PURCHASE PROCESS

Agencies begin the process by signing a Statement of Intent for Federal Agencies (75 kb doc) or an SOI for WAPA Preference Customers (75 kb doc) with WAPA to purchase RECs or renewable energy. SOIs are a good faith non-binding agreement authorizing WAPA to seek REC’s on an agency’s behalf. The SOI specifies:

• Renewable product desired
• Quantity
• Location
• Maximum price
• Time frame of the agreement

If you need additional technical support such as resource assessment, preliminary transmission analysis and project solicitation, please note that on the SOI or contact the program.

NEXT…

After completing SOIs and contracts, including interagency agreements, WAPA issues a Request for Proposals for the participants’ desired product. Suppliers submit proposals which WAPA evaluates based on the RFP and participants’ needs as stated in the IA. The rest of the process is determined by the product the participant selects:

RENEWABLE ENERGY CERTIFICATES

• The supplier provides the certified RECs to the purchasing agencies annually.
• WAPA arranges invoicing with the supplier. The supplier invoices the purchasing agency annually for its portion of the REC.
• The purchasing agencies receive certificates verifying the authenticity of their RECs. Agencies that purchase RECs receive only the environmental benefits of the renewable energy, not the energy itself.

RENEWABLE ENERGY

• The renewable energy supplier makes additional arrangements including transmission and metering if delivering energy to the site.
• The supplier invoices the purchasing agencies for their renewable energy.
• Purchasing agencies receive both the renewable energy and the environmental benefits including a certificate of authenticity.
• Each year, WAPAEdi updates the interagency agreements as needed to continue the purchase through the duration of the contract.

ONSITE ENERGY FOR FEDERAL AGENCIES WITHIN WESTERN SERVICE TERRITORY

• The Federal agency solicits developers to build renewable energy projects on the selected site through an opportunity notice, request for interest, etc.
• The project developer/owner/operator chosen through the solicitation process leases the land from the requesting or hosting agency.
• After the agency completes the SOI, and the agency and Western sign the IA, WAPA negotiates the terms and conditions of the power purchase agreement with the selected developer.
• Following a careful review of project proposals, WAPA signs a long-term power purchase agreement with the selected developer/owner/operators on behalf of the requesting agency for the energy the agency takes from the project.
• The supplier invoices the purchasing agencies for their renewable energy.
• WAPA may wish to have input into other issues such as metering and communications.
• The requesting or hosting agency is responsible for all other agreements, including environmental, lease or licenses, etc.

Agencies may request sample documents used in the purchase process.