One objective of the bid assurance collateral is for the bidder to show that the bidder will be able to meet the Collateral Requirement under the Indexed REC Contract. Not meeting the Collateral Requirement would lead to supplier default, termination of the Indexed REC Contract, and failure of the procurement event to procure the number of RECs intended.
The bid assurance collateral requirements on a per MW basis in the Final Indexed REC RFP Rules are in line with prior procurement events for RECs. The maximum amount of bid assurance collateral is calibrated to be consistent with the Collateral Requirement that could be due under the Indexed REC Contract. An increase in the maximum amount of bid assurance collateral relative to a past procurement event would be due to either an increase in the Collateral Requirement under the contract or due to an increase in the target.