Questions and answers with information that is no longer relevant or accurate are archived in this section of the site.
Click on the question to see the archived answer:
Archived Wind and Solar FAQs
Q: Regarding the August 10, 2017 date that is referenced on Slide 5 of the presentation from the Wind and Solar RFP Virtual Contract Workshop held on June 6, 2017, is this when the RFP will be issued or when bids are due?
August 10, 2017 is the expected Bid Date for the Wind and Solar RFP. The final contracts are expected to be posted on June 27, 2017 and the RFP documents are expected to be issued on June 28, 2017.06-09-2017
Q: What are the qualification requirements for a project to participate in the Wind and Solar RFP?
The RFP Rules for the Wind and Solar RFP have not yet been finalized. The requirements are expected to cover interconnection, site control, and the type of bidder fees that may be due.
The Procurement Administrator posted an outline of the proposal requirements on a draft and preliminary basis on June 14, 2017. This document is posted to the Draft Documents Page of the Wind and Solar section of the procurement website.
This early information release was announced to the registrants’ list. If you have not yet registered for announcements, please do so by filling out the Registration Form and selecting the “Wind and Solar RFP” category.06-16-2017
Q: Are there minimum and maximum contract sizes for solar?
There is no minimum on the contract quantity presented in the Proposal. The maximum that can be provided is the target in the procurement event. For solar multiple procurement events are expected and thus this maximum will be different for each procurement event and will be below the 1,000,000 REC annual target.
As a reminder, while there is no minimum contract size, there is a minimum on the nameplate capacity of utility-scale solar projects, which is 2 MW AC. This minimum size requirement does not apply to brownfield site PV projects.06-09-2017
Q: Will the final REC Contract explicitly state that excess RECs in a Delivery Year may be used in subsequent Delivery Years?
The currently proposed contract terms are available on the Draft Documents page of the Wind and Solar section of the procurement website. Please submit a redlined Microsoft Word document with any edits you would like to propose for consideration before the deadline at 6 PM CPT Wednesday, June 14, 2017. The Invitation to Comment, which includes instructions for submitting comments, is found on the Draft Documents page of the Wind and Solar section of the procurement website.06-09-2017
Q: Will instructions and documents be provided for payment of fees and security required by the RFP process?
Yes, instructions will be provided upon request by email to Illinois-RFP@nera.com. The IRS Form W-9 for the IPA and payment instructions for the bid participation fee will be available as soon as practicable and no later June 28, 2017, the date the RFP documents are issued.06-09-2017
Q: If I build a 10 MW project that produces 12,000,000 kWh and I bid $100/REC, is the collateral requirement under the REC Contract $1.8M?
That is correct. If your project’s annual production is 12,000,000 kWh then the REC production is 12,000 RECs (12,000,000 kWh = 12,000 MWh = 12,000 annual RECs). Prior to the first REC delivery, the collateral requirement is 1.5 times the Annual Contract Value or $50,000, whichever is greater. With a bid price of $100 per REC, the Annual Contract Value is $100 x 12,000 or $1.2M. Thus, the collateral requirement is the greater of $1.2M x 1.5 = $1.8M or $50,000, which is $1.8M.
After the first REC delivery, the collateral requirement is reduced to 1 time the Annual Contract Value or $50,000, whichever is greater. Finally, the collateral requirement in the last delivery year is reduced to reflect the amount that will be delivered in that delivery year (which may be less than a full year).
Revised 6-12-2017 first posted 6-09-201706-09-2017
Q: Are RECs generated by the project above the Annual Quantity, up to the Maximum Contract Quantity, paid for by the IPA?
Under the REC Contract, the purchaser of the RECs will be AIC, ComEd, or MEC. In a given year, the Seller can deliver up to the Annual Quantity but no more. If the project generates RECs in excess of the Annual Quantity, these are the property of the Seller. The Seller can sell these RECs elsewhere, including by offering them in other IPA procurement events, or the Seller can keep the RECs (“bank” them) in case the project does not generate sufficient RECs to meet the Annual Quantity in a future year. There are no provisions in the REC Contract or elsewhere whereby the IPA automatically purchases such excess RECs. If the project generates fewer RECs than the Annual Quantity in a given year and the Seller does not provide RECs generated by the project in a prior to meet the Annual Quantity, the Seller is paid only for the RECs delivered. Furthermore, the Seller cannot “make up” the quantity at a future time by delivering more than the Annual Quantity in a future year. Thus, the total quantity delivered over the term of the REC Contract never exceeds the Maximum Contract Quantity and the total quantity delivered will fall short of the Maximum Contract Quantity if the Seller delivers less than the Annual Quantity in any year.06-25-2017
Q: What is the anticipated date of when the Collateral Requirement will be required under the REC Agreement?
