Announcements


BE-41: For the Ameren Illinois Company (“AIC”) Capacity procurement event, does the full amount of performance assurance required at contract signing remain in place for the full duration of the contract? When would the letter of credit posted as performance assurance expire?

In responding to this question, we assume that Seller is not a counterparty to another supply contract with AIC besides the (AIC) Capacity Agreement. Upon execution of the contract, performance assurance to cover 10% of the contract value (i.e., 10% x contract price x ZRCs x 365 days) will be required.

(a)        If all ZRCs under contract are from the compliance zone, then upon AIC confirming the transfer of all ZRCs to AIC’s account, the exposure will be reduced to zero and the performance assurance may be returned at that point.

(b)        If all or a portion of the ZRCs under contract include ZRCs from outside of the compliance zone, then for that portion of the contract that is associated with ZRCs outside of the compliance zone, AIC will retain 10% of the contract value (regardless of whether such non-compliance zone ZRCs have been transferred or not) until the conclusion of the posting of MISO Planning Resource Auction (“PRA”) results. After the MISO PRA results are provided: (i) if it is determined that Seller does not owe Buyer payments, then performance assurance may be returned at that point; and (ii) if it is determined that Seller owes Buyer payments, then performance assurance for an amount equal to the amount owed will be required at that point and the performance assurance will be fully returned with the last payment by Seller.

If Seller is providing a letter of credit as performance assurance, then the letter of credit must remain valid for the duration for which performance assurance is required, which could be through June 30, 2019. Seller is responsible for providing an amendment to extend the validity of any letters of credit as necessary.