Evaluation

E. Evaluation Process

The objective of the RFP is to solicit Proposals that allow FPL to assess the best renewable generating alternatives that satisfy the RFP requirements on a cost-effective basis. It is anticipated that FPL will receive a variety of Proposals that may vary in length of term, capacity, source, price, availability, environmental facts and other pertinent characteristics. In addition to the variations that may be presented within individual Proposals, there may be a need to combine multiple Proposals to develop portfolios that meet the RFP requirements. FPL will employ an evaluation methodology that will be able to address responses that offer a wide range of individual characteristics and that can also evaluate the costs and benefits offered by combining various Proposals into unique portfolios of generating alternatives. Therefore, Proposals that pass the initial economic evaluation and individual economic ranking may be evaluated in portfolios that match them with other resources. Ultimately, FPL will identify the best, cost effective proposal or generation portfolio that satisfies the RFP requirements and that are environmentally acceptable. A summary description of the evaluation process is provided below.

1. Initial Screening.

   Proposals will be reviewed for compliance with the requirements set forth in this RFP. Those Proposals determined to be eligible will advance in the evaluation. Proposals determined to be ineligible will be returned to the Proposer along with a refund of the RFP Evaluation Fee.

2. Economic Evaluation of Individual Proposals.

   Proposals determined to be eligible will first be ranked by their projected individual economic impact on the FPL system by comparing them to other proposals of similar availability and/or projected capacity factor in a screening curve type of analysis. If there are a large number of eligible Proposals and a significant difference in economic impact on the FPL system is noted between similar proposals, this analysis step may be used to eliminate a portion of the lowest ranked Proposals from further evaluation.

3. Economic Evaluation of Portfolios.

FPL may also conduct a portfolio analysis depending on the number of proposals, their timing, size and operational characteristics in order to more fully capture system impacts of one or more proposals. Load growth will be modeled using FPL’s most recent load forecast. Additional generation will be added for growth that occurs in the time period beyond the current Site Plan to complete the generation plan maintaining the required reserve margin into the future.

A projected system economic cost, presented as the Cumulative Present Value of Revenue Requirements (“CPVRR”) will then be developed for each portfolio. This projected cost will provide a basis for further screening of Proposals, if necessary.

4. Final Evaluation of Total System Costs.

The top-ranking Proposals and/or portfolios emerging from the economic evaluation steps may undergo a more detailed economic evaluation, including estimates developed for system costs specific to each Proposal and/or portfolio and associated generation plan.

5. Non-Economic Evaluation.

In addition to the economic evaluation, the Proposals and/or portfolios may be evaluated for non-economic factors. In the non-economic evaluation, the Proposals will be evaluated individually and in the context of the other Proposals in the portfolio as to the environmental, technical/operational, and project execution non-economic factors. The objective of the evaluation is to develop an understanding of the Proposal and identify areas that may warrant further review.

Proposals that exhibit strong potential in the economic evaluation but are unclear in certain non-economic evaluation areas may be considered for a Panel Review. The Panel Review, if necessary, would provide for an exchange between the Proposer(s) and FPL panelists in regard to the non-economic evaluation areas. This would allow for a more complete exchange of ideas in the important areas. Proposers will be notified individually if a need for a Panel Review is indicated, and a mutually convenient time will be arranged.

6. Best and Final Offer Evaluation.

Once FPL develops a Short List of Proposals a Best and Final Offer may be requested from the Proposers that have been selected for the Short List (the “Finalists”). FPL will evaluate these Best and Final Offers to develop the final economic and non-economic evaluations.

7. Final Selection.

The economic and non-economic factors will be presented to an FPL Management Review Team. The Management Review Team will then make a selection based on sound business practices and the best interests of FPL customers.

8. Site Development.

For newly built generation, the Proposer must be responsible for the location, development and permitting of the Proposer’s site for the proposed facility.

F. Proposer Information

1. Types of Proposals.

The RFP is designed to accommodate a wide range of Proposals for new renewable generation alternatives from various technologies, locations and under differing commercial frameworks. For example, FPL may receive Proposals for power sales under a PPA from expansion of an existing facility (currently in operation) or from newly constructed NRGFs. These Proposals may provide fixed capacity, or be from a seasonal or an intermittent resource. They may require fuel supply and firm transportation arrangements or have no fuel requirements. Every attempt has been made to accommodate creative variations that may be proposed. Nonetheless, it is conceivable that a Proposer may offer a unique attribute that has not been explicitly considered in this RFP and the associated forms. In that instance, FPL will work with the Proposer to understand, and if possible, accommodate the unique features of a particular offering.

Proposals offering the sale of a new construction turnkey NRGF are not eligible for this RFP. Proposers that are interested in offering such a NRGF to FPL should contact the following for initial discussions:

Ms. Henrietta McBee
Director
Project Development
700 Universe Blvd
Juno Beach, FL 33408
Tel: 561 304-5106

2. RFP Evaluation Fee.

In order for a Proposal to be evaluated, the complete Proposal accompanied by a non-refundable check for the submission fee made out to “Florida Power & Light Company” must be submitted to the FPL RFP Contact Person on or before the Proposal Due Date (no later than 4:00 p.m. EDT). If more than one Proposal is submitted by a specific Proposer, then a separate, non-refundable submission fee must accompany each Proposal. Proposals deemed ineligible or otherwise non-responsive after an initial review will not be evaluated further and the fee will be refunded.

The required submission fee is $1,000 per Proposal.

One Proposal consists of a specific combination of a site, technology, fuel source, total capacity level, scheduled capacity and/or energy delivery date, term (e.g., 10 years) and pricing submittal. A Proposer may submit one variation of term and/or price related to a specific Proposal (a single variation is defined as a change in one or both term and/or price) at no additional cost. An additional submission fee will be required for any further price/term variations. There are no limitations to the number of variations submitted, as long as each additional variation is accompanied by a submission fee. Changes in site, technology, fuel source, capacity level, or expected delivery date will constitute a separate Proposal and a separate full evaluation fee will be required. Proposals and the related variations deemed ineligible or otherwise non-responsive after an initial review will not be evaluated further and the fees received will be refunded.

3. Power Purchase Agreement(s).

For each selected power purchase proposal, FPL expects to enter into a pay-for-performance type power purchase contract. Details and PPA language will be addressed through a negotiation process with Finalists

4. Security Package Requirements.

As security for the Proposer’s achievement of the scheduled capacity and/or energy delivery date and for the satisfactory performance of its obligations under the PPA, the Proposer will be required to provide either a standby letter of credit, a performance bond, or collateral cash deposit in the amount of $30.00 per KW within 30 days of the execution of a PPA.

Additional security may be required depending on the contractual terms agreed to related to the difference between the payment stream obligations and benefits received. Examples are early capacity payments, levelized capacity payments, and fixed energy payments based on energy cost projections. These requirements will be addressed through the negotiation process with the Finalist. The objective of the additional security requirement, if applicable, is to ensure that FPL’s customers receive the benefits of the project for the term of the PPA.