The REC Contract (Draft 1) requires the Seller to post any financial guarantees within two (2) business days of a request by the Buyer if such a request is received by 1 PM Eastern Prevailing Time or within three (3) business days otherwise.06-25-2017
Q: The Letter of Credit amount provided in the draft part 2 Proposal requirements is $15,000/MW. Is it correct that this is for one utility (so $45,000/MW across all three utilities)?
That is correct. The Bid Assurance Collateral in the draft Part 2 Proposal requirements requires providing a letter of credit to each utility in an amount that is based on the size of the project presented ($5,000/MW for wind, $15,000/MW for solar projects, subject to a $25,000 minimum). The final requirements are expected to be posted on July 19, 2017.06-28-2017
Q: When will you be posting the forms of the letters of credit that a bidder can use to post bid assurance collateral with the Part 2 Proposal?
Please see FAQ-W&S-73.
Revised 8-01-2017 first posted 7-05-201707-05-2017
Q: Will the comments on the draft REC contract submitted on June 1 be publicly posted?
The comments on standard contracts prepared by the Procurement Administrator are made available to the Commission but will not be publicly posted. Please note that a second draft of the REC Contract that takes into consideration these comments was posted June 28, 2017 to the procurement website. This second draft, the DRAFT (2) REC Contract, is available for further comments by potential participants in the procurement event.07-05-2017
Q: Can you please confirm that a 50 MW solar facility would have to post 50 x $15,000 = $750,000 to each utility or $2.25M in total? This seems like a large sum to have to pay in addition to the Collateral Requirement under the REC Contract.
Your current understanding is correct. Under the current draft of the Preliminary Proposal Requirements, a participant is required to submit a letter of credit to each utility to support its bids. The letter of credit for each utility must be in an amount of $5,000/MW of wind projects and $15,000/MW of solar projects for which bids will be presented, subject to a $25,000 minimum for each letter of credit. Please note that, however, the RFP Rules for the Wind and Solar RFP have not yet been finalized and the currently drafted requirements could change.
Additionally, it is important to note that the Letters of Credit to support the bid will be cancelled and returned to the bidder (and not held during the term of the contract). If the bidder is not a winning bidder in the RFP, such cancellation and return will occur as soon as practicable after the Commission decision on the results of the procurement event. If the bidder is a winning bidder in the RFP and the winning bidder will sign a REC Contract with a Company, such cancellation and return will occur once all formalities of contract execution with the Company have been completed and once all suppliers fees have been paid to the IPA.
While the REC Contract is also still under development, there will be separate collateral requirement for winning bidders upon signing the contract. Under the current draft, prior to the first REC delivery, the collateral requirement is half of the Annual Contract Value (Annual REC Quantity x Purchase Price) or $50,000, whichever is greater. After the first REC delivery, the collateral requirement is reduced to 1 time the Annual Contract Value or $50,000, whichever is greater. Finally, the collateral requirement in the last delivery year is reduced to reflect the amount that will be delivered in that delivery year (which may be less than a full year).
Please see FAQ-W&S-26 for an example calculation of the collateral requirement prior to first REC delivery.07-05-2017
Q: Will a portion of the Collateral Requirement be due along with the bid submission?
There is a bid assurance collateral due with the Part 2 Proposal, but that bid assurance collateral is separate from the Collateral Requirement due at contract execution for a winning bid. The bid assurance collateral, as described in the draft proposals requirements released on June 14, 2017, consist of a form of a letter of credit to each utility in an amount that is based on the size of the project presented (currently set at $5,000/MW for wind, $15,000/MW for solar projects, subject to a $25,000 minimum). An updated proposal requirements is expected to be released the week of July 10, 2017.
