If a Bidder has Bids that are accepted by the Commission, such Bidder will receive an invoice from the IPA for the Supplier Fees as well as instructions for payment. The Bidder must complete payment of the Supplier Fees due to the IPA by the seventh business day after the ICC decision. For the Fall 2019 block energy procurement events, the ICC rendered its decision on September 13, 2019 and thus the Supplier Fees are due on September 24, 2019.

If a winning Bidder fails to pay the Supplier Fees to the Illinois Power Agency by that date, each Company may draw upon the Pre-Bid Letter of Credit for that Company (pursuant to sub-paragraph 2d of the Pre-Bid Letter of Credit).

The Pre-Bid Letters of Credit for the block energy procurement events under the Fall 2019 Block Energy and Capacity RFP expire as part of the terms on October 3, 2019, 17 business days after the Bid Date.  All bid assurance collateral remains in place until the Commission has rendered a decision on the results of the procurement event.

Please see paragraph V1.2.14, which states “for each Segment of each month, the price paid to the winning Bidder is the average of the Bidder’s own winning Bids for all blocks of that Product and for all blocks of a Combination that includes that Segment of that month.”

The Supplier Fees for the Fall 2019 Block Energy and Capacity RFP are:

• $ 163 per on-peak block
• $ 109 per off-peak block
• $ 20 per ZRC

The Supplier Fees are paid only by suppliers whose bids are approved by the Illinois Commerce Commission.

The RFP Documents are posted to the Final Materials page of the dedicated Fall 2019 Block Energy and Capacity page of the procurement website here:

https://www.ipa-energyrfp.com/fall-block-energy/final-materials/

There is no fee associated with downloading materials from the procurement website.

The Part 2 Proposal consists of the completed online Part 2 Form, executed Pre-Bid Letter of Credit for Capacity Products, Bid Form, and all other documents necessary to fulfill the Part 2 Proposal requirements. Your Part 2 Proposal will remain deficient until the Pre-Bid Letter of Credit for Capacity Products has been received and deemed acceptable by AIC. The Pre-Bid Letter of Credit for Capacity Products is due by 12 PM (noon) on Tuesday, September 3, 2019. The Pre-Bid Letter of Credit must be sent directly to AIC at the following address: Managing Supervisor, Credit Risk Management, Ameren Services, 1901 Chouteau Avenue, MC 960, St. Louis, MO 63103 (Attention: Tim Moloney, 314.613.9139).

Bid Assurance Collateral cannot be used towards meeting the Collateral Requirement under the contract.

With its Part 2 Proposal, a Bidder must post Bid Assurance Collateral in the form of a Pre-Bid Letter of Credit. The Pre-Bid Letters of Credit for Energy Products are provided as Appendix 10 to the RFP Rules for AIC Energy Products and Appendix 11 to the RFP Rules for ComEd. Any Pre-Bid Letter of Credit for Energy Products will expire as part of its terms on October 3, 2019. The required amount of the Pre-Bid Letter of Credit for AIC Energy Products is the greater of $5,000 per block of a Bidder’s Indicative Quantity for AIC or $250,000. The required amount of the Pre-Bid Letter of Credit for ComEd is the greater of $5,000 per block of a Bidder’s Indicative Quantity for ComEd or $250,000.

Performance assurance under the applicable supplier agreement must be posted as cash or a letter of credit, or, if applicable under the applicable supplier agreement, unsecured credit may be granted to the Bidder or a Guarantor based on a creditworthiness assessment. If Seller is relying on the creditworthiness of a guarantor, an executed guaranty acceptable to Buyer must be provided. Any credit exposure that is in excess of the unsecured credit granted must be met with performance assurance in the form of cash or a letter of credit. The standard forms of the guaranty and the letter of credit are appended to each of the contracts.

For clarity, a block represents 25 MWs in each hour of a Product. A “Product” is a constant quantity of energy to be supplied to a Company at the delivery point specified by that Company in either the On-Peak Segment or the Off-Peak Segment of a specific month. All on-peak hours in a given month constitute the “On-Peak Segment” for that month. All off-peak hours constitute the “Off-Peak Segment” for that month. Thus, the amount supplied (25 MWs) in each hour does not vary based on the Product.

The supplier fees are levied on a “per on-peak block” and “per off-peak block” basis and do not depend on the number of days or hours in the month. Assume the following:

• the Supplier Fee, which is announced no later than 6 PM on the Part 2 Date, Wednesday, August 28, 2019, is $127 per on-peak block;
• Bidder A has a single winning Bid approved by the Commission for a block of the On-Peak Dec 2019 ComEd Product; and
• Bidder B has a single winning Bid approved by the Commission for a block of the On-Peak Feb 2020 ComEd Product.

In this case, both Bidder A and Bidder B will be required to pay a onetime Supplier Fee in the amount of $127 to the Illinois Power Agency by the seventh business day after the ICC Decision, which is expected on Friday, September 13, 2019.

