1. Massachusetts RPS Solar Credit Clearinghouse Auction 2017 Auction Bidder Webinar
July 12, 2017
1:00 – 3:00 PM ET

2. Training Session Rules
Questions should only pertain to the auction platform (i.e., how to submit a bid, view results, etc.)
All participants are on “Listen Only” mode
Please submit any questions to:
In the event you experience a significant problem, please contact Mike Simari at (617)

3. Training Session Outline
2017 SREC Auctions Overview
Training Session Objectives
Training Session Overview
Training Session Access Information
Training Session Rules
Webinar
Demo Auction on the Auction Platform

4. 2017 Auction Monday, July 24, 2017 (10:00 AM - 12:00 PM ET)
2017 Auction: 18,428 MA SREC Is available for sale
2017 Auction: 243,377 MA SREC IIs available for sale
Set Auction Price of $300/MW per SREC
As you may notice here, the amount of SREC’s has changed in each category.
SREC I’s increased to 18,428
SREC II’s increased to 243,377
A new frequently asked question has been whether the amount of financial security indicated on the Qualification Application can be different than the amount actually deposited. The answer is YES.
Each entity does have the ability deposit the value of 10% of each auction. As you can see in the table, each entity has the ability to deposit up to: $552,900 in Financial Security for SREC I’s, and $7,301,400 for SREC II’s. (THE NEXT SLIDE WILL GO INTO GREATER DETAIL)

5. What’s New for 2017
Non-compliance bidders will not be able to post financial security/collateral in excess of 10% of the value of the total auction quantity
Non-compliance bidders must post at least $10, of financial security to participate in the SREC II auction
Bids will be prioritized by bidder type (compliance and non-compliance)
SRECs will be distributed into two auction tiers- Tier I and Tier II
Tier I will reserve up to 50% of the total auction quantity exclusively for compliance bidders
Tier II will consist of the remaining 50% of the total auction quantity in addition to any SRECs leftover from the Tier I auction (if Tier I does not garner enough bids to account for the entire 50% set-aside). Tier II will be open to compliance and non-compliance entities with awards allocated on a pro-rata basis provided there is sufficient demand.
The auction round will only clear if there is sufficient demand to cover the entire auction quantity. If not, Tier I and Tier II auctions will be run for subsequent round(s)

6. Training Session Objectives
Familiarize qualified applicants with the Auction Platform
Provide an opportunity for qualified applicants to bid in an auction that mirrors the upcoming auction in terms of:
Auction format
Auction procedures
Number of SRECs to be auctioned
A bidder’s financial security constraint
If anyone has any questions beyond this, please feel free to contact me at the

7. Training Session Overview
Webinar
Step by step demonstration of how to log on to the Auction Platform and place a bid
Demo Auction on the Auction Platform
All training session participants will get an opportunity to bid in an auction that mirrors the upcoming auction

8. Training Session Overview
Demo Auction on the Auction Platform – Participants
Point your browser to: massdoer.wesplatform.com
Type in your assigned username and password and click Login
This information was distributed Monday, July 10th, 2017
If you are having trouble logging in, please contact me at:

9. Auction Overview [1] Electronic, internet-based auction platform
Fixed-price, sealed-bid (multi-round) auction format featuring two auction tiers (Tier I and Tier II).
Tier I Bidders: 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: 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 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

10. 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.
The platform will not allow you to submit bids above the amount of financial security posted.
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.
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.
The platform will not allow you to submit bids above the amount of financial security posted. (Example to come later in the presentation)
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.

