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BEC-53: Should we expect a single margin process for netting exposure across all supplier contracts for a Company if we have multiple agreements in place with the Company?

It is the Procurement Administrator’s understanding that each of the supplier contracts for a Company will be administered separately such that margining under each contract will be calculated separately. Should multiple supplier contracts be subject to a margin call, a Company may transmit each such margin call under a single aggregate margin call.  There will … Continue reading Should we expect a single margin process for netting exposure across all supplier contracts for a Company if we have multiple agreements in place with the Company?

BEC-45: If we have winning bids in the Fall 2022 Block Energy and Capacity RFP that are approved by the Commission and therefore become a supplier under an applicable supplier contract, are we able to work directly with a Company during the delivery term to receive a credit assessment for a Guarantor and submit a Guaranty?

Yes, a supplier may work directly with a Company during the delivery term to receive a credit assessment for a Guarantor and to submit a Guaranty. The creditworthiness assessment includes a review of the Guarantor’s credit ratings and financial information. A supplier may not rely on a Guarantor that does not meet the minimum credit … Continue reading If we have winning bids in the Fall 2022 Block Energy and Capacity RFP that are approved by the Commission and therefore become a supplier under an applicable supplier contract, are we able to work directly with a Company during the delivery term to receive a credit assessment for a Guarantor and submit a Guaranty?

BEC-44: Are suppliers able to provide multiple forms of performance assurance to meet their obligations under the (AIC) Confirmation Agreement and the (ComEd) Master Agreement? Stated another way, are suppliers able to provide both a letter of credit and cash simultaneously to meet their performance assurance obligations?

Yes. A supplier may post any required performance assurance under the (AIC) Confirmation Agreement and the (ComEd) Master Agreement using both cash and a letter of credit at the same time.

BEC-43: 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 … Continue reading 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?

BEC-13: We are an existing winner for a Company’s Energy Products. If we win in the upcoming Fall 2022 procurement events, can we amend a post-bid letter of credit for a Company to cover any additional collateral requirements?

A winning bidder for Energy Products in these Fall 2022 procurement events that is already a Seller under a supplier contract from a prior procurement event can use their post-bid letter of credit that is currently in place with a Company and make amendments to the amount and expiration date as necessary.

BEC-7: How is the collateral requirement under the supplier contracts for the energy procurement events determined?

The collateral requirement under each of the supplier contracts for the energy procurement events is based on a mark-to-market methodology. For the (AIC) Confirmation Agreement and the (MEC) Confirmation Agreement, this methodology is described in Exhibit D (Collateral Annex) together with Exhibit E (Paragraph 10 to the Collateral Annex), of each agreement. For the (ComEd) … Continue reading How is the collateral requirement under the supplier contracts for the energy procurement events determined?