Announcements


BEC-47: Does the Procurement Administrator recommend whether the ICC accept or reject individual Bids for a Product and Company or the Least Cost Package for a Company?

In regards to procurement events held for block energy, the Procurement Administrator provides a recommendation to the Commission for each procurement event (i.e. a separate recommendation for each of the procurement events for ComEd, AIC and MEC).

Section 16-111.5 of the Act requires that “Within 2 business days after opening the sealed bids, the procurement administrator shall submit a confidential report to the Commission. The report shall contain the results of the bidding for each of the products along with the procurement administrator’s recommendation for the acceptance and rejection of bids based on the price benchmark criteria and other factors observed in the process. The procurement monitor also shall submit a confidential report to the Commission within 2 business days after opening the sealed bids. The report shall contain the procurement monitor’s assessment of bidder behavior in the process as well as an assessment of the procurement administrator’s compliance with the procurement process and rules. The Commission shall review the confidential reports submitted by the procurement administrator and procurement monitor, and shall accept or reject the recommendations of the procurement administrator within 2 business days after receipt of the reports.”

The evaluation of Bids for a Company in its procurement event for Energy Products proceeds in two steps. In the first step, all Bids that fail to meet the benchmarks are eliminated. In accordance with the Act, benchmarks are established by the Procurement Administrator, in consultation with the IPA, the Procurement Monitor, and the ICC Staff. The benchmarks are confidential and are subject to review and approval by the ICC. In the second step, the Procurement Administrator evaluates the Bids that meet or beat the benchmarks and selects a package of Bids that procures all needed blocks for that Company if possible at the lowest average cost per MWh. This package of Bids is called the Least Cost Package for a Company.  The Least Cost Package for a Company is the results of bidding that is presented to the Commission and the basis for the Procurement Administrator’s recommendation, however, as stated in the Act there may be other factors observed in the process that would also be considered by the Procurement Administrator when preparing the recommendation.