1. Massachusetts DOER Solar Credit Clearinghouse Auction 2017 Auction Bidder Webinar
June 21, 2017
2:00 – 3:00 PM ET

2. Webinar Outline Introduction and Overview Schedule
Participation Requirements
New Applicant
Forms to be submitted
Qualification Application
Financial Security
NEPOOL Generation Information System Account
Review Process
Qualification Application
Confidential Information
Limitation on Communication
Auction Platform Overview
Bid Limitations
Auction Examples

3. 2017 Auction Monday, July 24, 2017 (10:00 AM - 12:00 PM ET)
2017 SREC I Auction: 14,405 MA SREC Is available for sale
2017 SREC II Auction: 234,057 MA SREC IIs available for sale
Set Auction Price of $300 per SREC

4. What’s New for 2017
Financial security returns and proceeds distribution will be handled via Automated Clearing House (or “ACH”) transfers as opposed to wire transfers. Please ensure that the ABA/Routing Numbers provided are able to receive ACH transfers.
Prior to returning financial security and issuing auction proceeds, EnerNOC will be verifying any new account coordinates by sending nominal deposits (1-5 cents) to ensure that provided account coordinates are accurate.
One Qualification Application and Appendix A to encompass both SREC I and II Auctions.

5. Bidder Preparations Auction guidance & materials at:
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All bidders must be qualified to participate
Approximately 30 days to provide adequate time to process applications and arrange for financial security
Online question window
Send questions to:
Open from Friday, June 16, 2017 – Friday, June 23, 2017
To the extent any relevant questions are not currently addressed in the FAQs, the FAQ document will be updated and reposted on Friday, June 23, 2017

6. Upcoming Deadlines Qualification Application Due
No later than 5:00 PM ET on Wednesday, June 28, 2017
Bidder training sessions
3 one hour sessions from 1:00 to 4:00 PM ET on Wednesday, July 12, 2017
Financial Security Due (if applicable)
No later than 5:00 PM ET on Monday, July 17, 2017

7. Schedule [1]
[1] All due dates specified in the Auction Notice refer to the date and time on which the item(s) must be received by the Auction Manager.

8. Schedule [2]
[1] All due dates specified in the Auction Notice refer to the date and time on which the item(s) must be received by the Auction Manager.

9. Schedule [3]
In the event the first 2017 SREC Auction(s) fail to clear, a second auction will be conducted within three (3) business days. The following schedule presents all events and dates for the second auction. Please note that times and dates in the schedule are subject to change. Any change to the Auction Schedule will be reflected on the Auction Website and ed to the Auction Representative(s).

10. Schedule [4]
In the event the second 2017 SREC Auction(s) fail to clear, a third auction will be conducted within three (3) business days. The following schedule presents all events and dates for the second auction. Please note that times and dates in the schedule are subject to change. Any change to the Auction Schedule will be reflected on the Auction Website and ed to the Auction Representative(s).

11. Participation Requirements
Eligible Party
New
Applicant
Previously Qualified Applicant
Material
Change
No Material Change
NEPOOL GIS Auction Account
Qualification Application V.1.0
Financial Security
NEPOOL GIS Auction Account
Qualification Application V.1.0
Financial Security
Qualification Application V.1.0
Financial Security

12. New Applicants Participation Requirements
Open Solar Credit Clearinghouse Auction Account (“Auction Account”) on the NEPOOL Generation Information System (“NEPOOL GIS”)
Complete and submit the Qualification Application
Meet the financial security requirements (if applicable)

13. Qualification Application Submission Instructions
Qualification Application has been created as a Microsoft Word document with editable fields
All forms are required for all applicants
Submission requirements:
One (1) complete package (Forms 1 through 5)
Signed by the PAR
Submitted to the SREC Auction Manager electronically via in portable document format (PDF) or in hard copy
See “FAQs” for examples on submitting electronically via
Must be received by the SREC Auction Manager no later than 5:00 PM ET on Wednesday, June 28, 2017

14. Form 1 – General Information
Insert Name of Applicant
Select Appropriate Applicant Category
Describe core business or organization
Select the SREC Auction(s) you are applying to participate in

15. Form 2 –Auction Representative
Primary Auction Representative, ideally the same person as the Authorized Account Rep. for NEPOOL GIS
Applicant may designate a Secondary Auction Representative
Auction Representative (s) receive all communications related to auction

16. Form 3 – Evidence of a NEPOOL GIS Account
Account into which SRECs are transferred

17. Form 4 – Wire Transfer Form (Applicant Specific)
This form must be faxed or ed on or before the day of the wire transfer and no later than 5:00 PM ET on Wednesday, June 28, 2017 to ensure that the financial security is credited to the appropriate bidder
Please note the Non-RES financial security limitation and the SREC I and II allocation percentages
Please note that the account must be capable of receiving ACH transfers.