A “Combination” is a grouping of two or more Products in a given Segment (and for a given Company). In the case of winning Bids approved by the Commission for a Combination, the Bidder will be required to pay the Supplier Fee amount times the number of blocks times the number of Products in the Combination. For example, if the Supplier Fee is $127 per on-peak block, and if Bidder A has a winning Bid for one block of the On-Peak Oct-Nov-Dec 2019 ComEd Combination, Bidder A will pay $381 ($127 x 3 blocks (1 block On-Peak Oct 2019 ComEd Product + 1 block On-Peak Nov 2019 ComEd Product + 1 block On-Peak Dec 2019 ComEd Product) to the Illinois Power Agency by the seventh business day after the ICC Decision, which is expected on Friday, September 13, 2019.

Revised 8/14/2019 first posted 8/13/2019

The Supplier Fees, which are levied only on Bidders that have Bids approved by the Illinois Commerce Commission (“ICC”), are used to cover part of the costs of the procurement events. Payment of the Supplier Fees is due to the Illinois Power Agency by the seventh business day after the ICC Decision, which is expected on Friday, September 13, 2019.

The Procurement Administrator will inform qualified Bidders of the amount of the Supplier Fee per on-peak block, the amount of the Supplier Fee per off-peak block, and the amount of the Supplier Fee per ZRC no later than 6 PM on the Part 2 Date, Wednesday, August 28, 2019. The Procurement Administrator provided an estimate of the Supplier Fee per on-peak block, the Supplier Fee per off-peak block, and the Supplier Fee per ZRC as part of the webcast held on July 23, 2019. The estimates are the following:

• $127 per on-peak block
• $85 per off-peak block
• $20 per ZRC

The Procurement Administrator does not comment on how a Bidder should calculate its Bid(s).

The collateral requirement under each of the (AIC) Confirmation Agreement and the ComEd Energy Master Agreement will be for the credit exposure under the contract, which is based on a Mark-to-Market methodology. For the ComEd Energy Master Agreement, this methodology is described in Schedule 3 (MtM Calculation) to the Collateral Annex. Under the applicable supplier agreement, unsecured credit may be granted to the Bidder or a Guarantor, if applicable, based on a creditworthiness assessment. If Seller is relying on the creditworthiness of a guarantor, an executed guaranty acceptable to Buyer must be provided. Any credit exposure that is in excess of the unsecured credit granted must be met with performance assurance in the form of cash or a letter of credit. The standard forms of the guaranty and the letter of credit are appended to each of the contracts.

For each of the (AIC) Confirmation Agreement and the ComEd Energy Master Agreement, please refer to the front portion of the (AIC) Confirmation Agreement and Cover Sheet of the ComEd Energy Master Agreement, respectively, for amendments and election to the EEI Collateral Annex and paragraph 10 to the Collateral Annex.

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 20, 2019.  The Procurement Administrator takes your question as a request for early issuance of this document.  This document will be available by Thursday, August 15 upon request to the Procurement Administrator and will be sent to you as soon as it becomes available.

All representations and certifications required by this RFP must be made by a single individual, who is an Officer of the Bidder.  An Officer of the Bidder is an individual empowered to undertake contracts and bind the Bidder. However, a Bidder may submit the representations required by the Part 2 Form for a procurement event during the Part 1 Window for early processing.  Early processing allows the Officer of the Bidder, at the Officer’s option, to make all representations and certifications required in the Part 1 and Part 2 Proposals at one time.

The entity fulfilling the financial and credit requirements (as specified in Article IV of the RFP Rules) must provide its most recent quarterly financial data, including a balance sheet, income statement, cash flow statement, and any accompanying notes and schedules. If available, the SEC Form 10-Q should be submitted to fulfill this requirement. If the SEC Form 10-Q is unavailable, the most recent quarterly or monthly financial data must be accompanied by an attestation by an officer of the Entity. Appendix 9 provides the requirements for this financial attestation along with sample language that would be acceptable.

The Procurement Administrator does not provide a template for this financial attestation. The Bidder is required to prepare and submit an attestation by an officer of the entity that fulfills the following requirements:

1. the attestation is a notarized affidavit attached to the financial information provided by the entity;
2. the attestation identifies the person making the affidavit as an officer of the entity;
3. the officer attests that “the information contained in the financial statements fairly presents in all material respects the financial condition and results of the operations of _________________________________[name of entity]”.

A Bidder that submits a Proposal to the BEC RFP must be a member of PJM in good standing (either as an Affiliate Member or as a Voting Member as those terms are defined by PJM) and/or must be a Certified Market Participant in MISO (as this term is defined by MISO) as of the opening of the Part 1 Window.  A Bidder that is not currently a Seller to a Company under the applicable supplier contract, and has not been a Seller  to a Company under an applicable supplier contract pursuant to a 2016, 2017, 2018, or the Spring 2019 procurement event under the BEC RFP or under the Standard Products RFP, must provide evidence that it is an Affiliate Member or a Voting Member in PJM and/or that it is a Certified Market Participant in MISO in the Part 1 Proposal.

