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HomeMy WebLinkAboutRFP - 7399 BIOMASS FUELED GENERATION FACILITYRFP 7399 Biomass-Fueled Generation Facility Page 1 of 17 REQUEST FOR PROPOSAL 7399 BIOMASS-FUELED GENERATION FACILITY The City of Fort Collins is requesting initial (Phase 1) proposals from qualified firms for the addition of a biomass fueled electric power generation plant. Written proposals, ten (10) hard copies and one (1) electronic copy will be received at the City of Fort Collins' Purchasing Division, 215 North Mason St., 2nd floor, Fort Collins, Colorado 80524. Proposals will be received before 3:00 p.m. (our clock), November 1, 2012 and referenced as Proposal No. 7399. If delivered, they are to be sent to 215 North Mason Street, 2nd Floor, Fort Collins, Colorado 80524. If mailed, the address is P.O. Box 580, Fort Collins, 80522-0580. Questions concerning the scope of the project should be directed to Project Manager, Virginia Purvis, Senior Electrical Engineer, (970) 221-6888, gpurvis@fcgov.com Questions regarding bid submittal or process should be directed to Opal Dick, CPPO, Senior Buyer, at (970) 221-6778 or odick@fcgov.com. A copy of the Proposal may be obtained as follows: 1. Download the Proposal/Bid from the BuySpeed Webpage, www.fcgov.com/eprocurement The City of Fort Collins is subject to public information laws, which permit access to most records and documents. Proprietary information in your response must be clearly identified and will be protected to the extent legally permissible. Proposals may not be marked ‘Proprietary’ in their entirety. Information considered proprietary is limited to material treated as confidential in the normal conduct of business, trade secrets, discount information, and individual product or service pricing. Summary price information may not be designated as proprietary as such information may be carried forward into other public documents. All provisions of any contract resulting from this request for proposal will be public information. Sales Prohibited/Conflict of Interest: No officer, employee, or member of City Council, shall have a financial interest in the sale to the City of any real or personal property, equipment, material, supplies or services where such officer or employee exercises directly or indirectly any decision-making authority concerning such sale or any supervisory authority over the services to be rendered. This rule also applies to subcontracts with the City. Soliciting or accepting any gift, gratuity favor, entertainment, kickback or any items of monetary value from any person who has or is seeking to do business with the City of Fort Collins is prohibited. RFP 7399 Biomass-Fueled Generation Facility Page 2 of 17 The City encourages all disadvantaged business enterprises to submit proposals in response to all requests for proposals and will not be discriminated against on the grounds of race, color, national origin for all proposals for negotiated agreements. Collusive or sham proposals: Any proposal deemed to be collusive or a sham proposal will be rejected and reported to authorities as such. Your authorized signature of this proposal assures that such proposal is genuine and is not a collusive or sham proposal. The City of Fort Collins reserves the right to reject any and all proposals and to waive any irregularities or informalities. Sincerely, James B. O'Neill II, CPPO, FNIGP Director of Purchasing & Risk Management RFP 7399 Biomass-Fueled Generation Facility Page 3 of 17 REQUEST FOR PROPOSAL FOR BIOMASS-FUELED GENERATION FACILITY I. Purpose and Scope The City of Fort Collins Utilities (FCU) is seeking initial (Phase 1) proposals for the development of long-term purchase agreements for the energy and Renewable Energy Certificates (RECs) associated with a biomass fueled electric power generation plant for delivery to FCU pursuant to contracts with FCU and Platte River Power Authority (PRPA). The new power plant is to be constructed and operated within the City limits of Fort Collins, Colorado. Proposals for energy and RECs from power plants ranging from 500kW to 5MW installed generation capacity will be considered. Power plants will interconnect with and deliver power to the existing FCU 12.47kV electrical system, and must comply with FCU’s Interconnection Standards for Generating Facilities (GF) Connected to the Fort Collins Distribution System (“FCU Interconnection Standards”). A link to the standards may be found at this web address: http://www.fcgov.com/utilities/img/site_specific/uploads/interconnection_standards.pdf. The biomass to be used shall be generated within the City of Fort Collins, and consideration will be given to a variety of technologies and fuel types. The goal is to help the City meet goals its City Council established in the City’s 2009 Energy Policy— to meet the Colorado Renewable Energy Standard (RES) goals of 6% of total energy sold by 2015 and 10% of total energy sold by 2020. Proposals must detail the technology proposed including all costs involved in engineering, design, construction, equipment