11. Bid Limitations Reserve Price The reserve price is $300.00/MW 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/MW. 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

12. Auction Format Example No. 1
Sample auction for 100 SRECs
All bids are ranked by bid price from high to low
Cumulative demand is noted at each bid
Bidder Name
Bid Price
Bid Quantity
Cumulative Demand
Pro-Rata Share
Award Quantity
Bidder B
$300.00 28 % 13
Bidder D 21 49
9.7674% 10
Bidder E 19 68
8.8372% 9
Bidder A 18 86
8.3721% 8 15
101
6.9767% 7 14
115
6.5116%
Bidder C
128
6.0465% 6
Bidder F 12
140
5.5814%
152 11
163
5.1163% 5
173
4.6512%
181
3.7209% 4
188
3.2558% 3
194
2.7907%
199
2.3256% 2
203
1.8605%
206
1.3953% 1
209
212
215
Totals %
100
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-rata 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

13. Auction Format Example No. 2
Sample auction for 100 SRECs
All bids are ranked by bid price from high to low
Bidder Name
Bid Price
Bid Quantity
Cumulative Demand
Pro-Rata Share
Initial Award Quantity
Random Number
SREC Adjust.
Bidder B
$300.00 28 % 14 11
Bidder D 21 49 % 10 2 1
Bidder E 19 68
9.2683% 9
Bidder A 18 86
8.7805% 15
101
7.3171% 7 20
115
6.8293%
Bidder C 13
128
6.3415% 6
Bidder F 12
140
5.8537% 8
152 5
163
5.3659%
172
4.3902% 4
180
3.9024% 3
187
3.4146% 16
192
2.4390%
196
1.9512%
199
1.4634% 17
202
203
0.4878%
204
205
Totals
215 % 96
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

14. Auction Format Example No. 3 [1]
Sample auction for 100 SRECs
50 reserved for Tier I bidders and 50 for Tier II
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 can be are made.

15. Auction Format Example No. 3 [2]
Bids from Tier I bidders are ranked by bid quantity from high to low
Cumulative demand is noted at each bid
If demand from Tier I Bidders exceeds 50% of the total auction quantity, awards are made on a pro-rata basis 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 SRECs are considered as part of the Tier II awards.
This is the case in this example, 6 SRECs carry over to Tier II awards

16. Auction Format Example No. 3 [2]
Bids from Tier II bidders are ranked by bid quantity from high to low
Cumulative demand is noted at each bid
The remaining auction quantity (56 SRECs) after the Tier I awards are allocated on a pro rata basis to all Tier II Bidders
In this example, rounding the pro-rate share into whole SRECs results in a perfect allocation and no tie- breaker is necessary

17. Webinar – Login Page This is the auction platform login page
To access the auction platform type in your assigned user name and password and click Login

18. Webinar – Start Page
Start Page

19. Webinar – RFPs Page
“RFPs” tab contains all auction information, including access to auction bidding
To view the auction, enter ‘DOER’ in the ‘Customer:’ field and click ‘Search’. Click on the RFP number which is a hyper link.

20. Webinar – RFP View Page
RFP View page contains critical information about the auction
To place a bid click on ‘Place Bid’ button

21. Webinar – Place Bid Page
Only Bid Quantity (of SRECs) is required. The clearing price is set to $300/SREC and is greyed out.
Click Confirm Bid to submit a bid

22. Webinar – Submit Bid Page
Bid is evaluated against constraints prior to acceptance by the Auction Platform
If there are no errors, click Submit Bid to register bid or Cancel

23. Webinar – Confirm Bid
Make sure the information entered is correct – Press “Submit Bid”
Select “Bid Again”
You are able to place as many bids as you would like, without going over the Financial Security limit.

24. Webinar – Second Bid
This second bid will go over my financial security place

25. Webinar – Bidding
If you exceed your posted Financial Security, you will receive this message:

26. Webinar – Bidding
Now I will place a bid to bring myself to the maximum of my financial security

27. Webinar – Bid History Page
All submitted bids for a bidder are shown here
Bid value and remaining security balances are displayed
Here you can see that my bid value equals the financial security deposited, and I have zero remaining.

28. Webinar – Award Page
After auction is closed and approved, all awarded bids for a bidder appear here
Summary of SRECs won and total cost provided

29. Thank you
Website:
energy/solar/rps-solar-carve-out/solar-credit-clearinghouse-auction.html
MASS DOER Platform:
Questions: