The Final RFP Project Percentage in the Bid Form will be used for purposes of the Indexed REC Contract and will be the percentage of the Project’s Actual Production, as offered by Seller through the RFP and as indicated in the Product Order under the Indexed REC Contract. It may not be amended during the Term of the Contract.
As stated in Section 2.3(b) of the Indexed REC Contract, in regards to the contract with each Company, the Parties shall work together to establish an irrevocable Standing Order for the Project for the automatic recurring transfer of RECs to Buyer’s account in PJM-EIS GATS or M-RETS. Section 2.3(b)(iii) states “The Standing Order shall be for the automatic recurring transfer of RECs associated with a Vintage within the Acceptable Vintage Period. The Standing Order shall reflect Buyer’s allocated share of the RFP Awarded Annual Quantity, which shall be calculated by dividing (a) the multiplicative product of the RFP Project Percentage and the Annual Quantity by (b) the RFP Awarded Annual Quantity. For example, suppose a Project has the following characteristics: (1) the RFP Awarded Annual Quantity is 100,000 RECs, (2) the RFP Project Percentage is 50% and (3) the Annual Quantity is 70,000 RECs; then for purposes of establishing the Standing Order, the percent of RECs from such Project shall be the result obtained by dividing (a) the multiplicative product of (i) 50% and (ii) 70,000 RECs by (b) 100,000 RECs (i.e., the Standing Order shall be set at 35% of the Project’s Actual Production).”
For avoidance of doubt, RECs that are not transferred pursuant to Section 2.3(b)(iii) shall remain the exclusive property of Seller, to be utilized in Seller’s sole discretion; such RECs are not associated with the RFP Project Percentage and cannot be used to meet the Delivery Year Requirement or Maximum Contract Quantity under this Agreement.