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Frequently Asked Questions - Qualifications
General, Block, Load Following Full Requirements, AEC, SREC
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| General |
| 1. |
Q. |
Can you provide more information regarding the rating requirement for an applicant to qualify for the RFPs? Are alternative collateral arrangements acceptable? |
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A. |
As stated in section 4.1.1 of the Full Requirements and Block Supply RFP Rules, "An applicant is qualified to bid in a given solicitation if, by the Cure Deficiency Deadline of that solicitation, it satisfactorily completes or updates the following: ... 3) demonstrates that its, or its guarantor's, unsecured senior long-term debt rating (or issuer rating, if the unsecured senior long-term debt rating is unavailable) is currently available from Standard & Poor's, Fitch Ratings or Moody's Investor Services."
For the Full Requirements RFP and Block Supply RFP, there are no provisions to accept alternative arrangements or ratings other than what is described above.
Please note that the Pennsylvania Public Utility Commission ("PUC") has approved PPL Electric's petition to eliminate the requirement that an applicant demonstrate that its, or its guarantor's, debt rating be available from S&P, Fitch, or Moody's for the Alternative Energy Credits ("AEC") RFP. This ruling is applicable only to the AEC RFP and is effective for the upcoming AEC RFP Bidder Qualifications Due Date. The filing has been posted to the AEPS Supplier Documents page of the RFP Web site. |
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| 2. |
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If you are participating in the Full Requirements RFP, Block Supply RFP and the AEC RFP, are you required to provide three full sets of qualification documents or is one full set sufficient? |
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The three RFPs are separate but run concurrently. A supplier participating in more than one RFP is required to provide qualification materials for each RFP separately. The only exception to this is the Expression of Interest Form if it is completed online. As long as the check boxes for all the applicable RFPs have been elected, the bidder only need to fill this form out once, and it will be deemed acceptable for all the RFPs that have been elected on the web form. To access the expression of interest web form, please: click here.
A bidder qualifications checklist for each RFP is now available on the RFP Web site. The checklists are intended to aid in the submission of qualification materials and are not a required part of the bidder qualifications.
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| 3. |
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Apart from the expression of interest form, can other qualification materials be submitted electronically, including the financial statements? |
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A. |
No. Apart from the expression of interest, which can be submitted online, all other qualification materials must be submitted in hard copy to the RFP Office at: 1835 Market Street, Suite 1205, Philadelphia, PA 19103. |
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| 4. |
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I completed the online registration form yesterday on the RFP Web site. Does this meet the requirements for submission of the Expression of Interest form? |
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Yes, this electronic online submission of your expression of interest form is acceptable to the PPL Electric RFP Team. We may require additional information from you regarding this expression of interest when we receive the rest of your qualification materials. For example, the name of the entity provided in your expression of interest may not exactly match the legal name of the bidder provided in the rest of the qualification materials. If that is the case, the RFP Team will contact you no later than forty-eight hours prior to the Cured Deficiency Deadline. |
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| 5. |
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Is it possible to execute the confidentiality agreement prior to providing financial information and other documents associated with Bidder Qualifications? Our legal counsel will not authorize the provision of such information without a confidentiality agreement in place. |
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The RFP Process did not envision submissions of the confidentiality agreement and other qualification materials at different times. However, if a bidder provides the confidentiality agreement, three business days prior to the Bidder Qualifications Due Date, the RFP Manager will, on a best-efforts basis, request that PPL Electric countersign the confidentiality agreement and provide you a faxed copy prior to the Bidder Qualifications Due Date. All qualification materials are due to the RFP Manager by the Bidder Qualifications Due Date. |
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| 6. |
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Is a bidder that has previously qualified in a solicitation of PPL Electric's POLR RFP under its competitive bridge plan eligible for an abbreviated qualification process under PPL Electric's Default Service Procurement Plan? |
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No. A bidder that was qualified in a solicitation of PPL Electric's POLR RFP under its competitive bridge plan is not eligible for an abbreviated qualification process under PPL Electric's Default Service Procurement Plan ("DSPP"). The DSPP is a new procurement process that requires each participant in an RFP to provide all qualification materials required for participation in that RFP. |
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| 7. |
