Here are frequently asked questions we receive about our work.

The RFP mentions that TEP will request 300 MW of capacity resources and 250 MW of clean energy resources. Which category(ies) would a solar + storage project would qualify under?

Solar + storage would check both categories, especially if the project(s) address(es) the peak demand needs for capacity. A standalone storage project will be considered a capacity resource while a standalone solar is considered clean energy.

Will TEP accept PPA contracts for projects located on TEP land or would BTA-only contracts be accepted for these projects?

TEP is not accepting PPA contracts for projects located on TEP land. A single site near Vail Substation is designated for BESS and to be TEP owned.

Is the Vail site for EPC bidders only? Is it also for Developers proposing a new solar and storage project?

The TEP-owned Vail site is designated for BESS only for EPC or build-own transfer. Other proposals, to include new solar and storage, must demonstrate site control by Respondents.

We would like to encourage TEP to consider submission to this RFP for geothermal power development. Could you please let us know about your thoughts on this matter?

Please see section 4.1 Renewable Energy Technologies. TEP and UNSE will accept proposals for geothermal power generation.

Will the procurement of the 200 MW/800 MWh battery be included as part of the EPC bids?

TEP/UNSE is looking for a fully wrapped EPC including the engineering design, procurement and construction of the entire facility. TEP/UNSE will also evaluate build-own transfer agreements at Respondent designated sites as well as the build-ready site.

Would the UNSE team consider delivery at the Vail substation to be a part of their transmission system?

The Vail substation is not part of the UNSE transmission system. However, in addition to delivery into the UNSE system, UNSE may consider deliveries from alternate TEP locations such as Vail.

Will linear generation be an eligible technology for participation in the open RFP?

This is an All-Source RFP. All energy resources are welcome to bid.

The Company has outlined an offer limit of 200 MW per project, unless single point of failure mitigation is employed. How does this limit treat hybrid resources? For instance, if respondent offers a paired 200 MW PV + 100 MW / 400 MWh BESS, will that be in violation of the outlined limit? Or, if the respondent wishes to offer a wind+PV+BESS offer of 200 MW + 100 MW + 100 MW / 400 MWh, would that be considered above the limit?

The 200 MW limitation is for energy resources located in the TEP local service area and is not required for remote energy resources.

Please advise what "imminent" site control implies? Is an option sufficient?

Yes, an option is sufficient and we would expect documentation that substantiates the option.

How will the binding nature of the bid be upheld without a security prior to contract execution?

While not contractually binding, we would expect for the bid to be honored as specified in the RFP. Changes to the bid after submission may result in re-evaluation or even disqualification.

Regarding Table 3-1, will the development and post-development securities for hybrid projects be summed (e.g., New Solar + New Energy Storage = $140/kWh) or reached by some other methodology? For PV + storage, the dispatch of power to the grid from solar production as opposed to the storage system discharging will be dependent on TEP’s use case, amongst other factors.

The storage component of the project would require $40/kWh of contract security while the new solar project would require $100/kW. To further clarify by example, a 100 MW/ 4 hour BESS would require $16 million in security. 100 MW of solar will require $10 million. The security amounts are half for post commercial operation.

For hybrid PV + storage projects, will separate generation profiles be required for each technology component?

TEP/UNSE is interested in resources that provide capacity or clean energy that best meet it's need as shown in Appendix A. A hybrid project that includes PV, a generation profile is required. Unless the storage is proposed with a static/known dispatch, a generation profile is not required. Presumably, TEP/UNSE would dispatch storage based on capacity and energy requirements.

Regarding the requirement to show that bidders have successfully achieved COD with project(s) at least 10% of the capacity we are proposing, do these example projects need to meet other requirements (e.g., operability in AZ, same technologies chosen as what is being proposed, recent COD, etc.)?

In general TEP/UNSE is interested in reviewing the successful completion of completed projects from respective bidders. The ability to demonstrate projects with like technology, scale and domestic operational success will weigh more favorably for bidders.

Regarding supply-side resource eligibility, can you please elaborate on the statement that projects over 200 MW will be considered "provided that the interconnection configuration for the proposed resource limits any single point of failure to 200 MW"? Is this simply stating that the 200 MW site must be a single project as opposed to several projects using the same interconnection facilities?

