2018 Subsequent Forward Procurement (AIC, ComEd, and MEC)

Public Act 99-0906 was signed into law on December 7, 2016 and became effective June 1, 2017. This legislation calls for the Illinois Power Agency (“IPA”) to develop a Long-Term Renewable Resources Procurement Plan. On December 4, 2017, the IPA submitted its Long-Term Renewable Resources Procurement Plan (“Long-Term Plan”) to the Illinois Commerce Commission (“ICC”) pursuant to the provisions of Sections 1-56(b) and 1-75(c) of the Illinois Power Agency Act and Section 16-111.5 of the Public Utilities Act. As approved by the ICC, the Long-Term Plan provides for a procurement: (i) 2 million RECs delivered annually from new utility-scale wind projects (projects over 2 MW); (ii) 2 million RECs delivered annually from new utility-scale solar projects (projects over 2 MW); and (iii) 80,000 RECs delivered annually from new brownfield site photovoltaic projects.

Fall 2018 Utility-Scale Wind Calendar (May 24, 2018)

Click here to view Utility-Scale Wind FAQs.

Fall 2018 Utility-Scale Wind RFP Results


Fall 2018 Utility-Scale Wind RFP

FINAL Fall 2018 Utility-Scale Wind RFP Bidder Information Webcast

FINAL Fall 2018 Utility-Scale Wind RFP Documents

FINAL Fall 2018 Utility-Scale Wind REC Contract

FINAL Fall 2018 Redline Comparison

DRAFT Fall 2018 Standard Contract Form Comment Process

DRAFT Fall 2018 Draft Wind REC Contract

DRAFT Fall 2018 Preliminary Proposal Documents


Fall 2018 Utility-Scale Wind FAQs

Click on the question to see the answer:

FAQ-WND-5
Q: What is the earliest date that RECs can be delivered under the contract if a project is selected?

The Utility-Scale Wind REC Contract states the following: “RECs shall not be eligible for payment by Buyer if Delivered by Seller prior to the Commission Bid Approval Date or if such REC(s) are related to generation of electricity that occurred more than two (2) months prior to the first day of the Delivery Term (such RECs, “Ineligible RECs”). Seller shall have no obligation to Buyer with respect to any Ineligible RECs.” The Commission Bid Approval Date is October 30, 2019.

Also, please note that the Delivery Term starts on “the later of the Commission Bid Approval Date or the date that the first REC is issued by PJM EIS GATS or M-RETS for the Project regardless of when the initial date of REC Deliveries by Seller to Buyer occurs”.

10-09-2019

FAQ-WND-1
Q: The workshop presentation states that utility-scale projects must be energized no later than three years after Commission decision. Which Commission decision is meant in this context? Is there a separate deadline for first REC delivery?

For a utility-scale wind project to be considered “new”, as specified in the Act, it must be energized no later than three years after the Commission decision on the results of the procurement event for which the project is approved.  Thus this is not a fixed date but a date that will vary depending on the date of a specific procurement event.

Separately from this requirement, the IPA is currently seeking stakeholder input on the deadline for first REC delivery. The IPA’s Long-Term Renewable Resources Procurement Plan targets the 2020-2021 Delivery Year for first REC deliveries under the Forward Procurements, but does not indicate a specific date.  Feedback regarding the deadline for first REC delivery is requested under Topic 1 in the IPA’s Request for Comments.

06-22-2018

FAQ-WND-2
Q: Do stakeholders have an opportunity to comment on the delivery obligations for projects selected under the upcoming forward procurements?

The Procurement Administrator will issue an invitation to submit comments on the draft REC Contract, expected on July 13, 2018.  The draft REC Contract will specify the delivery obligations and stakeholders may comment on any of these specific provisions.  If necessary, there will be an additional invitation to comment on the draft REC Contract as it applies to utility-scale solar project and brownfield site photovoltaic projects later in the fall.

06-22-2018

FAQ-WND-3
Q: How is “new” wind project and “new” photovoltaic project defined?

Under Public Act 099-0906 (“Act”), a utility-scale solar project meets the definition of “new photovoltaic projects” if it is energized after June 1, 2017.  This definition does not specify a “no later than” date. The Act defines “new wind projects” as wind renewable energy facilities that are energized after June 1, 2017 for the delivery year commencing June 1, 2017 or within 3 years after the date the Commission approves contracts for subsequent delivery years. The IPA provides its interpretation of these definitions in Section 2.4.2. of its draft Long-Term Renewable Resources Procurement Plan available here.

06-22-2018

FAQ-WND-4
Q: Am I correct to infer from the workshop presentation that the structure of the upcoming Forward Procurements follows the structure used for the Initial Forward Procurements?