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If a bidder is participating in more than one RFP, can one set of qualification materials be submitted for all RFPs? |
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No. As stated in Qualifications/General FAQ-2, the three RFPs are separate but run concurrently. A supplier participating in more than one RFP is required to provide qualification materials for each RFP separately. The exception to this is the Expression of Interest Form if it is completed online, and if the check boxes for all the applicable RFPs have been elected, as described in Qualifications/General FAQ-2. |
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| 8. |
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The credit application requests information surrounding revolving credit facilities, however we cannot provide account numbers or expiration dates in regard to these accounts. Will this result in a deficiency regarding our qualification materials? |
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The credit application provides space for three bank references. Should the bidder have references from more than three banks, please provide information for at least three banks, and note this fact in the cover letter to us. If any of the information requested cannot be provided or is unavailable, please also note this for us in the credit application. The PPL Electric RFP team will evaluate the information provided and will inform the bidder if additional information is required. |
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| 9. |
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What supporting documents are required with the credit application? |
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Along with the credit application, a bidder will need to provide one (1) copy of any supporting documents, which includes (a) the most recent 2 years of financial statements audited by a firm of certified public accountants of national standing, and (b) documentation showing the name of the rating agency, the type of rating, and the rating of the Applicant from the rating agency's web site. Hardcopies of these supporting documents are required. Please note that following the Pennsylvania Public Utility Commission's ("PUC's") approval of PPL Electric's petition to eliminate the debt rating requirement for the Alternative Energy Credits ("AEC") RFP, requirement (b) above is optional to applicants to the AEC RFP.
Please note that for requirement (b) above, we do not require a full agency rating review report. A print-out from the credit rating agency's website showing the name of the rating agency, the type of rating, and the rating of the Applicant will suffice for this requirement. If you believe providing this information in hardcopy is against the agreement that you have with the rating agency, please state this in your cover letter to us explaining your situation. |
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| 10. |
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I completed the Expression of Interest form online – is it necessary to provide a hard copy with my bidder qualification materials? |
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No. If you have provided the expression of interest online via the web form on the RFP Web site, the online submission is sufficient. You will not need to provide this information in hardcopy. |
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| 11. |
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In order to participate in a later RFP must we submit all qualification materials for this current solicitation? |
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Each solicitation of each RFP has a distinct date by which qualification materials must be submitted. The RFP schedule for each future solicitation is provided in the RFP Addendum issued at the beginning of that solicitation. |
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| 12. |
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If our company is unable to provide audited financial information or bid assurance collateral, are we disqualified from participating in the RFPs? |
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Yes, should you not be able to provide the most recent 2 years of audited financial information and bid assurance collateral as required in the RFP Rules, you will not be able to participate in the RFP. |
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| 13. |
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If we are unable to execute the Confidentiality Agreement in the current form, may we still be qualified in the RFP? |
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The Confidentiality Agreement is a standardized form that must be executed by all RFP Bidders for participation in the RFP. |
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| 14. |
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Do suppliers need to submit expressions of interest for each Solicitation in this RFP? |
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No, a supplier only needs to submit an expression of interest form once for an RFP, and will not need to resubmit the expression of interest form for subsequent solicitations of that RFP. |
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| 15. |
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If a bidder qualified for the Load Following RFP, but not the Block RFP during the last round, is it too late to qualify for the Block, or can documents be submitted to qualify on the Bidder Qualifications Due Date? |
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No, it is not too late. The PPL Electric Default Service Procurement Plan is a multi-solicitation process. A bidder interested in participating in a solicitation of any of the Full Requirements, Block Supply or AEC RFP may do so by submitting qualification documents by noon on the Qualifications Due Date of that solicitation.
