If bid assurance collateral provided for multiple Projects was at the maximum for each Company and a draw is required on the bid assurance collateral for one of the Projects, the amount of the draw would not exceed the amount that would have been required as bid assurance collateral for that Project alone. If draws are required for multiple Projects, it would be known before the draws are made that multiple draws are required for multiple Projects. In that case, the entire amount of the bid assurance would be drawn and assigned to each Project proportionately (proportionately to the amounts that would have been required as bid assurance collateral for each Project separately).
To the extent that the reason for the draw on the letter of bid assurance collateral is a failure of the Seller to execute the REC Contract, we remind you that in the P2 Certifications Insert (#P2-4), required by the Part 2 Proposal, the Officer of the Seller has acknowledged and certified that if the Seller’s Bid on the Project is approved by the Commission, the Seller WILL execute the REC Contracts with the Companies as instructed by the Procurement Administrator. Failure to do so is a failure to abide by one of the central representations and requirements of the Proposal.
Please also note that there could well be other consequences to the Seller of failing to execute a contract for a Project selected through an IPA procurement event and approved by the Commission (in addition to forfeiture of bid assurance collateral). The Procurement Administrator expects that such a Project could not be bid again in a future initial forward procurement event. Furthermore, the IPA expects to release a draft Long-Term Renewable Resources Procurement Plan in September 2017, which will be subject to review by the Illinois Commerce Commission. It is possible that eligibility criteria for procurement events or programs under this Long-Term Renewable Resources Procurement Plan would be proposed to include whether a Bidder or Seller has previously failed to execute a contract for a Project that was selected through an IPA procurement event and approved by the Commission.