The Pre-Bid Letter of Credit must be sufficient to support the total number of blocks that the Bidder intends to bid across all Segments and months available for a Company (which is the Indicative Quantity submitted in the Part 2 Proposal). To determine the Indicative Quantity a supplier would:
- Calculate the maximum number of blocks that the supplier can win for each month and Segment, which is the lesser of (i) the number of blocks that the supplier intends to bid across the Product and all Combinations that include that month and Segment; and (ii) the Target for that month and segment; and
- Sum the quantities calculated in 1) above across all months and Segments.
This is an example for illustrative purposes. Suppose that a supplier intends to bid for ComEd on:
- 2 blocks of the October 2014 on-peak Product
- 20 blocks of the November 2014 on-peak Product
- 18 blocks of the Oct-Nov-Dec 14 on-peak Combination
- 15 blocks of the Jun14-May15 on-peak Combination
The supplier does not intend to bid on any blocks in the June 2015 to May 2017 period (or on any other Products or Combinations in the June 2014 to May 2015 period except those given above).
In that case, the calculation of the Indicative Quantity would be as follows:
| Month/Segment (for ComEd) | (1) number of blocks that the supplier intends to bid across the Product and all Combinations that include the month and Segment | (2) Target for the month and Segment | The lesser of (1) and (2) |
| Jun 2014 on-peak | 15 (from the annual bids) |
49 |
15 |
| Jul 2014 on-peak | 15 (from the annual bids) |
57 |
15 |
| Aug 2014 on-peak | 15 (from the annual bids) |
56 |
15 |
| Sep 2014 on-peak | 15 (from the annual bids) |
44 |
15 |
| Oct 2014 on-peak | 35 (2 from the bids on the Product, 18 from the bids on the Q4 combination, 15 from the annual bids) |
35 |
35 |
| Nov 2014 on-peak | 53 (20 from the bids on the Product, 18 from the bids on the Q4 combination, 15 from the annual bids) |
20 |
20 |
| Dec 2014 on-peak | 33 (0 from the bids on the Product, 18 from the bids on the Q4 combination, 15 from the annual bids) |
24 |
24 |
| Jan 2015 on-peak | 15 (from the annual bids) |
24 |
15 |
| Feb 2015 on-peak | 15 (from the annual bids) |
23 |
15 |
| Mar 2015 on-peak | 15 (from the annual bids) |
20 |
15 |
| Apr 2015 on-peak | 15 (from the annual bids) |
15 |
15 |
| May 2015 on-peak | 15 (from the annual bids) |
15 |
15 |
|
Sum (Indicative Quantity) |
214 |
||
To be sufficient to support the Indicative Quantity, the Pre-Bid Letter of Credit for a Company must be in an amount of $5,000 per block of the Indicative Quantity for that Company or $250,000, whichever is greater. In the example above, the required amount for the Pre-Bid letter of Credit for ComEd would be 214 *$5,000 or $1,070,000.