DG-8: Can the system owner use a parent guaranty instead of a letter of credit under the terms of the DG RFP and applicable supplier contract?

The Bidder (the company that will be presenting a proposal under the Utility Distributed Generation Request for Proposal, the “DG RFP”) will be required to present a Letter of Credit to support its bids with the Illinois Power Agency (“IPA”) as beneficiary. The terms of this Letter of Credit have been released and are available here:

Should the Bidder have Bids that are approved by the Illinois Commerce Commission, the Letter of Credit would still be held during the term of the supplier contract. Please see Section V.2.3. of the DG RFP Rules for information on the reduction and return of the Letter of Credit.

Please note that the Bidder and the system owner may or may not be the same person/company. The requirement to provide a Letter of Credit applies to the Bidder.