18. Form 5 – Signature Page
Applicants that do not sign the Attestation Form will not be qualified
All information provided is accurate
Procedures have been read and understood
Applicant will comply with and be bound by SREC Auction Procedures
Must be signed by the Primary Auction Representative

19. Financial Security [1]
The requirement to post financial security as well as the amount that can be posted depends on whether the Applicant is a licensed RES in Massachusetts with a RPS compliance obligation and whether it is bidding in excess of its actual compliance obligation. Financial security requirements for each of the three (3) scenarios are as follows:
(1) If the Applicant is a licensed RES in Massachusetts with a RPS compliance obligation and is not bidding in excess of its actual compliance obligation then financial security does not need to be posted. Such Applicant s will receive a financial security credit equal to their actual compliance obligation.
(2) If the Applicant is a licensed RES in Massachusetts with a RPS compliance obligation and is bidding in excess of its actual compliance obligation then financial security must be posted to cover its excess bid amounts. Licensed RES in Massachusetts can post up to 10% of the value of the total auction quantity in excess financial security if they wish to purchase SRECs. Such Applicants will also receive a financial security credit equal to their actual compliance obligation.
(3) If the Applicant is a Retail Electric Supplier in Massachusetts without a RPS compliance obligation then financial security must be posted to cover its full bid amounts, further detailed on the following slide .

20. Financial Security [2]
Non-Retail Electric Suppliers in Massachusetts without RPS compliance obligations must post financial security but no more than the amount required to purchase 10% of the total auction volume. Non-Retail Electric Suppliers in Massachusetts without RPS compliance obligations cannot bid on and will not be awarded SRECs in excess of 10% of the total auction volume.
For the SREC II auction, non-RES entities must post at least $10, in financial security in order to participate. There is no minimum posting requirement for participation in the SREC I auction.
Only one acceptable form of financial security: cash in the form of a wire transfer
Financial security, in United States dollars (USD), must be received no later than 5:00 PM ET on Monday, July 17, 2017
The amount of financial security will be used to set bidding limitations
Wire Transfer Form is Form 4 in the Qualification Application
All unused cash balances will be returned via wire transfer no later than 5:00 PM ET on Friday, August 4, 2017

21. NEPOOL Generation Information System (NEPOOL GIS) Account
Applicant’s NEPOOL Generation Information System (NEPOOL GIS) account is where awarded SRECs will be transferred.
Applicant must have active Auction Account to submit a Qualification Application.

22. Qualification Application Submittal and Review [1]
Receipt confirmations will be sent out each day via
Initial Review
Qualification Application must be provided no later than 5:00 PM ET on Wednesday, June 28, 2017
Failure to provide any information required will result in the Qualification Application being deemed incomplete or otherwise deficient
Remediation Instructions will be sent
Remediation
Failure to remediate may result in qualification denial
Additional information must be provided no later than 3:00 PM ET on Monday, July 3, 2017

23. Qualification Application Review and Determination [2]
DOER Review
DOER will review each Applicant’s Qualification Application and make a determination to grant or deny qualification to each Applicant
Qualification Notification
Each Applicant will be notified via no later than 5:00 PM ET on Wednesday, July 19, 2017 as to whether its qualification has been granted or denied

24. Confidential Information
Applicant may not publicly release confidential information
Confidential information includes, but is not limited to, qualification status, bidding strategy, bid quantity information, and information on financial security to the extent such information is not generally available to the public

25. Limitation on Communication
After the relevant Qualification Application filing deadline, an Applicant may not communicate with any other Applicant or party that has not been disclosed in its qualification application, except as requested by the SREC Auction Manager to remediate a Qualification Application

