Summary of additional terms for an RPS Agreement to include energy storage services for which the charging Energy is sourced solely from the Eligible Renewable Energy Resource
The capitalized terms used, but not defined, in this summary have the meaning provided in PG&E’s 2014 Pro Forma RPS Power Purchase Agreement
Delivery Term / The Delivery Terms for the ERR and eligible energy storagecomponents (“Storage Resource”) will be concurrent. Delivery from the Storage Resourcemay end earlier than delivery from the ERR. The Delivery Term for the Storage Resource may not be longer than the Delivery Term in the RPS Agreement.Charging, Discharging,Metering and Operational Limitations / The Storage Resourcemay only be used to receive Energy from the ERR specified in the RPS Agreement, store the Energy, and subsequently discharge it into the CAISO Grid. The Storage Resource may not be charged fromany other energy source (e.g. the CAISO Grid, wholesale distribution service, retail electric service, on-site generation other than the ERR, etc.).
The combined ERRand Storage Resource will have one CAISO Global Resource ID and one CAISO revenue meter. Seller will be required to install and maintain separate submeters at the ERRand at the Storage Resource and to provide access to these meter data to Buyer for settlements verification, auditing of the availability and efficiency of the Storage Resource, etc. Location, operational limitations, etc., applicable to the ERR and Storage Resource are specified in Appendix IV.
Product / Seller conveys to Buyer rights to any and all attributes of the ERRand Storage Resourceduring the Delivery Term, including: capacity, Capacity Attributes, Energy, Renewable Energy Credits, Green Attributes, renewable attributes and other attributes such as Ancillary Services(as defined in the agreement). Seller must ensure that all of the Energy delivered to the Delivery Point qualifies as RPS-eligible Energy and can be used by Buyer to satisfy its RPS compliance obligation.
Compensation / Sellers are paid a fixed Contract Price ($/MWh) without TOD adjustments for all Delivered Energy, as measured by the CAISO revenue meter at the Delivery Point. All Delivered Energyis eligible to receive an additional payment (“Storage Price”) ($/MWh) during the Delivery Term forthe Storage Resource. If the Storage Resource doesn’t perform in accordance with contractual requirements, the StoragePrice payment will be reduced during such months or permanately eliminated.
A cure period will be provided. If the Seller resumes contractual performance within the cure period, Storage Price payments will resume. If the deficiency is not corrected by the end of the cure period, the Storage Price may be eliminated for the remainder of the Delivery Term.
Storage Failure / If the Storage Resource’sfails to meet the minimum performance requirements (“Storage Failure”), then the Buyer will be entitled to liquidated damages and the contract reverts to an RPS-only contract. A Storage Failure will not trigger an Event of Default. In this case, theContract Price,without TOD adjustments,will be the Seller’s sole compensation for the RPS-related Product for the remainder of the Delivery Term. In addition, Buyer will not have the right to continue using any residual capacity from the Storage Resource for the remainder of the Delivery Term.
Buyer Curtailment Periods / If Buyer curtails the ERR for a Buyer Curtailment Period and the Storage Resource stores the curtailed Energy, then there is no Deemed Delivered Energy. If the Storage Resource is fully charged and not able to store the curtailed Energy, then there is a Deemed Delivered Energy calculation and payment similar to the RPS-only contract terms.
Resource Adequacy (“RA”) / The same obligations are imposed on Seller as under PG&E’s 2014 Pro Forma RPS Agreement. Seller shall obtain and maintain Full Capacity Deliverability Status as determined by the CAISO for the ERR and Storage Resource as of the Initial Energy Delivery Date (“IEDD”) and throughout the Delivery Term.
Scheduling Coordinator / Buyer acts as the Scheduling Coordinatorand will bid/schedule the Product (from both the ERR and Storage Resource) into the CAISO markets. Buyer’s responsibility includes optimizing the charging and discharging of the Storage Resource. Seller must be able to respond to Dispatch Instructions for the Real-Time Market via an electronic signal for both the ERR and the Storage Resource.
CAISO Revenues and Charges / Buyer retains all CAISO revenues, and is responsible for most CAISO charges associated with dispatch of the Product. Seller shall be liable for any costs, charges, or penalties assessed by the CAISO to Buyer in its role as Scheduling Coordinator that are related to the ERR or Storage Resource’s failure to pass an audit, verification or compliance test of any ather attributes available to Buyer.
Forecasting, Guaranteed Efficiency & Guaranteed Availability / Seller bears the same obligations for forecasting as under PG&E’s Pro Forma RPS Agreement. The Seller must guarantee both a minimum efficiency (exclusive of station electrical uses) and availability of the Storage Resource. If the measured efficiency and/or availability (averaged on a monthly basis) does not meet guaranteed standards, it triggers a reduction in the Storage Price for that month. Below a contractually-specified threshold, the Storage Price reducesor is eliminated (but there is no Event of Default).
Charging Energy / Buyer shall be responsible for scheduling all of the charging Energy from the ERR to the Storage Resource (before the Delivery Point). Station electrical uses for both the ERR and the Storage Resource must be separately metered and are the responsibility of Seller (consistent with RPS form agreement terms).
Early Termination
Settlement Amount Calculation / Declaration of an Early Termination Date and the Settlement Amount calculation terms remain the same for the RPS component.
If the contract is terminated prior to the start of the Delivery Term for the Storage Resource and Seller is the Defaulting Party, the Buyer will retain the Project Development Security (“PDS”) for the Storage Resource.
Project Development Security / Seller shall provide $15/kW times the total capacity of the Storage Resource to Buyer upon execution. Upon CPUC Approval, Seller shall increase the PDS to $60/kW times the total capacity of the Storage Resource until the date on which the Storage Resource is operational. The collateral must be consistent with the forms in the RPS Agreement.
Delivery Term Security / Seller shall provide Buyer with additionalDelivery Term Security (“DTS”) for the Storage Resource. The additional amount will be the higher of $125/kW of the Storage Resource or 10% of the expected storage payments. The collateral must be consistent with the forms in the RPS Agreement. The total DTS will be based on the sum of the original DTS maintained by Buyer under the existing RPS Agreement, plus the additional DTS required for the Storage Resource. In the case of a Storage Failure, the DTS will be reduced accordingly for the remainder of the Delivery Term.
CPUC Approval / PG&E will seek approval of the RPS Agreementwith the Storage Resource component to ensure, among other things, that the addition of the Storage Resource counts towards PG&E’s energy storage procurement targets.
Insurance / Sellers must hold pollution liability coverage. Other insurance coverage requirements match the standard coverage required under PG&E’s form of RPS agreement.
Events of Default / It is an Event of Default if Seller intentionally or knowingly delivers, or attempts to deliver, Energy that was not generated by the ERR or the Storage Resource (the RPS form agreement just references the ERR or Project in this context).
Commercial Operation Requirements / Additional requirements will be added to Appendix VI-2.
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