Announcements


Indexed REC-57: In Exhibit F-1 of the Indexed REC Contract the Delivery Year Requirement (for all 20-years) exceeds the Maximum Contract Quantity, can you explain why this is the case?

In regards to your question please note the following, i) the Delivery Year Requirement for Delivery Year 0 shall apply if the Earliest Vintage Month is not June. The Delivery Year Requirement for Delivery Year 0 is not applicable if the Earliest Vintage Month is June, ii) pursuant to Section 4.1(f) of the Agreement, Seller’s failure to Deliver the Delivery Year Requirement for Delivery Year 0 and Delivery Year 1 shall be excused, and such Delivery Year shall not be a Shortfall Year and such amount of RECs that Seller fails to Deliver to satisfy the Delivery Year Requirement shall not constitute a Shortfall Amount, and iii) pursuant to Section 4.1(f) of the Agreement, if in the last Delivery Year, the Delivery Year Requirement is greater than the quantity of RECs to meet the Maximum Contract Quantity, then the Delivery Year Requirement for the last Delivery Year shall be reduced to be the greatest quantity of RECs that would not cause the Maximum Contract Quantity to be exceeded.

In the example table, the sum of the Delivery Year Requirements is greater than the Maximum Contract Quantity because it includes the Delivery Year Requirement from Delivery Year 0 in addition to the Delivery Years 1-20. But, the Delivery Year 0 will only apply if the Projects Earliest Vintage month is not June, in which case, pursuant to Section 4.1(f) of the Agreement, if in Delivery Year 20, the Delivery Year Requirement is greater than the quantity of RECs to meet the Maximum Contract Quantity, then the Delivery Year Requirement for Delivery Year 20 shall be reduced to be the greatest quantity of RECs that would not cause the Maximum Contract Quantity to be exceeded.

In addition, please note the Contract allows for the Delivery of RECs from an Acceptable Vintage Period, starting with the Earliest Vintage Month, of a maximum total period of 241 months (excluding any Suspension Periods). For example, if the Latest Vintage Month is May 2045, then the Delivery Term shall end on August 31, 2045 so as to accommodate the Delivery of RECs associated with the last month of the Acceptable Vintage Period. As such, any RECs generated from the Project within the Acceptable Vintage period may be eligible for payment and delivery under the Indexed REC Contract, subject to the quantity caps of the Delivery Year Requirement in a given Delivery Year, and the Maximum Contract quantity across the Contract Term.