The Procurement Administrator does not have an exhaustive list of evidence that must be submitted to meet this requirement. A screenshot of the Member List from PJM that clearly displays the Company as a Current Member and also confirms the Member Type, a list issued by MISO that identifies the Bidder as a Certified Market Participant, or other documentation from PJM or MISO that confirms the Bidder’s status are examples of evidence that may meet the requirement.

Please note that a Bidder that participates in PJM or MISO through another entity, such as a scheduling agent, must provide evidence of its relationship with such other entity and must provide evidence that such other entity is an Affiliate Member or a Voting Member in PJM and/or that it is a Certified Market Participant in MISO.

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 IPA 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.

Please review Section VI.3 of the RFP Rules for additional information. As stated in this section, “any information provided by a Bidder in its Part 1 Proposal is provided on a confidential basis to the Procurement Administrator, and may be provided on a confidential basis to the Procurement Monitor, to the IPA, or to ICC Staff.  A limited number of representatives from each Company will review the information provided to fulfill the financial requirements for each Bidder in that Company’s procurement event”.

Paragraph VI.3.3 continues, “The Procurement Administrator, the Procurement Monitor, and representatives from each Company involved in the evaluation of Proposals will consider all data and information provided by Bidders in response to this RFP to be confidential and will attempt to limit its disclosure to the public in accordance with the provisions of this section.  Each Company will also take reasonable action to ensure that its employees, representatives and agents authorized to consider and evaluate all Proposals protect the confidentiality of such data and information.  Each Representative of the Procurement Administrator, Procurement Monitor, and the Companies that has access to any portion of the Proposals is required to sign a Confidentiality Statement in the form of Appendix 15 to these RFP Rules prior to evaluation of any portion of the Proposals.”

The Pre-Bid Letter(s) of Credit for Energy Products are due by 12 PM (noon) on Wednesday, August 28, 2019. The Pre-Bid Letter of Credit for AIC Capacity Products is due by 12 PM (noon) on Tuesday, September 3, 2019.

The final versions of the Standard Pre-Bid Letters of Credit for each Company were posted on June 26, 2019 to the Final Materials page of the RFP Website. Bidders may begin working with their financial institutions at any time and are encouraged to begin as soon as practicable.

The Pre-Bid Letter(s) of Credit for Energy Products are due by 12 PM (noon) on Wednesday, August 28, 2019. The Pre-Bid Letter of Credit for the AIC Capacity Products is due by 12 PM (noon) on Tuesday, September 3, 2019.

The submission of the Pre-Bid Letters of Credit is required by all Bidders and is not related to the Bidder’s financial statements. The Pre-Bid Letters of Credit for Energy Products, provided as Appendix 10 for AIC Energy Products and Appendix 11 for ComEd, must be submitted by each applicant with the Part 2 Proposal by 12 PM (noon) on Wednesday, August 28, 2019.  Bidders submitting a Proposal for the AIC capacity procurement event have a later deadline for submission of the Pre-Bid Letter of Credit.  The Pre-Bid Letter of Credit for AIC Capacity Products is provided as Appendix 13 and is due by 12 PM (noon) on Tuesday, September 3, 2019.  The final versions of the Standard Pre-Bid Letters of Credit for each Company were posted on June 26, 2019 to the Final Materials page of the RFP Website.

The required amount of the Pre-Bid Letter of Credit for AIC Energy Products is the greater of $5,000 per block of a Bidder’s Indicative Quantity for AIC or $250,000. The required amount of the Pre-Bid Letter of Credit for ComEd is the greater of $5,000 per block of a Bidder’s Indicative Quantity for ComEd or $250,000. The required amount of the Pre-Bid Letter of Credit for AIC Capacity Products is $200,000.

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

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

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)

The Procurement Administrator has posted the presentation slides and audio recording from the bidder information webcast held on July 23, 2019, to the Final Materials page of the Fall Block Energy and Capacity section of the procurement website.

The Fall 2019 BEC RFP bidder information webcast will be held on Tuesday, July 23, 2019 at 11:00 AM CPT.

If you wish to participate and you have not yet indicated that you would participate, please RSVP with the number of phone connections needed.

The supplier contracts for the Fall 2019 BEC RFP are the same as the final supplier contracts from the Spring 2019 BEC RFP (except for the administrative addition of specific dates for the scheduling of October 2019 products in the ComEd contract).  The administrative addition of specific dates is reflected in the “Redline (Spring 2019 vs Fall 2019) Confirmation Sheet – Sample (July 19, 2019)” posted on the Final Materials page of the dedicated Block Energy and Capacity section of the procurement website.

Similarly, the Pre-Bid Letters of Credit are the same as the final documents from the Spring 2019 BEC RFP (except for administrative updates such as the expiration date and date of the procurement event).  As such, there is no comment process on these documents under the Fall 2019 BEC RFP.

Revised 7/25/2019 first posted 7/16/2019

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”.

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.

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

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.

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

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”.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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)

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

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

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.

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).

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.

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.

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.

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.

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.

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.