2019 Block Energy (AIC, ComEd, and MEC) and Capacity (AIC) RFPs

On September 28, 2018, the IPA submitted its Procurement Plan (“Plan”) to the Illinois Commerce Commission (“ICC”) in compliance with Public Act 095-0481 (the “Act”), which includes the Illinois Power Agency Act (“IPA Act”).  The ICC issued its Order with regards to the Plan on November 26, 2018.  The Plan approved by the ICC provides for (i) a Spring 2019 procurement of monthly on-peak and off-peak standard block forward products as well as combinations for Ameren Illinois Company (“AIC”), ComEd, and MidAmerican Energy Company (“MEC”); (ii) a Spring 2019 procurement of capacity for AIC for a period starting June 1, 2020 and a period starting June 1, 2021; (iii) a Fall 2019 procurement of monthly on-peak and off-peak standard block forward products as well as combinations for AIC and ComEd; and (iv) a Fall 2019 procurement of capacity for AIC for a period starting June 1, 2020 and a period starting June 1, 2021.  The supply period for the standard block forward products will be June 1, 2019 to May 31, 2022.  These procurement events are held under the Block Energy and Capacity RFP or “BEC RFP”.

Spring 2019 Block Energy and Capacity RFP Calendar (February 15, 2019)

Click here to view Block Energy and Capacity FAQs from Spring 2019

Spring 2019 Block Energy and Capacity RFP Results

 

Spring 2019 Block Energy and Capacity RFP

Spring 2019 Block Energy and Capacity RFP Bidder Information Webcast

Spring 2019 Block Energy and Capacity RFP Targets

Spring 2019 Block Energy and Capacity RFP Documents

FINAL SPRING 2019 BLOCK ENERGY AND CAPACITY RFP – ENERGY AGREEMENTS

FINAL Spring 2019 (AIC) Confirmation Agreement

FINAL Spring 2019 ComEd Energy Master Agreement

FINAL Spring 2019 (MEC) Confirmation Agreement

FINAL SPRING 2019 BLOCK ENERGY AND CAPACITY RFP – THE (AIC) CAPACITY AGREEMENT

FINAL Spring 2019 (AIC) Capacity Agreement

Draft Spring 2019 Block Energy and Capacity RFP Documents

Spring 2019 Energy Contracts Comment Process

Draft Spring 2019 (AIC) Confirmation Agreement

Draft Spring 2019 ComEd Energy Master Agreement

Draft Spring 2019 (MEC) Confirmation Agreement

Spring 2019 Capacity Agreement Comment Process

Draft Spring 2019 (AIC) Capacity Agreement

 

2019 Block Energy and Capacity FAQs

FAQ-BEC-29
Q: Where can I find the results of the AIC Capacity RFPs held in 2012 and earlier?

The results for the Capacity RFPs held from 2008-2012 can be accessed on the Illinois Commerce Commission (“ICC”) website. For example, to access the results of the Capacity RFP held in 2012, from the “Rulemaking, Workshops, and Informal Hearings” page, click on the “Electricity Procurement Process for 2012” link, and download the results posted under the header “Procurement Event Public Notices”.

05-15-2019

FAQ-BEC-28
Q: Why was only a portion of the ZRC Target filled in the Spring 2018 procurement event?

The evaluation of Bids for the procurement of the Capacity Product for AIC proceeds in two steps.  In the first step, all Bids that fail to meet the benchmarks are eliminated.  In the second step, the Procurement Administrator evaluates the Bids that meet or beat the benchmarks and selects the lowest priced Bids.  The outcome of this procedure was that only a portion of the ZRC Target was filled.

05-15-2019

FAQ-BEC-27
Q: Who will issue the invoice for the Supplier Fees?

The invoice for the Supplier Fee will be provided by the Illinois Power Agency.

04-29-2019

FAQ-BEC-26
Q: When does the ICC render its decision on results of the Energy Products procurement events? What is the process after ICC renders its decision?

The ICC will render its decision on the results of the Energy Products procurement events on Friday, April 26, 2019.

If the ICC accepts the results of a procurement event for a Company, the Procurement Administrator will notify all Bidders that submitted Bids in that procurement event whether some or all of their Bids were accepted by the ICC. Such notification is made as soon as practicable after the ICC decision. Please see paragraph VI.2.17 of the RFP Rules for more information regarding contract execution.

