There is a bid assurance collateral due with the Part 2 Proposal, but that bid assurance collateral is separate from the Collateral Requirement due at contract execution for a winning bid. The bid assurance collateral, as described in the draft proposals requirements released on June 14, 2017, consist of a form of a letter of credit to each utility in an amount that is based on the size of the project presented (currently set at $5,000/MW for wind, $15,000/MW for solar projects, subject to a $25,000 minimum). An updated proposal requirements is expected to be released the week of July 10, 2017.
However, the amount of bid assurance collateral tendered with the Part 2 Proposal does not correspond to Collateral Requirement required during the REC Contract. The letters of credit provided with the Part 2 Proposal to support the bid will be cancelled and returned to the bidder when certain conditions are met. If the bidder is not a winning bidder in the RFP, such cancellation and return will occur as soon as practicable after the Commission decision on the results of the procurement event. If the bidder is a winning bidder in the RFP and as a winning bidder signs the REC Contract with the applicable utility, such cancellation and return will occur once all formalities of contract execution with the utility have been completed and once all supplier fees have been paid to the IPA. Failure to execute a contract and/or failure to pay supplier fees would be examples of some of the circumstances under which the bidder may lose all of a portion of its bid assurance collateral. The final RFP documents will explain these circumstances in more detail.