Archived-BEC-68: Can we expect that additional procurement events will be held for the June-September 2022 supply period if the Supplemental Procurement Events fail to fully meet the Targets for the Companies under the Supplemental RFP?

Section 16-111.5 of the Act states that “if the procurement process fails to fully meet the expected load requirement due to insufficient supplier participation or due to a Commission rejection of the procurement results, the procurement administrator, the procurement monitor, and the Commission staff shall meet within 10 days to analyze potential causes of low supplier interest or causes for the Commission decision. If changes are identified that would likely result in increased supplier participation, or that would address concerns causing the Commission to reject the results of the prior procurement event, the procurement administrator may implement those changes and rerun the request for proposals process according to a schedule determined by those parties and consistent with Section 1-75 of the Illinois Power Agency Act and this subsection. In any event, a new request for proposals process shall be implemented by the procurement administrator within 90 days after the determination that the procurement process has failed to fully meet the expected load requirement.”

In response to the April 18 Procurement Events failing to fully meet expected load requirements, the parties met as required and the parties agreed that additional procurement events would be held at the earliest opportunity to procure block energy for the period June through September 2022 for all three (3) Companies.  Thus, the Supplemental RFP was issued and is the new request for proposals process contemplated by Section 16-111.5.

The Procurement Administrator cannot speculate or anticipate the Commission decision on the Supplemental Procurement Events or the outcome of any meeting of the parties that could arise to discuss the results of the Supplemental Procurement Events.  It is entirely up to each supplier to form its own expectations in this regard.  However, we note that (1) it would no longer be possible to hold procurement events for the June through September 2022 supply period as the supply period would have already started and (2) procurement events failed to meet the load requirements in the past, including the Spring 2018, Spring 2017 and Fall 2017 BEC RFPs in the last five and a half years, and no additional procurement events were held at the time.