FAQs

Answers to your Frequently Asked Questions ("FAQs") are posted on this page. To ask a question, please use our automated form. FAQs will be posted every Wednesday. FAQs will be posted daily during the week prior to the deadline for submitting Pricing Proposals and Qualification Materials.”

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FAQ-56:
If a bid is accepted, at what point may construction begin?

The Program specifies only when construction must be completed and does not specify when construction may begin. Please see the SREC PSA, Appendix A, General Terms and Conditions, Paragraph 3. This Paragraph states that the EDC will have the right to terminate the SREC PSA if the Project is not fully constructed and able to deliver SRECs within one year of the execution of the SREC PSA.

The SREC PSA can be found on the Documents page of the Web site.

02/26/2010 in Purchase and Sale Agreement
FAQ-55:
A developer is the seller. If the developer’s project is selected through the SREC-Based Financing Program but the customer subsequently bails out, can the developer substitute another customer and site?

No. The Final Stipulation approved by the Board specified particular bid documents that will be required. These include: (1) a Project Proposal Summary Sheet that specifies the project location and identifies the customer; (2) a signed customer acknowledgment, which is available as Appendix C to the SREC Purchase and Sale Agreement (“SREC PSA”); and (3) completed registration materials with the Office of Clean Energy. Thus, the SREC-Based Financing Program (“Program”) clearly identifies a bid SREC price with a particular project for a particular customer at a given location. It does not contemplate a bid for a generic size and price where the developer would then choose the particular project from which SRECs would be delivered to the EDC. If a bidder were to be awarded a SREC PSA under this Program, and the project for which a proposal was submitted was not completed, the bidder would forfeit its deposit and not be able to substitute another project in its stead. Please note that the bidder has one year from the signing of the SREC PSA to complete the project. Please also note that several solicitations are planned under the RFP so that bidders have several opportunities to present bids.

The Stipulation and SREC PSA can be found on the Documents page of the web site.

02/22/2010 in Requirements for Proposals
FAQ-54:
In a solicitation, when can the Seller expect to receive a Notification of Award or a Notification of Rejection?

The Solicitation Manager advises a Seller who has received an award or who did not receive an award of the reason for the rejection after the Board renders a decision on the results.

02/22/2010 in Evaluation of Proposals
FAQ-52:
Please explain how the planned quantity for each solicitation is determined.

The SREC-Based Financing Program (“Program”) is a three-year program that plans up to three solicitations per year. The Stipulation for each EDC, available on the Documents page of our web site, details the quantities that each EDC plans to solicit over the next three years (see Attachment A to each Stipulation). In general under the Program, two solicitations are planned each year, and each solicitation is for half of the year’s planned quantity. A third solicitation is held for the balance of the year’s planned quantity that remains uncommitted after the first two solicitations. The third solicitation may also include all or a portion of the next year’s planned quantity, based on an assessment of, among other things, the results of the previous solicitations and the market's ability to respond effectively with competitive bids. The Solicitation Manager makes recommendations to the Board regarding the parameters of each solicitation, including the planned quantity, and the Board makes a decision on these matters.

02/22/2010 in General
FAQ-51:
Suppose that there are 10 transferred SRECs in a Contract Month, but the Seller delivers only 5 SRECs. Will the Seller be paid for 5 SRECs or zero SRECs for that Contract Month?

The payments will be made on a quarterly basis. The business arrangement does not contemplate a situation where a Transferred SREC would not be delivered. Delivery of Transferred SRECs from the project is an obligation of the Seller and not an option under the SREC Purchase and Sale Agreement (“SREC PSA”), which can be found on the Documents page of the web site. Failure to deliver SRECs would be an event of default. Section J.2 provides that the Purchaser would have no obligation to make any payment for any Contract Month for which any Transferred SRECs are not delivered.

02/22/2010 in Purchase and Sale Agreement
FAQ-50:
Will interest be paid on the refundable cash deposit?

No, there is no interest paid on the deposit. The deposit will be returned on the Commencement Day without interest in accordance with the SREC Purchase and Sale Agreement ("SREC PSA"). Please see Appendix A section A.11 on page A-2 of the SREC PSA for more information. The SREC PSA can be found on the Documents page of the web site.

02/22/2010 in Purchase and Sale Agreement
FAQ-49:
Is the discount rate used only to find the Net Present Value (“NPV”) and rank bids or does it also affect payments to Owners of Successful Projects?

The discount rate is only used in the formula to calculate the factor used to determine the NPV. The payment to the Seller under the SREC PSA is the price of the SREC submitted in the Pricing Proposal.

02/22/2010 in Purchase and Sale Agreement
FAQ-48:
What are the discount rates for each EDC that are used in computing the Net Present Value used in ranking the bids?

The discount rates are set forth in the Stipulations, which can be found on the Documents page of the Web site. For the JCP&L and ACE discount rates of 6.87% and 6.66%, respectively, please see Section 7.c of the ACE-JCP&L Stipulation (the file entitled “ACE-JCP&L Final Stipulation (3/13/2009)”). For the RECO discount rate of 7.68%, please see Section 7.c of the RECO Stipulation (the file entitled “RECO Final Stipulation (7/24/2009)”).

06/04/2010 in Evaluation of Proposals
FAQ-46:
Is the SREC price paid on all SRECs produced by a Project, or only on the net-metered amount?

The SREC price is paid for all SRECs produced by a Project, not just for the net-metered amount.

02/22/2010 in Requirements for Proposals
FAQ-45:
If our system is under repair and cannot deliver the SRECs as stated in the SREC PSA for a particular month, will there be a make-up opportunity?

There are no make-up opportunities under the SREC Purchase and Sale Agreement ("SREC PSA"). Please see Section 8 of the SREC PSA, which states that during each Contract Month, the Seller is paid for all SRECs that are produced by the Seller’s Project, if any, and transferred to the EDC. If no SRECs are transferred during a Contract Month due to technical or other problems with the installation, there is no payment to the Seller and no opportunity to make up the quantity of SRECs that would have been delivered had the Project been operational.

02/22/2010 in Purchase and Sale Agreement

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