The collateral requirement under each of the (AIC) Confirmation Agreement and the ComEd Energy Master Agreement will be for the credit exposure under the contract, which is based on a Mark-to-Market methodology. For the ComEd Energy Master Agreement, this methodology is described in Schedule 3 (MtM Calculation) to the Collateral Annex. Under the applicable supplier agreement, unsecured credit may be granted to the Bidder or a Guarantor, if applicable, based on a creditworthiness assessment. If Seller is relying on the creditworthiness of a guarantor, an executed guaranty acceptable to Buyer must be provided. Any credit exposure that is in excess of the unsecured credit granted must be met with performance assurance 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 contracts.
For each of the (AIC) Confirmation Agreement and the ComEd Energy Master Agreement, please refer to the front portion of the (AIC) Confirmation Agreement and Cover Sheet of the ComEd Energy Master Agreement, respectively, for amendments and election to the EEI Collateral Annex and paragraph 10 to the Collateral Annex.