There are two letters of credit, which each serve a different purpose and have different terms and conditions for drawing, the Pre-Bid Letter of Credit and the Post-Bid Letter of Credit.
The Pre-Bid Letters of Credit, which are appended to the RFP Rules as Appendix 7 and Appendix 8 for Ameren Illinois Company and the Commonwealth Edison Company respectively, serve as bid assurance collateral. The Bidder must provide a Pre-Bid Letter of Credit sufficient to support the Bidder’s Indicative Quantity. The Pre-Bid Letter of Credit has an Expiration Date of October 15, 2014, which will not be extended.
A winning Bidder will be required to provide performance assurance to the applicable Company. Performance assurance can be in the form of cash, a (“Post-Bid”) Letter of Credit, or a guaranty if the Bidder is relying on the financial standing of an RFP Guarantor.