A bidder qualifications checklist for each of the RFPs is available on the applicable "Supplier Documents" page of the RFP Web site. The checklist is intended to aid in the submission of qualification materials and is not a required part of the bidder qualifications. |
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| 16. |
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All of the information submitted in the Credit Application for an earlier solicitation under the DSPP is still correct, however, our company has since issued updated financial reports and one rating agency has issued an update of their analysis and rating of our debt (no change). Is it necessary to again submit the completed Credit Application for this solicitation, or can we just submit the statement that the information in the Credit Application is still correct, along with the updated financial reports and rating agency report? |
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Provided that the information previously submitted in the Credit Application is still correct, it is not necessary to resubmit the Credit Application for this solicitation. In your verification statement submitted as part of the abbreviated Qualifications process for this solicitation, it is sufficient to confirm that with the exception of the additional financial reports and rating agency documentation provided, the previously submitted credit and financial information for the RFP Bidder (or Guarantor) remain up-to-date and accurate. Please see the letter regarding the abbreviated Qualifications process for previously qualified RFP bidders, sent by the RFP Manager at the beginning of this solicitation, for suggested language regarding the various items that should be addressed in the verification statement. |
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| 17. |
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When is the Bid Assurance Collateral for this solicitation due, and to what address should it be sent? |
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RFP Bidders may provide Bid Assurance Collateral either in the form of cash or in the form of bid assurance letter of credit. The schedule for when the Bid Assurance Collateral is due is provided in the RFP Addendum for this solicitation available on the RFP Schedule page of the Web site click here.
The RFP Manager will provide upon request (e-mail to pplpolr@pplweb.com) wire transfer instructions to those RFP Bidders who intend to post cash for their Bid Assurance Collateral. Bidders who intend to post a letter of credit for Bid Assurance Collateral must send the bid assurance letter of credit ONLY to the PPL Electric RFP Manager Office at the following address:
Attn: NERA / PPL Electric RFP Manager 1835 Market Street, Suite 1205 Philadelphia, PA 19103 |
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| 18. |
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We are an affiliate of a bank that is regulated by the Federal Reserve. As such, we are required to comply with the requirements of the Federal Reserve Supervisory Letter SR 07-19 dated December 13, 2007. These regulations imply that we may be required to disclose information regarding our participation in the RFP at the request of a bank examiner and in a manner which may not fully comply with the provisions in Paragraph 10(a) of the Confidentiality Agreement. Will PPL Electric consent to modifying the Confidentiality Agreement so as to allow us to disclose information about our participation and to disclose information in a manner that may not fully comply with the provisions of the Confidentiality Agreement if required to do so under the regulations of the Federal Reserve? |
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The Confidentiality Agreements used in connection with PPL Electric's default service procurement plan are standard documents that have been approved by the Pennsylvania Public Utility Commission. All RFP Bidders must execute the Confidentiality Agreement without modifications. However, PPL Electric considers that, by asking this question and providing the requirements that are imposed on you by the Federal Reserve, you have provided PPL Electric appropriate notice under (a) of Paragraph 10(a). If in order to comply with the regulations of the Federal Reserve, the RFP Bidder does not fully comply with Paragraph 10(a) of the Confidentiality Agreement, PPL Electric will not consider this as a breach of the Confidentiality Agreement. |
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| 19. |
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Can we get an extension on submittal of Qualifications Materials? |
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No. In order to qualify to participate in a given solicitation of the RFP, your qualification materials must be received by the RFP Manager by noon on the Bidder Qualifications Due Date. |
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| 20. |
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The Credit Application requires 2 years of audited financials in U.S. Dollars and that conform to U.S. GAAP. If a bidder or parent guarantor only has audited financials denominated in a foreign currency, will they be allowed to participate in the RFP? |
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As provided in section 4.5.3 of the RFP Rules, PPL Electric may consider financial information of foreign applicants or foreign guarantors that are not denominated in U.S. Dollars or do not conform to GAAP in the United States. Such acceptability will be communicated to the applicant no later than forty-eight hours before the Cure Deficiency Deadline.