We are unable to tell exactly to which slide your question refers but we assume that you are referring to the structure of the proposal submission process (slide 20).  This submission process is generally the same across all procurement events held by the IPA.  There has been no change to this structure since the Initial Forward Procurements.

Proposal requirements, however, may change.  In particular, the IPA is seeking input on the level of pre-bid collateral and on an appropriate milestone to use to assess project maturity.  Feedback regarding the level of pre-bid collateral is requested under Topic 2 in the IPA’s Request for Comments and feedback regarding an appropriate assessment of project maturity is requested under Topic 4.

06-22-2018

FAQ-WND-5
Q: Can stakeholders comment on credit and collateral provisions, including the level of pre-bid collateral?

Feedback regarding credit and collateral provisions, including the level of pre-bid collateral, is requested under Topic 2 in the IPA’s Request for Comments.

06-22-2018

FAQ-WND-6
Q: Would a Wind Project that is energized in June 2018 be eligible to participate in the Utility-Scale Wind RFP?

It is expected that a Project that is energized in June 2018 would be eligible to participate in the Utility-Scale Wind RFP.

The final RFP Documents, including the RFP Rules, will be issued on Thursday, August 23, 2018.

07-13-2018

FAQ-WND-7
Q: To qualify for the Utility-Scale Wind RFP, is the Project required to be physically located in Illinois? Is the Project required to interconnect with one of the Companies (ComEd, AIC or MEC)? Is the Project required to interconnect with a specific RTO?

Projects located in Illinois will be eligible as will Projects located in a state that is adjacent to Illinois as long as the facility meets the public interest criteria specified in Section 1-75(c)(1)(I) of the IPA Act. Adjacent states include Wisconsin, Iowa, Missouri, Kentucky, Indiana, and Michigan. In its Long-Term Renewable Resources Procurement Plan the IPA proposed a methodology and point system for determining whether a project satisfies those public interest criteria and the proposal was approved by the Commission on April 3, 2018.   A Project located in an adjacent state must receive a score of at least 60 points. In order to apply to the Agency for consideration for eligibility, please download and complete the eligibility request spreadsheet posted on the IPA’s website.

There is no requirement to interconnect with one of the Companies (ComEd, AIC or MEC) and there is no requirement to interconnect with a specific RTO. It is expected that in its Proposal, a Bidder will be required to describe the stage of development of the Project including naming the utility or Regional Transmission Organization (e.g., PJM or MISO) to which the Seller has applied or will apply for interconnection. The Procurement Administrator posted preliminary proposal requirements and the draft REC Contract to the dedicated Utility-Scale Wind Procurement page. The final RFP Documents will be posted on August 23, 2018, and will outline the final proposal requirements.

If you have not done so already, please join our mailing list to receive updates and information by completing the automated form on the Register page. An announcement will be sent to the mailing list when the RFP Documents have been issued.

07-18-2018

FAQ-WND-8
Q: When is the Bid Assurance Collateral due for the Utility-Scale Wind RFP?

Bid Assurance Collateral is submitted with the Part 2 Proposal, which is due on the Part 2 Date. The Part 2 Date for the upcoming Utility-Scale Wind RFP is September 26, 2018.

07-24-2018

FAQ-WND-9
Q: In addition to the Bid Assurance Collateral, are there other fees or payments required to participate in the Utility-Scale Wind RFP?

Yes. Each participant is required to pay a non-refundable Bid Participation Fee of $500 as a condition of completing the Part 1 Proposal to the extent that such participant has not already paid a Bid Participation Fee pursuant to its participation in a 2018 procurement event.  A participant that presents several projects is only required to pay a single Bid Participation Fee. The Bid Participation Fee will be used to cover part of the costs of the 2018 procurement events.

The Supplier Fees, which are levied only on those that have bids approved by the Commission, are also used to cover part of the costs of the procurement events. An estimate of the Supplier Fees, which will be in $/REC and which will be applied to the annual quantity of RECs for a winning Project, will be provided during the webcast planned for August 24, 2018.

Additionally, there is a Collateral Requirement under the REC Contract. The Collateral Requirement is posted only if a Project has a winning Bid that is approved by the Commission. The Collateral Requirement is posted upon contract execution.

07-24-2018

FAQ-WND-10
Q: Have the bid assurance collateral amounts been set?

