2023 Block Energy (AIC, ComEd, and MEC) and Capacity (AIC) RFPs

On September 28, 2022, the IPA submitted its Procurement Plan (“Plan”) to the Illinois Commerce Commission (“ICC”) in compliance with Public Act 95-0481 (the “Act”), which includes the Illinois Power Agency Act (“IPA Act”). The ICC issued its Order with regards to the 2023 Plan on December 15, 2022.

The 2023 Plan approved by the ICC provided for an Early 2023 procurement of capacity for AIC for the period June 1, 2023 through May 31, 2024. The Early 2023 procurement event was the replacement event for the cancelled Fall 2022 capacity procurement event, which was scheduled under the Fall 2022 Block Energy and Capacity RFP. The capacity product procured in the Early 2023 procurement event was seasonal ZRCs in order to comply with the recently approved changes to the MISO capacity market construct. This procurement event was held under the “Early 2023 Capacity RFP”.

The 2023 Plan also provided for (i) a Spring 2023 procurement of monthly on-peak and off-peak standard block forward products as well as combinations for Ameren Illinois Company (“AIC”), Commonwealth Edison Company (“ComEd”), and MidAmerican Energy Company (“MEC”); (ii) a Spring 2023 procurement of seasonal ZRC capacity products for AIC for a period starting June 1, 2024 and a period starting June 1, 2025; (iii) a Fall 2023 procurement of monthly on-peak and off-peak standard block forward products as well as combinations for AIC and ComEd; and (iv) a Fall 2023 procurement of seasonal ZRC capacity products for AIC for a period starting June 1, 2024 and a period starting June 1, 2025. The supply period for the standard block forward products was June 1, 2023 to May 31, 2026. These procurement events were held under the Block Energy and Capacity RFP or “BEC RFP”.

Fall 2023 Block Energy and Capacity RFP Calendar (June 20, 2023)
Announcements – Fall 2023 Block Energy and Capacity RFP

Spring 2023 Block Energy and Capacity RFP Calendar REVISED (April 13, 2023)
Announcements – Spring 2023 Block Energy and Capacity RFP

Early 2023 Capacity RFP Calendar (Revised December 21, 2022)
Announcements – Early 2023 Capacity RFP

Click here to view Block Energy and Capacity FAQs.

Click here to view Early Capacity FAQs.


Fall 2023 Block Energy and Capacity RFP Results

Spring 2023 Block Energy and Capacity RFP Results

Early 2023 Capacity Procurement Event Results


Fall 2023 Block Energy and Capacity RFP

Fall 2023 Block Energy and Capacity RFP Targets

Fall 2023 Block Energy and Capacity RFP Bidder Information Webcast

FINAL Fall 2023 Block Energy and Capacity RFP Documents

FINAL Fall 2023 BLOCK ENERGY AND CAPACITY RFP – ENERGY AGREEMENTS

FINAL Fall 2023 (AIC) Confirmation Agreement

FINAL Fall 2023 (ComEd) Energy Master Agreement

Redline Comparison

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

FINAL Fall 2023 (AIC) Capacity Agreement

Fall 2023 Block Energy and Capacity RFP

DRAFT Fall 2023 Block Energy and Capacity RFP Documents

Spring 2023 Block Energy and Capacity RFP

Spring 2023 Block Energy and Capacity RFP Targets

Spring 2023 Block Energy and Capacity RFP Bidder Information Webcast

FINAL Spring 2023 Block Energy and Capacity RFP Documents

FINAL Spring 2023 BLOCK ENERGY AND CAPACITY RFP – ENERGY AGREEMENTS

FINAL Spring 2023 (AIC) Confirmation Agreement

FINAL Spring 2023 (ComEd) Energy Master Agreement

FINAL Spring 2023 (MEC) Confirmation Agreement

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

FINAL Spring 2023 (AIC) Capacity Agreement

Spring 2023 Block Energy and Capacity RFP

DRAFT Spring 2023 Block Energy and Capacity RFP Documents

Spring 2023 Energy and Capacity Contracts Comment Process

DRAFT Spring 2023 (AIC) Confirmation Agreement

DRAFT Spring 2023 (ComEd) Energy Master Agreement

Redline Comparison

DRAFT Spring 2023 (MEC) Confirmation Agreement

DRAFT Spring 2023 (AIC) Capacity Agreement

Redline Comparison

Early 2023 Capacity RFP

FINAL Early 2023 Capacity RFP Targets

Early 2023 Capacity RFP Bidder Information Webcast

FINAL Early 2023 Capacity RFP Documents

FINAL Early 2023 (AIC) Capacity Agreement

Redline Comparison

Early 2023 Capacity RFP

Comment Process on Draft AIC Capacity Agreement

DRAFT Early 2023 AIC Capacity Agreement


Block Energy and Capacity FAQs

FAQ-BEC-36
Q: Where can I find the results for the capacity procurement event held under the Fall 2023 BEC RFP?

In accordance with the Act and ICC Orders, the following information will be made public at the time of ICC approval: (i) the names of successful suppliers; (ii) the weighted average of the winning bids; and, the following information is also released provided that there are at least three (3) successful suppliers: (iii) the number of ZRCs awarded.

For the results of the Fall 2023 Capacity procurement event, please see the Results page of the Block Energy and Capacity section of the procurement website: https://www.ipa-energyrfp.com/block-energy-and-capacity/results/

Results from prior procurement events are available on the Previous RFPs page: https://www.ipa-energyrfp.com/previous-rfps/

10-26-2023

FAQ-BEC-35
Q: How often are capacity procurement events held, and for what Delivery Years will capacity be procured?

