Pursuant to the ICC Order approving the Zero Emission Standard Procurement Plan, the calculation of the ZEC Cost Cap must be net of all applicable fees and charges related to the administration of the ZEC Contract. At this time, the estimate of applicable fees and charges related to the administration of the ZEC Contract for the first Delivery Year is not yet available. The calculation will be provided no later than 2 weeks after an ICC approval of the results of the RFP by the ICC. Please see Section 2(e)(xv) of the ZEC Contract and Section 4.3 of the Master ZEC Agreement as amended by the Cover Sheet for more information.
Generally speaking, the Performance Assurance due is the difference between the Collateral Requirement and the Collateral Threshold Amount. For your convenience, we identify some of the components to the calculation of the Performance Assurance due.
The Collateral Threshold Amount is an unsecured credit line that is granted to Seller and is more fully defined in section 4.3(b) of the Master ZEC Agreement. For the first Delivery Year, the Collateral Requirement is equal to 20% of the Annual Contract Value where:
Annual Contract Value = $16.50 x Seller’s Share of Award x Annual Utility Cost-Constrained Quantity;
Annual Utility Cost-Constrained Quantity = ZEC Cost Cap / $16.50; and
ZEC Cost Cap = (applicable Utility ZEC Cost Recovery Rate x Applicable Load) – estimate of all applicable fees and charges related to the administration of the ZEC Contract.