Requests for Proposals

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Mississippi Power is issuing a request for proposals ("RFP") for renewable energy resources to be available to meet the renewable energy needs of its customer base. The company is particularly interested in proposals that will offer lower cost energy and exceptional value to the company and its customers. Resources located within the service territory of Mississippi Power are preferred, although proposals offered outside this area will also be considered.

Consideration will be given to any renewable energy project of a size greater than 500kW and capable of providing a minimum annual energy delivery of 100 MWh per year to the company.

SCHEDULE OF DATES

Solicitation Issued:   September 1, 2011

"Notice of Intent to Bid" received:   September 30, 2011, by 5 p.m. CDT

Bids due:    November 1, 2011, by 5 p.m. CDT

A Competitive Tier will be selected shortly thereafter. The Competitive Tier bids will be further evaluated for interconnection and system improvement costs and other considerations. Potential PPA negotiations will continue with that short list of bidders. All negotiations and potential contracts are expected to take 6-12 months before a final contract is completed.

Please provide the following informaion, then we'll send you right along to the RFP information.

Name

Company

Street

City

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Email



RFP for Renewable Energy Q&A

Q) How flexible is Mississippi Power with pricing options and "creative" solutions that we may be able to offer?
A) All bidders are expected to provide, at a minimum, the required information as outlined in all of the RFP documentation and to fill in Attachment C "Request for Bid Proposal Information" exactly as it is laid out for each individual proposal. However, if in your supporting documentation, you would like to suggest an alternative pricing structure or mechanism for us to evaluate, we will take it into consideration. Please be advised that this option should not change the base proposal including the terms, quantity of energy or contract period. As detailed on Page 4 under "Bid Fee" - "variations in contract period, delivery options and resource options will constitute another proposal and will be subject to another bid fee." 10/17/11

Q) Will Mississippi Power consider proposed changes to Attachment G "Form of Letter of Credit"?
A) Yes. Same as with Attachment E "PPA Terms and Conditions", each bidder should notify us of any exceptions to any terms and conditions or other language changes in the RFP that should be evaluated with each proposal. 10/17/11

Q) In your RFP documentation, you address the requirements for submitting a proposal but you do not mention any requirements around Attachments 'H' and 'I'. Are we supposed to submit those as well?
A) Attachments 'H' and 'I', as written, are intended to be a part of the final contract - should a PPA be executed - and will need to be evaluated before a contract is negotiated. While these documents may be submitted later, it would be very helpful to Mississippi Power if they could be submitted with final bids to avoid additional work on the back end of the process. Please consider submitting these documents with your proposal to help us in the overall evaluation of the bids. 10/17/11

Q) If we missed the Notice of Intent to Bid (NOIB) deadline, can we still submit a proposal?
A) We are not restricting any company that wants to participate in the RFP by submitting a proposal. However, it is our intention to consider and evaluate the proposals that are submitted in full compliance with all RFP requirements ahead of any non-compliant submittals. We would ask that you please submit the NOIB Attachment 'B' form as soon as possible. Since your NOIB will be considered "non-compliant" for missing the deadline, any final proposal(s) that does not fully satisfy all future requirements as outlined in the RFP documentation will be considered non-responsive and will be rejected. 10/17/11

Q) Should the $500 bid fee be included with the Notice of Intent to Bid?
A) No. Please do not send your bid fee with the NOIB. It should be included with your formal bid. Also, as a reminder, the bid fee is $500 per proposal.

Q) Can we submit our final Bid Proposal using different facility sites than indicated on the Notice of Intent to Bid?
A) Mississippi Power would prefer that you not, but understanding that things can change over the course of a month, bidders should indicate as close as possible the proposed facilities (and associated options or constraints) in the NOIB and explain any changes to the proposal when the final bid is submitted. MPC will make every attempt to handle the process fairly for all parties. An example that would not be considered in the evaluation is if a bidder proposed a solar project in State A in the NOIB but actually submitted a wind project in State B as their formal bid.