Each year the IPA submits its Electricity Procurement Plan (“Plan”) to the Illinois Commerce Commission (“ICC”) in compliance with Public Act 95-0481 (the “Act”), which includes the Illinois Power Agency Act (“IPA Act”). Starting with the 2018 Procurement Plan, the IPA has conducted two capacity procurements to cover a portion of Ameren’s capacity requirements, one in the spring and one in the fall.

On September 25, 2023, the IPA filed its 2024 Electricity Procurement Plan (“2024 Plan”) to the ICC. The 2024 Plan proposes to procure AIC capacity requirements for the 2025-2026 and 2026-2027 Delivery Years through two procurement events, the Spring 2024 procurement event and the Fall 2024 procurement event. Procurement of capacity requirements for future Delivery Years will be determined in future Procurement Plans. The ICC is required to enter its Order confirming or modifying the 2024 Plan on or before December 26, 2023.

For more information, please review the 2024 Plan posted to the Plans Under Development page of the IPA’s website: https://ipa.illinois.gov/energy-procurement/plans-under-development.html

10-25-2023

FAQ-BEC-34
Q: Are there changes between the contract documents used for the Spring 2023 BEC RFP and the contract documents used for the Fall 2023 BEC RFP?

Only minor changes were made to the Confirmation Sheet for ComEd between the Spring 2023 BEC RFP and the Fall 2023 BEC RFP. All other contract documents remain unchanged.

Redlines of these changes are posted to the Final Materials page of the Block Energy and Capacity section of the procurement website.

09-06-2023

FAQ-BEC-33
Q: Can we provide our draft Pre-Bid Letter of Credit for a Company, with modifications, for review prior to our bank issuing a final executed Pre-Bid Letter of Credit?

The Procurement Administrator will not be soliciting comments on the Standard Pre-Bid Letters of Credit in the Fall 2023 Block Energy and Capacity RFP. Further, neither the Procurement Administrator nor the Companies review draft language for the Pre-Bid Letters of Credit.

A Bidder that is submitting Bids for the Fall 2023 Block Energy procurement event for a Company must, in its Part 2 Proposal, submit financial guarantees by providing either cash or a Pre-Bid Letter of Credit for that Company. 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 that Company as posted to the procurement website. The modifications approved by each Company were posted to the Final Materials page of the Block Energy and Capacity Procurement section of the procurement website on June 30, 2023.

08-30-2023

FAQ-BEC-32
Q: Where can I find the results from previous RFPs for Block Energy Products for AIC, ComEd, and MEC?

In accordance with the Act and ICC Orders, the following information is made public at the time of ICC approval of a procurement event for Energy Products for a Company: (i) the names of successful Bidders; (ii) the load-weighted average of the winning Bids for each Segment of each month; (iii) the load-weighted average of the winning Bids for each Product and for each Combination; (iv) the number of megawatts awarded for each Segment of each month, provided that there are at least three (3) successful Bidders; and (v) the number of megawatts awarded for each Product and for each Combination, provided that there are at least three (3) successful Bidders.

The results from previous procurement events can be found on the procurement website. If you click on the “Previous RFPs” link on the left-hand side of the home page, you can find a list of previous procurements. The results are posted on each procurement’s archived page.

08-30-2023

FAQ-BEC-31
Q: If a bank is rated “A”- by Fitch Ratings (“Fitch”), is the bank acceptable as an Issuing Bank for the Post-Bid Letter of Credit?

We, the Issuing Bank, hereby certify that as of the Date of Issuance of this Irrevocable Standby 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 from 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.

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

A Bidder may also meet the collateral requirements under the applicable supplier contract by posting cash.

08-28-2023

FAQ-BEC-30
Q: Can you provide instructions for submission of bid assurance collateral?

The Bid Assurance Collateral Instructions for each Company were distributed to Bidders on August 16, 2023. Please contact the Procurement Administrator at Illinois-RFP@nera.com to receive these documents.

08-16-2023

FAQ-BEC-29
Q: We are a current supplier for AIC’s Energy Products. If we win again in the upcoming Fall 2023 procurement event, can we amend our Guaranty that is currently in place under the (AIC) Confirmation Agreement or do we need to issue a new Guaranty?

A winning supplier for AIC’s Energy Products in the Fall 2023 Block Energy and Capacity RFP that is already a supplier to AIC from a prior procurement event may not amend their existing Guaranty and must issue a new Guaranty.

The contract execution process is fully described in Paragraph VI.2.18 of the RFP Rules and summarized below.

A Bidder that relies on the financial standing of a Guarantor and has winning Bids for a procurement event for AIC must provide a fully executed Guaranty to AIC electronically by 12 PM CPT on the third business day after the ICC decision. The Bidder must use the standard form of guaranty, Form of Guaranty, and may incorporate the optional changes for AIC. The optional changes for AIC are in the documents named “Schedule 1 to the Form of Guaranty” and “Schedule 2 to the Form of Guaranty”. A Bidder may also meet the collateral requirements of the (AIC) Confirmation Agreement by posting cash or using one of two options for the Post-Bid Letter of Credit. All documents referenced are posted to the Final Materials page of the procurement website under the “FINAL Fall 2023 (AIC) Confirmation Agreement” heading and dated July 18, 2023.

Please note that a comment process is expected to take place on the draft supplier contracts for the Spring 2024 Block Energy and Capacity RFP prior to the supplier contracts being finalized. At that time an announcement will be sent to website registrants and a Calendar will be posted on the procurement website for deadlines regarding this expected comment process.

08-11-2023

FAQ-BEC-28
Q: Is it acceptable for a U.S. agency office of a foreign bank to issue the Pre-Bid Letter of Credit?

