2020 Block Energy (ComEd, AIC, and MEC) and Capacity (AIC) Procurement Events

On September 30, 2019, 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 December 19, 2019. The Plan approved by the ICC provides for (i) a Spring 2020 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 2020 procurement of capacity for AIC for a period starting June 1, 2021 and a period starting June 1, 2022; (iii) a Fall 2020 procurement of monthly on-peak and off-peak standard block forward products as well as combinations for AIC and ComEd; and (iv) a Fall 2020 procurement of capacity for AIC for a period starting June 1, 2021 and a period starting June 1, 2022. The supply period for the standard block forward products will be June 1, 2020 to May 31, 2023. These procurement events are held under the Block Energy and Capacity RFP or “BEC RFP”.

Click here to view Block Energy and Capacity FAQs


Fall 2020 Block Energy and Capacity RFP Results


Spring 2020 Block Energy and Capacity RFP Results


Fall 2020 Block Energy and Capacity RFP

Fall 2020 Block Energy and Capacity RFP Calendar (June 25, 2020)

Fall 2020 Block Energy and Capacity RFP Targets

Fall 2020 Block Energy and Capacity Additional Information Regarding Digital Signatures

Fall 2020 Block Energy and Capacity Bidder Information Webcast

FINAL Fall 2020 Block Energy and Capacity RFP Documents

FINAL FALL 2020 BLOCK ENERGY AND CAPACITY RFP ENERGY AGREEMENTS

FINAL Fall 2020 (AIC) Confirmation Agreement

FINAL Fall 2020 ComEd Energy Master Agreement

BLOCK ENERGY AND CAPACITY RFP – THE (AIC) CAPACITY AGREEMENT

FINAL Fall 2020 (AIC) Capacity Agreement

DRAFT Fall 2020 Block Energy and Capacity RFP Documents


Spring 2020 Block Energy and Capacity RFP

Spring 2020 Block Energy and Capacity RFP Calendar (February 20, 2020)

Spring 2020 Block Energy and Capacity RFP Pre-Bid Letter of Credit – Sample Statement 

Spring 2020 Block Energy and Capacity RFP Targets

Spring 2020 Block Energy and Capacity RFP Additional Information Regarding Digital Signatures

Spring 2020 Block Energy and Capacity RFP Bidder Information Webcast

FINAL Spring 2020 Block Energy and Capacity RFP Documents

FINAL SPRING 2020 BLOCK ENERGY AND CAPACITY RFP – ENERGY AGREEMENTS

FINAL Spring 2020 (AIC) Confirmation Agreement

Redline Comparison

FINAL Spring 2020 ComEd Energy Master Agreement

Redline Comparison

FINAL Spring 2020 (MEC) Confirmation Agreement

Redline Comparison

BLOCK ENERGY AND CAPACITY RFP – THE (AIC) CAPACITY AGREEMENT

FINAL Spring 2020 (AIC) Capacity Agreement

Redline Comparison

DRAFT Spring 2020 Block Energy and Capacity RFP Documents

Spring 2020 Energy Contracts Comment Process

DRAFT Spring 2020 (AIC) Confirmation Agreement

DRAFT Spring 2020 ComEd Energy Master Agreement

Redlines (ComEd)

DRAFT Spring 2020 (MEC) Confirmation Agreement

DRAFT Spring 2020 (AIC) Capacity Agreement

 


Block Energy and Capacity FAQs

FAQ-BEC-29
Q: Can we propose a modification to the conditions for drawing on the Pre-Bid Letter of Credit? We are specifically looking at the provision where a draw could occur if the Bidder disclosed information relating to its Proposal publicly or to any other party before the Illinois Commerce Commission has rendered its decision on the results of the Procurement Event. We realize this is not listed as an acceptable modification, but this could conflict with disclosures we may be required to make to our regulators.

The Part 1 Proposal is a Bidder’s opportunity to submit comments on or propose modifications to the Standard Pre-Bid Letter of Credit for a Company that is due with the Part 2 Proposal.

