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RFP for Energy Efficiency
WPPI Energy is offering a sixth round of our Request for Proposals (RFP) for Energy Efficiency, a program to encourage investment by large commercial and industrial utility customers in energy efficiency improvements.

The RFP seeks large efficiency projects that will reduce the demand for electrical energy at the project site by at least 25 kilowatts, and result in substantial on-peak energy savings.

Program Highlights

  • Open to all commercial, industrial and institutional power customers receiving electric service from a WPPI Energy member utility.
  • The program allows eligible customers to request the incentive amount needed to implement an energy efficiency project by submitting a competitive bid for incentive funding.
  • Bid applications may be submitted in partnership with an equipment vendor, engineering consultant, contractor or other third-party service provider. View and/or download a Bid Application Form to complete or an example bid application in Adobe PDF format.
  • At least $250,000 of incentive funding is available in this bid cycle for electrical energy saving retrofit projects in existing facilities.
  • Projects must reduce site electrical demand by 25 kW or more during the on-peak hours of 7:00 a.m. to 9:00 p.m., Monday through Friday.
  • Projects should also reduce site electrical energy consumption (kWh) during the same on-peak hours. No minimum amount.
  • Proposed equipment must exceed the minimum efficiency requirements for the WPPI Energy Efficiency Improvement Incentive Program.
  • Retrofit and new construction project applications are eligible.
  • All bids will be reviewed, scored, and ranked, with the highest ranking bids awarded funding first, until the available funds are expended.
  • For a complete listing of program guidelines, access the Program Manual.

Schedule

  • Program Start Date – September 8, 2008
  • Bid Applications Due – November 7, 2008
  • Announcement of Project Awards – December 12, 2008

Submitting a Bid

To participate, complete and submit a Bid Application Form along with the following:
  1. Project Background
    Attach a detailed description of the proposed project. Include background detailing how this project was chosen (e.g. energy audits, planned maintenance upgrades, efficiency management plan). Describe other energy efficiency opportunities that were explored, and if the completion of this project could lead to similar projects if this one is successful. Include information on non-energy saving project benefits, how the projects affects the facility, and if there are plans to measure the energy savings. Higher rankings projects are comprehensive and combine multiple energy savings measures.
  2. Statement of Need
    This will describe how the requested incentive is necessary to support your company’s financial goals. It may include ROI, corporate hurdle, high risk, project payback, or other barriers. Also, provide details on any other funding sources for the project such as incentives, grants, low interest loans, manufacturer’s discounts, etc.
  3. Vendor Proposal
    Attach a copy of the vendor proposal for the project to the Bid Application, including a description of the equipment to be installed, technical details with copies of manufacturer specifications, and total cost of the project.
  4. Estimate of Savings
    Attach an estimate of the electrical demand and energy savings to the Bid Application, with all the equations and assumptions clearly stated. Estimates of savings include a detailed examination of the baseline energy use and projected energy and demand reductions, as well as a plan for verification of saving after project completion. The use of electronics spreadsheets is encouraged. If a simulation is used, please provide a description of how the simulation calculates the savings. Documentation of a baseline condition is required.
  5. Project Timeline
    Attach a projected schedule that shows necessary management and budget approval dates, vendor contract negotiations, engineering and design, equipment delivery and installation, and project completion.

Scoring

Scoring of proposed projects will be influenced by electrical energy savings, avoided utility cost (cost avoided by offsetting power supply resources), and project economics. Preference will be given for projects that combine multiple energy saving technologies or measures, and to bidders that can demonstrate all reasonable electrical efficiency opportunities have been reviewed.

Bids will be more likely to succeed if:

  • The balance between the avoided utility cost and simple payback is in line with the bidder’s corporate financial requirements.
  • The proposed project is comprehensive and combines multiple energy saving measures.
  • No more than 50% of the total demand reduction and energy savings are the result of lighting technologies.
  • Estimates of savings include a detailed examination of the baseline energy use and projected energy and demand reductions, as well as a plan for verification of savings after project completion.
  • The bidding customer has adopted formal employee training and decision-making policies that incorporate energy efficiency and has noted this in the Bid Application.
  • The Bid Application, project description, statement of need, vendor proposal, estimate of savings, and project timeline include all of the required information.
  • A realistic timeline is provided with project completion dates.

Frequently Asked Questions

  1. Will bid applications be accepted for engineering or feasibility studies targeted at identifying energy saving projects?

    2. No. In this particular RFP for Energy Efficiency, only projects that can be developed in a short period of time with readily available estimates of energy savings are eligible. Study grants for engineering or feasibility studies are available from WPPI Energy, however, through other program offerings. Contact your Energy Services Representative or Key Account Manager for more information.

  2. What if our budget approval period does not fall within the schedule for this RFP for Energy Efficiency?

    3. Projects in this round of the RFP should be scheduled for completion before the end of 2008. WPPI Energy anticipates announcing one more funding cycle in 2008 and does offer traditional incentive programs in addition to this RFP for Energy Efficiency.

  3. What happens to bids that are not awarded incentive funding?

    4. Proposals that do not receive funding through this RFP for Energy Efficiency may be directed to other WPPI Energy or member utility program offerings, or advice will be provided on how to improve the bid application for future submittals. Bids will not automatically be submitted in the next RFP cycle.

  4. Is there any limit to the incentive amount requested?

    5. We currently do not have a maximum incentive amount specified, aside from the RFP budget of $250,000. WPPI Energy prefers to fund several cost-effective projects, and therefore all bids should be limited to the minimum incentive needed to make the projects feasibility cost effective using your facility's payback requirements. The highest scoring bids typically request under $300/kw demand savings, or less than 1.5 years worth of the proposed energy savings. All bids greater than 50 percent of project cost have a low likelihood of approval. We anticipate significant competition for the finite amount of funds available for each bid cycle.

  5. Can I apply for other incentive programs in addition to the RFP for Energy Efficiency?

    6. The intent of the RFP for Energy Efficiency bid process is to submit the full amount your company needs to overcome corporate hurdle rates for your projects. Therefore, no additional WPPI Energy, member utility, or Focus on Energy incentive programs can be combined with this offer. If you plan to apply for other funding sources or tax credits, it must be explicitly noted in the bid application.

  6. How should we calculate on-peak demand reduction?

    7. On-peak demand, measured in kilowatts (kW), refers to the maximum rate of electrical energy consumption for a 15-minute period during the hours of 7:00 a.m. to 9:00 p.m., Monday through Friday. The on-peak demand reduction represents the amount in which that maximum kW measurement can be lowered. In some instances, an adjustment factor may be needed if the demand reduction does not occur on a routine basis or is seasonal.

  7. Can internal labor costs be included?

    8. Internal labor costs may be included as long as they are reasonable and well documented. Internal labor estimates must include the cost of internal labor, the estimate of hours, and evidence that a separate internal tracking number has been created to account for labor attributable to the Proposed Project.

  8. What if the final project cost is different than the estimated cost in the application?

    9. If the final invoiced cost is less than the estimate cost, the incentive award may be prorated. If the final invoiced cost is greater than the estimate, no adjustment will be made.

  9. What can be done if the project scope or schedule changes relative to the approved project?

    10. Project scope or schedule changes will be handled on a case-by-case basis. If changes are expected for a project already approved, it is recommended that the customer inform WPPI Energy as quickly as possible to ensure that a beneficial resolution is achieved.