The bid assurance collateral amounts have been set. Each Bidder in the Utility-Scale Wind RFP will be required to provide bid assurance collateral in the form of cash or a letter of credit separately to each of the three Companies (Ameren Illinois Company (“AIC”), Commonwealth Edison Company (“ComEd”), and MidAmerican Energy Company (“MEC”)) for all the Projects for which the Bidder is presenting a Proposal. The required amounts are as follows:

  • $1,600/MW for AIC up to a ceiling of $2,150,000
  • $4,000/MW for ComEd up to a ceiling of $5,500,000
  • $400/MW for MEC up to a ceiling of $350,000.

Additional information on bid assurance collateral requirements will be provided with the final RFP Documents, which will be issued on Thursday, August 23, 2018.

If you have not done so already, please join our mailing list to receive updates and information by completing the automated form on the Register page. An announcement will be sent to the mailing list when the RFP Documents have been issued.

07-27-2018

FAQ-WND-11
Q: When is the Bid Participation Fee due? When are the Supplier Fees due?

The Bid Participation Fee of $500 is submitted with the Part 1 Proposal and is due by the Part 1 Date, September 5, 2018.

The Procurement Administrator will inform Bidders of the amount of the Supplier Fee per REC no later than 6 PM two (2) business days before the Bid Date. Payment of the Supplier Fees to the IPA will be due within seven (7) business days after the date at which the Illinois Commerce Commission (“ICC”) approves the Bids. The ICC decision on the results of the procurement event will take place on Wednesday, October 10, 2018.

Posted 7/27/2018; amended 8/29/2018

08-29-2018

The Draft Wind REC Contract is posted to the Draft Documents subpage to the dedicated Utility-Scale Wind section of the procurement website:

https://www.ipa-energyrfp.com/utility-scale-wind/draft-documents/

08-09-2018

FAQ-WND-13
Q: For purposes of Performance Assurance, is the Collateral Requirement due upon contract execution?

Under the REC Contract, the Performance Assurance in the form of a letter of credit or cash is due shortly after the execution of the REC Contract. In the event Seller fails to provide Performance Assurance within 5 business days, an event of default is deemed to have occurred.

08-27-2018

FAQ-WND-14
Q: What Is the Collateral Requirement under the contract and is that the same as the bid assurance collateral?

No, the Collateral Requirement under each REC Contract is separate from the bid assurance collateral. The Collateral Requirement due under a REC Contract is calculated as $4 x Annual Quantity of such REC contract (rounded up to the nearest $10,000). This is subject to a minimum of $25,000 for the first 10 Delivery Years. After the first 10 Delivery Years during the Delivery Term, if the Collateral Requirement is equal to or less than $25,000, then the Collateral Requirement shall be deemed to be zero.

08-27-2018

FAQ-WND-15
Q: Will the Collateral Requirement increase from $4 per REC of the Annual Quantity after the date of first REC Delivery?

No. The amount will remain constant throughout the term of the contract.

08-27-2018

FAQ-WND-16
Q: When is the bid assurance collateral requirement due and is it on a per REC basis?

The bid assurance collateral is due by the Part 2 Date. The bid assurance collateral is not on a per REC basis, but on a per MW basis calculated based on the aggregate size of all of your Projects combined. Once the aggregate size of all of your Projects is determined, then the bid assurance collateral amount is $1600/MW for AIC, $4000/MW for ComEd, and $400/MW for MEC. The bid assurance collateral in the form of cash or a Pre-Bid Letter of Credit must be sent separately to each of the Companies; namely, AIC, ComEd and MEC.

08-27-2018

FAQ-WND-17
Q: Do RECs produced during testing count, as long as they occur during the 2 months prior to delivery term start?

We are unsure as to the meaning of your question.  Assuming that the Project is established after the ICC approval of the bid results, then the Delivery Term starts on the date of first REC issuance as recorded by the tracking system (GATS or M-RETS).  In this case, there would be no RECs issued prior to the Delivery Term. If the Project is currently operating and is producing RECs, then the Delivery Term starts on the Commission Bid Approval Date and any RECs based on generation that occurred 2 months prior to the Delivery Term start date would be eligible for transfer to the Buyers.

08-27-2018

FAQ-WND-18
Q: By way of example, suppose that our Project is a 200 MW utility-scale wind project and that we bid an annual quantity of 550,000 RECs. Does the collateral requirement for the contract period of $4 times the annual quantity apply to each Company separately or to all three Companies together?

Suppose a 200 MW wind Project is selected by the evaluation for an annual quantity of 550,000 RECs and approved by the Commission.  The annual quantity will then be allocated by the Procurement Administrator to each of the three (3) Companies.  Suppose that the quantities to each Company were 300,000 for ComEd, 200,000 to AIC, and 50,000 to MEC.  Then the collateral requirement for each of the three Companies would be $1.2M, $800,000, and $200,000 respectively.  Thus, the collateral requirement across the contracts for all three Companies together would be $2.2M ($1.2M + $800,000 + $200,000 = $4 x 550,000 RECs).