In relation to possible disclosures that you may be required to make to regulators, we cannot assess what these disclosures may be and whether such disclosures may or may not constitute “disclosing information relating to your Proposal”. We can note that this provision is limited to the time prior to the Illinois Commerce Commission decision on September 18, 2020. We can also note that this condition to draw on the Pre-Bid Letter of Credit relates to the undertakings otherwise made by the Bidder in the Part 2 Proposal. In the Part 2 Proposal, the Officer of the Bidder certifies that, other than for purpose of arranging for the Pre-Bid Letter of Credit or communications with Advisors (if any), the Bidder has not disclosed, and will not otherwise disclose, publicly or to any other party any information relating to its Proposal, which could have an effect on whether another party submits a Proposal for this procurement event, or on the contents of such Proposal that another Bidder would be willing to submit. The RFP Rules note that such information includes, but is not limited to: the fact that the Bidder is submitting a Proposal for this procurement event; the Bidder’s Bids; the Bidder’s number of blocks bid for any Product, any Combination, or for any bundle of Products and Combinations; the Bidder’s estimation of the value of a Product or Combination; the Bidder’s estimation of the risks associated with providing supply under the applicable supplier contract; and the Bidder’s preference for bidding on specific Products or Combinations.

08-21-2020

FAQ-BEC-28
Q: If an Insert is digitally signed, is the signature still required to be notarized?

Bidders may complete Inserts by digitally signing the Insert and providing along with the Insert an additional document or information that verifies the identity of the signatory. For Inserts that require the signature to be notarized, notarization is not required if the Insert is digitally signed. The signature line for the Notary Public may be left blank.

The additional documentation or information referenced above may include: (i) a certificate of completion if the signatory uses DocuSign; (ii) a Final Audit Report if the signatory uses Adobe Sign; (iii) evidence that the digital signature has been certified by the signatory using a document signing certificate; or (iv) other documentation or information produced by a commercially available software that can be used by the Procurement Administrator to verify the identity of the signatory. Digital signatures without a document or information verifying the identity of the signatory are not acceptable; signature images and other electronic signatures are not acceptable.

08-18-2020

FAQ-BEC-27
Q: Is a Bidder that is participating in multiple procurement events in 2020 required to pay the Bid Participation Fee in each event?

A Bidder is required to pay the Bid Participation Fee once for all 2020 Procurement Events.

08-12-2020

FAQ-BEC-26
Q: Can the Pre-Bid Letter of Credit for AIC Capacity Products be sent in hardcopy by overnight delivery for the Fall 2020 Block Energy and Capacity RFP?

The executed Pre-Bid Letter of Credit for AIC Capacity Products must be submitted to AIC and to the Procurement Administrator as an electronic PDF file via electronic means.

08-05-2020

FAQ-BEC-25
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 MISO Planning Resource Auction (“PRA”) and the Compliance Zone is LRZ4. The examples below are hypothetical. The results of the 2021/2022 MISO PRA are not yet available.

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: $18/MW-day
Payment to Seller = $18 x 25 ZRCs x 365 days = $164,250
MISO 2021/2022 PRA Results:
LRZ 4 ACP = $20/MW-day
LRZ 3 ACP = $6/MW-day
Adjustment to Payment = – ($20 – $6) x 25 ZRCs x 365 days = – $127,750
Adjusted Payment = $164,250 – $127,750 = $36,500

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: $10/MW-day
Payment to Seller = $10 x 25 ZRCs x 365 days = $91,250
MISO 2021/2022 PRA Results:
LRZ 4 ACP = $20/MW-day
LRZ 3 ACP = $6/MW-day
Adjustment to Payment = – ($20 – $6) x 25 ZRCs x 365 days = – $127,750
Adjusted Payment = $91,250 – $127,750 = – $36,500  (i.e., payment from Seller to Buyer)

08-03-2020

FAQ-BEC-24
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 MISO Planning Resource Auction (“PRA”) and the Compliance Zone is LRZ4. The example below is hypothetical. The results of the 2021/2022 MISO PRA are not yet available.

No. of ZRCs won by Seller: 25 ZRCs from Zone 3
Average Winning Bid Price under the (AIC) Capacity Agreement: $10/MW-day
Payment to Seller = $10 x 25 ZRCs x 365 = $91,250
MISO 2021/2022 PRA Results:
LRZ 4 ACP = $6/MW-day
LRZ 3 ACP = $20/MW-day
Adjustment to Payment = ($20 – $6) x 25 ZRCs x 365 = $127,750
Adjusted Payment = $91,250 + $127,750 = $219,000

08-03-2020

FAQ-BEC-23
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.

08-03-2020

FAQ-BEC-22
Q: Can I view the status of a question submitted to the Procurement Administrator?

The Procurement Administrator aims to respond to questions within five business days. While the proposal windows for a procurement event are open, the Procurement Administrator aims to respond to questions regarding that procurement event within two business days.  Bidders may follow up if they have not received an answer within these time frames at Illinois-RFP@nera.com.

08-03-2020

FAQ-BEC-21
Q: Is cash an acceptable alternative to the Pre-Bid Letter of Credit under the Block Energy and Capacity RFP?

Bid assurance collateral must be provided in the form of a letter of credit.  The Bidder must either use the Standard Pre-Bid Letter of Credit provided as an Appendix to the RFP Rules, or the Bidder must submit a Pre-Bid Letter of Credit that incorporates only those modifications to the Standard Pre-Bid Letter of Credit approved by a Company and posted to the procurement website.

07-21-2020

FAQ-BEC-20
Q: I note that the Standard Forms of the Pre-Bid Letters of Credit have changed and that the final Standard Forms have been posted. We have comments from our bank at this time. Can we submit them ahead of the Part 1 Window?

A Bidder may provide comments on or propose modifications to the Standard Pre-Bid Letter of Credit for a procurement event that are non-material in nature, or that clarify the intent of the Standard Pre-Bid Letter of Credit, or that are advantageous to both the Company and the Bidder.  Comments are solicited during the Part 1 Window, which opens on August 12, 2020.  The Standard Forms have changed in that presentation of the Pre-Bid Letter of Credit must be made electronically.  The Procurement Administrator will work with any Bidder that submits comments ahead of the Part 1 Window to have those comments reviewed by the Companies as soon as practicable.

07-20-2020

FAQ-BEC-19
Q: Will Bidders have the opportunity to comment on the supplier contracts or the letters of credit for the procurement events under the Fall 2020 Block Energy and Capacity RFP? If yes, when is the deadline?

A Bidder may, in its Part 1 Proposal, provide comments on or propose modifications to the Standard Pre-Bid Letter of Credit for a Company.  A Bidder provides such comments by submitting a redline in Microsoft Word by email or by upload to the application website by the Part 1 Date, Thursday, August 20, 2020. The Pre-Bid Letters of Credit are posted to the Final Materials page of the Block Energy and Capacity section of the website.

Please note that for the upcoming Fall 2020 procurement events, the Pre-Bid Letter of Credit for a Company, due with the Part 2 Proposal, must be submitted electronically. Also, instead of requiring a statement from the Issuing Bank to accompany the Pre-Bid Letter of Credit as was done in the prior procurement events, the required statement confirming that the electronic PDF file serves as the operative instrument has been incorporated into paragraph 16 of the Standard Pre-Bid Letters of Credit.

There will not be a comment process with regard to the supplier contracts for the Fall 2020 BEC RFP.  The final supplier contracts will be posted on Friday, July 10, 2020.

06-29-2020

FAQ-BEC-18
Q: How is the collateral requirement under the (AIC) Confirmation Agreement and the ComEd Energy Master Agreement calculated?

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.

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 elections to the EEI Collateral Annex and paragraph 10 to the Collateral Annex.

06-25-2020

FAQ-BEC-17
Q: Can we use any of the modifications in the list of acceptable modifications posted to the procurement website?

The Pre-Bid Letter of Credit must be in the form of the Standard Pre-Bid Letter of Credit for a Company or incorporate only modifications approved by the Company and posted to the procurement website. Any bidder can use any of the modifications on the list of acceptable modifications on an optional basis.

06-25-2020

FAQ-BEC-16
Q: Can we submit a draft of our Pre-Bid Letter of Credit for review?

The Procurement Administrator will be soliciting comments on the Standard Pre-Bid Letter of Credit for a Company.  A Bidder provides such comments by submitting a redline in Microsoft Word of the Standard Pre-Bid Letter.  A Bidder provides comments by email or by upload to the application website.

06-25-2020

FAQ-BEC-15
Q: Is it possible for a Company to procure fewer blocks than is the target?

