We note that for purposes of the supplier contract for the AIC capacity procurement event, AIC has found acceptable a new modification to the Guaranty. This modification is in paragraph 13 inserting the text that appears here in bold: “ (c) this Guaranty constitutes a valid and legally binding agreement of the Guarantor, and is enforceable against the Guarantor in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, receivership and other similar laws affecting the rights of creditors generally, or by general equity principles;”. This modification is not listed as being acceptable in Schedule 1 to the Form of Guaranty in the supplier contract for the AIC Energy procurement event. Is this modification acceptable to AIC for purposes of the supplier contract for the AIC Energy procurement event as well? Is the modification acceptable to the other utilities also?

While the modification was accepted for purposes of the supplier contract for the capacity procurement event, Ameren Illinois Company (“AIC”) notes that a supplier that has winning Bids accepted by the Commission for both the capacity procurement event and the AIC energy procurement event would be able to offer a single guaranty with this modification included for purposes of meeting the creditworthiness requirements under each applicable supplier contract. To treat such a supplier in the same manner as a supplier that has winning Bids accepted by the Commission for the AIC energy procurement event alone, AIC thus would accept the same modification to the guaranty for purposes of the supplier contract for the energy procurement event in advance of that modification being formally integrated to the supplier contract (in Schedule 1 to the Form of Guaranty, which is Exhibit A to the Confirmation Agreement).

This modification is in substance already incorporated in the list of such modifications that are acceptable to ComEd (https://www.ipa-energyrfp.com/download/4_-_standard_products_category_%E2%80%93_2016/4c_-_stp_rfp_fall_2016_contract_docs/7_FINAL_STP_ComEd_Optional%20Changes%20to%20the%20Form%20of%20Guaranty%20(7-27-2016).pdf). Furthermore, MidAmerican Energy Company (“MEC”) also finds the modification acceptable.

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