1 - Does Hydro‑Quebec provide leasing services or sell generator for medium-voltage electricity?

No.

2 - Does an application have to identify a specific location where the electricity will be used?

Yes, as mentioned in section 3 of the Tender Form [PDF 267 kB], the bidder must provide an outline of the project, including the location of the site.

3 - What information should be included on the Tender Form where it asks "Number of addenda received"?

It is the number of addenda posted on the Hydro‑Québec website:

https://www.hydroquebec.com/blockchain/selection-process/documentation.html

4 - Is the request for proposals only open to facilities in Quebec?

Yes.

5 - We are already a connected customer since December 2017 with a 400 AMP service line. We have already invested heavily in our infrastructure and are prepared for an additional 400 AMPs. How does this affect our bid and will a new contract completely replace our existing one?

A customer whose contract is an existing contract, as defined in the Rates and Conditions of Service for cryptographic use applied to blockchains [PDF 121 kB], must participate to the request for proposals for any load increase beyond the load already installed or authorized.

6 - With reference to page 51-53 of Annex 9: Can the bidder submit for a specific tariff in the bidder (e.g. Tariff M or Tariff L?) Or the application of the electricity tariff is imposed by Hydro‑Quebec based on evaluation of the bidder capacity?

No. The applicable rate depends on the power demand of the customer. The terms and conditions of the rates are specified in the Electricity Rates [PDF 4.82 MB], chapter 4, section 1 (Rate M) and chapter 5, section 2 (Rate LG). Hydro‑Québec mentions that Rate L only applies to an industrial activity, which does not include cryptographic use applied to blockchains.

7 - What are the locations eligible for use high-voltage electricity power? Can the bidder request Hydro‑Quebec to verify in advance that its intended location for the project is eligible for use of high-voltage electricity power?

As part of the request for proposals process, Hydro‑Québec does not make available precise locations where capacity is available for either type of supply, high-voltage or medium-voltage electricity supply.

8 - What are the locations eligible for use medium-voltage electricity power? Can the bidder request Hydro‑Quebec to verify in advance that its intended location for the project is eligible for use of medium-voltage electricity power?

As part of the request for proposals process, Hydro‑Québec does not make available precise locations where capacity is available for either type of supply, high-voltage or medium-voltage electricity supply.

9 - What are the required licenses for the bidder to build and connect to the electrical and to connect to the electricity grid of Hydro‑Quebec? Or Hydro‑Quebec will build and connect the bidder’s cryptocurrency mining system directly to the electrical grid?

As indicated in article 1.6 of the Request for Proposals Document [PDF 291 kB], all work will be carried out by Hydro‑Québec.

10 - With reference to page 51 of the Tender Form, does the total investment capital includes all management cost for a period of 5 years? Or a longer/shorter period?

As mentioned in note 3 at section 4.1.3 of the Tender Form [PDF 267 kB], investments are limited to the acquisition of goods and equipment manufactured in Quebec. This undertaking corresponds to the capital investment that the customer commits to making by the beginning of its electrical installation’s operating period, at the conclusion of its scaling, if applicable.

11 - Ref Annex 5 - Can the individual bidder submit a bank guarantee issued under the requested of a Canadian enterprise (because an individual bidder is not permitted to request to issue a bank guarantee at a Canadian bank)?

Yes, the “Applicant” who submit the letter of credit [PDF 35.9 kB] may be different from the “Customer”. Here is below (between brackets) the wording when the Applicant is different from the Customer.

At the request of (name of Applicant if different from the customer) (the “Applicant”), on behalf of (customer’s name) (the “Customer”), whose head office is located at (customer’s address), we, (name and address of issuing financial institution) are establishing for your benefit our irrevocable and unconditional standby letter of credit (the “Letter of Credit”) for an amount not exceeding (amount in words) Canadian dollars $ (amount in figures) CAD (the “Guaranteed Amount”).

Independently of the “Applicant” who submit the letter of credit, it is important that the “Customer” is exactly the same company who will sign the agreement with Hydro‑Québec.

Finally, one must remind that the bid bond must be in the form of a letter of credit or a certified cheque as indicated at article 2.3.1 of the Request for Proposals Document [PDF 291 kB].

12 - Ref Art 3.2 RFP - What information should the investor include in the business plan?

The bidders must submit the Tender Form [PDF 148 kB] containing all information and documents required in accordance with the Request for Proposals Document [PDF 291 kB]. The business plan is not a requirement to participate in this request for proposals.

13 - Would it be possible to get a copy of results from the third party survey you conducted with block chain companies in Summer 2018?

This information is publicly available on the Régie de l’énergie Web site, at this address (in French only).

14 - Our question is related to section 4.2.2 of the Tender Form: When does the signed and sealed report from an independent engineer need to be submitted? With the submission of the Tender Form or at a later time?

The signed and sealed report from an engineer needs to be submitted with the submission of the tender form.

15 - Who can be a director of a cryptomining company in Quebec? What are other requirements for such company?

This question is not related to this request for proposals, nor the responsibility of Hydro-Québec.

16 - If a contract has not yet been signed with a user of the recovered energy, how detailed must the letter of intent? Must the letter of intent have the details required in a contract with a user of  energy?

Hydro–Québec has published an Addendum 4  [PDF 2,9 MB] to the request for proposals documents, which contains more details regarding information required under section 4.2.1 of the Tender Form [PDF 148 kB]. More specifically, a letter of intent must contain the same information as a contract. That information is detailed under points a, b and c at the end of section 4.2.1.