DG-31: Can you confirm that there is no draw against the Letter of Credit if a system associated with an applicable supplier contract with a utility under the DG RFP does not deliver the expected quantity? Is there a draw or another financial consequence if we fail to deliver the maximum annual quantity in a delivery year under the contract?

As long as the system has been registered with PJM GATS or M-RETS and the initial meter read date of such system occurs by the deadline in the applicable supplier contract with the utility, then there are no specific quantities of RECs that such system is required to deliver. Under the applicable supplier contract, delivery of RECs is on a portfolio basis to meet the Maximum Annual Quantity in each Delivery Year and not on a system-by-system basis. Furthermore, there are no penalties associated with delivering less of than the Maximum Annual Quantity provided, however, that you are not withholding RECs from the systems identified in the applicable supplier contract. If you do not meet the Maximum Annual Quantity, you must provide all of the RECs from the systems associated with the applicable supplier contract with the utility; you must not be withholding RECs from the utility or selling RECs from such systems to another party.