Announcements


DG-84: With an automatic renewal of the Letter of Credit, does it mean that the Letter of Credit is potentially valid in perpetuity?

No, this does not mean that the Letter of Credit would remain valid in perpetuity; it just means that the exact termination date is subject to uncertainty because it depends on the Bidder’s exact circumstances. These circumstances are detailed in the RFP Rules and summarized here for your convenience, with approximate dates.

If you do not have bids that are approved by the Commission, the Letter of Credit will be returned as soon as practicable after the Commission decision (expected May 3, 2017). If you have bids approved by the Commission, the amount of the Letter of Credit is reduced to match the number of RECs in your winning bids as soon as the Supplier Fees are paid (7 business days after the Commission decision, expected May 12, 2017).   The Letter of Credit is then further reduced as you show that your systems are producing RECs. Specifically:

  • If all your systems are existing and you are not bidding Forecast Quantities, one would expect that all your systems will demonstrate that they have accumulated metered deliveries by the end of the first quarter under the contract, at which point the Letter of Credit would be returned (approximately July 31, 2017).
  • If some of your systems are new but you are not bidding Forecast Quantities, the new systems must be registered in GATS or M-RETS and have the initial meter read date recorded in GATS and M-RETS by May 31, 2018. In that case, the Letter of Credit would be returned by the end of the next quarter, approximately July 31, 2018.
  • If you are bidding Forecast Quantities, the Letter of Credit expires and is returned when all systems must be identified and all such systems must be registered in GATS or M-RETS and have had their initial meter read date by February 28, 2019. In that case, the Letter of Credit would be returned by the end of the next quarter, approximately March 31, 2019.

Note that, under the terms of the applicable supplier contracts, a bidder may ask for an extension for a system to become energized. This could lead to a later return of the Letter of Credit. However, such an extension, if it is granted, will not exceed six months.