The collateral requirement under each of the (AIC) Confirmation Agreement and the (ComEd) Master Agreement for the energy procurement events is based on a mark-to-market methodology. For the (ComEd) Master Agreement, this methodology is described in Schedule 3 (MtM Calculation) to the Collateral Annex. For the (AIC) Confirmation Agreement, relevant information is provided in Exhibit D – Collateral Annex and Exhibit E – Paragraph 10 to the Collateral Annex. There is not a minimum or maximum amount of performance assurance required on a per block basis.
Under the applicable supplier agreement, the bidder or a guarantor, if applicable, may be granted unsecured credit based on a creditworthiness assessment. The creditworthiness assessment is based on the Bidder’s (or Guarantor’s, as applicable) financial statements and credit ratings submitted with the Part 1 Proposal and the result of the assessment will be provided to the Bidder with the Part 1 Notification. If the Bidder is relying on the creditworthiness of a Guarantor, an executed guaranty acceptable to the Buyer must be provided.
Any required performance assurance may be posted 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 supplier agreements. There is a Minimum Transfer Amount, defined under the applicable supplier agreements, of $100,000 for both AIC and ComEd (subject to rounding).
Please note that for each of the (AIC) Confirmation Agreement and the (ComEd) Master Agreement, a bidder should refer to the front portion of the (AIC) Confirmation Agreement and the Cover Sheet of the (ComEd) Master Agreement, respectively, for amendments and elections to the EEI Collateral Annex and paragraph 10 to the Collateral Annex.
It is the responsibility of each bidder to review the terms of the applicable supplier agreement (for each of AIC and ComEd) posted to the Block Energy and Capacity Procurement section of the procurement website. Each bidder accepts these terms as a condition of its participation in the BEC RFP.