08-31-2018

No, the exact legal name of the Seller does not need to be displayed on the evidence uploaded to the online Part 1 Form to show that the Bid Participation Fee has been paid.  However, to complete the requirements of the Part 1 Proposal, the Procurement Administrator must be able to get confirmation from the Illinois Power Agency (“IPA”) that the IPA has received payment of the Bid Participation Fee.

08-31-2018

FAQ-WND-20
Q: Will the information we submit as part of our Proposal be treated as confidential?

For a procurement event held by a Procurement Administrator on behalf of the Illinois Power Agency, the Commission makes public only the names of the successful bidders and the average of the winning bid prices.  As required by Section 16-111.5(h) of the Public Utilities Act, “all participants in the procurement process shall maintain the confidentiality of all other supplier and bidding information.” Participants include the Procurement Administrator, the Procurement Monitor, the Commission, and the Illinois Power Agency. As further provided for in that section, any such confidential information “shall not be made publicly available and shall not be discoverable by any party in any proceeding, absent a compelling demonstration of need.”

Additionally, for any confidential information shared with the Illinois Power Agency, the Illinois Power Agency is subject to a separate, standalone requirement found in Section 1-120 of the IPA Act (20 ILCS 3855); this Section requires that the Agency “shall provide adequate protection for confidential and proprietary information furnished,  delivered, or filed by any person, corporation, or other entity.” This requirement to provide protection for third-party confidential information submitted to the Agency includes, but is not limited to, situations in which that information is provided to the Agency as part of a competitive procurement process.

08-31-2018

FAQ-WND-21
Q: Can you clarify the timing for the execution of the REC Contract and posting of Performance Assurance?

If a Seller has a Project with approved Bids, by 12 PM CPT (noon) on the first business day after the ICC decision (October 10, 2018), each Company prepares and sends a partially executed electronic copy of the REC Contract and related documents to the Seller. By 12 PM CPT (1 PM Eastern Prevailing Time) on the next business day, the Seller executes the signature pages of the partially executed REC Contracts and related documents and sends such fully executed signature pages to the Company electronically.

Under the REC Contract, the Performance Assurance is due within five (5) business days of a request from the Company.  Such a request can be issued at the start of the formalities for the execution of the REC Contract.  If Seller fails to provide Performance Assurance within 5 business days of this request, an event of default shall be deemed to have occurred.

08-31-2018

FAQ-WND-22
Q: Is there an opportunity to change the Date of First Operation provided in the Part 1 Proposal?

A Bidder is asked for the actual or expected Date of First Operation as a requirement of the Part 1 Proposal. There is no opportunity to change that date at a later time. However, the REC Contract does not require the Seller to commit to a specific date for the start of commercial operations as long as the Date of First Operation (as recorded by PJM EIS GATS or M-RETS) did not occur on or before June 1, 2017 and as long as the Date of First Operation occurs on or before October 10, 2021. The REC Contract defines Force Majeure events that can excuse delay.

08-31-2018

FAQ-WND-23
Q: If in the Part 1 Proposal we provide October 10, 2021 as the expected Date of First Operation, do we incur any penalties under the terms of the REC Contract if the Project starts to operate earlier?

No, under the REC Contract there is no penalty for a Date of First Operation being before October 10, 2021 (provided that this date is not on or before June 1, 2017).

08-31-2018

FAQ-WND-24
Q: If, in the Part 1 Proposal, we provide the Date of First Operation of 12/31/2020, is there a penalty under the REC Contract if the Project comes on line after 12/31/2020 but before the required 10/10/2021?

No. the REC Contract does not require the Seller to commit to a specific date for the start of commercial operations as long as the Date of First Operation (as recorded by PJM EIS GATS or M-RETS) did not occur on or before June 1, 2017 and as long as the Date of First Operation occurs on or before October 10, 2021. The REC Contract defines Force Majeure events that can excuse delay.

08-31-2018

FAQ-WND-25
Q: Can you explain the requirement of the REC Contract that RECs be delivered from a Project within 50% of the land area identified in the original site map provided in the Part 1 Proposal?

