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Another price/cost management strategy commonly used within the forest products industry is to index timber or pulp costs to a third-party cost monitoring company; there are several companies that provide such services.’2 Jobs Impactporn WoodyBiomass In 2011,Sundrop Fuels announced their intention to develop a biofuels refinery in Central Louisiana. The facility is projected to create 150 directjobs in addition to 1,150 indirect jobs in the region. The plant will salvage wood waste from forests in Central Louisiana and adjacent regions and use that biomass as a feedstock in addition to hydrogen from natural gas, and develop up to 50 million gallons of fuel annually. Cleco Power RFPfor Biomass Fuel Section 9 of the Implementation Plan requires that each utility file with the Commission a plan and timeline for an RFP for renewable capacity resources, and Cleco Power made that filing April 1,2011. Cleco Power’s Madison 3 generating plant was designed to be capable of burningbiomassasfuelforrenewableenergy. ClecoPower,therefore,waseligibleforthe exceptioninSection4.1oftheImplementationPlan. Theexceptionallowsaneligibleutilityto defer conducting an RFP for renewable capacity resources while the utility evaluates the requirements for biomass co-firing operations at a solid fuel fired generating unit capable of burningbiomassfuels. Theevaluationprocessmayincludeconductingatestburnofbiomass fuels, and issuing an RFP for biomass fuel supplies. ClecoPowerconductedaBiomassInformationExchangeonJuly 13,2011,atitsBrame Energy Center located in Lena, Louisiana. The purpose of the Exchange was to initiate and foster communications between local forestry industry participants, Cleco Power, and the LPSC Staff. Cleco Power informed potential participants from the local forestry industry about the Exchange through its website, and with assistance from the Louisiana Forestry Association (“LFA”),whichnotifieditsmembershipthroughLFAeventsandpublications. ClecoPower hosted more than 50 participants at the Exchange, and discussed: (i) Madison 3 operating characteristics (including a bus tour of the facility); (ii) Cleco Power’s requirements under the Implementation Plan; and (iii) the RFP process as required by the Implementation Plan. Cleco Power subsequently issued its Biomass Fuel RFP in draft form (it was issued November21,2011). TheBiomassFuelRFPTechnicalandBidders’ Conferencewasconducted at the Brame Energy Center on December 15,2011,with approximately 12prospective suppliers in attendance. During the Conference, Cleco Power reviewed the Biomass Fuel RFP with the attendees, reviewed the proposal process, RFP schedule, evaluation process, and bid requirements, in addition to addressing questions from the suppliers. The questions discussed ’’For example,http:llwww.risiinfo.com/pages/product/pul or http:l/www.forest2marketawrmk/eft2. m/uslf2I112lp~pIpandpaper/south 6 PD.8360793-2PDF Image | THE APPLICATION OF KENTUCKY POWER
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