Vermont Utilities Receive Dozens of Energy Offers Following RFP
January 12 2009 - 2:24PM
Marketwired
Vermont's three-largest electric utilities have received dozens of
new energy sales proposals in response to a comprehensive market
request issued late last fall. "We are pleased with the variety,
number and range of potential options we have received," Central
Vermont Public Service (NYSE: CV), Green Mountain Power and Vermont
Electric Cooperative said in a joint statement. "There are dozens
of bids, ranging in duration from a year to two decades,
representing a wide range of electricity sources, with a mix of
costs and attributes."
In November, the three companies, looking to diversify their
power supplies and plan for the expiration of major contracts with
Vermont Yankee and Hydro-Quebec between 2012 and 2016, issued two
solicitations, the first of several staggered RFPs they plan over
the next couple of years.
In one RFP, the utilities jointly sought up to 100 megawatts of
energy, up to 40 megawatts each for CVPS and GMP, and 20 megawatts
for VEC. The second RFP, issued by CVPS and GMP for 150 megawatts
of new energy, is contingent on the outcome of Vermont Yankee
relicensing and contract negotiations. Utilities are in continuing
negotiations for new contracts with Hydro-Quebec and Vermont
Yankee, so they were not eligible to bid.
Bids were opened this week on the first RFP; the bids on the
second RFP are not due until the end of the month.
"Bidders include power marketers, energy developers, existing
and to-be-built power plant owners and banks," the utilities said.
"In total, bidders offered more than 1,000 megawatts, so there is a
healthy mix of potential options. Some of the bids are quite
attractive environmentally, many offer significant baseload
options, and some are unique and worthy of considerable
consideration."
Over the next few weeks, the utilities will begin to winnow the
field, and bidders with proposals deemed among the best will be
asked to make final offers. The utilities hope to make awards and
sign contracts based on the RFPs this spring.
Several factors to be weighed
The utilities said that among the factors to be considered in
both RFPs are price, volatility or stability, fuel diversity,
environmental attributes, public preferences based on the results
of the state's public outreach process and reliability.
The RFPs are among several activities the utilities are
undertaking to ensure a solid energy future for Vermont. CVPS, GMP
and VEC, along with Washington Electric Cooperative and VPPSA, also
sponsored a study of the possibility of building new in-state
generators, and all the companies are working to develop renewable
energy such as CVPS Cow Power(TM) and Greener GMP.
The RFPs were distributed to all New England Power Pool
participants, power suppliers and developers. Bidders are from
across the Northeast and Canada.
More information about the RFPs can be found at
www.cvps.com.
Contact: Ann Warrell (802) 747-5697
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