In addition, the RFP Manager and representatives from PPL Electric will perform a creditworthiness assessment for each RFP Bidder based on the credit and financial information provided and the creditworthiness standards of the SMA. The results of the creditworthiness assessment will be provided to the RFP Bidder in its Notification of Qualification, which will provide a preliminary indication of the unsecured credit limit that may be granted to the RFP Bidder during the term of the SMA. |
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| 21. |
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If an Applicant provides 2 years of audited financials for a parent/guarantor because the Applicant does not have the necessary audited financials, does that require the parent/guarantor to provide a guaranty for under the SMA? |
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The RFP Rules require that either the Seller or Guarantor provides 2 years of audited financials in order to qualify. If during the transaction term a Seller that qualifies based on the creditworthiness of its Guarantor elects to provide liquid security in lieu of the Guaranty, that is permissible under the SMAs used under the PPL Electric Default Service Procurement Plan. |
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| 22. |
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Am I correct that the Binding Bid Agreement does not commit my company to bid? |
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You are correct; signing the binding bid agreement does not obligate you to provide a Bid Proposal. |
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| 23. |
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We have previously provided our Credit Application in a prior solicitation. In this solicitation, the only items that have changed in our Credit Application are 1) The name change of our bank and 2) The fax number of our Credit Representative. All other information remains the same. Under the abbreviated qualification process for previously qualified bidders, do these two changes require us to submit a new Credit Application? |
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Provided that the remainder of the information previously submitted in the Credit Application is still correct, it is not necessary to resubmit the Credit Application for this solicitation. In your verification statement submitted as part of the abbreviated Qualifications process for this solicitation, it is sufficient to confirm that with the exception of the name of your bank and the fax number of your credit representative provided, the previously submitted credit and financial information for the RFP Bidder (or Guarantor) remain up-to-date and accurate. In general, RFP bidders are required to resubmit a Credit Application if there are changes to Sections 2, 3, or 5, or if there are changes to Section 1 other than the contact information for the Credit Contact. Please also see Qualification/General FAQ-16 if you are only providing updated financial statements and updated credit ratings support documentation. Please see the letter regarding the abbreviated Qualifications process for previously qualified RFP bidders, sent by the RFP Manager at the beginning of this solicitation, for suggested language regarding the various items that should be addressed in the verification statement. |
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| 24. |
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The credit application asks for two years worth of audited financials. If a bidder does not have audited financials, what are alternatives that can satisfy this qualification requirement? |
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The RFP Rules require that either the Seller or Guarantor provides 2 years of audited financials in order to qualify. Please see Qualifications/General FAQ-12 and 21 for more information. |
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| 25. |
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Can we please receive a word version of the PPL Confidentiality Agreement so we can use the track change feature and submit our suggested changes to you? |
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No, changes to the Confidentiality Agreement are not acceptable. The Confidentiality Agreement is a standardized form that must be executed by all RFP Bidders for participation in the RFP. |
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| 26. |
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Do bidders have to execute the confidentiality agreements prior to each RFP solicitation, or only prior to the first solicitiation of each RFP? |
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An RFP Bidder is only required to submit the confidentiality agreement in the first solicitation of the RFP in which it participates. As such, it is not necessary to resubmit the Confidentiality Agreement in each subsequent solicitation. |
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| 27. |
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Are the terms of the "Confidentiality Agreement" and "Binding Bid Agreement" negotiable? |
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The Confidentiality Agreements and Binding Bid Agreements used in connection with PPL Electric's default service procurement plan and SREC RFP are standard documents that have been approved by the Pennsylvania Public Utility Commission. All RFP Bidders must execute these documents without modifications. |
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| 28. |
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The Credit Application asks for two years of audited financials. Will one year of audited financials and one year of reviewed financials suffice along with two years of internally compiled financials for a guarantor?
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Unfortunately, that would not be sufficient to meet the requirements of the RFP. The Credit Application requires that you submit for the Bidder or its Guarantor the most recent 2 full years of financial statements audited by a firm of certified public accountants of national standing. Submitted information must be in the English language, and financial data denominated in United States currency, and conform to generally accepted accounting principles (“GAAP”) in the United States. If the Applicant's financial information is consolidated with other entities, then it is the Applicant's responsibility to extract and submit as separate documents all data and information related solely to the Applicant. This must include all financial information, associated notes and all other information that would comprise a full financial report conforming to GAAP. |
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| 29. |
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The Credit Application asks for bank reference information. If an applicant is unwilling to provide bank references will they not be qualified? |
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The Credit Application requires that you provide bank references when these are available. The RFP Bidder must submit the Credit Application and associated financial information in order to qualify to bid. The RFP Bidder may mark the information as “Confidential Information” should there be any doubt that the information is covered by the Confidentiality Agreement signed by the RFP Bidder and PPL Electric. |
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| Block |
| 1. |
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The PJM Qualification Certification Form posted to the RFP web site does not have ample space to type my entire company name; how should I enter the company name in full? |
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We thank you for bringing this to our attention. Revised forms have been provided to the RFP web site, with fields that expand to accommodate text. You may also type or print this information by hand. |
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The Confidentiality Agreements for the AEC RFP and the Block Supply RFP reference Section 4.11 of the respective SMAs, which does not appear to be correct. Will this section error be corrected? |
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Updated Confidentiality Agreements (Appendix 3) to the Block Supply RFP and the AEC RFP have been posted to the RFP web site, and an announcement has been sent to all web site registrants on July 16, 2009.
