Group of Four North Carolina Electric Membership Corporations
Request for Proposals
A group of four electric membership corporations (“EMCs”) located in North Carolina referred to herein as the “NC4” are collectively seeking proposals for their individual power supply needs. Specifically, the NC4 is comprised of Blue Ridge Electric Membership Corporation (“Blue Ridge”), Haywood Electric Membership Corporation (“Haywood”), Piedmont Electric Membership Corporation (“Piedmont”) and Rutherford Electric Membership Corporation (“Rutherford”). Collectively, the NC4 EMCs serve 222,136 residential, commercial and industrial meters throughout their respective assigned service territories. Their collective winter peak for 2022 was 1,135MW, and their collective summer peak for 2022 was 695 MWs with annual energy purchases of 3,567 GWhs. The NC4 EMCs provide affordable and reliable electric service to serve their member-owners. On behalf of the NC4, EnerVision, Inc. (“EnerVision”) and Ashby Consulting, LLC (“Ashby Consulting”) are issuing this Request for Proposal (“RFP”) to solicit power supply proposals from market participants (“Respondents”).
The NC4, each an electric distribution cooperative, became members of North Carolina Electric Membership Corporation (“NCEMC”) in 1959 upon its inception. Historically, the NC4 purchased all their requirements for electric capacity and energy from NCEMC pursuant to a long-term wholesale power contract. Effective January 1, 2003, NCEMC adopted Board Policy 340 (the “Member Choice Policy”) to permit its members to elect to serve a portion of their respective retail load requirements with generation or contract resources of their own choice.
Blue Ridge, Piedmont and Rutherford made their respective elections to become Independent Members of NCEMC effective January 1, 2004. Haywood made its election to become an Independent Member of NCEMC effective January 1, 2009.
Under the Member Choice Policy, an “Independent Member” is a member of NCEMC which has elected to assume responsibility for independently arranging for additional power supply resources, over and above its allocated portion of the NCEMC Committed Resources. “NCEMC Committed Resources” are power supply resources, which are owned or are the subject of valid and enforceable contracts between NCEMC and another party as of the effective date of the NCEMC member’s election to become an Independent Member. Each of the NC4 EMCs purchases electric capacity and energy from NCEMC pursuant to a Wholesale Power Supply Agreement (“WPSA”) with a term that extends through December 31, 2046. Under the WPSAs, each of the EMCs are allocated a share of each NCEMC Committed Resource. As NCEMC Committed Resources expire or are terminated, the EMCs assume responsibility for replacing the expired or terminated NCEMC Committed Resource. The only NCEMC Committed Resource remaining under the WPSA of Blue Ridge, Piedmont and Rutherford is their allocation of NCEMC’s interest in the Catawba Nuclear Station. In addition to an allocation of NCEMC’s interest in the Catawba Nuclear Station, Haywood has allocations in other NCEMC Committed Resources. Each of the EMCs has an allocation of electric capacity and energy from the Southeastern Power Administration (“SEPA”).
The assigned service territories of Blue Ridge and Rutherford reside solely within DEC’s balancing authority area. The assigned service territories of Haywood and Piedmont are located partially in the DEC balancing authority area and partially in the DEP balancing authority area. Blue Ridge, Piedmont and Rutherford became partial requirements customers of Duke Energy Carolinas, LLC (“DEC”) in 2006. Blue Ridge and Piedmont converted their respective partial requirements service agreements into full requirements agreements with DEC in 2007. Rutherford continues as a partial requirements customer of DEC. Haywood became a full requirements customer of DEC in 2009.
Haywood became a partial requirements customer of Progress Energy Carolinas, Inc., the predecessor to Duke Energy Progress, LLC (“DEP”) in 2009. Piedmont has purchased partial requirements from DEP or its predecessor since 2006. Haywood and Piedmont have each entered into a Network Integration Transmission Service Agreement (“NITSA”) with DEC and DEP. Blue Ridge and Rutherford have each entered into a NITSA with DEC.
Under each of the respective partial requirements contracts, DEC or DEP, as applicable schedules each of the EMCs’ share of their respective allocations of NCEMC Committed Resources and their respective allocations from SEPA, and supplies all incremental capacity, energy and load following needs. Under each of the full requirements contracts, the EMC makes its existing NCEMC Committed Resources and respective SEPA allocation available to DEC. DEC schedules the EMC’s resources and DEC assumes cost responsibility for the EMC’s resources that are made available by way of a credit mechanism defined in the power purchase agreement. These individual requirements contracts expire after December 31, 2031, and are public documents filed at the Federal Energy Regulatory Commission. Pursuant to rate cases pending at the North Carolina Utilities Commission (“NCUC”), DEC and DEP are seeking to change their respective existing retail cost allocation methodologies. The issuance of a non-appealable order by the NCUC changing the retail cost allocation methodology of DEP and/or DEC triggers early termination provisions in each of the requirements contracts, except for Piedmont’s requirements contract with DEP. Each Respondent will be provided detailed information pertaining to the early termination provisions once they have completed the Registration Form and executed and delivered a Mutual Confidentiality and Non-Disclosure Agreement.
The NC4 are considering a range of power supply options in the form of requirements, standard industry products, asset-based or unit contingent products, and creative products, such as renewable resources and distributed energy resources (“DER”) that provide economic value and flexibility. The NC4 will also require scheduling agent services and may consider services to comply with the North Carolina renewable energy portfolio standard pursuant to Session Law 2007-397 (Senate Bill 3).
Even though each EMC requires an individual contract(s), collectively the NC4 are aligned with similar goals and interests that are outlined in this RFP and expect that individual contract provisions and characteristics will be substantially similar.
Each of the NC4 EMCs is a borrower from the Rural Utilities Service (“RUS”). Any power purchase agreement entered into with a Respondent will require approval from each of the EMCs Board of Directors and from the RUS.
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Address all RFP questions, correspondence, NDA, and Proposals to: