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This is a service / maintenance or supply contract in East Fayetteville, North Carolina. Contact the soliciting agency for additional information.
The Fayetteville Public Works Commission (PWC) is planning to install a new electric generating facility in its service territory to be served by a connection to the natural gas local distribution system of Piedmont Natural Gas Company, Inc. (PNG) for the purpose of generating electricity from swine waste in order to achieve compliance with G.S. 62-133.8(e). Pursuant to G.S. 143- 131, PWC is soliciting bids for the sale to PWC of directed biogas derived from swine waste that complies with the following terms: 1. The swine waste from which the directed biogas is derived must be located at one or more North Carolina sites; 2. In North Carolina, the directed biogas must be cleaned to pipeline quality standards and injected into and accepted by PNG for redelivery to PWC at its electric generation site in Fayetteville, North Carolina. 3. The directed biogas shall include sufficient attributes that allow PWC to generate and sell electricity (and produce renewable energy certificates) in compliance with G.S. 62- 133.8(e). 4. The average delivered daily quantity of directed biogas shall be 135 MMBtu, with an imbalance tolerance of plus or minus two percent (2%) for the daily amount that PWC nominates. The bidder may implement a summer/winter seasonal schedule by adjusting the average delivered daily quantity up to twenty percent (20%) of the foregoing average daily delivery amount for the purpose of setting a daily average quantity for the entire season to which PWC will adhere during the specified season by providing PWC at least thirty (30) days prior written notice of the daily average quantity that is available during the season (for example, in the 3 winter months of the year, December - February, the bidder may reduce the average daily nomination amount to an identified amount as low as 108 MMBtu, and in the three summer months of the year, June - August, the bidder may increase the average daily nomination amount to an identified amount as high as 162 MMBtu); provided, however, (a) no daily nomination or delivery may exceed 270 MMbtu at any point; and (b) nominations and deliveries shall be 46,000 MMBtu (plus or minus 1%) during each year of the contract term. An alternative or second bid may be submitted in the bidder's discretion for an average delivered daily quantity of directed biogas shall be 180 MMBtu, with an imbalance tolerance of plus or minus two percent (2%) for the daily amount that PWC nominates. The bidder may implement a summer/winter seasonal schedule by adjusting the average delivered daily quantity up to twenty percent (20%) of the foregoing average daily delivery amount for the purpose of setting a daily average quantity for the entire season to which PWC will adhere during the specified season by providing PWC at least thirty (30) days prior written notice of the daily average quantity that is available during the season; provided, however, (a) no daily nomination or delivery may exceed 360 MMbtu; and (b) nominations and deliveries shall be 61,000 MMBtu (plus or minus 1%) during each year of the contract term. 6. During each year of the contract term, the bidder and PWC shall each have: (a) up to ten (10) days each year for planned maintenance during which the bidder shall have no delivery obligation and PWC shall have no take obligation, provided that the party engaging in planned maintenance gives the other party at least seven (7) days prior written notice of each such planned date; and (b) up to ten (10) additional days for unplanned outages during which bidder shall have no delivery obligation and PWC shall have no take obligation, provided that notice of such outages is given promptly to the other party. 7. If the bidder is responsible for PWC incurring an imbalance charge to PNG due to an imbalance of more than two percent (2%), the bidder shall reimburse PWC the imbalance charge paid plus an administrative fee of five percent (5%) of the imbalance charge. 8. The bid shall specify the proposed contract term, which shall be no less than twenty (20) years and no more than thirty (30) years; 9. PWC anticipates that it will begin nominated directed biogas in the third calendar quarter of 2023 but PWC is willing to evaluate other delivery start dates; 10. The bid shall specify the price per MMBtu of swine waste gas and any proposed escalation, which must be based upon a stated fixed rate (such as 2% per annum). 11. Each bidder's bid(s) shall constitute a firm irrevocable offer for at least one hundred eighty (180) days after the bid due date to sell the directed biogas to PWC. 12. Each bidder with whom PWC enters into a Contract (as defined below) must provide a quarterly attestation consistent with Exhibit 1.1 attached hereto for the directed biogas that is derived from swine waste and delivered to PWC.
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Public - City
Service, Maintenance and Supply
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