A bank issuing a Pre-Bid Letter of Credit must meet the requirements listed in Paragraph 14 of the Standard Pre-Bid Letters of Credit or incorporate only modifications approved by a Company and posted to the procurement website. The final Standard Pre-Bid Letters of Credit and the final lists of acceptable modifications to the Pre-Bid Letters of Credit are posted to the Final Materials page of the Block Energy and Capacity section of the procurement website.

There are modifications to the Standard Pre-Bid Letters of Credit acceptable to each Company that allow for the use of a U.S. agency office issuing a Pre-Bid Letter of Credit.

Please see Acceptable Modifications 14.1 and 14.3 on page 22 of “Acceptable Modifications to the Standard Pre-Bid LC for AIC Energy Products (June 30, 2023)”. Please note that there is a note provided in orange text with Acceptable Modification 14.3.

Please see Acceptable Modifications 14.5 and 14.6 on page 34 of “Acceptable Modifications to the Standard Pre-Bid LC for ComEd (June 30, 2023)”. Please note that there are notes provided in orange text with each of Acceptable Modification 14.5 and 14.6.

Please see Acceptable Modifications 14.1 and 14.3 on page 22 of “Acceptable Modifications to the Standard Pre-Bid LC for AIC Capacity Products (June 30, 2023)”. Please note that there is a note provided in orange text with Acceptable Modification 14.3.

08-11-2023

FAQ-BEC-27
Q: If I choose to rely on the financial standing of a Guarantor with the Part 1 Proposal, am I required to submit a letter of intent to provide a guaranty as part of my bid assurance collateral with the Part 2 Proposal?

With the Part 2 Proposal, a Bidder that intends to submit Bids for a procurement event must submit bid assurance collateral in the form of either cash or an executed Pre-Bid Letter of Credit to that Company for that procurement event in an amount sufficient to support the Bids. A letter of intent to provide a guaranty is not a requirement of the BEC RFP.

The contract execution process is fully described in Paragraph VI.2.18 of the RFP Rules and summarized below.

If a Bidder relies on the financial standing of a Guarantor and has winning Bids for a procurement event for AIC, the Bidder must prepare and provide a fully executed Guaranty to AIC electronically by 12 PM CPT on the third business day after the ICC decision. The Bidder must use the standard form of guaranty, Form of Guaranty, and may incorporate the optional changes for AIC. The optional changes for AIC are in the documents named “Schedule 1 to the Form of Guaranty” and “Schedule 2 to the Form of Guaranty”. A Bidder may also meet the collateral requirements of the (AIC) Capacity Agreement by posting cash or using one of two options for the Post-Bid Letter of Credit. All documents referenced are posted to the Final Materials page of the procurement website under the “FINAL Fall 2023 (AIC) Capacity Agreement” heading and dated July 18, 2023.

If a Bidder relies on the financial standing of a Guarantor and has winning Bids for ComEd, the Bidder must execute the Guaranty prepared by ComEd by 12 PM CPT on the third business day after the ICC decision. ComEd prepares the standard form of guaranty, Schedule 2 to Collateral Annex (Guaranty), in accordance with the elections and the optional changes the Bidder provides via the ComEd Contract Insert (#P1-5). The optional changes for ComEd are in the document named “Optional Changes to the Form of Guaranty”. A Bidder may also meet the collateral requirements of the (ComEd) Master Agreement by posting cash or using one of two options for the Post-Bid Letter of Credit available under each of the applicable supplier contracts. All documents referenced are posted to the Final Materials page of the procurement website under the “FINAL Fall 2023 (ComEd) Energy Master Agreement” heading and dated July 18, 2023.

08-04-2023

FAQ-BEC-26
Q: Can you provide an overview of the financial requirements of the Part 1 Proposal?

Financial requirements of the Part 1 Proposal are described in Section IV.3 of the RFP Rules and are summarized below.

In its Part 1 Proposal, a Bidder must name the Entity on whose financial standing the Bidder is relying. The Bidder can either: (a) enter the name of the Bidder, indicating that the Bidder is relying on its own financial standing (in which case the Bidder is the “Entity”); or (b) enter the name of a different party, indicating that the Bidder is relying on the financial standing of another party (in which case a party other than the Bidder is the “Entity”). The Entity under option (b) above is called the “Guarantor”. There are additional requirements for Bidders applying under an Agency Agreement that are described in Section IV.8 of the RFP Rules.

In its Part 1 Proposal, a Bidder must provide, for the Entity, any available ratings, including the type of rating, from the following rating agencies: S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings. For the avoidance of doubt, a Bidder that selects option (a) above submits ratings for the Bidder; a Bidder that selects option (b) above submits ratings for the Guarantor.

In its Part 1 Proposal, a Bidder must additionally provide certain financial information related to the Entity, namely: (i) the most recent audited annual financial information (if available, the SEC Form 10-K should be submitted to fulfill this requirement); (ii) the most recent quarterly financial data (if available, the SEC Form 10-Q should be submitted to fulfill this requirement); and (iii) any public financial disclosure made since the release of the entity’s most recent financial data (if available, SEC Forms 8-K should be submitted to fulfill this requirement).

A Bidder that selects option (a) above and for which the required financial information is not available in whole or in part for the Bidder must state this fact. A Bidder that selects option (b) above must provide financial information for the Guarantor.

08-04-2023

FAQ-BEC-25
Q: I have registered for an account for the Fall 2023 Block Energy and Capacity RFP (“BEC RFP”). When will I receive my account information?

