DG-28: Will bidders need to have letters of credit for both $8 dollars and 10% of contract value for all systems?

The two credit requirements, the performance assurance under the contract with the utility, and the letter of credit due with the Part 2 Proposal are independent requirements that both apply to each Bidder. In some cases, it will mean that a Bidder has two letters of credit concurrently, one with the IPA as beneficiary and one as the utility as beneficiary. This would occur, for example, in the period immediately after the Commission decision for a Bidder that posts a Letter of Credit under the applicable supplier contract and that would still at that point have a Letter of Credit with the IPA. However note that (i) a Bidder could post cash or be granted an unsecured line a credit or rely on the financial standing of a guarantor (but not post a bond) under the applicable supplier contract and thus not be required to post a Letter of Credit with the utility as beneficiary; and (ii) if the Bidder does not have winning Bids for new systems then the Letter of Credit with the IPA would expire after payment of the Supplier Fee.