04-26-2019

FAQ-BEC-25
Q: Can you confirm that the final suppliers fees for the Spring 2019 procurement events under the BEC RFP are the same as those announced during the webcast?

The Procurement Administrator confirmed through an announcement sent to website registrants and posted to the procurement website that the final supplier fees are the same as those that were announced on a preliminary basis during the webcast, namely:

  • $127 per on-peak block
  • $84 per off-peak block
  • $20 per ZRC
04-25-2019

FAQ-BEC-24
Q: Where can I find the results from past AIC Capacity Procurement Events?

Results from past AIC Capacity Procurement Events are posted to the Previous RFPs page on the procurement website. For example, to access the results of the most recent Capacity procurement events held in 2018, first click on the “2018 Block Energy (AIC, ComEd, and MEC) and Capacity (AIC) RFPs” link, and download the results posted at the top of the page under the headers “Fall 2018 Block Energy and Capacity RFP Results” and “Spring 2018 Block Energy and Capacity RFP Results”.

04-25-2019

FAQ-BEC-23
Q: How are contract prices calculated for a given segment of a month for a Company?

For a segment (on-peak or off-peak) of a month for a Company, the price paid to the supplier and appearing in the applicable supplier contract is the average of the supplier’s own approved Bids for all blocks of the Product (corresponding to the given segment, month, and Company) and for all blocks of Combinations that include that segment and month for that Company.

For example, the price paid to a supplier for ComEd June 2019 on-peak will be a single number that reflects the weighted average of any approved bids for the supplier for ComEd June 2019 on-peak as well as the annual (June 2019-May 2020) on-peak combination.  As another example, the price paid to a supplier for AIC July 2020 off-peak will be a single number that reflects the weighted average of any approved bids for the supplier for AIC July 2020 off-peak, for the AIC July-August 2020 off-peak combination, as well as for the annual (June 2020-May 2021) off-peak combination.

Please note that for purposes of preparing the applicable supplier contracts, the Companies have access only to the weighted average price for each month and segment, and not to the Bids on individual blocks used to calculate such average prices.

04-25-2019

FAQ-BEC-22
Q: Can the Companies review our draft Pre-Bid Letters of Credit during the Part 2 Window and prior to our bank issuing the final executed Pre-Bid Letters of Credit?

The deadline to request modifications or provide comments on the changes to the Standard Pre-Bid Letters of Credit was 12PM (noon) CPT on April 2, 2019 (the Part 1 Date) and there is no longer an opportunity to provide such comments or to have draft documents reviewed by the Companies.  In the Part 2 Proposal, a Bidder must submit a Pre-Bid Letter of Credit in the standard format provided as an appendix to the RFP Rules or that incorporates only the modifications approved by AIC and posted to the Final Materials page of the procurement website.

04-17-2019

FAQ-BEC-21
Q: Will the Procurement Administrator acknowledge receipt of the Pre-Bid Letter of Credit for AIC Capacity Products if the letter is received prior to the deadline for its submission?

If the Pre-Bid Letter of Credit for AIC Capacity Products is received before 12 PM (noon) on a business day prior to the deadline for its submission, the Procurement Administrator acknowledges receipt by email on the day this Pre-Bid Letter of Credit is received. If this Pre-Bid Letter of Credit is received after 12 PM (noon) on any business day prior to the deadline for its submission, the Procurement Administrator acknowledges receipt by email by 12 PM (noon) of the next business day. The results of the initial review for this Pre-Bid Letter of Credit are provided as soon as practicable.

04-17-2019

FAQ-BEC-20
Q: Is it necessary for a Bidder to complete the Part 1 Proposal in order to participate in the Part 2 Proposal process?

To submit a Part 2 Proposal, a Bidder must first meet the qualification standards through the submission of a successful Part 1 Proposal. The deadline for Part 1 Proposal materials was 12 PM CPT (noon) on April 2, 2019.

04-17-2019

FAQ-BEC-19
Q: The issuing bank for our pre-bid letters of credit will not allow communication by electronic means to effect a draw. Can we provide comments on this provision included in Paragraph 4 of the pre-bid letter of credit?

The deadline to request modifications or provide comments on the changes to the Standard Pre-Bid Letters of Credit was 12PM (noon) CPT on April 2, 2019 (the Part 1 Date) and there is no longer an opportunity to provide such comments.

