Indexed REC-68: Are all RECs generated from the Project eligible for payment under the Indexed REC Contract? Is there a maximum amount of RECs that can be delivered?

No, under the Indexed REC Contract not all RECs generated by the Project are eligible for payment. These ineligible RECs include but are not limited to those outlined in Section 2.3(f) of the Indexed REC Contract;

  • RECs outside of the Acceptable Vintage Period (2.1(c))
  • RECs transferred in excess of the Maximum Contract Quantity (4.1(f))
  • any RECs generated by the Project in excess of the Delivery Year Requirement for any Delivery Year (4.1(i))
  • unpaid RECs pursuant to Section 5.4
  • or any other inadvertent REC transfers

Should you bid and win in the RFP, a schedule will be included in the Product Order of the Indexed REC Contract that will specify the Delivery Year Requirement for each of the Delivery Years. The Delivery Year Requirement is the maximum number of RECs that is eligible for payment purposes in a Delivery Year, provided that for the last Delivery Year, the Delivery Year Requirement shall be reduced to be the greatest quantity of RECs that would not cause the Maximum Contract Quantity to be exceeded.

Further, please note that only RECs transferred pursuant to the Standing Order are eligible for payment. Please note that the Project Committed Percentage shall be confirmed by Seller when Seller initiates the Standing Order request within PJM EIS GATS or M-RETS pursuant to section 2.3(b)(i) of the Indexed REC Contract, and such Project Committed Percentage may not be amended subsequent to the initial establishment of the Standing Order. Please also see FAQ-Indexed REC-54 and FAQ-Indexed-REC-59 for related information about the Delivery Year Requirement and project size changes.