Please review and listen to slides 22-24 at minute 39:15 of the Bidder Information Webcast respectively for this information. The presentation materials and the audio recording are posted to the to the Final Materials page of the Indexed Wind, Solar, and Brownfield section of the website.
As defined in the IPA Act, “Strike price” means a contract price for energy and renewable energy credits from a project. The strike price ($/MWh) in the Bid and the Index Price ($/MWh) that corresponds to the Index Hub selected in the bid form will be used for purposes of calculating the REC Monthly Price, defined in the Indexed REC Contract (e.g. if MISO-IL Hub is selected in the bid form as the Index Hub for the Project, then the Index Price for purposes of calculating the REC Monthly Price will be the hourly Real-Time LMP for the MISO-IL Hub).
The REC Monthly Price applicable to the Project with respect to a Vintage month shall be calculated as follows. The REC Monthly Price Hourly Component is the product of (a) the result obtained by subtracting the Strike Price from the Index Price of such hour and (b) the MWh actual generation of the Project for such hour. The REC Monthly Price for a Vintage month shall be calculated by dividing (a) the sum of all REC Monthly Price Hourly Components in such Vintage month by (b) the MWh actual generation of the Project for such Vintage month, and rounding to the nearest cent. The REC Monthly Price may be either positive or negative. Payment is made from Seller to Buyer if the REC Monthly Price is positive and payment is made from Buyer to Seller if the REC Monthly Price is negative.
Please review the Indexed REC Contract for additional information: https://www.ipa-energyrfp.com/wp-content/uploads/2023/09/Indexed-Wind-Solar-and-Brownfield-Final-Indexed-REC-Contract_9-29-2023_FINAL.pdf