However, please note that, for each procurement event, it is an acceptable modification to remove the ability of the applicable Company to effect a draw through electronic means.  Please refer to the Acceptable Modifications to the Standard Pre-Bid LC posted for each Company posted to the Final Materials of the procurement website (in particular, see modification 4.1 for both AIC Capacity and Energy Products, modification 4.6 for ComEd, and modification 4.1 for MEC). Any modification in these documents is available for use by a Bidder on an optional basis.

04-03-2019

FAQ-BEC-18
Q: The entity that we are considering naming as our guarantor is not rated. Can such an entity serve as guarantor? If not, can we still participate in the RFP?

Under the Block Energy and Capacity (“BEC”) RFP, an entity that is not rated by any of the following rating agencies: S&P Global Ratings (“S&P”), Moody’s Investors Service (“Moody’s”), and Fitch Ratings (“Fitch”), receives a Collateral Threshold Amount of zero. Such an entity does not receive unsecured credit under the applicable BEC contract cannot serve as a Guarantor.

However, it is not a condition of participation in the RFP that the supplier itself be rated or that the supplier have a guarantor that is rated.  If a supplier that is not rated and that does not have a guarantor has bids that are approved by the Commission, then such a supplier would have post cash or a letter of credit to meet the collateral requirement under the applicable BEC contract.

Posted 4/2/2019; amended 6/12/2019

04-02-2019

A previously qualified bidder that updates the entity’s legal name should contact the Procurement Administrator for instructions prior to completing the online Part 1 Form.

A previously qualified Bidder that updates the Bidder’s legal name may be eligible to use an abbreviated process to submit the Part 1 Proposal. In order to use an abbreviated process, the Bidder must: (i) provide evidence of the change of name; and (ii) the Officer of the Bidder or the Representative must represent that this is a change in the Bidder’s name only and not a change in the corporate structure of the Bidder. The Officer of the Bidder or the Representative makes such representation by completing the Name Change Insert prepared for this purpose by the Procurement Administrator. The evidence of the change of name and the Name Change Insert must be provided by email or by upload to the Justification of Omissions section of the online Part 1 Form.

04-02-2019

FAQ-BEC-16
Q: We are relying on the financial standing of an Entity other than the Bidder. Are we required to provide all financial statements (10-K, 10-Q, and 8-Ks since the release of the Entity’s most recent financial data) for the Entity or are we required to provide only those financial statements that specifically reference the Bidder?

A Bidder that elects to rely on the financial standing of an Entity other than the Bidder must provide all required financial statements (10-K, 10-Q , and 8-Ks since the release of the Entity’s most recent financial data) for the Entity regardless of whether the financial statements reference the Bidder or not.

03-29-2019

FAQ-BEC-15
Q: Under Section 1(i) of ComEd’s Contract Insert (#P1-6), the option for Federal Funds Effective Rate under Party B Interest Rate is locked and not selectable. Is the interest rate of 0% pre-specified or can suppliers select the Federal Funds Effective Rate option?

As provided in the ComEd EEI Master Agreement and Coversheet amendment to Paragraph 10 of the Collateral Annex, a 0% interest rate is the pre-specified interest rate payable to Party A on Cash held by Party B.  Please refer to ComEd’s EEI Master Agreement and Coversheet, as well as the Collateral Annex Paragraph 10 (with Elections) documents posted to the Final Materials page of the procurement website.

03-29-2019

FAQ-BEC-14
Q: I have a prior version of the Pre-Bid Letters of Credit instructions from a prior procurement event. Is the update to this document available for the BEC RFP?

The update to this document is scheduled to be provided to Bidders with the Part 1 Notification, which will be sent no later than April 8, 2019.  The Procurement Administrator takes your question as a request for early issuance of this document.  This document will be available by Monday April 1 upon request to the Procurement Administrator and will be sent to you as soon as it becomes available.

03-29-2019

FAQ-BEC-13
Q: My login credentials from the Fall 2018 BEC RFP are not working. Does the Procurement Administrator issue new credentials even to returning bidders?