Individuals that register for an account for the Fall 2023 BEC RFP will receive an email prior to the opening of the Part 1 Window with account activation instructions. The Procurement Administrator will also send instructions for accessing and completing the online qualification forms at that time. The Part 1 Window for the Fall 2023 BEC RFP is scheduled to open on August 8, 2023. A Calendar for the Fall 2023 BEC RFP is posted to the Calendar page of the procurement website.

08-02-2023

FAQ-BEC-24
Q: Is a bidder required to submit evidence that it is an Aggregator of Retail Customers in order to qualify to participate in the AIC Capacity procurement event?

A bidder is not required to submit evidence that it is an Aggregator of Retail Customers in order to qualify to participate in the AIC Capacity procurement event. As part of the Proposal, a bidder will be required to certify that it has all regulatory authorizations necessary for it to legally perform its obligations under the (AIC) Confirmation Agreement. It is the responsibility of the bidder to fully investigate the required regulatory authorizations. Further, it is the responsibility of the bidder to review and understand the governing documents related to the Fall 2023 BEC RFP. The governing documents are posted to the procurement website and include the contract documents posted on July 18, 2023 and the RFP documents posted on July 19, 2023.

08-01-2023

FAQ-BEC-23
Q: Can you please confirm what constitutes a failure “to deliver all or part of the Product” under Paragraph 2(a) Seller’s Failure to Deliver of the (AIC) Capacity Agreement? What is due by the “Delivery Deadline” in that paragraph? Is there a penalty under the (AIC) Capacity Agreement if the Planning Resource associated with the Product does not meet its obligations in MISO’s energy market?

The following is a summary of certain paragraphs of the (AIC) Confirmation Agreement. It is the responsibility of the bidder to review and understand the governing documents related to the Fall 2023 BEC RFP. The governing documents are posted to the procurement website and include the contract documents, including the (AIC) Capacity Agreement, posted on July 18, 2023 and the RFP documents posted on July 19, 2023.

Paragraph 2(a) Seller’s Failure to Deliver refers to delivery of the Product, which is Zonal Resource Credits (“ZRCs”) as defined in the “MISO Documents” referenced in the (AIC) Capacity Agreement. Such ZRCs must qualify to satisfy the resource adequacy requirements in each Local Resource Zone of Module E of the MISO Tariff. As described in Paragraph 1. Performance, Title, & Delivery, Seller shall be responsible for the proper registration in MISO of the Planning Resource(s) from which the Product originates (each a “Contract Planning Resource”). Seller shall also be obligated to (i) meet and perform, or cause a third party to meet and perform, all of the obligations of the MISO Documents associated with such Contract Planning Resource(s) and (ii) ensure that the Contract Planning Resource(s) remains available and qualified as a Capacity Resource and participates in the MISO market in accordance with the MISO Documents during the entirety of the applicable Season and not have a status change to “retired” or “suspended” or similar designation. Seller shall be responsible for any costs or charges imposed on or liabilities associated with such obligations or Seller’s failure to meet and perform such obligations, including any costs or charges resulting from Buyer’s procurement of replacement capacity.

By the Delivery Deadline, Seller shall accomplish delivery of ZRCs for a Season of a particular Planning Year by submitting the appropriate transaction(s) in the Module E Capacity Tracking Tool (“MECT”). If Seller fails to deliver all or part of the Product specified for each Delivery Deadline of a Season and Source Zone by the relevant Delivery Deadline and such failure is not excused by a result of Buyer’s failure to perform or excused by an event of Force Majeure, then Seller shall pay Buyer, within five (5) Business Days of invoice receipt, an amount equal to the positive difference, if any, obtained by subtracting the applicable Contract Price from the Auction Clearing Price of the Compliance Zone Auction Clearing Price applicable to such Season multiplied by the days in Planning Year the applicable Season and multiplying such positive amount, if any, by the portion of the Contract Quantity which Seller failed to deliver.

In addition, the Seller shall pay to Buyer all penalties and/or charges assessed to Buyer (either directly or through contractual obligation) resulting directly from Seller’s failure to deliver all or part of the Product or due to all or part of the Product being invalid or ineligible; provided, however, that Seller shall not be liable for any Capacity Deficiency Charges or similar penalties assessed to Buyer resulting from Buyer’s election to become deficient in the Planning Resource Auction.

08-01-2023

FAQ-BEC-22
Q: How do I calculate the “Exposure” under the (AIC) Confirmation Agreement?

Under the (AIC) Confirmation Agreement, “Exposure” means the sum of: (i) 10% of the Remaining Contract Value under this Confirmation Agreement as determined by Buyer in a commercially reasonable manner and (ii) the summation across the applicable Seasons the following calculation: for each Season separately, in the event that the Seasonal Total Reduction is greater than the Seasonal Total, 100% of the positive difference between the Seasonal Total Reduction and the Seasonal Total net of any payment made to Buyer in connection with the Adjusted Seasonal Total. The calculation under (ii) only applies if the Compliance Zone for ZRCs is not Local Resource Zone 4. The Seasonal Total, Seasonal Total Reduction, and Seasonal Total Adjustment are described on page 2 to the (AIC) Confirmation Agreement.

Additionally, please see Attachment A to the (AIC) Confirmation Agreement for additional information regarding rounding.

08-01-2023

FAQ-BEC-21
Q: Are the information and documents, including Inserts, we previously submitted in the online Part 1 Form and the online Part 2 Form retained from prior BEC RFPs?

No. Previously submitted information and documents, including Inserts, are not retained from prior BEC RFPs. All Bidders must complete the online Part 1 Form and the online Part 2 Form in their entirety, including all documents required by the Fall 2023 BEC RFP.

08-01-2023

FAQ-BEC-20
Q: When and where will the Final Targets for the Fall 2023 BEC RFP be made available?

