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UPDATED ARBITRAGE VALUE MODELS NOW AVAILABLE

September 24, 2020 – SOO Green’s Open Solicitation (“OS”) to allocate transmission capacity rights is now underway, which seeks to allocate transmission capacity rights on this first-of-its-kind high voltage direct current (“HVDC”) transmission project, the SOO Green HVDC Link (or the “Project”). SOO Green believes the true value proposition for Shippers will be in long term contracts with Suppliers and Buyers, but they may not have sufficient price discovery into such commercial arrangements until they engage in bilateral discussions that the OS process will facilitate.

As an interim step, SOO Green commissioned a market analysis from Navigant (currently known as Guidehouse) to calculate the value proposition of the SOO Green HVDC Link for transmission capacity right holders (Shippers). SOO Green has prepared an Arbitrage Value Model derived from the reference and high case results from the Navigant Market Study. The Navigant Market Study and Value Model highlight the economic proposition that SOO Green will create for its customers, the Shippers, demonstrating that Shippers on the Project are expected to capture persistent and favorable basis between the project’s Point of Withdrawal in MISO and the Point of Receipt in PJM.

The Arbitrage Value Model, available to Registered Participants, has now been updated with a summary of various tabs for easier navigation of the model, and explicit anchor shipper pricing schedule (all other information remains unchanged in this updated version with respect to the earlier version).

The deadline for submission of Expressions of Interest (“EOI”) for Anchor Shippers and parties interested in the matching phase of the OS are due on October 16, 2020. We look forward to your participation in a first-of-its-kind opportunity to explore renewable energy opportunities made possible by the SOO Green HVDC Link.

Key takeaways:

  • An updated Arbitrage Value Model has been uploaded to the Privileged Documents portion of the site; the pricing schedule is unchanged.
  • Expressions of Interest from Anchor Shippers and parties interested in the matching phase of the OS are due by October 16, 2020.
  • Any questions can be directed to the Independent Evaluator at SOOGreen-OS@londoneconomics.com. 

 

 

 


 

Please visit www.soogreenhvdclink-os.com for more information about the open solicitation process and www.soogreenrr.com for more information about SOO Green HVDC Link. Any questions concerning the open solicitation process can be directed to the Independent Evaluator at SOOGreen-OS@londoneconomics.com.