Please note that there are two types of collateral contemplated: (a) Bid Assurance Collateral, which is due on the Part 2 Date to support your bids and (b) Performance Assurance collateral required under the terms of the Indexed REC Contract.
Regarding (a) Bid Assurance Collateral, the financial information provided in Section 8 of the Part 1 Form is not used for the calculation of Bid Assurance Collateral. Bid Assurance Collateral is to be provided by all bidders regardless of what their credit ratings are or whether they are relying on the financial standing of a guarantor. For more details regarding the calculation of Bid Assurance Collateral, please refer to FAQ-Indexed REC-14.
Regarding (b) Seller’s Performance Assurance collateral, this is defined in Section 7.1 of the Indexed REC Contract. The financial information provided in Section 8 of the Part 1 Form will be used to determine a Sellers eligibility for unsecured credit. For more details regarding Section 8 of the Part 1 Form and Performance Assurance collateral, please refer to FAQ-Indexed REC-12.