- Revised Block Supply Confidentiality Agreement: Click Here!
- Revised AEC Confidentiality Agreement: Click Here!
The PPL Electric RFP Team will accept the Confidentiality Agreement for each RFP regardless of whether the original or the revised version is submitted. If an original agreement is submitted with an RFP Bidder's Qualifications, PPL Electric will correct for this section error by hand when countersigning the agreements. |
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| Load Following Full Requirements |
| 1. |
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The PJM Qualification Certification Form posted to the RFP web site does not have ample space to type my entire company name; how should I enter the company name in full? |
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We thank you for bringing this to our attention. Revised forms have been provided to the RFP web site, with fields that expand to accommodate text. You may also type or print this information by hand. |
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| AEC |
| 1. |
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When are qualification materials due for the Alternative Energy Credit ("AEC") RFP? |
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Bidder qualifications for the AEC RFP are due on the Bidder Qualifications Due Date, found in the AEC RFP schedule, at noon Eastern Time. Supplier documents for the AEC RFP are available here. The AEC RFP schedule can be found here. |
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The Confidentiality Agreements for the AEC RFP and the Block Supply RFP reference Section 4.11 of the respective SMAs, which does not appear to be correct. Will this section error be corrected? |
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Updated Confidentiality Agreements (Appendix 3) to the Block Supply RFP and the AEC RFP have been posted to the RFP web site, and an announcement has been sent to all web site registrants on July 16, 2009.
- Revised Block Supply Confidentiality Agreement: Click Here!
- Revised AEC Confidentiality Agreement: Click Here!
The PPL Electric RFP Team will accept the Confidentiality Agreement for each RFP regardless of whether the original or the revised version is submitted. If an original agreement is submitted with an RFP Bidder's Qualifications, PPL Electric will correct for this section error by hand when countersigning the agreements. |
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I am the manager of a small Hydro Station which generates PA Tier II AEC. Our Parent Company will not get a financial rating nor will they share their yearly financial reports. Is there anything I can do to enter into a contract for my AECs? |
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We are the RFP Manager for PPL Electric's RFPs under their Default Service Procurement Plan, including the AEC RFP. We can respond to questions regarding this RFP but cannot provide information or suggestions regarding your ability to enter into a contract for RECs outside of this RFP.
The AEC RFP does not offer an opportunity to sell RECs for a company in your circumstances. While the credit rating requirement described below is now optional, bidders however are required to provide audited annual financial statements in the credit application. As stated in section 4.1.1 of the RFP Rules, "An applicant is qualified to bid in a given solicitation if, by the Cure Deficiency Deadline of that solicitation, it satisfactorily completes or updates the following: ... 3) submits the Credit Application and associated financial information requested in Article 4.5 (Credit Application and Financial Information)
Currently, there are no provisions to accept alternative arrangements other than what is described above.
Please note that the Pennsylvania Public Utility Commission ("PUC") has approved PPL Electric's petition to eliminate the requirement that an applicant demonstrate that its, or its guarantor's, debt rating be available from S&P, Fitch, or Moody's for the Alternative Energy Credits ("AEC") RFP. This petition is applicable only to the AEC RFP and is effective for the upcoming AEC RFP Bidder Qualifications Due Date. The filing has been posted to the AEPS Supplier Documents page of the RFP Web site. |
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We have not qualified under the previous DSPP solicitations – how can we qualify to participate in this solicitation of the AEC RFP? |
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In order to qualify to participate in the current solicitation of the AEC RFP, all you will need is to submit bidder qualification materials to the RFP Manager by noon on Bidder Qualifications Due Date. A bidder qualifications checklist for the AEC RFP is available on the RFP Web site to aid in the submission of qualification materials and can be downloaded here: http://www.pplelectric.com/Business+Partners/polr-aeps/Supplier+Documents.htm
Please note that the Pennsylvania Public Utility Commission ("PUC") has approved PPL Electric's petition to eliminate the requirement that an applicant demonstrate that its, or its guarantor's, debt rating be available from S&P, Fitch, or Moody's for the Alternative Energy Credits ("AEC") RFP. This ruling is applicable only to the AEC RFP and is effective for the upcoming AEC RFP Bidder Qualifications Due Date. The filing has been posted to the AEPS Supplier Documents page of the RFP Web site. |
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Given that you require 2 years of audited financials, would you be willing to deal with a new company implementing a new alternative energy technology? We are still in the R&D phase and it will be at least 15-18 months until our facility is commissioned. |
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As stated in section 4.1.1 of the RFP Rules, "An applicant is qualified to bid in a given solicitation if, by the Cure Deficiency Deadline of that solicitation, it satisfactorily completes or updates the following: ... 3) submits the Credit Application and associated financial information requested in Article 4.5 (Credit Application and Financial Information)". The applicant is the company that would sign the AEC SMA should its bid be selected and approved by the Commission. To the extent that the company has available two years of audited financials (or relies on the financial standing of a guarantor company that has available two years of audited financials) and all other documents required for qualification under the RFP Rules, you may participate, regardless of when your facility will be commissioned. |
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| SREC |
| 1. |
Q. |
We utilize special purpose LLCs as our project entities. We do not have audited financial statements for ourselves or these project LLCs. In addition, we are not rates by any of the credit rating agencies. Section 5 of the Credit Application appears to state that non-rated sellers will need to provide a minimum of 3 years of audited financial statements. Can we still successfully apply for qualifications under the SREC RFP given the above scenario? |
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PPL Electric cannot provide advice on the business arrangements under which you participate in the long-term RFP. However, we note that it is a qualification requirement for either the Seller or Guarantor provides 2 years of audited financials. Please see Qualifications/General FAQ-12 and 21 for more information.
From your description, it would appear that you can meet this requirement by relying on the creditworthiness of a Guarantor that has at least two years of audited financials.
Non-rated Sellers are only required to provide three years of audited financial statements if they are asking to be considered for Unsecured Credit. Pursuant to section 12.3 of the SREC SMA, Unsecured Credit is granted to Sellers that are rated or that rely on the creditworthiness of a Guarantor that is rated. In general, an unrated Seller that is not relying on the creditworthiness of a rated Guarantor will be granted no Unsecured Credit under the terms of the SREC SMA. However, PPL Electric retains the discretion to extend Unsecured Credit to non-rated Sellers based on an evaluation of reasonable credit criteria, which shall at a minimum consist of a review of three (3) years of audited financial statements. Non-rated Sellers that wish to be considered for any such Unsecured Credit must provide three (3) years of audited financial statements.
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| 2. |
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Please confirm whether it is a qualifications requirement for the Seller to be rated by S&P, Moody's, or Fitch? Please also confirm if it is a qualifications requirement or if it is optional to provide 2 years worth of audited financials? |
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For the SREC RFP, it is not a qualifications requirement for either the seller or the guarantor to be rated by S&P, Moody's or Fitch. The Seller or its Guarantor must provide 2 years of audited financials. |
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If a bidder chooses not to participate in the first solicitation of the SREC RFP, will there be a separate Bidder Qualification process for the future solicitations of the SREC RFP? |
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Yes, there will be a separate qualification process for each of the two future solicitations of the SREC RFP. |
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| 4. |
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Please confirm that only companies with audited financial statements are eligible to participate. |
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A. |
