expect to provide details on such installations such as size, generation type, date of installation, and projected output?

A33): GSA is not aware of any behind the meter generation assets or projects planned for the installations included in this solicitation.

Q34) Can the Government provide information on how a Contractor should submit any amendment with the Contractor’s proposal? What if the Contractor submits a clarification to a term rather than an exception for provisions which further clarity is needed? Will the Government provide a response to any clarifications submitted with a Contractor’s bid response when it is not inconsistent with the terms of the Solicitation?

A34) If an Offeror submits any amendments or exceptions that are deemed by the Government to be inconsistent with the terms and requirements of this Solicitation the Government may determine the Offeror’s proposal to be non-compliant in which case it may be deemed technically unacceptable. Regarding clarifications, all questions including clarifications were due no later than 5:00 PM EDT on September 11, 2020.

PAGE