Q) The RFP states the minimum requirements for the size of a proposal, but does MPC have a maximum or even a "desired" target capacity or energy offering?
A) There are no upper limits on the size of a proposed project and MPC has no target in mind. All proposals will be evaluated for their value to our customers and how each proposal may meet our customers' needs. 9/27/11

Q May we submit the Notice of Intent to Bid by e-mail or do hard copies have to be sent by mail?)
A) All Notices of Intent to Bid and final bids must be received by mail by the due dates and times specified in the RFP. Electronic submission will not be recognized. As stated in the RFP, "Any proposal that does not satisfy the requirements of this RFP may be considered non-responsive". 9/27/11

Q) You mentioned below that you will consider bids that require aggressive timeframes for evaluation. If we need to make you aware of this before the RFP end date, how should we do that?
A) In your “Notice of Intent to Bid” (that is due September 30th by 5:00 pm CDT), please clarify any special considerations that should be anticipated before the close of the RFP process. This is not a guarantee that your unique situation will be considered differently than all other bids – it is still Mississippi Power’s intent to open all bids together after the final due date of November 1st. 9/14/11

Q) Are resources that are proposed required to be located within the state of Mississippi?
A) No. While proposals that will benefit the economy of the state of Mississippi and more specifically, Mississippi Power’s service territory are preferred, that is not a requirement of this RFP. All proposals that can be delivered to Mississippi Power’s transmission and distribution system will be considered. 9/14/11

Q) Attachment ‘A’ doesn’t specifically list waste heat recovery from existing processes that can be used for power generation. Will waste heat recovery be considered an applicable resource, as precedent has shown in Louisiana and other states?
A) While the list of applicable fuel sources in the attachment may not be comprehensive or exhaustive, proposals considered in this process must be derived from resources “capable of obtaining certification from a recognized certification entity” as described in the same attachment. 9/14/11

Q) Would Mississippi Power be interested in purchasing just the renewable attributes (certified RECs or equivalent) but not the energy and/or capacity from a proposed resource located within its service territory?
A) While this is not the underlying reason for soliciting renewable energy proposals, MPC does recognize the potential value of Renewable Energy Certificates. We are primarily interested in energy resources that can benefit and meet specific needs of our customers but all renewable proposals will be evaluated. 9/14/11

Q) What is the expected decision making schedule for this RFP?
A) Notices of Intent-to-Bid are due by 5:00 p.m. CDT on September 30, 2011. Formal proposals are due by 5:00 p.m. CDT on November 1, 2011. A Competitive Tier will be selected shortly thereafter. The Competitive Tier bids will be further evaluated for interconnection and system improvement costs and other considerations. Potential PPA negotiations will continue with that short list of bidders. All negotiations and potential contracts are expected to take 6-12 months before a final contract is completed.

Q) Once a final contract has been negotiated, will the bidder be allowed to immediately proceed with its proposed project?
A) No. All contracts must be approved by the Mississippi Public Service Commission and/or the Federal Energy Regulatory Commission, as applicable, before such contract may commence. This will take place after all negotiations between the bidder and Mississippi Power are finalized and such contracts are executed by the authorized representatives of the parties.

Q) Is the company targeting specific timelines as to when the proposed renewable resource and energy will be available?
A) No. Through this RFP, the company is soliciting renewable energy options that will economically benefit all customers. A targeted delivery timeline is not the driving factor. All deliverable dates will be considered.

Q) Does Mississippi Power have a mandate or requirement that is driving the need for this RFP?
A) No. The Company is not conducting this RFP on the basis of a mandate or requirement for renewable resources. The Company is requesting proposals for renewable resources to insure that it is adequately evaluating all supply side resource options available to serve its customers needs. By offering a separate renewable RFP, the company hopes to provide an avenue specifically for renewable energy resources to be considered and possibly incorporated into the company's generation resource portfolio. Mississippi Power is also looking to assist customers that are interested in renewable energy offerings, to meet their renewable or green energy needs.

Q) Based on the expected timelines and interests of Mississippi Power as laid out above, if a bidder has a very aggressive schedule that must be met to ensure certain federal incentives or production tax credits remain available, should the bidder even try submitting a proposal?
A) Yes. Mississippi Power acknowledges that certain, more aggressive timelines may be required to ensure the lowest possible costs for certain resources. Bidders are encouraged to submit proposals and specifically highlight the drivers pushing the expected timelines. If mutually beneficial, Mississippi Power will work with the bidder to ensure the process moves quick enough to take advantage of all possible incentives.