procurement and delivery, testing and commissioning and successful operation of the plant as specified. Proposals must also include necessary permitting, land acquisition or leasing and if any pre-treatment or transportation of fuels. Preference will be given to projects that provide a systems approach and solution that provide multiple benefits that align with the City of Fort Collins sustainability goals. The power plant will be owned and operated by the respondent. Substantially all of FCU’s electrical needs are provided pursuant to an all-requirements contract with PRPA dated September 1, 2010. Consistent with that contract, the selected respondent, in order to proceed, will be required to enter into a long-term agreement for purchase of the generated power and energy with PRPA. FCU and selected respondent will enter into long-term agreement for the sale of the RECs generated by the project to FCU. Figure 1 and Attachment 1 (see Appendix) describe the general nature of the arrangement being considered. Duration and other specific terms of the agreements will be negotiated with the respondent whose proposal is accepted as a result of this RFP. FCU presently has several distributed generation plants operating on its system and has established interconnection guidelines for small (less than 5MW) distributed generators. RFP 7399 Biomass-Fueled Generation Facility Page 4 of 17 FCU anticipates that a wide range of technologies will be proposed. FCU seeks proposals that use a biomass fuel generated by the City of Fort Collins, or by the industries located within the City limits. Preference will be given to proposals that: a) Provide the greatest value to FCU customers, b) Effectively recycle waste biomass into electricity, c) Provide cost effective energy and capacity, d) Provide a sustainable energy supply, e) Provide environmental benefits consistent with preferences of the Fort Collins Community, and f) Reuse of waste heat and other byproducts, when appropriate for greater energy efficiency. The process of choosing a successful proposer will be performed in two phases. FCU understands that the technology is continuously changing in the areas of renewable energy biomass generation. Since there are a number of technologies which may be proposed, some of which may not be feasible for use by FCU at this time, the first step (Phase 1 proposal) will be to solicit a wide range of non-binding technical proposals as a response to this RFP. These technical proposals should also include an estimated, non-binding, cost for electricity and environmental credits from the proposed design, using the best information available to the respondent at the time of preparation of the phase 1 proposal. The second step of the process will be to invite up to three respondents to submit a final binding proposal for the final FCU decision. This proposal will include a binding cost for electricity from the proposed plant. Phase 1 will consist of the following (but not limited to) basic steps: a) Preliminary investigation by the proposers of existing biomass types, availability, quantity available for use in a power plant within the City Limits, and estimated amount of electric energy that can be delivered to the City System, b) Submission of initial non-binding technical proposals describing the biomass fuel management and generation process, and including the estimated cost of electricity produced. c) Evaluation and screening of proposals by FCU and d) Selection of respondents and specific technology to submit final proposals. Phase 2 will consist of the following (but not limited to) basic steps: a) Detailed investigation by the final proposers of the biomass fuel supply potentials within the City of Fort Collins that are needed by the specified technology, b) Discussion with the City and/or the industrial customers that may have biomass feedstock available from local manufacturing processes with respect to the process of how to secure the supply of the biomass fuel needed for the power plant, and RFP 7399 Biomass-Fueled Generation Facility Page 5 of 17 c) Submittal of the final binding proposal including cost and other engineering details. II. Background Fort Collins Utility (FCU) is a municipal utility consisting of approx. 65,500 customers (meters). The peak demand and energy usage of the FCU system is 285MW and approximately 1,450,000 MWh annually. Fort Collins is located in northern Colorado along the front range of the Rocky Mountains. The City covers approximately 54 square miles with a population of approximately 144,000 people at an elevation of 5,003 ft. Fort Collins is the home of Colorado State University. Record high temperature is 103°F and record low temperature is -41°F. The City receives an average of 15 inches and an average annual snowfall of 47 inches. Engineering design loads for Fort Collins are: a) Snow live load 30 PSF, b) Ground snow load 30 PSF, c) Frost depth 30 inches, d) Wind load 100 MPH 3-second gust, e) Seismic design category B, and f) Seismic spectral response constants: Ss=0.231, S1=0.057 The design codes that are used in Fort Collins are: a) 2009 International Building Code and Fort Collins Amendments b) 2009 International Energy Code with Fort Collins Amendments c) 2009 International Mechanical Code with Fort Collins Amendments d) 2009 International Fuel Gas Code with Fort Collins Amendments e) 2009 International Plumbing Code with Fort Collins Amendments f) 2011 National Electrical Code g) Interconnection Standards for Generating Facilities (GF) Connected to the Fort Collins Distribution System III. Fuels Biomass fuels are preferred for any proposed technology associated with this RFP. Proposals may include facilities which use only one type of fuel or a combination of fuels. Proposals of facilities using a mixture of biomass and conventional fuels will also be considered. RFP 7399 Biomass-Fueled Generation Facility Page 6 of 17 The biomass plant must meet the legislative definition of “biomass” presently contained in Colorado State Law (Colorado Renewable Energy Standard). The following definition is used for “biomass”: a) Nontoxic plant matter consisting of agricultural crops or their byproducts b) Urban wood waste c) Mill residue d) Slash and brush e) Animal wastes and products of animal wastes f) Methane produced by landfills, g) Methane produced as a by-product of the treatment of wastewater A limited amount of study has been done by the City in determining the amount of biomass fuels available within the City limits for electric generation. The proposer will be responsible for their own investigation into the availability of the fuels, the quantity, and the processing or transportation that may be needed. Please reference background information at: Waste Stream Study and Associated Documents - March 27, 2012 Only fuels generated by an FCU industrial customer or by the City will be considered. This includes (but not limited to): • Municipal solid waste: The studies done thus far are centered on municipal solid waste (MSW). The Fort Collins community presently disposes of 130,000 tons/year of MSW in landfills. Another 77,400 tons/year are reclaimed or recycled. Approximately 27,500 tons/year have been identified for possible use as a fuel for the generation of electricity. • Methane from wastewater: The City of Fort Collins has two wastewater treatment facilities. The larger plant, Drake Water Reclamation Facility produces digester gas which can be utilized for power generation. The amount of excess gas available ranges from 17,000-90,000 cubic feet per day depending on the time of year. Qualitative gas characterization data is available upon request. No studies have been performed to determine the amount and the content of the gas and this information will need to be investigated by any proposer planning on using this resource. • Industrial waste: There are several breweries in Fort Collins and their spent grain by- products have been identified as a possible resource that may be processed to fuel a power plant. The amount and the type of waste presently available are unknown and must be investigated by the proposer. • Landfill gas: Fort Collins solid waste is presently disposed of in several regional landfills, one of which has been modified to produce gas (Larimer County Landfill). This source may be investigated as fuel for power generation. • Food, agricultural, and yard waste: It has been determined that there is an estimated 12,000 tons annually of compost/organic green waste available in the Fort Collins Community. RFP 7399 Biomass-Fueled Generation Facility Page 7 of 17 This list is in no way meant to limit the biomass fuels proposed for use in response to this RFP. Other technologies may be capable of using fuels not presently identified and proposers are encouraged to submit proposals based upon any feasible type of fuels and generation technologies. The proposing vendors will be responsible for acquisition and transportation of the fuel used. If any cooperation or partnering with the City and/or the industrial customers is necessary for the use of the proposed fuel this should be clearly indicated in the proposal. IV. Potential Technologies A wide range of generation technologies are available and could be considered. Among the electric generation prime mover technologies that may be proposed include: a) Reciprocating engines, b) Gas turbines, c) Steam turbines, and d) Fuel cells It is also encouraged that the proposer reuse or recycle waste products for greater energy efficiency (combined heat and power) including process heat, steam, or the waste products of combustion. Proposers should also describe the process for managing final waste products that will be generated by energy conversion processes. There are a number of fuel processing technologies that may be considered. A short list of known technology includes: a) Anaerobic digestion—whether already existing as in wastewater treatment or specially installed to process MSW or other feedstock b) Counter current fixed bed gasification c) Co-current fixed bed gasification d) Fluidized bed gasification e) Entrained