The Final Targets for the Fall 2023 BEC RFP are posted to the Final Materials page of the Block Energy and Capacity section of the procurement website. The document is dated July 25, 2023.

07-31-2023

FAQ-BEC-19
Q: Can you provide any information regarding how the benchmarks are determined?

The Illinois Power Agency Act (“IPA Act”) requires the establishment of a market-based price benchmark. The information available regarding the benchmark development is what is provided in the IPA Act and pasted below for your convenience. As described in the Webcast held on July 27, 2023, the benchmarks are developed using a confidential methodology, in consultation with the Commission staff, Agency staff, and the procurement monitor, and are approved by the Commission.

Section 16-111.5 of the Act states that the procurement process shall include “(3) Establishment of a market-based price benchmark. As part of the development of the procurement process, the procurement administrator, in consultation with the Commission staff, Agency staff, and the procurement monitor, shall establish benchmarks for evaluating the final prices in the contracts for each of the products that will be procured through the procurement process. The benchmarks shall be based on price data for similar products for the same delivery period and same delivery hub, or other delivery hubs after adjusting for that difference. The price benchmarks may also be adjusted to take into account differences between the information reflected in the underlying data sources and the specific products and procurement process being used to procure power for the Illinois utilities. The benchmarks shall be confidential but shall be provided to, and will be subject to Commission review and approval, prior to a procurement event.”

07-31-2023

FAQ-BEC-18
Q: Are signatures required to be notarized for any of the Inserts?

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. Bidders digitally signing an Insert must provide along with the Insert an additional document or information that verifies the identity of the signatory.

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.

07-31-2023

FAQ-BEC-17
Q: Where can I find information on the process for submission of bids and the evaluation procedure for the AIC Capacity procurement event held under the Fall 2023 Block Energy and Capacity RFP?

The process for submission of bids is described in Section V.10 of the Fall 2023 Block Energy and Capacity RFP Rules and is summarized below:

A “Bid” for a Capacity Product includes a price, in $/MW-day, for at least one ZRC for a given Season of a Planning Year for which ZRCs are procured. A Bid also includes the number of ZRCs to which the price applies and the Source Zone of the ZRCs. The price in the Bid is the price that the Bidder is willing to accept to deliver to AIC for the given Season and Planning Year the quantity of ZRCs from the Source Zone specified in the Bid. A Bidder may bid on any number of ZRCs for a Season of a Planning Year up to and including the ZRC Target for that Season and Planning Year. If a Bidder bids on more ZRCs than the ZRC Target for a Season and Planning Year, the higher priced Bids will be discarded and the number of Bids considered in the evaluation will not exceed the ZRC Target for that Season and Planning Year.

The evaluation procedure is described in Section VI.2 of the Fall 2023 Block Energy and Capacity RFP Rules and is summarized below:

The evaluation of Bids for the procurement of a Capacity Product for AIC proceeds independently for each Season of a Planning Year and consists of two steps. In the first step, for a given Season of a Planning Year, all Bids that fail to meet the benchmark are eliminated. In the second step, for a given Season of a Planning Year, the Procurement Administrator evaluates the Bids that meet or beat the benchmark and selects the lowest priced Bids up to the ZRC Target for a Season and Planning Year. In order to fill the ZRC Target exactly for a Season and a Planning Year, it is possible that only some but not all ZRCs submitted by a Bidder at a specific price are selected. For example, for the Summer Season of a Planning Year, if a Bidder submits 50 ZRCs but the Procurement Administrator need only to select 20 ZRCs, only 20 of the 50 ZRCs would be selected and identified as winning Bids.

Additionally, in the procurement of Capacity Products for AIC, it is possible that multiple Bidders could submit Bids of the same amount ($/MW-day) for a given number of ZRCs for a given Season of a Planning Year, resulting in a tie for the highest accepted price for that Season and Planning Year. Such Bids are Tied Bids (at the Tied Price). If, in order to fill the ZRC Target exactly for such Season and Planning Year, only some of the ZRCs but not all ZRCs from the Tied Bids for such Season and Planning Year are needed, the ZRCs selected as part of the winning Bids will be selected at random from the Tied Bids. The Procurement Administrator will assign to each ZRC in a Tied Bid a random number between 0 and 1. The ZRCs from the Tied Bids are selected in increasing order of random number until the ZRC Target is filled for such Season and Planning Year. No selection preference will be given to identical Bids submitted at any particular time or in any particular way.

07-31-2023

FAQ-BEC-16
Q: If we have paid the Bid Participation Fee in a year prior to 2023, do we need to pay the Bid Participation Fee for the Fall 2023 BEC RFP?

A Bidder that has not paid a Bid Participation Fee pursuant to its participation in a prior 2023 procurement event, such as the Early 2023 Capacity RFP or the Spring 2023 BEC RFP, and that submits a Part 1 Proposal is required to pay a nonrefundable Bid Participation Fee for the Fall 2023 BEC RFP.

07-31-2023

FAQ-BEC-15
Q: How does AIC meet their capacity requirement?

Please see the Final 2023 Electricity Procurement Plan available on the Illinois Power Agency website here: https://ipa.illinois.gov/content/dam/soi/en/web/ipa/documents/2023-final-electricity-procurement-plan-27-feb-2023.pdf. In particular section 7.2.1.2 provides the details of the capacity procurement strategy for Ameren Illinois. A summary table with the cumulative up-to percentage of capacity targeted to be procured is provided in Table 1-3: Summary of Capacity Procurement for Ameren Illinois.

