Under the Block Energy and Capacity (“BEC”) RFP, an entity that is not rated by any of the following rating agencies: S&P Global Ratings (“S&P”), Moody’s Investors Service (“Moody’s”), and Fitch Ratings (“Fitch”), receives a Collateral Threshold Amount of zero. Such an entity does not receive unsecured credit under the applicable BEC contract cannot serve as a Guarantor.

However, it is not a condition of participation in the RFP that the supplier itself be rated or that the supplier have a guarantor that is rated.  If a supplier that is not rated and that does not have a guarantor has bids that are approved by the Commission, then such a supplier would have post cash or a letter of credit to meet the collateral requirement under the applicable BEC contract.

Posted 4/2/2019; amended 6/12/2019