As announced on January 17, 2023, MPEI has given notice to Tri-State Generation and Transmission Association of its intent to terminate its wholesale power supply contract, effective February 2025. As part of its process to secure a new wholesale power supply agreement, MPEI recently released a request for information to potential energy suppliers. Interested parties can find the RFI here (see below).
REQUEST FOR INFORMATION
Power Supply Options for Mountain Parks Electric Inc.
Mountain Parks Electric Inc. (MPEI) is issuing this Request for Information (RFI) to solicit information on and interest in providing firm capacity and energy to serve its members. This is not a Request for Proposals (RFP) or a solicitation for formal proposals, rather, the information and interest collected through this process may be used in helping MPEI evaluate candidates for potential formal proposals and wholesale power supply negotiations. This RFI does not commit MPEI or respondents to act on this matter. MPEI will not be responsible for any costs associated with responding to this RFI.
MPEI is interested in determining what organizations are interested in providing wholesale power supply solution(s) for the organization. MPEI is interested in assessing the current availabilities in the marketplace to provide the following in a wholesale power supply contract:
1. Contract term of up to 25-years
2. A generation portfolio that is at least 80% renewable, with particular interest in renewable energy generation with storage
3. A generation portfolio that meets or exceeds state standards for clean energy plans, de-carbonization goals, renewable energy requirements, and resource adequacy requirements.
4. A fixed rate power supply agreement (flat, escalating, or declining)
5. MPEI would prefer an all-energy rate, but may consider other rate structures including an energy and capacity rate.
6. An option that allows for a “carveout” for local renewable generation project development
7. and any other power supply solutions that respondents believe would be of interest to MPEI.
MPEI is a non-profit member owned electric cooperative headquartered in Granby, CO and governed by a seven-member board. MPEI was established in 1946 in Walden, CO and currently provides power to all of Grand and Jackson Counties as well as parts of Larimer, Routt and Summit Counties. MPEI serves approximately 22,600 meters and maintains approximately 1,800 miles of distribution line across its 4,000 square mile service territory.
MPEI’s current power supplier is Tri-State Generation and Transmission Association (Tri-State). In January of 2023, MPEI’s board of directors gave notice to Tri-State of their intent to act on the Contract Termination provision of their contract. Under this provision, MPEI will pay a contract termination payment and will be able to start receiving its wholesale energy from another provider in February of 2025. Through this RFI process, MPEI is seeking information and expressions of interest from potential alternative power suppliers.
In 2021 the total energy provided to MPEI’s by its wholesale power supplier in was approximately 326 GWh with a summer peak of 47 MW and a winter peak of 66 MW. Outside of its wholesale power supply contract, MPEI receives power through its Western Area Power Authority allocation and several small scale local renewable projects.
MPEI is interested in respondents who can safely, reliably, and affordably, replace all the capacity and energy requirements that MPEI currently purchases from Tri-State. MPEI may also consider alternative structures based
on the information and interest received as part of this RFI process. MPEI intends to replace 100% of its power purchased from Tri-State beginning February of 2025.
Specific Information of Interest
MPEI requests that responses to this RFI include information on the following topics:
1. Contract Term Options
MPEI is currently considering a 20–25-year term as ideal.
2. Renewable Generation Mix Options
MPEI is currently only considering a power supply mix which provides at least 80% renewable energy, and which will comply with all state decarbonization, resource adequacy, and renewable energy standards.
3. Generation Carve-out Options
MPEI would prefer a power supply agreement that allows for some portion of local generation either from third party independent power providers, MPEI owned, or through some form of joint project development.
MPEI would consider a set percentage or an escalating percentage over the term.
MPEI would consider joint development projects between the power supplier and MPEI.
MPEI is interested to explore other options that respondents may have in mind.
4. Rate Structure Options
MPEI would prefer a fixed rate over the term but may consider escalation or declining rate over the term.
MPEI would prefer an energy only rate with no demand component. However a fixed demand component may be considered under some circumstances.
5. Indicative Pricing
6. Scheduling Agent
MPEI expects the new power supplier to act as the scheduling agent. As such, please include information regarding ability/experience scheduling/tagging power supply for a retail utility with both Transmission Providers and Balancing Area Authorities (or organized markets).
7. Community Support
As a member-owned organization, community engagement and support are important. We are interested in knowing more about how the respondent would demonstrate community support.
MPEI is also interested in knowing how respondents would partner with MPEI to help meet specific needs or goals of its largest customers.
8. Contract Termination Payment
MPEI would like to know if the respondent is interested in or able to cover the payment associated with MPEI terminating its contract with Tri-State.
Parties interested in responding to this RFI should send a notification of intent to respond to Virginia Harman at email@example.com by March 27, 2023. Upon receipt of this notification, respondent will be asked to execute a non-disclosure agreement with MPEI by April 7, 2023.
Final responses to this RFI should be submitted electronically to Virginia Harman at firstname.lastname@example.org by 5 p.m. on May 1, 2023. The MPEI board of directors plans to review all responses on May 11, 2023 and subsequently notify respondents of next steps.
All final responses should include the following:
1. Cover letter
2. Responses to each of the numbered items listed in Specific Information of Interest above
3. Respondent’s experience relevant to this RFI
4. Outline of respondent’s products and services relevant to this RFI
5. Three references
Questions & Points of Contact
Virginia Harman, General Manager
Response Date & Address
The schedule for this RFI is based on MPEI’s expectations at the time of issuance. MPEI reserves the right to extend the dates noted below.
RFI Issuance Date: March 10, 2023
Intent to Respond: March 27, 2023
Non-Disclosure Agreement Due Date: April 7, 2023
Deadline for Responses: May 1, 2023
Presentation of Responses to MPEI Board: May 11, 2023
Notification to Respondents of Next Steps: May 31, 2023
Final responses to this RFI should be submitted electronically to Virginia Harman at email@example.com by 5 p.m. on May 1, 2023.
MPEI recognizes that certain information contained in responses may be considered confidential and any information that is clearly labeled as confidential shall be treated as such. If MPEI is requested to provide additional information to any respondent, said respondent must complete an NDA prior to receiving such information. Likewise, MPEI is willing to enter into NDA’s with any respondent which deems an NDA necessary in order to respond to this RFI.