The Procurement Administrator activates login credentials as the Part 1 Window opens.  While login credentials for returning bidders typically remain the same, those login credentials will not provide access to the online Part 1 Form prior to the start of the Part 1 Window.  As a courtesy to returning bidders, the Procurement Administrator re-sends these login credentials to returning bidders shortly before the opening of the Part 1 Window, which was on March 27, 2019, at which point the login credentials are activated.

03-29-2019

FAQ-BEC-12
Q: Will you be posting redlines of the Final Spring 2019 Energy or Capacity Agreements to the Final Fall 2018 Energy and Capacity Agreements?

The redlines of the Draft Spring 2019 Energy and Capacity Agreements to the Final Fall 2018 Energy and Capacity Agreements are posted to the “Draft Documents” page of the Spring Block Energy and Capacity section of the procurement website.  There were no changes made between the Spring 2019 Draft Energy and Capacity Agreements and Spring 2019 Final Energy and Capacity Agreements.

03-29-2019

FAQ-BEC-11
Q: I understand that there could be a payment adjustment under the (AIC) Capacity Agreement if the ZRCs are not from the compliance zone. Can you provide an example where the adjustment will result in a reduced payment to Seller?

Under the terms of the (AIC) Capacity Agreement, payments to Seller will be reduced if the Compliance Zone ACP is greater than the Source Zone ACP where the Compliance Zone is LRZ4. If the amount of the payment reduction is greater than the unadjusted payment, then Seller (not Buyer) will have to pay Buyer under the (AIC) Capacity Agreement. We provide 2 examples below to illustrate this point.

For purposes of the below example, the “ACP” refers to the Auction Clearing Price from the 2020/2021 MISO Planning Resource Auction and the Compliance Zone is LRZ4.

Example 1: Where the adjustment results in a reduced payment from Buyer to Seller.
No. of ZRCs won by Seller: 25 ZRCs from Zone 3
Average Winning Bid Price under the (AIC) Capacity Agreement: $90/MW-day
Payment to Seller = $90 x 25 ZRCs x 365 days = $821,250
MISO 2020/2021 PRA Results:
LRZ 4 ACP = $100/MW-day
LRZ 3 ACP = $30/MW-day
Adjustment to Payment = – ($100 – $30) x 25 ZRCs x 365 days = – $638,750
Adjusted Payment = $821,250 – $638,750 = $182,500

Example 2: Where the adjustment results in payment from Seller to Buyer.
No. of ZRCs won by Seller: 25 ZRCs from Zone 3
Average Winning Bid Price under the (AIC) Capacity Agreement: $50/MW-day
Payment to Seller = $50 x 25 ZRCs x 365 days = $456,250
MISO 2020/2021 PRA Results:
LRZ 4 ACP = $100/MW-day
LRZ 3 ACP = $30/MW-day
Adjustment to Payment = – ($100 – $30) x 25 ZRCs x 365 days = – $638,750
Adjusted Payment = $456,250 – $638,750 = – $182,500 (i.e., payment from Seller to Buyer)

03-22-2019

FAQ-BEC-10
Q: I understand that there could be a payment adjustment under the (AIC) Capacity Agreement if the ZRCs are not from the compliance zone. Can you provide an example where the adjustment will add to the payment to Seller?

Under the terms of the (AIC) Capacity Agreement, payments to Seller will only be adjusted to reflect an increased payment if the Source Zone ACP is greater than the Compliance Zone ACP where the Compliance Zone is LRZ4. For purposes of the below example, the “ACP” refers to the Auction Clearing Price from the 2020/2021 MISO Planning Resource Auction and the Compliance Zone is LRZ4. See below for a hypothetical example.

No. of ZRCs won by Seller: 25 ZRCs from Zone 3
Average Winning Bid Price under the (AIC) Capacity Agreement: $50/MW-day
Payment to Seller = $50 x 25 ZRCs x 365 = $456,250
MISO 2020/2021 PRA Results:
LRZ 4 ACP = $30/MW-day
LRZ 3 ACP = $100/MW-day
Adjustment to Payment = ($100 – $30) x 25 ZRCs x 365 = $638,750
Adjusted Payment = $456,250 + $638,750 = $1,095,000

03-22-2019

FAQ-BEC-9
Q: With reference to the (AIC) Capacity Agreement, please confirm that there are no payment adjustments for ZRCs that are from the compliance zone, which is LRZ 4.

