Q1)  Can forward physical Energy only be offered, or are the options Capacity and/or Capacity and Energy? My assumption is from the Product Definitions that it is Capacity or Capacity + Energy but we wanted to make sure.

A1)  You are correct. The products are capacity and a combination of capacity and energy.


Q2)  If we are interested in just bidding on the capacity piece, not the energy, would this still fall under the PPA/TA proposal type? Would we not be able to just give the volume we wanted to bid on at X price by planning year?

A2)  Yes, and you could provide the volume, and price by year.


Q3)  Will Duke Energy Indiana consider offers for an energy-only Firm LD product that does not point to any specific resource and leans on the MISO system?

A3)  No. The two products are 1) capacity and 2) capacity and energy. In addition, the resource(s) must be a certified Capacity Resource as defined by MISO, unit contingent, and dispatchable.


Q4)  The RFP requests up to 300 MW of capacity and energy. For gas fired facilities with duct firing please confirm 300 MW of unfired capacity and an addition amount (20 MW for example) of fired capacity for a total of 320 MW would be acceptable.

A4)  Yes.


Q5)  Number 9 of Section A, Attachment B states “For Resources located outside of the Duke Energy Indiana balancing area, describe the contract path for Firm Transmission to Duke Energy Indiana, including all transmission providers involved and the transmission services required (Firm Point-to-Point, and any ancillary services required). If outside of the Duke Energy Indiana local balancing authority area, successful bidders will have the responsibility to secure and provide all transmission services necessary for firm delivery of capacity” and in Section 3.0 General Terms, E. Delivery Point on page 5 of the RFP states, “If the product is physical energy which is located in MISO, then the delivery point is at the generator node”. Please confirm that a physical resource located in MISO would be deliverable at its node and doesn’t require transmission service to Duke Energy Indiana’s balancing area.

A5)  That is correct, if the product is physical energy which is located in MISO, then the delivery point is at the generator node.


Q6)  Section 4.0 Proposal Organization, D. Company Data requests a quarterly and annual report. In the case of a stand-alone projected financed power project that is under development please confirm that information on the corporate/sponsor structure, respondent’s relevant experience and respondents financial resources will meet the requirements of this section.

A6)  Yes


Q7)  In the case of one power plant proposing multiple structures (PPA, TA and asset purchase) please confirm that only one main proposal is required with the relevant sections of Attachment B completed.

A7)  Yes, and please provide separate term sheets and a separate response package


Q8)  Please provide the projected capacity factor range of the resource.

A8)  The capacity factor will depend on the resource and market conditions over the respective time period.


Q9)  Section B number 4 requests heat rates for June – September, Spring, Fall and December – March and then Section C number 4 requests output for Jan – Mar; Apr – Oct; and Nov – Dec. Is there a reason for different time periods/seasons request for heat rate vs. output?

A9)  Since Duke Energy Indiana will evaluate bids on a year-around supply, it would be best to provide a heat rate and output for all twelve months if heat rate is applicable for this asset.


Q10)  Related to (9) above, which of these periods/seasons would you like the heat rate and output numbers to reflect duct firing?

A10)  See above (9). It would be best to provide a heat rate and output for all twelve months with and without duct firing.


Q11)  We are wondering if our project can qualify for the Duke RFP for up to 300 MW of Capacity and Energy. This wind farm is 100 MW in size, approximately 15 % of this can be qualified as capacity in MISO and remainder can be offered as fixed energy schedule on a firm ld basis. Obviously, we will take necessary steps to have this resource certified as Capacity Resource as defined by MISO.

A11)  In order to participate in this RFP, resources must be a certified Capacity Resource as defined by MISO. Second, traditional supply side and renewable proposals must be for a minimum block of 50 MWs UCAP.


Q12)  In regards to the Duke Energy RFP, we are comfortable and willing to provide an offer for energy at CIN.PSI for 2016-2020 for 50-100 MW, but because of the lack of market transparency on capacity won’t allow us to include capacity on our offer. We would appreciate the opportunity to assist Duke with its energy hedges and look forward to hearing if an energy only offer, either financial or physical firm would be considered by Duke Energy.

A12)  Energy only offers will not be considered under this RFP process. Proposals for this RFP must be for Unforced Capacity (UCAP) or Capacity (UCAP) and energy.


Q13)  Will Duke Energy Indiana entertain a Purchase Power Agreement proposal based on a nuclear generation facility?

A13)  Yes.


Q14)  If a proposal is for capacity-only, is generation specific information still required? It would seem that generation specific information should only be required for an energy and capacity proposal.

A14)  Yes, generation specific information is still required. The seller needs to be able to transfer the capacity to DEI in the MISO MECT system.


Q15)  Is the following capacity structure acceptable? Physical capacity is provided at Zone 4 with financial settlement between the parties based on any deviations between the respective ACPs’ for Zone 6 and Zone 4?

A15)  Yes, but the resource(s) must be a certified Capacity Resource as defined by MISO, unit contingent, and dispatchable (or schedulable).


Q16)  Will a MISO energy proposal for a standard product (7x24 or 5x16) that doesn’t specify an associated generating resource be acceptable?

A16)  No. Resources must be operated by a MISO market participant, unit contingent and dispatchable (or schedulable) into MISO.


Q17)  If financial energy, then the delivery point is CIN.PSI. We have interest in looking at this option, however, will not be able to provide Capacity. Is that acceptable?

A17)  Energy only offers will not be considered under this RFP process. Proposals for this RFP must be for Unforced Capacity (UCAP) or Capacity (UCAP) and energy.


Q18)  If a counterparty was to get to the negotiation phase of this RFP, would Duke Energy Indiana seek the execution of an EEI, NAEMA, or Stand-alone agreement?

A18)  A stand alone agreement based on the EEI Master Power Purchase & Sale Agreement would be used.


Q19)  I realize that 300 MW is the maximum deal volume to be awarded but would like clarification on submitting more than 300 MW for review. For instance a 300 MW option of capacity only and a 300 MW option for capacity + energy?

A19)  A 300 MW option of capacity only and a 300 MW option for capacity + energy would need to be submitted as two separate proposals.


Q20)  Is it possible for more than one supplier to be the winner? Supplier A wins 100 MW and Supplier B wins 200 MW or something along those lines.

A20)  Yes, it is possible for more than one supplier to be the winner.


Q21)  In the case of a physical toll can the deal be settled financially?

A21)  Yes.




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