Section 5(e) of the Coversheet of the REC Contract requires that “at least 50% of the Project is located within the physical location identified.” This means that at least 50% of the Project, or “subset” from your question, must be located within the physical location identified in the Proposal. With each REC delivery, the Seller will be required to represent this is the case.
This provision ensures that the site provided for the Project as part of the Proposal, and for which a description is provided in Table 1 of the REC Contract, is substantially similar to the site of the Project when such Project is fully developed. The Seller must certify that the RECs delivered come from the Project and that such Project is in majority at the site provided in the Proposal. Thus, the Seller cannot substitute another Project in a different location for the Project presented in its Proposal and the development of the Project at the Proposal stage must be sufficient to substantially describe the site.

08-31-2018

FAQ-WND-26
Q: Are assignments possible under the REC Contract?

The Seller named in the Part 1 Proposal must be the counterparty to all three (3) Companies for delivery of RECs from the Project.

Assignments are possible under the REC Contract. Generally, the Seller may not assign the REC Contract without the prior written consent of the Buyer, which shall not be unreasonably withheld. However, consent of the Buyer is not required for transfer or assignment to an Affiliate of the Seller if the Affiliate’s creditworthiness is equal to or higher than that of the Seller on the Effective Date. The full conditions under which an assignment can occur are provided in Section 9.2, as amended on the cover sheet (page 18 of the REC Contract as posted on August 22).

08-31-2018

FAQ-WND-27
Q: What is the best way to provide site control documentation if the file sizes are large?

Files that are uploaded to the online Part 1 Form, including zip files, are limited to a size of 30Mb. In addition to the three upload links provided under the Fourth Item in Section 2, there are four upload links in Section 6 “Justification of Omissions” that you may use to provide the documentation. Alternatively, you may submit the files to us by email at Illinois-RFP@nera.com. Please note that you may need to send multiple emails.

09-04-2018

FAQ-WND-28
Q: If we already paid the Bid Participation Fee pursuant to participation in a prior 2018 procurement event are we required to pay the fee again? Does it matter if we are submitting as a different Bidder?

The answer depends on if the Bidder has changed. Should you present one or more projects under the Utility-Scale Wind RFP and the Bidder is unchanged, you are not required to pay the Bid Participation Fee in this RFP. If the Bidder changed since the prior 2018 procurement event, however, you will be required to pay the Bid Participation Fee again in this RFP.

09-04-2018

FAQ-WND-29
Q: Where can we find more information on the requirement that a utility-scale wind Project not have its costs recovered through rates regulated by a state?

Please consult Section 4.2 of the IPA’s Long-Term Renewable Resources Plan for an interpretation of this section of the Act and for the manner in which the IPA intends to establish whether a facility’s cost is or is not recovered through rates regulated by a state.

Primarily, the IPA understands that this provision was generally intended to ensure that facilities owned by a vertically integrated utility, for which REC revenues may be incidental to building and financing the facility, would not be eligible. The rate recovery status of a facility in an adjacent state will ordinarily be reviewed by the IPA when the facility applies for eligibility for the utility Renewable Portfolio Standard and the IPA expects to ask for additional documentation at that time. The IPA is not aware of any renewable facilities in Illinois that have their costs recovered through regulated rates.

09-11-2018

FAQ-WND-30
Q: Can you please clarify whether the price paid for RECs from a Project under the REC Contract is a clearing price or whether it is the price included as part of the Bid for that project? What information is released upon approval of the results of the procurement event by the Commission?

A “Bid” includes a price per REC for a given Project as well as an annual quantity of RECs to be delivered from that Project under the REC Contract. If a Project is selected through the RFP and is approved by the Commission, the Seller under the REC Contract is paid the price submitted as part of the Bid for that Project.

At the time of ICC approval of a procurement event, the names of winning Sellers and the average of the winning bid prices are made public. The quantity of RECs procured may also be disclosed in specific circumstances.

09-11-2018

FAQ-WND-31
Q: Is the Part 1 Proposal the only opportunity for us to provide comments to the Pre-Bid and Post-Bid Letters of Credit? When will the final versions of these documents be posted?

A Bidder may provide comments on or propose modifications to the Post-Bid Letter of Credit as appended to the REC Contract or to each Pre-Bid Letter of Credit. These comments or proposed modifications are submitted with the Part 1 Proposal.

The final version of the Standard Pre-Bid Letter of Credit for each Company was posted on August 28, 2018 and the final versions of the Post-Bid Letters of Credit were posted on August 22, 2018. These letters of credit will not change based on comments or proposed modifications submitted during the Part 1 Window. Instead, any comments or proposed modifications may result in an addition to the list of modifications to the Pre-Bid Letter of Credit or list of modifications to the Post-Bid Letter of Credit approved by the Company for use by all Bidders on an optional basis.

09-11-2018

FAQ-WND-32
Q: I was wondering whether the Pre-Bid Letter of Credit expires 17 calendar days or business days after the Bid Date?