However, the amount of bid assurance collateral tendered with the Part 2 Proposal does not correspond to Collateral Requirement required during the REC Contract. The letters of credit provided with the Part 2 Proposal to support the bid will be cancelled and returned to the bidder when certain conditions are met. If the bidder is not a winning bidder in the RFP, such cancellation and return will occur as soon as practicable after the Commission decision on the results of the procurement event. If the bidder is a winning bidder in the RFP and as a winning bidder signs the REC Contract with the applicable utility, such cancellation and return will occur once all formalities of contract execution with the utility have been completed and once all supplier fees have been paid to the IPA. Failure to execute a contract and/or failure to pay supplier fees would be examples of some of the circumstances under which the bidder may lose all of a portion of its bid assurance collateral. The final RFP documents will explain these circumstances in more detail.07-05-2017
Q: When will the Procurement Administrator release more information about the RFP, including the REC volumes that will be procured from solar projects in the first procurement event, the requirements for site control, and the requirements for interconnection?
The Procurement Administrator made a preliminary release of information regarding the RFP requirements on June 14. The release of the final RFP documents is expected for July 19, 2017. To the extent practicable, the Procurement Administrator will also make additional early releases of select information. The Procurement Administrator recently posted an illustrative Part 1 Form with more details on the requirements of the Part 1 Proposal.07-05-2017
Q: It is understood that this August procurement will be the first of a few procurements before June 2018 to meet the overall goal of 1M utility/brownfield solar RECs per year. Is there any guidance on how many RECs will be procured in this first procurement event?
The release of the final parameters and RFP documents is expected for July 19, 2017. To the extent practicable, the Procurement Administrator will make additional early releases of information, including the release of the solar target for this first procurement event.07-06-2017
Q: Did you release additional information regarding the RFP requirements after the June 14 posting?
The Wind and Solar RFP (“W&S RFP”) DRAFT Illustrative Part 1 Form, which provides an outline of the draft Part 1 Proposal qualification requirements, was posted to the Draft Documents page of the Wind and Solar Section of the procurement website on June 30, 2017.07-11-2017
Archived Supplemental PV FAQs
Q: Can you please clarify whether the sub-25kW category cap of 5,000 RECs should be applied to total bids from both identified and forecast systems?
This FAQ was posted on 06-02-2015 and archived because the information is no longer relevant or accurate.
That understanding is correct. Any Proposal must be such that the total number of RECs in the Sub-25 Category is at or below 5,000 RECs including both REC quantities from identified systems and forecast quantities.11-02-2015
Q: If we intend to submit a Bid for RECs from systems that are larger than 500 kW in size, do we submit our Bids in the June 2015 procurement event and wait until the November 2015 procurement event for the results?
This FAQ was posted on 05-21-2015 and archived because the information is no longer relevant or accurate.
No, you do not place your Bids in June for ”Over-500 Product”, as Bids for the November 2015 procurement event will not be taken as part of the June 2015 procurement event and only Bids submitted for the Sub-25 Product and 25-500 Product will be accepted on the June 18 Bid Date. Bids on the Over-500 Product will be accepted in the November 2015 and March 2016 procurement events, however.11-02-2015
Q: Are the RFP documents final or are some of the inserts still considered “draft”?
This FAQ was posted on 05-21-2015 and archived because the information is no longer relevant or accurate.
Final RFP Documents, including the Inserts to be completed for the Part 1 Proposal, were posted to the Supplemental PV Procurement Section of the website on May 14, 2015. You must register for an application account and submit your Proposal materials online on the application website. A PDF copy of the Part 1 Form, Part 2 Form and Bid Form have been posted to the Supplemental PV Procurement Section of the website on May 14, 2015.11-02-2015
Q: When do you expect all Inserts necessary for completion of the Proposals to be posted to the procurement website?
This FAQ was posted on 05-08-2015 and archived because the information is no longer relevant or accurate.
Additional draft Inserts will be embedded in a draft Part 1 Form and a draft Part 2 Form that will be posted shortly. Final RFP Documents will be posted on Thursday, May 14, 2015. Please see the Calendar page of the procurement website for a full schedule of Supplemental PV events.11-02-2015
Q: Where and when will the stakeholders workshop on Round 1 of comments to the Draft IPA REC Purchase & Sale Agreement take place?
This FAQ was posted on 04-14-2015 and archived because the information is no longer relevant or accurate.
The stakeholders workshop on Round 1 of comments to the Draft IPA REC Purchase & Sale Agreement will take place on Tuesday, April 14, 2015 from 10 AM to 3 PM CPT at 160 N. LaSalle, 8th Floor, Main Hearing Room, Chicago, Illinois.11-02-2015