In the event that a Company does not receive sufficient eligible bids—that is, bids which are consistent with the rules, that meet or beat the benchmark, and that are approved by the Commission—to satisfy its target, the Company may procure a quantity less than its target for a given month and segment.

06-25-2020

FAQ-BEC-14
Q: If a bank is rated “A-” by Fitch Ratings (“Fitch”), is the bank acceptable as an Issuing Bank for the Pre-Bid Letter of Credit?

A bank that has a rating of “A-“ from Fitch is not acceptable as an Issuing Bank for the Pre-Bid Letter of Credit.  As specified in Paragraph 14 of the Pre-Bid Letter of Credit, if a bank is rated by Fitch, the bank must be rated “A” or better.

06-25-2020

FAQ-BEC-13
Q: How do I know whether a specific bank will be acceptable to a Company as the Issuing Bank for the Pre-Bid Letter of Credit for that Company?

A bank issuing the Pre-Bid Letter of Credit must be able to make the following certification:
We, the Issuing Bank, certify that as of the Date of Issuance of this Letter of Credit our senior unsecured debt is rated “A” or better by S&P Global Ratings (“S&P”) if rated by S&P, “A2” or better by Moody’s Investors Service (“Moody’s”) if rated by Moody’s, and, “A” or better by Fitch Ratings (“Fitch”) if rated by Fitch. We hereby certify that our senior unsecured debt is rated by at least two of S&P, Moody’s, and Fitch. If affiliated with a foreign bank, we further certify we are a U.S. branch office of such foreign bank and that as of the Date of Issuance of this Letter of Credit, our senior unsecured debt meets the ratings requirement of this paragraph.

This certification is included as Paragraph 14 of the Pre-Bid Letter of Credit.

Thus, the Issuing bank must be a U.S. bank or a U.S. branch office of a foreign bank. Further, the bank has to satisfy specific minimum ratings from the main rating agencies. If the bank you are considering meets these requirements, then it will be acceptable to the Companies.

06-25-2020

FAQ-BEC-12
Q: When does the online Part 2 Form become available?

The online Part 2 Form becomes available no later than when the Part 2 Window opens  on Wednesday, August 26, 2020. At that point, bidders can use the login credentials issued by the Procurement Administrator to access the online Part 2 Form.

06-25-2020

FAQ-BEC-11
Q: Can you please confirm that the name “Standby Letter of Credit Unit” in attention lines in Annexes 1 and 3 of the Pre-Bid Letter of Credit can be replaced with the name of the unit or department at the Issuing Bank where the Annexes would be directed?

The attention lines in Annexes 1 and 3 use “Standby Letter of Credit Unit” as an example and placeholder for the name of the department or unit to which would be directed a drawing certificate or certificate of cancellation at the Issuing Bank. The department or unit named in the attention lines of Annexes 1 and 3 are expected to be consistent with each other as well as consistent with any such unit or department named elsewhere in the letter of credit (e.g., in Paragraph 1 or Paragraph 3). The acceptable modifications document for ComEd provides some examples of alternative department or unit names; these examples are not meant to be an exhaustive list of the names that are acceptable.

06-25-2020

FAQ-BEC-10
Q: If we choose to complete an Insert by printing, signing and scanning, and that Insert must be notarized, may we use the online notary service available through notarize.com?

Yes, the online notary service available through notarize.com may be used.

06-25-2020

FAQ-BEC-9
Q: Can we use a personal check through e-pay to pay the bid participation fee?

A personal check through the e-pay system is acceptable. Please provide the Procurement Administrator the name of the person who submitted the payment so that the payment is credited to the appropriate entity submitting a Part 1 Proposal.

06-25-2020

FAQ-BEC-8
Q: Is a signature on an Insert that is computer-generated by DocuSign acceptable?

An Insert with a computer-generated signature from DocuSign is acceptable as long as the certificate of completion produced by DocuSign to verify the identity of the signatory is also provided.

06-25-2020

FAQ-BEC-7
Q: Can the Procurement Administrator provide guidance regarding the additional document or information that must be provided alongside a digitally signed Insert for the purpose of verifying the identity of the signatory?