flow gasification f) Plasma gasification g) Landfill gas production This list is not meant to limit proposers from using other technologies and other technologies may be proposed as an answer to this RFP. It is intended that the non- binding initial proposals will include the widest array of feasible technologies possible. Any technology proposed must be at a commercially proven stage of development. To be considered, a proposal must use a technology that has been demonstrated in commercial operation for a minimum of one year in a plant size that is similar to the size being proposed. RFP 7399 Biomass-Fueled Generation Facility Page 8 of 17 V. Environmental Considerations The proposed technology must be capable of meeting all environmental permitting requirements of the State of Colorado. The proposer will be responsible for acquiring all necessary permits and will be required to meet all current federal, state, and local laws. Respondents should include in their proposals the environmental impacts of the technology proposed including: a) Air emissions and controls needed b) Water use c) Liquid and solid byproducts produced and plans for disposal VI. Credits and Subsidies The power plant owner (the respondent finally chosen) will retain the market value of any construction subsidies, production credits, or production tax credits due to the owner of this type of power plant. FCU will retain the market value of all renewable attributes such as renewable energy credits, offsets for carbon emissions or other environmental offsets. All respondents should identify any and all renewable energy or environmental benefits, subsidies, credits, or rebates that will result from this project. The respondent finally chosen may be asked to assist FCU in acquiring these benefits. VII. Phase 1 Proposal Content Phase 1 proposals must include (as a minimum) the following technical information: a) Type of fuel b) Description of technologies and process being proposed c) Amount of fuel needed per year for electricity production proposed d) Estimated amount of fuel available within the City limits e) Description of proposed method of fuel transportation and storage f) Description of any backup fuels needed g) Site requirements and layout h) Peak electrical output capability (kW or MW) i) Net annual electric energy delivered to FCU system (kWh) j) Proposed plant estimated annual capacity factor k) Number of similar units (location and contact information) presently in operation and their reliability record l) Environmental characteristics, emission rates and other impacts m) By-products produced and plans for re-use, recycle or disposal RFP 7399 Biomass-Fueled Generation Facility Page 9 of 17 n) Estimated plant thermal efficiency and net heat rate including re-use of waste heat (if any) o) Estimated water use p) Projected permitting and construction schedule q) Projected in-service date (commercial operation) r) Dispatch capability of plant s) Electrical interconnection requirements Phase 1 proposals must also include the following economic information: a) Fuel cost assumptions b) Land purchase or lease assumptions c) Any subsidies or credits available for this project and any deadlines on availability of these d) Best currently available (non-binding) estimated cost of electricity produced in $/kWh and assumptions included in this estimate e) Estimated number of new full time equivalent jobs created during construction and during operation f) Any direct economic benefits to the City of Fort Collins g) Recent annual report for the respondent and any other parties involved in the project, or a recent copy of any audited income statement and balance sheet h) Bond rating of respondent or its parent company by Moody’s, Fitch’s, Standard & Poor’s, and/or Dunn & Bradstreet i) Description of the financing arrangements for the project Phase 1 proposals must also include the following information: a) Respondent’s qualifications and experience. b) A list of similar projects completed by the respondent and contact information of references. c) Description of the financial strength of the respondent and method for financing the project. VIII. Phase 2 Proposal Content No more than three respondents will be invited to submit a competitive binding proposal for Phase 2. This will include a presentation to FCU and PRPA that will allow any questions about the proposal to be answered. The proposal for Phase 2 will be the binding proposal and will be used as the basis for the final power purchase agreement. This proposal should include all information included in the Phase 1 proposal including actual costs to be included in the power purchase agreement. In addition to the RFP 7399 Biomass-Fueled Generation Facility Page 10 of 17 information included in the Phase 1 proposal, the following information should be submitted in the Phase 2 proposal: a) Actual total construction cost b) Actual annual operation cost c) Actual annual maintenance cost d) Additional cost breakdowns as much as possible e) Actual cost of fuel handling and transportation