Indexed REC-55: Is a stub offtaker for the RECs from the Project allowed for the first ~3-5 years following the Projects Date of First Operation before the Project establishes the Standing Order under the Indexed REC Contract? Is the the Date of First Operation provided in the Part 1 Proposal binding?

A “stub” off taker for the first ~3-5 years as described in your example is not allowed under the Indexed REC Contract. For projects currently in development, once the Project’s Date of First Operation (or the Hydropower Refurbishment Completion Date if the Project is a Hydropower Project that is newly Modernized or Retooled) has occurred, Seller is expected to establish a Standing Order for the Project for the automatic recurring transfer of RECs to Buyer pursuant to Section 2.3 of the Indexed REC Contract.

Under the Part 1 Proposal, a Bidder must provide the “Date of First Operation” for the Project, as defined by the Operating Manuals of PJM EIS GATS or M-RETS, or the expected Date of First Operation. This date is not binding.

Please see Section 2.3(b) of the Indexed REC Contract for more information about Project Committed Percentage and the Standing Order if you are interested to commit a portion of your Project’s output to a commercial off-taker on a pro-rata basis.  For avoidance of doubt, the use of the Project Committed Percentage cannot be used to accommodate the scenario you have described.