26. Auction Overview [1] Electronic, internet-based auction platform
Fixed-price, sealed-bid auction format featuring two award tiers (Tier I and Tier II).
Tier I Bidders for Tier I Awards: Tier I Bidders consists of just compliance entities. Up to 50% of the total auction quantity will be set aside and awarded to Tier 1 Bidders first. If demand from Tier I Bidders exceeds 50% of the total auction quantity, awards are made on a pro-rata basis (proportional to the bidder’s total bid volume relative to the total quantity available) and unfulfilled demand is considered as part of the Tier II awards. If there is insufficient demand from the Tier I Bidders to award 50% of the of the total auction quantity, each bid from a Tier I Bidder receives an award and all remaining unawarded SRECs are considered as part of the Tier II awards.
Tier II Bidders for Tier II Awards: Tier II Bidders consists of all entities, including any Tier I Bidders with unfulfilled demand. The remaining auction quantity after the Tier I awards will be allocated on a pro rata basis to all Tier II Bidders.
Bids ranked by bid quantity from high to low
Cumulative demand noted at each bid
Auction Notice provides clear guidance on determining the clearing bids
If the 2017 SREC I and II Auctions clear, each bidder’s bid is awarded a pro-rata share of the total SRECs offered for sale proportional to each of the bidder’s bid quantity, relative to the total cumulative demand

27. Auction Overview [2]
Each bid quantity must be submitted as a whole number. Fractional SREC bids are not permitted.
Pro-rata award shares are rounded up or down to the nearest whole SREC.
As a result of rounding, the number of awarded SRECs may exceed or be less than the number of SRECs offered for sale. Any initial under- or over-allocation will be resolved through a random tie-breaking process.
Bidders can submit an unlimited number of bids; however, the more bids submitted the greater the potential for unpredictable rounding outcomes.
Bidders can cancel or change their bids at their discretion until the bidding window closes.
All bids that exist in the Auction Platform via bidder submission at the close of the auction will be considered binding offers and eligible for award. Contingent bids are not permitted.

28. Bid Limitations Reserve Price
The reserve price/fixed bid price is $ per SREC
Financial Security
The value of a bidder’s bids cannot exceed the amount of a bidder’s financial security (if applicable)
The value of a bidder’s bids is the bid quantity times the SREC price of $300. The value of each of a bidder’s bid is summed and the total value of the bidder’s bids is counted against the financial security bid limit. The Auction Platform will automatically reject a bid that would cause the total bid value of a bidder’s bids to exceed the amount of a bidder’s financial security
All bid limitations are evaluated at the time of submittal
The Auction Platform will not allow bids that violate any bid limitations to be submitted

29. Auction Format Example No. 1
Sample auction for 100 SRECs
All bids are ranked by bid quantity from high to low
Cumulative demand is noted at each bid
Since cumulative demand exceeds the quantity of SRECs offered for sale, this SREC auction clears and awards are made. Each bidder’s bid is awarded a pro-rata share of the total SRECs offered for sale proportional to each of the bidder’s bid quantity, relative to the total cumulative demand. In this example, rounding the pro-rate share into whole SRECs results in a perfect allocation of SRECs and therefore no tie-breaker is necessary.
Bidder A – 15 SRECs at a total cost of $4,500.00
Bidder B – 26 SRECs at a total cost of $7,800.00
Bidder C – 10 SRECs at a total cost of $3,000.00
Bidder D – 30 SRECs at a total cost of $9,000.00
Bidder E – 12 SRECs at a total cost of $3,600.00
Bidder F – 7 SRECs at a total cost of $2,100.00

30. Auction Format Example No. 2
Sample auction for 100 SRECs
All bids are ranked by bid quantities from high to low
In this example, rounding the pro-rata shares into whole SRECs results in an under-allocation of SRECs. A total of four (4) SRECs must be awarded to the bidders. Additional SRECs are awarded to the bidders based on the random numbers assigned. In summary, bidders would receive the following awards.
Bidder A – 16 SRECs at a total cost of $4,800.00
Bidder B – 28 SRECs at a total cost of $8,400.00
Bidder C – 8 SRECs at a total cost of $2,400.00
Bidder D – 30 SRECs at a total cost of $9,000.00
Bidder E – 12 SRECs at a total cost of $3,600.00
Bidder F – 6 SRECs at a total cost of $1,800.00

31. Thank you
Website: energy/solar/rps-solar-carve-out/solar-credit-clearinghouse-auction.html
Questions: