Announcements


BEC-10: How is the collateral requirement under the supplier contracts for the energy procurement events determined?

The collateral requirement under each of the supplier contracts for the energy procurement events is based on a mark-to-market methodology. For the (AIC) Confirmation Agreement and the (MEC) Confirmation Agreement, this methodology is described in Exhibit D (Collateral Annex) together with Exhibit E (Paragraph 10 to the Collateral Annex), of each agreement. For the (ComEd) Master Agreement, this methodology is described in Schedule 3 (MtM Calculation) to the Collateral Annex. 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 must 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 contracts.