Commonwealth Utilities Corporation (CUC), Northern Mariana Islands: Saipan, Tinian, Rota

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COMMONWEALTH UTILITIES CORPORATION REQUEST FOR PROPOSALS CUC - RFP 07-015
GRID SUPPLY RENEWABLE ENERGY GENERATION PROJECTS for CNMI

01/10/2008: Addendum No. 1: Time Extensions

02/05/2008: Addendum No. 2: Schedule and Submission Revisions

03/07/2008: Addendum No. 3: Time Extensions

04/17/2008: Addendum No. 4: Revisions & Time Extensions

The Commonwealth Utilities Corporation (CUC) seeks the development of Grid Supply Renewable Electricity Generation (“REG”) projects for the Commonwealth of Northern Mariana Islands (CNMI) and intends to enter into long-term performance contracts, where the contractors will be fully responsible for construction and operation of these Renewable Electricity Generation (“REG”) projects. This Request For Proposal (RFP) is the first in what the CUC envisions to be an ongoing process of growth and development of a comprehensive portfolio of increased energy efficiency in the CNMI islands, to reduce the islands’ dependence on fossil fuel/s.

CUC is the government-owned electric, water and wastewater utility. CUC believes that market conditions offer highly attractive opportunities for renewable power suppliers in the CNMI, while at the same time providing our consumers with energy from alternative sources at reduced power rates.

CUC is soliciting competitive proposals from interested parties (proposers) to provide for all costs, material, labor and equipment for the Design, Supply, Installation, Commissioning, Operation and Ownership of REG facilities in the islands of Saipan, Rota and Tinian, including associated interconnection facilities to interface with CUC power grid.

CUC believes that the following technologies are technically and financially feasible for REG projects, with sufficient output sold either individually or “packaged” together: Solar photovoltaic, wind energy, wave or tidal energy. Other technologies that may be useful to consider are, fuel cells, solar thermal power, geothermal power and methane gas-fired generation from landfills or a biomass facility. However the proposers are responsible to choose the most effective and appropriate technologies for their application based on their assessment.

CNMI has one of the highest power tariff rates in the nation. This averaged from US $ 0.244 to $0.319 per kWh sold, for the majority of consumers, with the fuel component rate of $0.228 cents per kWh in September 2007. CUC, intends to guarantee for a period of years the purchase of the REG-produced power at a negotiated rate from the most competitive offerors. CUC may select more than one proposer. CUC is hoping to achieve full compliance of the CNMI Public Law 15 – 23 for Renewable Energy in CNMI through this RFP process. The RFP documents are available below. CUC does not intend to distribute hard copies for this RFP.

The schedule for this RFP is as below:

“Expression of interest” shall be received from the proposers, no later than 3:00 p.m., local time, on 11 January, 2008.
A pre-proposal conference, if deemed necessary by CUC, will be held on January 26, 2008, however attendance is preferred but not mandatory, since most of the manufacturers of REG equipment are located outside of CNMI.
All questions shall be in writing to the same address or via e-mail to rfpinfo@cuccnmi.com no later than 3:00 p.m. local time, on January 31, 2008. Late questions, submittals or proposals will not be considered, in the interest of fairness to all proposers.
Proposals shall be marked CUC – RFP 07- 015, one (1) original and seven (7) copies submitted in a sealed envelope to Acting Manager, CUC Procurement Division, 3rd Floor, Joeten Dandan Building P.O. Box 501220, Saipan, MP 96950, Tel. 1 (670) 235 7025 – 7032 and Fax. 1 (670) 235 5138, no later than 3:00 p.m., local time, on February 25, 2008.

Discussion may be conducted with responsible proposers, who submit proposals determined to be reasonably susceptible to being selected for award, for the purpose of clarification and to insure full understanding of, and responsiveness to, solicitation requirements. Proposers shall be accorded fair and equal treatment with respect to any opportunity discussion and revision of proposals and such revisions may be permitted after submission and prior to award for the purpose of obtaining the best and final offers. In conducting discussion, there shall be no disclosure of any information derived from proposals submitted by competing proposers. CUC will evaluate the offers based on price and the likelihood of the offeror’s being able to deliver the power (a combination of technical and financial capability), under applicable procurement regulations.

Proposals that provide the maximum installed capacity and energy for integrating into the grid are preferred, but other criteria will also be considered to encourage a diversity of technologies and environmental benefits that also maximize the potential savings for CUC and the community. CUC is expected to award the contract to successful proposals which will conclude in completed projects on a ¢/Kwh generated, or some other quantifiable measurefor a maximum period of 20 years.

This RFP does not commit CUC to award a contract, pay any costs incurred by a proposer in preparing a proposal, to procure or to contract for services. CUC reserves the right to reject any and all proposals pursuant to CUC’s Procurement Regulations or may cancel the RFP if to do so would be in the best interests of CUC. All proposals shall become the property of CUC.

Anthony C Guerrero
Executive Director

Documentation:

Request for Proposal CUC RFP 07-015
Appendix A to C – CUC RFP 07–015 -PDF Microsoft Word
Appendix D – Draft Agreement
Appendix E – CUC Power Tariff Rates
Appendix F – CNMI Islands location map
Appendix G – Power Distribution & Transmission One Line Diagrams
Appendix H – Reference Documents, Rules and Regulations:
Minutes of pre-proposal conference, February 27, 2008
Response to clarifications of Pre-proposal meeting
- Power consumers on the islands of Saipan, Rota and Tinian
- Correspondence and Response with CNMI and US Federal Agencies for Assistance to the Renewable Energy Contractors/Proposers.
- Power Data for CNMI for the Calendar Year 2007, consisting of :
  - Peak load
  - Power Generated from each of the power plant/s.
  - Power Sold (Class wise – Residential, Commercial and Government)
- Audited Financial Statement for year ended – September 30, 2006
- Data on the unconnected loads in Saipan, as of 2006.

Commonwealth Utilities Corporation

COMMONWEALTH UTILITIES CORPORATION REQUEST FOR PROPOSALS CUC - RFP 07-015 GRID SUPPLY RENEWABLE ENERGY GENERATION PROJECTS for CNMI