Vermont utilities seek proposals to supply 250 MW

Vermont’s three largest electric utilities have issued a joint request for power supply, with the two largest utilities also issuing a request for more energy in the event the Vermont Yankee nuclear station becomes unavailable. Bids are due Jan. 7 and Jan. 26, 2009.

A pre-bid conference call on both solicitations is scheduled for Nov. 21.

While the companies each might weigh the value of proposals differently, all will give added weight to reliable, renewable, and stably priced proposals, the utilities said. Eligible renewables include hydropower. Each company will make its own decisions on proposals, but all will put extra value on non-fossil, renewable supplies from diverse sources, the utilities added.

Solicitation seeks 100 MW

In the first solicitation, Central Vermont Public Service, Green Mountain Power, and Vermont Electric Cooperative seek up to 100 MW of energy, capacity, or both, starting in 2012. That figure includes up to 40 MW each for CVPS and GMP, and 20 MW for VEC.

The companies rely heavily on energy from Hydro-Quebec and Vermont Yankee, but contracts with both suppliers end between 2012 and 2016. Vermont Yankee’s license, which expires in 2012, is being considered for renewal.

While contract negotiations are in progress for new power supplies with both suppliers, the utilities said they also are using the opportunity to diversify their portfolios.

Second solicitation seeks 150 MW

In the second request for proposals, CVPS and GMP call for 150 MW of new energy, capacity, or both, starting in 2012, contingent on Vermont Yankee not being relicensed.

The utilities said factors to be considered in both RFPs include price, volatility or stability, fuel diversity, environmental attributes, results of the state’s public outreach process, and reliability.

�Fuel diversity and credit requirements will be considered,� the utilities said. �Energy from small or medium-sized renewable projects will be given more weight than energy from large fossil fuel plants. New projects that can defer or supplant the need for transmission and distribution expansion or upgrades will be favorably evaluated.�

The utilities said the RFPs are being distributed to all New England Power Pool participants, power suppliers, and developers, representing dozens of companies.

The utilities said they expect to issue solicitations in 2010 and 2011 as well, to stagger the start and end dates of various portfolio components.

Expressions of interest responding to the first solicitation are due Dec. 1, followed by proposals Jan. 7, 2009. A short list is to be named Feb. 2, with final offers due Feb. 27. Winning bidders are to be notified March 18. Contracts are to be executed April 4.

Expressions of interest responding to the second RFP are due Dec. 1, followed by proposals Jan. 26, 2009. A short list is to be named Feb. 23, with refined offers due May 1. The utilities anticipate proceeding in June 2009 through June 2010, based on resolution of contingency.

Materials for both solicitations are available on the Internet at www.cvps.com/programsservices/powerrfp.shtml and www.cvps.com/programsservices/contingentrfp.shtml.

For information, contact Kirk Shields, Power Supply Manager, Central Vermont Public Service, 77 Grove St., Rutland, VT 05759; (1) 802-747-5343; E-mail: powerrfp@cvps.com.

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