For the 2024-2025 and 2025-2026 Delivery Years, the IPA will procure capacity requirements through its two 2023 capacity procurement events, resulting in hedging at the following levels:

  • At the conclusion of the Spring 2023 procurement event, the target cumulative capacity hedges in Ameren Illinois portfolio of Zonal Resource Credits (“ZRCs”) should be as follows:
    • For the 2024-2025 Delivery Year, the target cumulative hedges should be no more than 50% of the capacity requirements.
    • For the 2025-2026 Delivery Year, the target cumulative hedges should be no more than 12.5% of the capacity requirements.
  • At the conclusion of the Fall 2023 procurement event, the target cumulative capacity hedges in Ameren Illinois portfolio of Zonal Resource Credits (“ZRCs”) should be as follows:
    • For the 2024-2025 Delivery Year, the target cumulative hedges should be no more than 75% of the capacity requirements.
    • For the 2025-2026 Delivery Year, the target cumulative hedges should be no more than 25% of the capacity requirements.

The remaining balance of the 2024-2025 Delivery Year capacity requirements will be procured through the MISO PRA scheduled for April of 2024. The remaining balance of the 2025-2026 Delivery Year capacity requirements will be procured in the MISO PRA and/or additional procurement events to be determined in the 2024 Procurement Plan.

07-06-2023

FAQ-BEC-14
Q: What information is available regarding the results of the AIC Capacity procurement event?

In accordance with the Act and ICC Orders, the following information will be made public at the time of ICC approval: (i) the names of successful suppliers; (ii) the weighted average of the winning bids; and, the following information is also released provided that there are at least three (3) successful suppliers: (iii) the number of ZRCs awarded for each Planning Year.

07-05-2023

FAQ-BEC-13
Q: Can you please provide me with more information on how the collateral requirement is determined under the supplier agreements? Is there a minimum or maximum amount of performance assurance required on a per block basis?

The collateral requirement under each of the (AIC) Confirmation Agreement and the (ComEd) Master Agreement for the energy procurement events is based on a mark-to-market methodology. For the (ComEd) Master Agreement, this methodology is described in Schedule 3 (MtM Calculation) to the Collateral Annex. For the (AIC) Confirmation Agreement, relevant information is provided in Exhibit D – Collateral Annex and Exhibit E – Paragraph 10 to the Collateral Annex. There is not a minimum or maximum amount of performance assurance required on a per block basis.

Under the applicable supplier agreement, the bidder or a guarantor, if applicable, may be granted unsecured credit based on a creditworthiness assessment. The creditworthiness assessment is based on the Bidder’s (or Guarantor’s, as applicable) financial statements and credit ratings submitted with the Part 1 Proposal and the result of the assessment will be provided to the Bidder with the Part 1 Notification. If the Bidder is relying on the creditworthiness of a Guarantor, an executed guaranty acceptable to the Buyer must be provided.

Any required performance assurance may be posted 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 supplier agreements. There is a Minimum Transfer Amount, defined under the applicable supplier agreements, of $100,000 for each of AIC and ComEd (subject to rounding).

Please note that for the (AIC) Confirmation Agreement, a bidder should refer to the front portion of the Confirmation Agreement, and for the (ComEd) Master Agreement, a bidder should refer to the Cover Sheet of the (ComEd) Master Agreement, for amendments and elections to the EEI Collateral Annex and paragraph 10 to the Collateral Annex.

It is the responsibility of each bidder to review the terms of the applicable supplier agreement (for each of AIC and ComEd) posted to the Block Energy and Capacity Procurement section of the procurement website. Each bidder accepts these terms as a condition of its participation in the BEC RFP.

04-17-2023

FAQ-BEC-12
Q: We are going to post cash as bid assurance collateral. Can you provide a phone number for each of the Companies for purposes of confirming wire transfers?

Please contact the Procurement Administrator at Illinois-RFP@nera.com to receive this information.

04-11-2023

FAQ-BEC-11
Q: Our bank is requiring the physical address of a Beneficiary for purposes of issuing a Pre-Bid Letter for a Company even though the bank will submit the Pre-Bid Letter of Credit to a Company and to the Procurement Administrator as an electronic PDF file via electronic means only. Can you provide the physical addresses for the Companies for purposes of issuing Pre-Bid Letters of Credit?

Please email the Procurement Administrator at Illinois-RFP@nera.com to receive this information.

04-05-2023

FAQ-BEC-10
Q: Where can I find the AIC Supplier Request Form?

The AIC Supplier Request Form will be distributed by the Procurement Administrator to Bidders participating in a procurement event for AIC.

04-05-2023

FAQ-BEC-9
Q: Is the Bidder required to meet a certain credit rating threshold in order to participate in the RFP?

It is not a condition of participation in the RFP that the Bidder itself meet a certain credit rating threshold or that the Bidder rely on the financial standing of a Guarantor that meets a certain credit rating threshold.

Under the applicable supplier agreement, the Bidder or a Guarantor, if applicable, may be granted unsecured credit based on a creditworthiness assessment. The creditworthiness assessment, provided to the Bidder with the Part 1 Notification, is based on the Bidder’s (or Guarantor’s, as applicable) financial statements and credit ratings submitted with the Part 1 Proposal. If the Bidder (or Guarantor, as applicable) does not meet the minimum credit ratings, as provided in Table A of the (AIC) Confirmation Agreement, Paragraph 10 of the Coversheet of the (ComEd) Master Agreement, and Table B of the (AIC) Capacity Agreement, then the Bidder (or Guarantor, as applicable) receives a Collateral Threshold Amount of zero and would not receive unsecured credit under the applicable contract. In this case, the Bidder would be required to post cash or a letter of credit to meet the collateral requirement under the applicable contract.