The Pre-Bid Letter of Credit under the Utility-Scale Wind RFP expires on October 29, 2018, seventeen business days after the Bid Date.

09-11-2018

FAQ-WND-33
Q: How does the Procurement Administrator determine the percentage of the RECs of each Project that will be allocated to ComEd, AIC, and MEC? Is the allocation available at this time?

The Procurement Administrator allocates Bids selected by the evaluation procedure to each Company in proportion to the Company’s budget. The Procurement Administrator may take other factors into account in determining the allocation across the Companies. The Procurement Administrator will announce the allocation as early as practicable and no later than two (2) business days prior to the Bid Date.

09-11-2018

FAQ-WND-34
Q: We are potentially selling a project for which we presented a Part 1 Proposal. Assuming negotiations are successful, I understand that we could effect a change in ownership after the Bid for the Project is selected, approved by the Commission, and the REC Contracts are fully executed. At that point, my understanding is that an assignment of the REC Contract is allowed provided that the acquirer’s creditworthiness is equal to or greater than the current owner of the Project (“Seller”). Can we effect the change of ownership at any time during the procurement event?

The provisions that control the assignment of the REC Contract are provided in Section 9.2.  We note that the requirement that the acquirer’s creditworthiness is equal to or greater than the original Seller is sufficient for an assignment to be granted only when the Seller and the acquirer are affiliated entities.  The fact that the acquirer’s creditworthiness is equal to or greater than the Seller is not sufficient for an assignment to be granted when the Seller and acquirer are unrelated entities.  Please review the applicable provision under the REC Contract to see whether this provision can be used to transfer ownership after a Bid is submitted by you for the Project, the Bid is selected and approved by the Commission, you sign the REC Contract and submit to the creditworthiness requirements.

A change of ownership during the short timeframes of the procurement event is not contemplated by the RFP Rules and can only be accommodated in very limited circumstances.  The Procurement Administrator will assess any specific circumstances on a case-by-case basis and any Seller in this situation should provide all relevant information to the Procurement Administrator at the earliest opportunity.  The qualifications of the Project must be maintained after the change of ownership for continued compliance with the RFP Rules, which implies at least the following: (i) site control must be transferred to the acquirer and documentation to that effect must be provided; and (ii) the same representatives of the same Seller must make all certifications required by the RFP Rules (in the Part 1 and the Part 2 Proposals), submit the Bid with respect to the Project, and sign the REC Contracts (assuming a successful Bid).  A change of ownership would be expected to result in a change in the identity of the Officer of the Seller.  Such a change cannot be made after the Part 2 Date as there is no further opportunity during the procurement event to submit the certifications required by the Proposal.

09-21-2018

FAQ-WND-35
Q: Is it acceptable for an entity other than the Bidder or a Seller to post bid assurance collateral on behalf of the Bidder? Are there additional requirements in that case?

It is acceptable for an entity other than the Bidder or a Seller to post bid assurance collateral on behalf of the Bidder.

If cash is posted by the “Entity” (an entity other than the Bidder or a Seller) as bid assurance collateral, we would appreciate a note with the wire transfer to identify the Bidder on behalf of which the bid assurance collateral is posted. The Bidder must provide a draft request for the return of cash, on the Entity’s letterhead.  The request is a “draft” in that it may leave all amounts blank and may be unsigned.  The Procurement Administrator may require that a representative from the Entity also sign the Cash Inserts if the Entity is not an affiliate of the Bidder or Sellers.

If a Pre-Bid Letter of Credit is posted by the Entity, the “Entity” is the Applicant.  The Bidder and Seller are identified in Paragraph 12 of the Pre-Bid Letter of Credit.

09-21-2018

FAQ-WND-36
Q: Can you please provide an example of how to calculate the Supplier Fee for the Utility-Scale Wind RFP? Is the calculation the same as it was in prior procurement events?

A Project selected through the Utility-Scale Wind RFP and approved by the Illinois Commerce Commission (“ICC”) will be assessed a Supplier Fee per REC that will be due within seven (7) business days after ICC approval of the Bids.  The Supplier Fee will be stated as $x.xx per REC and will be assessed on the Annual Quantity of RECs associated with a Bidder’s winning Bid.  (The “Annual Quantity of RECs” means that annual quantity that is identified by the Procurement Administrator as the Bidder’s winning Bids and that becomes the quantity under contract if the Commission approves the results of the procurement event.  In the case of a partial award, the quantity under contract may be smaller than the quantity that a Bidder submitted in its Bid.)