f) Any cooperative arrangements or participation by Fort Collins in fuel supply or handling, and associated terms g) Number of full time or part time employees and skill levels needed for operation h) Actual cost of electricity produced in $/kWh and assumptions included in this estimate i) A tentative schedule including milestones for: investigation, engineering and procurement, permitting, construction, testing and commissioning, etc. j) Project organization chart including any teaming arrangements or subcontractors k) Design calculations, heat and mass balance numbers and process flow chart l) Resume of the key personnel IX. Phase 1 and 2 Evaluation Criteria Phase 1 proposals will be evaluated mainly on technical criteria. These criteria will include in part: a) Commercial availability and success of proposed technology b) Ability to effectively use locally available biomass c) Need and amount of additional energy input from conventional sources, if any d) Overall efficiency of the technology and proposed plant e) Ability to use waste heat or other waste products f) Amount and type of fuel handling needed g) Environmental benefits to the City of Fort Collins h) Reliability and sustainability of the fuel source i) Amount and type of preprocessing and transportation needed for the fuel FCU reserves the right to reject any or all submitted proposals. Foremost among the evaluation criteria for Phase 2 will be the cost, reliability, and environmental impacts of the proposed facility. The evaluation criteria used will include: a) Purchase Power Cost of the electricity RFP 7399 Biomass-Fueled Generation Facility Page 11 of 17 b) Technology readiness and reliability c) Fuel requirements and sources d) Fuel source sustainability e) Re-use of waste heat and other by-products of generation f) Anticipated project in-service date g) Experience of project developer h) Power purchase terms and conditions i) Schedule j) Track record of design and construction team X. Selection Process It is anticipated the FCU will receive a variety of proposals varying in complexity, price, technology, and environmental impacts. The guidelines for the selection process are summarized below: Phase1 proposal submission and initial screening; based on the criteria stated herein, FCU will compile a short list of proposals that warrant further consideration. Proposals that best meet FCU’s initial evaluation criteria will be selected for further evaluation. The short list of up to three respondents will be selected for presentations and further screening. Respondents chosen should be available to present their proposals in depth in a time period determined by FCU. This short list of respondents will be requested to make an on-site presentation to completely explain their proposal and answer any questions that FCU may have about the technology or any other part of the proposal. This presentation will also include detailed information about the company, any subcontractors that will be needed, and the personnel involved in the design and construction of the project. All travel and expenses for this presentation will be at the respondent’s expense. Phase 2 proposal and final selection; the same respondents invited to make presentations will be asked to competitively submit binding proposals to FCU. The proposal selected from this process will then be used as the basis for the final contract negotiations. Contracting process; the respondent selected shall then negotiate the final power purchase agreement with FCU and agree upon a schedule for completion and milestones for the project. RFP 7399 Biomass-Fueled Generation Facility Page 12 of 17 REVIEW AND ASSESSMENT Professional firms will be evaluated on the following criteria. These criteria will be the basis for review of the written proposals and optional interview session. At discretion of the City, interviews of top rated firms may be held. The rating scale shall be from 1 to 5, with 1 being a poor rating, 3 being an average rating, and 5 being an outstanding rating. WEIGHTING FACTOR QUALIFICATION STANDARD 2.0 Scope of Proposal Does the proposal show an understanding of the project objective, methodology to be used and results that are desired from the project? 2.0 Assigned Personnel Do the persons who will be working on the project have the necessary skills? Are sufficient people of the requisite skills assigned to the project? 1.0 Availability Can the work be completed in the necessary time? Can the target start and completion dates be met? Are other qualified personnel available to assist in meeting the project schedule if required? Is the project team available to attend meetings as required by the Scope of Work? 1.0 Motivation Is the firm interested and are they capable of doing the work in the required time frame? 2.0 Cost and Work Hours Do the proposed cost and work hours compare favorably with the project Manager's estimate? Are the work hours presented reasonable for the effort required in each project task or phase? 