04-03-2023

FAQ-BEC-8
Q: Is a Bidder required to submit credit ratings and financial information for the Entity on whose financial standing it is relying in the Part 1 Proposal?

In its Part 1 Proposal, a Bidder must provide, for the Entity on whose financial standing it is relying, any available ratings, including the type of rating, from the following rating agencies: S&P Global Ratings (“S&P”), Moody’s Investors Service (“Moody’s”), and Fitch Ratings (“Fitch”).

In its Part 1 Proposal, a Bidder, must provide certain financial information related to the Entity, namely: (i) the most recent audited annual financial information (if available, the SEC Form 10-K should be submitted to fulfill this requirement); (ii) the most recent quarterly financial data (if available, the SEC Form 10-Q should be submitted to fulfill this requirement); and (iii) any public financial disclosure made since the release of the entity’s most recent financial data (if available, SEC Forms 8-K should be submitted to fulfill this requirement).

If any such information for the Entity is not available, the Bidder must state so in the Part 1 Proposal.

04-03-2023

FAQ-BEC-7
Q: How should we complete the report that the IPA will request on the actual fuel mix supplied if a portion of the energy we supplied is sourced from PJM or MISO?

The IPA will request the actual fuel mix of supply from the Bidder in each December for the preceding six months of a Planning Year for which energy was supplied to a Company and in each June for the preceding six months of a prior Planning Year for which energy was supplied to a Company. The fuel mix data will be requested in aggregate for the preceding six month period to be reported in a format similar to the Fuel Mix Report. If a portion of the actual fuel mix is unknown, the Bidder will be asked to explain why the information is not available. If a portion of the actual fuel mix is sourced from PJM or MISO then the bidder should write either “PJM fuel mix” or “MISO fuel mix” in the “Other” column. It is expected that the Bidder would not just provide “PJM fuel mix” or “MISO fuel mix” in this report if the Bidder has specific generation resources identified.

03-31-2023

FAQ-BEC-6
Q: How should we complete the Fuel Mix Report (Appendix 18) if the energy we supply is expected to be sourced from PJM or MISO?

When completing the Fuel Mix Report (Appendix 18) for a procurement event for Energy Products for a Company (AIC and/or ComEd), the Bidder should provide the expected fuel mix underlying the bids to the best of the Bidder’s ability. It is expected that the Bidder would not just provide “PJM fuel mix” or “MISO fuel mix” in this report if the Bidder has specific generation resources identified. It is possible that the actual fuel mix may remain to be determined at the point of bidding, and if for a portion this is the case, the Bidder can indicate that within the Fuel Mix Report.

If the energy to be supplied is expected to be sourced from PJM or MISO then the bidder should write either “PJM fuel mix” or “MISO fuel mix” in the “Other” column and fill in the applicable percentage for each month, year, and segment (On-Peak or Off-Peak).

03-21-2023

FAQ-BEC-5
Q: If we paid the Bid Participation Fee for the Early 2023 Capacity RFP or the Spring 2023 BEC RFP do we need to pay again for the Fall 2023 Block Energy and Capacity RFP?

A Bidder that paid a Bid Participation Fee pursuant to its participation in a prior 2023 procurement event, such as the Early 2023 Capacity RFP or the Spring 2023 BEC RFP, is not required to pay the Bid Participation Fee for the Fall 2023 BEC RFP.

03-21-2023

FAQ-BEC-4
Q: I understand that there could be a payment adjustment on delivered ZRCs under the (AIC) Capacity Agreement if the ZRCs are not from the compliance zone. Is this payment adjustment based on distance from the Compliance Zone (LRZ 4)?

The payment adjustment is based on the difference between the Auction Clearing Price from the MISO Planning Resource Auction (“PRA”) for the Source Zone associated with the ZRCs and the Compliance Zone (LRZ 4). Please see FAQ-BEC-1 and FAQ-BEC-2 for examples of the payment adjustment.

03-09-2023

FAQ-BEC-3
Q: With reference to the (AIC) Capacity Agreement, please confirm that there are no payment adjustments for ZRCs that are from the compliance zone, which is LRZ 4.

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

03-09-2023

FAQ-BEC-2
Q: I understand that there could be a payment adjustment on delivered ZRCs 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 in a season is greater than the Compliance Zone ACP in that season 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”) for the Summer season for the 2024/2025 Planning Year and the Compliance Zone is LRZ4. The example below is hypothetical. The results of the 2024/2025 MISO PRA are not yet available.

No. of ZRCs delivered by Seller: 25 ZRCs for the Summer season from Zone 3
Average Winning Bid Price for the Summer season under the (AIC) Capacity Agreement: $10/MW-day
Payment to Seller = $10 x 25 ZRCs x 92 days = $23,000
MISO Summer 2024/2025 PRA Results:
LRZ 4 ACP = $6/MW-day
LRZ 3 ACP = $20/MW-day
Adjustment to Payment = ($20 – $6) x 25 ZRCs x 92 days = $32,200
Adjusted Payment = $23,000 + $32,200 = $55,200

03-09-2023

FAQ-BEC-1
Q: I understand that there could be a payment adjustment on delivered ZRCs 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 in a season is greater than the Source Zone ACP in that season 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 examples, the “ACP” refers to the Auction Clearing Price from the MISO Planning Resource Auction (“PRA”) for the Summer season for the 2024/2025 Planning Year and the Compliance Zone is LRZ4. The examples below are hypothetical. The results of the 2024/2025 MISO PRA are not yet available.