When an Insert requires a signature, it must be completed either by: (i) printing, signing, and scanning the Insert; or by: (ii) digitally signing the Insert and providing along with the Insert an additional document or information that verifies the identity of the signatory. In some cases, it will be required that the signature of an Insert that is not digitally signed be notarized.

A digital signature together with an additional document or information that verifies the identity of the signatory is an “Acceptable Digital Signature”. Additional documentation or information may include: (i) a certificate of completion if the signatory uses DocuSign; (ii) a Final Audit Report if the signatory uses Adobe Sign; (iii) evidence that the digital signature has been certified by the signatory using a document signing certificate; or (iv) other documentation or information produced by a commercially available software that can be used by the Procurement Administrator to verify the identity of the signatory. Digital signatures without a document or information verifying the identity of the signatory are not acceptable; signature images and other electronic signatures  are not acceptable.

06-25-2020

FAQ-BEC-6
Q: Our most recent quarterly financial information is provided in our most recent audited annual financial information. Is there other information that must be submitted along with the annual financial information?

If the latest available quarterly financial data is provided in your most recent audited annual financial information, no additional information is required.  Please indicate in your online Part 1 Form that the quarterly information contained within your most recent audited annual financial information is the most recent quarterly financial data.

06-25-2020

FAQ-BEC-5
Q: Do we have to resubmit all required information if we are a previously qualified Bidder?

A previously qualified Bidder is generally eligible to participate in an abbreviated process to submit the Part 1 Proposal.  Please see the RFP Rules for a description of this abbreviated process.  Some information has been retained in the online Part 1 Form.  A previously qualified Bidder must update this information as necessary.  A Bidder that resubmits the information without any changes is certifying that the information is correct and up-to-date.

06-25-2020

FAQ-BEC-4
Q: I notice that the supplier (and not the utility) is named as the “Regulated Entity” in the Supplement. Can you confirm that this is correct? How would I check whether an entity is a “Regulated Entity” under the ISDA 2018 U.S. Resolution Stay Protocol?

The identification of the Parties in the Supplement is correct.

Each of AIC, ComEd, and MEC is an Adhering Party (but not a Regulated Entity) under the ISDA 2018 U.S. Resolution Stay Protocol (“ISDA Stay Protocol”).  A supplier that is a “Regulated Entity” under the ISDA Stay Protocol has the option to execute the Supplement by mutual agreement of the Parties.  In this context, “Regulated Entity” is a defined term under the ISDA Stay Protocol and does not take on its meaning in ordinary language.

Please consult the list provided here (https://www.isda.org/protocol/isda-2018-us-resolution-stay-protocol/adhering-parties) to determine whether an entity is a Regulated Entity under the ISDA Stay Protocol.

06-25-2020

FAQ-BEC-3
Q: Is the Fill and Sign function in Adobe an acceptable digital signature?

The Fill and Sign function in Adobe does not offer additional documentation to confirm the identity of the signatory and is not acceptable. However, the “Certificates” function in Adobe Acrobat, together with the “certify (visible signature)” option, does allow an individual to validate and for others to confirm the identity of the signatory.

06-25-2020

FAQ-BEC-2
Q: Must all energy from a block come from the same generation source?

Under the supplier contract, there is no generation source specified for purposes of meeting  the obligations. A Product in the procurement of Block Energy 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. The Target for a Product is expressed in number of 25 MW blocks.

In order to bid, a Bidder must meet the qualification requirements described in Sections IV and V of the RFP Rules. Notably, as fully described in Section IV, the Part 1 Proposal requirements include, but are not limited to, being 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 a Certified Market Participant in MISO (as this term is defined by MISO).  This requirement must be met as of the opening of the Part 1 Window.

06-25-2020

FAQ-BEC-1
Q: Is participation in the BEC RFP restricted to generation sources?

Under the supplier contract, there is no generation source specified for purposes of meeting  the obligations. A Product in the procurement of Block Energy 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. The Target for a Product is expressed in number of 25 MW blocks.

In order to bid, a Bidder must meet the qualification requirements described in Sections IV and V of the RFP Rules. Notably, as fully described in Section IV, the Part 1 Proposal requirements include, but are not limited to, being 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 a Certified Market Participant in MISO (as this term is defined by MISO).  This requirement must be met as of the opening of the Part 1 Window.

06-25-2020