PPL Electric cannot provide advice on the business arrangements under which you participate in the long-term RFP. However, we note that it is a qualification requirement for either the Seller or its Guarantor to provide 2 years of audited financials, as defined in the PA Public Utility Commission approved Long-term SREC RFP and SMA documents. Please see Qualifications/General FAQ-12 and 21 for more information: http://www.pplelectric.com/Business+Partners/polr-dspp/faq_qualifications.htm. Any Seller that does not have its own audited financial statements for two years is able to rely on a Guarantor for purposes of meeting the qualification requirements. |
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| 5. |
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Can the guarantor personally guarantee, and if so would you then require audited personal financial statements? |
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The Guarantor must be a company and not an individual. Should the RFP Bidder win SRECs in the SREC RFP, the Guarantor will be required to execute the Unconditional Guaranty (Exhibit D) as it appears in the SREC SMA to be granted an unsecured line of credit, and as such the guarantor must be able to make all representations and warranties therein. Paragraph 3(a) requires the Guarantor to indicate if it is a [limited liability company, corporation, limited partnership or general partnership] that is duly organized, validly existing and in good standing under the laws of the jurisdiction of its [formation, organization, or incorporation] and has the [corporate power or power] and authority to conduct the business in which it is currently engaged and enter into and perform its obligations under the Guaranty. |
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| 6. |
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For the requirement of 2 years of audited financials. To what level do they need to be audited? |
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The applicant indicated in Section 2 of the Credit Application is required to submit the most recent 2 years of financial statements audited by a firm of certified public accountants of national standing. |
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| 7. |
Q. |
As a relatively new solar PV developer, we do not have the requisite two years of audited financials necessary to "qualify" as a bidder under this subject LT SREC RFP process. Would PPL please consider this alternative approach to qualification? |
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A. |
Based upon the rules laid out in the Long-term Solar REC RFP and SMA document, both reviewed and approved by the PA PUC, PPL Electric is unable to deviate from the terms in these agreements. As such, PPL Electric is unable to accept your request to provide cash collateral in lieu of meeting the two years of independently audited financial's, as laid out in the qualification requirements of the RFP.
PPL Electric cannot provide advice on the business arrangements under which you participate in the long-term RFP. However, we note that it is a qualification requirement for either the Seller or its Guarantor to provide 2 years of audited financials, as defined in the PA Public Utility Commission approved Long-term SREC RFP and SMA documents. Please see Qualifications/General FAQ-12 and 21 for more information: http://www.pplelectric.com/Business+Partners/polr-dspp/faq_qualifications.htm. Any Seller that does not have its own audited financial statements for two years is able to rely on a Guarantor for purposes of meeting the qualification requirements. |
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| 8. |
Q. |
As a non-rated seller, I would like to be considered for Unsecured Credit. I submitted two years of audited financials with my bidder qualification package, and I understand that three years are required. Can I still submit the third year, or is it too late? |
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A. |
PPL Electric retains the discretion to extend Unsecured Credit to non-rated Sellers based on an evaluation of reasonable credit criteria, which shall at a minimum consist of a review of three (3) years of audited financial statements. Non-rated Sellers that wish to be considered for any such Unsecured Credit must provide three (3) years of audited financial statements. If you have not provided this information by the Qualifications Due Date, you must provide this information no later than the cure deficiency deadline of noon on April 20, 2011. |
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| 9. |
Q. |
We are developing a project with a Host company in Pennsylvania. We are planning on submitting qualification materials on behalf of the Host as consultants. Ultimately, the owner of the project will be a third-party investment group along with debt financing from a bank. Will the scope of the project, size and creditworthiness of the Host company be satisfactory for the qualification process, even if the ultimate intent is to finance the project with third-party investors? |
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A. |
PPL Electric cannot provide advice on the business arrangements under which you participate in the RFP. We note that the RFP Bidder named in the Qualification materials will be required to submit two signed originals of the SREC Supply Master Agreement (“SREC SMA”) to be eligible to submit a bid. The SREC SMA must name the RFP Bidder as the Seller that, at this time, has ownership of the SRECs that would be delivered to PPL Electric under the SREC SMA. From your description above, if the Host Company initially owns the project, the Host Company would be the RFP Bidder and would be the signatory to the SREC SMA. Please refer to the SREC SMA, including section 14.7, for information regarding future assignment of the SREC SMA. An authorized signatory of the RFP Bidder must sign all the documents related to the RFP. Consultant(s) on behalf of the RFP Bidder are permitted to help prepare and submit the documents on behalf of the RFP Bidder and to discuss matters related to the RFP Bidder’s submission of qualification materials and bid proposal requirements with the PPL Electric RFP Team as long as a written acknowledgement is provided by an authorized representative of the RFP Bidder. |
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