2.0 Firm Capability Does the firm have the support capabilities the assigned personnel require? Has the firm done previous projects of this type and scope? RFP 7399 Biomass-Fueled Generation Facility Page 13 of 17 REFERENCE EVALUATION (TOP RATED FIRM) The project Manager will check references using the following criteria. The evaluation rankings will be labeled Satisfactory/Unsatisfactory. QUALIFICATION STANDARD Overall Performance Would you hire this Professional again? Did they show the skills required by this project? Timetable Was the original Scope of Work completed within the specified time? Were interim deadlines met in a timely manner? Completeness Was the Professional responsive to client needs; did the Professional anticipate problems? Were problems solved quickly and effectively? Budget Was the original Scope of Work completed within the project budget? Job Knowledge If a study, did it meet the Scope of Work? If Professional administered a construction contract, was the project functional upon completion and did it operate properly? Were problems corrected quickly and effectively? RFP 7399 Biomass-Fueled Generation Facility Page 14 of 17 EXHIBIT “ ” CONFIDENTIALITY IN CONNECTION WITH SERVICES provided to the City of Fort Collins (the “City”) pursuant to this Agreement (the “Agreement”), the Professional hereby acknowledges that it has been informed that the City has established policies and procedures with regard to the handling of confidential information and other sensitive materials. In consideration of access to certain information, data and material (hereinafter individually and collectively, regardless of nature, referred to as “information”) that are the property of and/or relate to the City or its employees, customers or suppliers, which access is related to the performance of services that the Professional has agreed to perform, the Professional hereby acknowledges and agrees as follows: That information that has or will come into its possession or knowledge in connection with the performance of services for the City may be confidential and/or proprietary. The Professional agrees to treat as confidential (a) all information that is owned by the City, or that relates to the business of the City, or that is used by the City in carrying on business, and (b) all information that is proprietary to a third party (including but not limited to customers and suppliers of the City). The Professional shall not disclose any such information to any person not having a legitimate need-to-know for purposes authorized by the City. Further, the Professional shall not use such information to obtain any economic or other benefit for itself, or any third party, except as specifically authorized by the City. The foregoing to the contrary notwithstanding, the Professional understands that it shall have no obligation under this Agreement with respect to information and material that (a) becomes generally known to the public by publication or some means other than a breach of duty of this Agreement, or (b) is required by law, regulation or court order to be disclosed, provided that the request for such disclosure is proper and the disclosure does not exceed that which is required. In the event of any disclosure under (b) above, the Professional shall furnish a copy of this Agreement to anyone to whom it is required to make such disclosure and shall promptly advise the City in writing of each such disclosure. In the event that the Professional ceases to perform services for the City, or the City so requests for any reason, the Professional shall promptly return to the City any and all information described hereinabove, including all copies, notes and/or summaries (handwritten or mechanically produced) thereof, in its possession or control or as to which it otherwise has access. The Professional understands and agrees that the City’s remedies at law for a breach of the Professional’s obligations under this Confidentiality Agreement may be inadequate and that the City shall, in the event of any such breach, be entitled to seek equitable relief (including without limitation preliminary and permanent injunctive relief and specific performance) in addition to all other remedies provided hereunder or available at law. RFP 7399 Biomass-Fueled Generation Facility Page 15 of 17 Figure 1: Tariff 3 Payment Renewable Premium Tariff 1 Payment Payment Fort Collins Utilities Tariff 1 Payment Renewable Premium Payment Receive RECs Platte River Power Authority Tariff 1 Receipt (Tariff 3 Payment) Third Party Developer Payments Received PRPA Tariff 3 avoided cost + FCU Premium Payment Renewable Energy Credits Energy & Ci Attachment 1 Due to the all-requirements power supply contract between Platte River Power Authority and the City of Fort Collins, multiple contracts may be required to support a large biomass renewable generator directly connected to the Fort Collins distribution system. Figure 1 displays the general nature of the contractual relationships presently contemplated. Platte River would purchase the power output from the successful respondent (“Developer”) through a power