Section 4.1 of the Indexed REC Contract states that in the event that Seller fails to Deliver the Delivery Year Requirement for a Delivery Year under the terms of the REC Contract (such Delivery Year a “Shortfall Year” and such amount of RECs that Seller fails to Deliver to satisfy the Delivery Year Requirement for a Delivery Year, the “Shortfall Amount”), Seller represents that no RECs from the Project issued by PJM EIS GATS or M-RETS in that same Delivery Year were willfully withheld or sold or otherwise transferred to another party (other than to the Buyer in connection with an IPA approved agreement).
The Bidder determines the annual quantity of RECs to include in the Bid for a given Project. This annual quantity may be less than the Maximum Bid Size (but cannot be greater). This annual quantity of RECs can be for a portion of the RECs from a Project.
Importantly, in the Part 1 Proposal, a Bidder must provide the size of the Project in MW (AC rating), rounded to two (2) decimals, which in turn determines the area for which the Bidder must show site control and the amount of bid assurance collateral posted with the Part 2 Proposal. The size of the Project must be the total size of the Project and not a portion of the Project capacity.