The 200 MW limitation is for energy resources located in the TEP local service area and is not required for remote energy resources.

Considering that TEP and UNSE exist under the same corporate umbrella, would wheeling fees from TEP to UNSE territory be necessary, or would delivery of power into TEP service territory be sufficient for UNSE’s purposes?

UNSE and TEP do not share the delivery points. However, in addition to delivery into the UNSE system, UNSE may consider deliveries from alternate TEP locations. Available transmission capacity and associated wheeling would be evaluated, as required.

Can TEP clarify the Site Control requirements? Would an Letter of Intent granting exclusive negotiations to a developer satisfy this requirement?

TEP expects bidder to demonstrate rights to the property sufficient to develop on the property it is proposing to site its project. A letter of intent does not satisfy TEP's requirement.

Can TEP take delivery in New Mexico at the Luna 115kV or Luna 345kV substations?

Luna 115/345 kV is not part of the TEP transmission system however, TEP will consider bids at this location subject to 3rd party available transmission.

Acknowledging section 5.3 of the TEP 2022 All-Source RFP - Rev 1 statement "While the Respondent may propose a form of such agreement, TEP reserves the right to negotiate such terms and conditions, and/or propose a form of a contract as the basis of negotiating applicable terms and conditions." Please confirm that the intent is to allow EPC self-build BESS Respondents to propose a form of contract should the Respondent be short-listed and proceed through negotiations.

TEP is willing to consider EPC self-build BESS respondents form of contract.

Can a project be offered to both TEP and UNSE simultaneously? Are the interconnections the same?

Yes, Respondents may offer the same project(s) to both TEP and UNSE. TEP and UNSE transmission systems do not overlap, transmission wheeling will be required.

If the technology is scalable like solar and storage and would be supported by a development partner, would we still need to pass the threshold of having at least 10% of the bid capacity already installed?

In general TEP/UNSE is interested in reviewing the successful completion of other completed projects from respective bidders (or their partners). The ability to demonstrate projects with like technology, scale and domestic operational success will weigh more favorably for bidders.

In Section 4.2 Energy Storage Technologies, Section 3a asks the project's equipment/design to meet all safety requirement as specified in the TEP term sheet. However, in the term sheet provided for Energy Storage Agreement, we do not see any safety requirements by TEP.

Energy storage safety requirements must adhere to industry standards. The term sheets do not include these requirements. An update will be made to the ASRFP in Revision 4.

The "Download Documents" tab does not appear to include Term Sheets for the full list of eligible supply-side resources (specified in 3.1 of the RFP) or Summer Capacity Resources per 1.5 of the RFP. Will this be made available or is the on the Respondent to draft a Term Sheet unilaterally?

Term sheets are provided for energy storage and renewable projects. TEP/UNSE will work with Respondents on term agreements for supply-side resources during the short-list negotiations.

Please confirm the location of the POI.

The point of interconnection (POI) for the build-ready site is Vail. All other proposed interconnection points must demonstrate transmission availability to reach the TEP/UNSE load centers.

Is UNSE interested in a standalones (grid connected) battery storage facility with a monthly capacity payment or interested in a standalone (grid connected) battery storage facility Build-Own-Transfer (BOT) contract?

UNSE will accept PPA (with appropriate capacity and energy pricing) projects and will also evaluate BOTA.

Can the Owner provide power throughout the duration of construction from the substation?

Bidders should assume that they, the bidder, have to provide or procure power to the site.   This assumption should be made clear in the bidder's proposal.  

Will not having an interconnection application prior to bid reduce our ability to win the project?

Please see section 3.11 of the RFP that outlines the requirements for interconnection applications and states "For purposes of this ASRFP, Respondents will not be required to enter the interconnection queue process unless and until its Proposal is selected for Short List evaluation, which the Company expects to determine on or about September 15, 2022."

What contract term lengths will TEP/UNSE consider for new gas resource proposals in response to this RFP?

Minimum of 1 year for thermal and maximum of 30 years.

Please specify the respondents risk regarding the development security; ie when can the letter of credit be drawn down, what circumstances prior to COD will trigger the drawdown of this security?

The letter of credit may be drawn down if seller does not meet agreed upon development milestones and COD triggering delay damages and/or termination rights.