Archived-W&S-41: 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.