Yes, this is correct. Only ZRCs from outside the compliance zone are subject to payment adjustments under the term of the (AIC) Capacity Agreement.

03-22-2019

FAQ-BEC-8
Q: When do winning Bidders provide the executed guaranty to the Companies?

As stated in Paragraph VI.2.17 of the RFP Rules, Bidders that are relying on the creditworthiness of a guarantor and have winning Bids for a procurement event for AIC or MEC must provide a fully executed guaranty to the Company electronically by 4 PM CPT on the second day after the ICC decision. Instructions for executing the guaranty for ComEd will be provided to winning Bidders directly by ComEd during the contract execution process, but generally follow the same timeline.

03-19-2019

FAQ-BEC-7
Q: When are the Pre-Bid Letters of Credit for procurement events for Energy Products due?

The Pre-Bid Letters of Credit for the procurement events for Energy Products are due by 12 PM (noon) on the Part 2 Date (Tuesday, April 16, 2019).

03-19-2019

FAQ-BEC-6
Q: We will be paying the Bid Participation Fee by check. What is the correct mailing address for the Illinois Power Agency?

The address for the Illinois Power Agency has changed. Please mail the check (payable to the Illinois Power Agency) to the following address:

Illinois Power Agency
Attn: Gloria Gibson
105 W Madison Street, Suite 1401
Chicago, Illinois 60602
Phone: (312) 814-3273

Complete instructions for payment of the Bid Participation Fee are available from the Procurement Administrator.

03-19-2019

FAQ-BEC-5
Q: Can a Bidder provide propose modifications to the Standard Pre-Bid and Post-Bid Letters of Credit?

A Bidder may, in its Part 1 Proposal, provide comments on or propose modifications to: i) the changes that have been made to the Standard Pre-Bid Letter of Credit relative to the previously used Standard Pre-Bid Letter of Credit; and (ii) the changes that have been made to the Standard Post-Bid Letter of Credit relative to the previously used Standard Post-Bid Letter of Credit.

Each Bidder provides such comments by completing the Comment Inserts prepared for this purpose, which will be available on the procurement website.  The AIC, ComEd, and MEC Energy Comment Inserts will be labelled INSERT #P1-5, INSERT #P1-8, and INSERT #P-11, respectively. The AIC Capacity Comment Insert will be labelled INSERT #P1-14. A Bidder provides the Comment Inserts by email or by upload to the application website.  Any additional submission or comments on other portions of the Standard Pre-Bid Letter of Credit or the Standard Post-Bid Letter of Credit will not be considered.

03-19-2019

FAQ-BEC-4
Q: We want to start preparing our Part 1 Proposal as soon as possible. Is it possible for the Procurement Administrator to post draft of the Inserts and other documents related to the Part 1 Proposal on the Draft Documents page of the Spring Block Energy and Capacity tab of the procurement website?

The Inserts to the Part 1 and Part 2 Forms will not be provided in draft form as only the final versions would be accepted for submission with your Proposal. On the calendar for these procurement events, the Final RFP Documents, including the Inserts, are scheduled to be posted to the Final Materials page of the procurement website by Tuesday, March 26, 2019.  However, the Procurement Administrator will endeavor to post the documents related to the Part 1 Proposal ahead of schedule.  The Procurement Administrator will send an announcements once these documents are posted.

03-19-2019

FAQ-BEC-3
Q: When will the dial-in and WebEx login information be sent to the Spring 2019 BEC webcast registrants?

Dial-in and WebEx login information will be sent to participants from Illinois-RFP@nera.com early on the day of the webcast, March 26, 2019.

03-19-2019

FAQ-BEC-2
Q: Where can I find the Draft Supplier Contracts for the 2019 Spring BEC Procurement?

On March 5, 2019, the Procurement Administrator posted to the procurement website each Company’s draft supplier contract for the procurement of energy and AIC’s draft supplier contract for the procurement of capacity.  These draft documents are available on the dedicated Draft Documents page of the Spring Block Energy and Capacity section of the procurement website.

03-19-2019

FAQ-BEC-1
Q: Where can I find a schedule of events relating to the Spring 2019 Block Energy and Capacity RFP?

The schedule for the Spring 2019 Block Energy and Capacity Request for Proposals (“BEC RFP”) is posted to the Calendar page of the procurement website. The schedule is subject to revision.

02-19-2019