purchase agreement (PPA) and then sell the power purchased to the City of Fort Collins. The price paid to the Developer will be based upon the avoided cost rate and adjustments as set forth in the Platte River tariffs. Platte River would integrate the energy purchased into the mix of resources sold to Fort Collins under Platte River’s standard firm wholesale supply tariff. Because the avoided cost rate may not be sufficient to fully compensate the developer for the investment in the facility, a contract between the developer and Fort Collins is contemplated for the sale of renewable energy credits (RECs). The price for the RECs and other details will be set forth in the agreement between the developer and Fort Collins. Pursuant to the all-requirements contract between Platte River and Fort Collins, the transaction places Platte River in the chain of title for all electric energy sold to Fort Collins, but is also intended to insulate the other municipalities that own Platte River and hold all-requirements contracts with Platte River from risks associated with the development and operation of the biomass renewable generator. There may be additional agreements necessary between Platte River and Fort Collins to address risk contingencies, such as Developer bankruptcy. Some of the provisions that may be included in the PPA are set forth below. Additional provisions may be identified for inclusion as the specifics of the planned development are better defined. Respondents are cautioned that the clauses listed and described below are for purposes of information and neither the City of Fort Collins nor Platte River is bound to nor limited by any of the clauses or language contained herein. Moreover, any contracts to effect this development will need to be reviewed and approved by Platte River bond counsel and possibly by Platte River’s Board of Directors and may be subject to review and approval by the City of Fort Collins City Council. 1) Term – The term of the PPA between Platte River and the Developer is anticipated to be multi-year, probably running concurrently with any agreement between the City of Fort Collins and the Developer for the purchase/sale of RECs. 2) Parties – Parties to the PPA will be the Developer and Platte River. Parties to the REC purchase/sale agreement will be the Developer and Fort Collins. 3) Metering and communications – Because an interconnection agreement pursuant to a transmission voltage connection may not be appropriate, the PPA may need to address a number of issues concerning metering of the renewable generator output. For example: ownership and cost responsibility for the metering equipment, specifications for the metering equipment, calibration and accuracy testing, communication requirements, and details regarding when the meter will be read and by whom. 4) Billing and payment – Platte River will typically pay for power received on a monthly basis, with payment to the developer thirty (30) days after receipt of the bill. 5) Pricing – The PPA price will be based on avoided cost and adjustments as set forth in the Platte River tariffs. The tariffs are reviewed and set at least annually by the Platte River Board of Directors, and the avoided cost payment may vary during the term of the PPA. 6) Interconnection and safety requirements –Many of these issues will likely be defined between Fort Collins and the Developer, but Platte River may become involved if the interconnection could impact substation or transmission facilities. To the extent applicable, the FCU Interconnection Standards will govern interconnection and safety requirements related to the interconnection between FCU’s distribution system and the Developer’s generating facility. 7) Insurance – FCU’s Interconnection Standards require the Developer to secure and maintain in effect during connection of the generating facility to the FCU distribution system liability insurance with a combined single limit for bodily injury and property damage not less than $2,000,000 (Two Million Dollars) for each occurrence. Insurance coverage for systems greater than one megawatt shall be determined on a case-by-case basis by FCU and shall reflect the size of the installation and potential for system damage. Platte River will want to be listed as an additional insured and may require additional coverage depending on facility size, location and other factors. 8) Operation and maintenance responsibilities – The Developer will be responsible for the operation and maintenance of the generation facility during the term of the PPA. 9) No joint venture – Neither Platte River nor Fort Collins have a relationship with the Developer beyond the PPA or any REC contract, and the parties are not partners nor joint venturers. 10) Regulatory compliance – The Developer is solely responsible for compliance with any and all regulatory requirements that may apply to the activities undertaken by the developer. 11) Indemnification – Provisions holding Platte River and the City of Fort Collins harmless in the event of claims by third parties will be required.