This calculation is a change from what was used in the procurement event under the Wind and Solar RFP held in Fall 2017 and the procurement events under the New Solar RFP.  In those procurement events, the assessment was based on the anticipated quantity of RECs procured over the entire 15 years of the REC Contract.

Under the Utility-Scale Wind RFP, the Supplier Fee is $0.18 per REC.  Suppose that the annual quantity identified by the Procurement Administrator as the Bidder’s winning Bids for the Project is 100,000 RECs.  Then the Supplier Fees due would be $18,000, which is calculated as follows:

Supplier Fee per REC = $0.18/REC
Annual Quantity from winning Bids = 100,000 RECs
Supplier Fees for Project = Supplier Fee per REC x Annual Quantity from winning Bids

= $0.18/REC x 100,000 RECs = $18,000

First posted 9/21/2018; revised 10/2/2018.

09-21-2018

FAQ-WND-37
Q: Can you clarify under what circumstances we can withdraw from the procurement event and get our bid assurance collateral returned?

All bid assurance collateral remains in place at least until the Commission has rendered a decision on the results of the procurement event.  There is no option to “withdraw” from the procurement event although you may elect not to cure deficiencies associated with your Proposal or not to submit a Bid.

If bid assurance collateral in the form of cash is submitted, the following applies.  If no Bid is submitted for the Project, as soon as practicable after the Commission decision, each Company will initiate the return of cash upon receipt of an acceptable fully executed request for the return of cash on the appropriate entity’s letterhead.  While there is no deadline for submission of the fully executed request for the return of cash, any delay in providing this request to a Company will result in delay for the return of the bid assurance collateral.  A request for the return of cash in the form of the draft request approved at the time of the Part 2 Proposal.

If bid assurance collateral was posted as a letter of credit, then the letter of credit is allowed to expire on the date stated as part of its terms, seventeen (17) days after the Bid Date.  The letter of credit is not returned to the Bidder unless the Bidder provides special instructions to that effect in the Part 2 Proposal.

09-21-2018

FAQ-WND-38
Q: Could you confirm that if a Bidder submits a Part 2 Proposal but does not submit a Bid for a Project, this is not a reason for drawing on cash submitted as bid assurance collateral so that the full amount of cash posted as bid assurance collateral would be returned? In other words, there is no adverse penalty to the Bidder in that case?

The circumstance of a Bidder not submitting a Bid is not a reason for drawing on bid assurance collateral or for bid assurance collateral posted as cash not to be returned.  There is no penalty for not submitting a bid.

09-21-2018

FAQ-WND-39
Q: Can you explain the circumstances that would lead to bid assurance collateral not being returned (i.e., being drawn upon)? If it is returned, when is it returned?

All bid assurance collateral remains in place at least until the Commission has rendered a decision on the results of the procurement event.

A Company may draw upon the letter of credit or a cash deposit if: (i) the Bidder or a Seller has disclosed information relating to the Proposal for a Project publicly or to any other party before the Illinois Commerce Commission has rendered its decision on the results of the procurement event; or (ii) the Bidder or a Seller has made a material omission or misrepresentation in the Part 1 Proposal or the Part 2 Proposal for a Project submitted in connection with the procurement event; or (iii) a Seller has failed to execute the applicable supplier contract for a Project within three (3) business days of being notified that the Illinois Commerce Commission has approved the Bid on that Project or has failed to meet the creditworthiness requirements of the applicable supplier contract within five (5) business days of such Illinois Commerce Commission decision; or (iv) the Bidder or a Seller has failed to pay to the Illinois Power Agency the Supplier Fee for a Project within seven (7) business days of being notified that the Illinois Commerce Commission has approved the Bid on that Project.

Otherwise, if these circumstances do not apply, bid assurance collateral in the form of cash is returned.  If no Bid is submitted for the Project or if the Project is not selected through the RFP and approved by the Commission, as soon as practicable after the Commission decision, each Company will initiate the return of cash upon receipt of an acceptable fully executed request for the return of cash on the appropriate entity’s letterhead.  While there is no deadline for submission of the fully executed request for the return of cash, any delay in providing this request to a Company will result in delay for the return of the bid assurance collateral.  If the Project is selected through the RFP and approved by the Commission, as soon as practicable after full execution of the REC Contract and receipt by the IPA of the payment of the Supplier Fees, each Company will initiate the return of cash upon receipt of an acceptable fully executed request for the return of cash on the appropriate entity’s letterhead.  While there is no deadline for submission of the fully executed request for the return of cash, any delay in providing this request to a Company will result in delay for the return of the bid assurance collateral.  A request for the return of cash in the form of the draft request approved at the time of the Part 2 Proposal.

