Announcements


BEC-18: Can Bid Assurance Collateral be used to meet the Collateral Requirement under the applicable supplier contract?

Bid Assurance Collateral cannot be used towards meeting the Collateral Requirement under the contract.

With its Part 2 Proposal, a Bidder must post Bid Assurance Collateral in the form of a Pre-Bid Letter of Credit. The Pre-Bid Letters of Credit for Energy Products are provided as Appendix 10 to the RFP Rules for AIC Energy Products and Appendix 11 to the RFP Rules for ComEd. Any Pre-Bid Letter of Credit for Energy Products will expire as part of its terms on October 3, 2019. The required amount of the Pre-Bid Letter of Credit for AIC Energy Products is the greater of $5,000 per block of a Bidder’s Indicative Quantity for AIC or $250,000. The required amount of the Pre-Bid Letter of Credit for ComEd is the greater of $5,000 per block of a Bidder’s Indicative Quantity for ComEd or $250,000.

Performance assurance under the applicable supplier agreement must be posted as cash or a letter of credit, or, if applicable under the applicable supplier agreement, unsecured credit may be granted to the Bidder or a Guarantor based on a creditworthiness assessment. If Seller is relying on the creditworthiness of a guarantor, an executed guaranty acceptable to Buyer must be provided. Any credit exposure that is in excess of the unsecured credit granted must be met with performance assurance in the form of cash or a letter of credit. The standard forms of the guaranty and the letter of credit are appended to each of the contracts.