Example 1: Where the adjustment results in a reduced payment from Buyer to Seller.
No. of ZRCs delivered by Seller: 25 ZRCs for the Summer season from Zone 3
Average Winning Bid Price for the Summer season under the (AIC) Capacity Agreement: $18/MW-day
Payment to Seller = $18 x 25 ZRCs x 92 days = $41,400
MISO Summer 2024/2025 PRA Results:
LRZ 4 ACP = $20/MW-day
LRZ 3 ACP = $6/MW-day
Adjustment to Payment = – ($20 – $6) x 25 ZRCs x 92 days = – $32,200
Adjusted Payment = $41,400 – $32,200 = $9,200

Example 2: Where the adjustment results in payment from Seller to Buyer.
No. of ZRCs delivered by Seller: 25 ZRCs for the Summer season from Zone 3
Average Winning Bid Price for the Summer season under the (AIC) Capacity Agreement: $10/MW-day
Payment to Seller = $10 x 25 ZRCs x 92 days = $23,000
MISO Summer 2024/2025 PRA Results:
LRZ 4 ACP = $20/MW-day
LRZ 3 ACP = $6/MW-day
Adjustment to Payment = – ($20 – $6) x 25 ZRCs x 92 days = – $32,200
Adjusted Payment = $23,000 – $32,200 = – $9,200  (i.e., payment from Seller to Buyer)

03-09-2023


Early Capacity FAQs

FAQ-Capacity-7
Q: Where can I find the results from previous RFPs for Capacity Products for AIC?

The results from previous procurement events can be found on the procurement website. If you click on the “Previous RFPs” link on the left-hand side of the home page, you can find a list of previous procurements. The results are posted on each procurement’s archived page.

02-22-2023

FAQ-Capacity-6
Q: Can a Bidder submit comments on the Pre-Bid Letter of Credit with its Part 2 Proposal?

Comments on and proposed modifications to the Pre-Bid Letter of Credit that are submitted after the deadlines related to the Part 1 Proposal will not be reviewed. The list of final acceptable modifications to the Pre-Bid Letter of Credit has already been posted here.

02-06-2023

FAQ-Capacity-5
Q: Where can I find the posting of the bidder information webcast materials for the Early 2023 Capacity RFP?

The Procurement Administrator posted the presentation materials and the audio recording from the bidder information webcast held on January 12, 2023 to the Final Materials page of the Capacity section of the procurement website.

01-17-2023

FAQ-Capacity-4
Q: I understand that there could be a payment adjustment on delivered ZRCs under the (AIC) Capacity Agreement if the ZRCs are not from the compliance zone. Is this payment adjustment based on distance from the Compliance Zone (LRZ 4)?

The payment adjustment is based on the difference between the Auction Clearing Price from the MISO Planning Resource Auction (“PRA”) for the Source Zone associated with the ZRCs and the Compliance Zone (LRZ 4). Please see FAQ-Capacity-1 and FAQ-Capacity-2 for examples of the payment adjustment.

01-12-2023

FAQ-Capacity-3
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.

01-11-2023

FAQ-Capacity-2
Q: I understand that there could be a payment adjustment on delivered ZRCs 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 in a season is greater than the Compliance Zone ACP in that season 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”) for the Summer season for the 2023/2024 Planning Year and the Compliance Zone is LRZ4. The example below is hypothetical. The results of the 2023/2024 MISO PRA are not yet available.

No. of ZRCs delivered by Seller: 25 ZRCs for the Summer season from Zone 3
Average Winning Bid Price for the Summer season under the (AIC) Capacity Agreement: $10/MW-day
Payment to Seller = $10 x 25 ZRCs x 92 days = $23,000
MISO Summer 2023/2024 PRA Results:
LRZ 4 ACP = $6/MW-day
LRZ 3 ACP = $20/MW-day
Adjustment to Payment = ($20 – $6) x 25 ZRCs x 92 days = $32,200
Adjusted Payment = $23,000 + $32,200 = $55,200

01-11-2023

FAQ-Capacity-1
Q: I understand that there could be a payment adjustment on delivered ZRCs 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 in a season is greater than the Source Zone ACP in that season 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 examples, the “ACP” refers to the Auction Clearing Price from the MISO Planning Resource Auction (“PRA”) for the Summer season for the 2023/2024 Planning Year and the Compliance Zone is LRZ4. The examples below are hypothetical. The results of the 2023/2024 MISO PRA are not yet available.

Example 1: Where the adjustment results in a reduced payment from Buyer to Seller.
No. of ZRCs delivered by Seller: 25 ZRCs for the Summer season from Zone 3
Average Winning Bid Price for the Summer season under the (AIC) Capacity Agreement: $18/MW-day
Payment to Seller = $18 x 25 ZRCs x 92 days = $41,400
MISO Summer 2023/2024 PRA Results:
LRZ 4 ACP = $20/MW-day
LRZ 3 ACP = $6/MW-day
Adjustment to Payment = – ($20 – $6) x 25 ZRCs x 92 days = – $32,200
Adjusted Payment = $41,400 – $32,200 = $9,200

Example 2: Where the adjustment results in payment from Seller to Buyer.
No. of ZRCs delivered by Seller: 25 ZRCs for the Summer season from Zone 3
Average Winning Bid Price for the Summer season under the (AIC) Capacity Agreement: $10/MW-day
Payment to Seller = $10 x 25 ZRCs x 92 days = $23,000
MISO Summer 2023/2024 PRA Results:
LRZ 4 ACP = $20/MW-day
LRZ 3 ACP = $6/MW-day
Adjustment to Payment = – ($20 – $6) x 25 ZRCs x 92 days = – $32,200
Adjusted Payment = $23,000 – $32,200 = – $9,200  (i.e., payment from Seller to Buyer)

01-11-2023