If these circumstances do not apply and bid assurance collateral was posted as a letter of credit, then the letter of credit is allowed to expire on the date stated as part of its terms, seventeen (17) days after the Bid Date.  The letter of credit is not returned to the Bidder unless the Bidder provides special instructions to that effect in the Part 2 Proposal.

09-21-2018

FAQ-WND-40
Q: Can the Procurement Administrator give us the probability that the Buyer under the REC Contract would no longer be allowed to recover costs through pass-through tariffs approved by the ICC?

It is the responsibility of the Seller to evaluate such risks.

09-21-2018

FAQ-WND-41
Q: Can you clarify when Performance Assurance is due?

Under the REC Contract, Performance Assurance is due within 5 business days of notice from Buyer whenever the Collateral Threshold is less than the Collateral Requirement.  Buyer is expected to provide such notice on the day of approval of the results of the procurement event by the Illinois Commerce Commission so that Performance Assurance is due with 5 business days of ICC approval of the results of the procurement.

09-21-2018

FAQ--WND-42
Q: I used the list of preliminary acceptable modifications in determining whether to use a letter of credit or cash as bid assurance collateral. Have any of the modifications that were acceptable to the Companies in the preliminary been removed or changed?

No.  All modifications that were included in the preliminary list of acceptable modifications are included (unchanged) in the final list of acceptable modifications for the Pre-Bid Letter of Credit for each Company.

09-25-2018

FAQ-WND-43
Q: Are there consequences if a Seller’s Bid is approved by the Commission and the Seller does not execute the REC Contract?

Bids are binding.  Each Bidder acknowledges that the price in the Bid constitutes a binding and irrevocable offer to supply RECs from the Project at that price under the terms of the REC Contract and the quantity in the Bid is the annual quantity in the REC Contract aggregated across all Companies.  In the Part 2 Proposal, the Officer of the Seller acknowledges and certifies that if the Seller’s Bid on the Project is approved by the Commission, the Seller WILL execute the REC Contracts with the Companies as instructed by the Procurement Administrator. Failure to do so is a failure to abide by one of the central representations and requirements of the Proposal.

Such failure can lead to forfeiture of the entirety of the bid assurance collateral required with the Part 2 Proposal.  There could be other consequences to the Seller such as loss of eligibility to participate in other Programs or RFPs implemented by or on behalf of the IPA.

10-02-2018

FAQ-WND-44
Q: What is the final Supplier Fee and what are the final percentages that will be used to allocate RECs to the Companies?

The Supplier Fee is $0.18 times the Annual Quantity of RECs bid for a Project (which is equivalent to about $0.012 per REC assessed on the anticipated quantity of RECs over the entire 15-year delivery term).

The RECs from a Project selected through the Utility-Scale Wind RFP and approved by the Illinois Commerce Commission will be allocated to the Companies in the following proportions:  29.33% to AIC, 70.34% to ComEd, and 0.33% to MEC.  Thus, there will be three REC Contracts for each selected Project, one with each of the three Companies.

This information is posted on the Announcements page of the procurement website.

10-02-2018

FAQ-WND-45
Q: Is cash an acceptable form of Performance Assurance?

Yes, cash is an acceptable form of Performance Assurance under the REC Contract.

10-08-2018

FAQ-WND-46
Q: I see the optional changes to the Guaranty in Contract Insert #P2-5 for ComEd only. Does that meant that AIC and MEC will not accept changes to the Guaranty?

The lists of optional changes to the (AIC) Form of Guaranty and the (MEC) Form of Guaranty are available under the FINAL Fall 2018 Wind REC Contract header on the Final Materials page of the procurement website. These do not appear in the Contract Insert because the Guarantor prepares the guaranty for AIC and MEC (while ComEd prepares the guaranty for the ComEd REC Contract).

10-08-2018

FAQ-WND-47
Q: Is Performance Assurance under the REC Contract provided to the Illinois Power Agency (“IPA”)?

The Performance Assurance is provided to the Companies. A representative from each Company will contact you with further instructions on October 10, 2018, the date that the ICC renders its decision on results of procurement event.

The Supplier Fees are paid to the Illinois Power Agency (“IPA”). The Procurement Administrator will provide instructions regarding the Supplier Fees on October 10, 2018.

10-08-2018

FAQ-WND-48
Q: How, in practice, does a Seller either accept or reject a partial award?

If the Commission accepts the results of the procurement event, the Bidder receives a communication from the Procurement Administrator noting that it has received a partial award. The Bidder may at that time state whether it intends to accept or reject the award.

10-08-2018