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General (14) Long-Term Renewable Energy and RECs RFP (169) New Renewables RFP (44) Standard Products RFP (45)
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Long-Term Renewable Energy and RECs RFP
Does the ComEd Long-Term RFP Workshop to be held on August 31, 2010 conflict with the IPA’s 2011 Plan Workshop on August 31st?
A workshop for public comments on the Draft 2011 IPA Procurement Plan and a workshop to discuss the Draft ISDA Master Agreement for the 2010 long-term renewable energy and RECs RFP are both being held on August 31, 2010. The first workshop will take place in Springfield while the second workshop will take place in Chicago. We apologize for any inconvenience caused by both workshops being held on the same day.
Can you confirm that the intent of the ISDA Master Agreement is to designate each renewable generation source that will be providing service under the agreement?
The intent is for each generating unit (tied to a revenue quality meter) to be identified in a separate confirmation should one bidder have multiple bids for multiple generating units approved by the Commission. The remainder of your submission appears to be comments rather than questions. We will consider your comments along with other comments on the Draft ISDA Master Agreement.
If a bidder has or will have more than one generating project with the same technology, all located within Illinois, will the bidder be permitted to identify two or more such projects in a single bid and then, if selected as a winning bidder, meet the delivery obligation from the output of one or more of the projects identified in the bid?
A bidder that has more than one generating project (each project being tied to a revenue quality meter) will submit one Proposal for each generating project. Such a bidder also will submit one Bid for each generating project, identifying for that particular generating project the bid price, the Annual Contract Quantity, the Minimum Quantity, and the Specified Percentage. If the Procurement Administrator recommends one or more Bids to the Commission and the Commission approves these Bids, the bidder would execute Confirmations under the ISDA Master Agreement for the particular generating projects for which Bids were approved. The bidder will not be permitted to identify the projects after the bids are approved.
Is the "Resource Factor" (page 1 of Schedule 2 to Credit Support Annex) the same as the "Resource Value" (page 1 of Confirmation Schedule)?
Yes, resource factor is the same as resource value; thank you for bringing this inconsistency to our attention. The Procurement Administrators will calculate the resource factors and announce these to the bidders in advance of bidding.
Is there just one price benchmark for all resource types, or is there a separate benchmark for solar?
The Procurement Administrator, in consultation with the IPA, the Procurement Monitor, and the ICC Staff will develop confidential benchmarks to protect consumers that will be approved by the ICC for the resources procured under this solicitation. The benchmarks will be used to evaluate bids and to reject bids that exceed the benchmarks. Additional information regarding the benchmarks is confidential.
Is there a conference call number for the workshops?
The workshops are in-person meetings.
What are the times and location of the Chicago Workshops on August 30-31 and September 1, 2010 for the Long-Term Renewable Energy and RECs RFP?
The Long-Term Renewable Energy and RECs RFP instruction I.3.2 requires applicants to submit in Microsoft Word format, but the document posted is in Adobe. Can you please forward the requisite documents in Word so we can insert the appropriate information?
The Microsoft Word version of the Part 1 Form will be provided no later than September 7, 2010 and earlier if feasible.
Is its true that ComEd will not hold collateral in the form of cash under the ISDA Master Agreement? Or is it that ComEd will not post collateral under the ISDA Master Agreement? For cash collateral provided to ComEd, please confirm if there is an option for the collateral to be held either by ComEd or by its custodian?
You may be referring to a statement made during the bidder information call that ComEd will not post collateral under the contract. Only the Seller is required to post security under the terms of the Draft ISDA Master Agreement. If the Seller chooses to post collateral in the form of cash, under the terms of the Draft ISDA Master Agreement, the Seller has the option for the cash to be held by ComEd or by its Custodian. If cash is held by ComEd, no interest is paid or fees collected. If cash is held by the Custodian, ComEd will pay to or collect from the Seller the amount of interest net of all fees. ComEd would collect from the Seller if fees exceed the amount of interest. Please see section (g) of Paragraph 13 of the Collateral Support Annex. For its Custodian, ComEd will use a Qualified Institution meeting the requirements as defined in Paragraph 13 to the Credit Support Annex section (o). This institution will be a large commercial bank.
Will the Seller under the ISDA Master Agreement have to post three-years worth of performance assurance as soon as the ISDA Master Agreement is executed?
Under the ISDA Master Agreement, ComEd may require the Seller to provide performance assurance for the amount of the Seller's exposure. The Seller's exposure includes the energy exposure as well as the REC exposure. The REC exposure is equal to $5 multiplied by three times the Annual Contract Quantity. ComEd intends to make a request for the REC exposure by noon on the business day following the day the Confirmation is fully executed. The Confirmation is expected to be fully executed no later than three business days after an approval by the ICC of the results of the procurement event for long-term renewable energy and RECs. Following such a request, the Seller must post the required collateral by the close of business on the next business day.
If a supplier wins a contract for unit "A", will it be able to assign the obligation to unit "B" some time during the term of the contract?
The transaction contemplated by the contract encompasses two items: 1) a fixed price for floating price energy swap; and, 2) the delivery of RECs, both tied to the production of the generating unit identified in the Confirmation. There are no provisions that would allow the assignment to another generating unit during the term of the contract. Please note that there is currently a comment process on the Draft ISDA Master Agreement and you are free to propose a provision to this effect as a comment. The invitation to comment on the contract is posted here.
Does a bidder need to be able to point to a specific project from which it will generate the RECs, or can it provide them from the market?
Yes, you need to be able to point to a specific project. The transaction contemplated by the contract encompasses two items: 1) a fixed price for floating price energy swap; and, 2) the delivery of RECs, both tied to the production of the generating unit identified in the Confirmation.
Is the Microsoft Word version of the ISDA Master Agreement posted in order to submit comments?
The contract is posted to the Long-Term Renewable Energy and RECs Documents pageunder the heading ISDA Master Agreement (DRAFT) (August 13, 2010). Your proposed changes should be incorporated in the Schedule to the Master Agreement, Paragraph 13 of the CSA, Schedules 1 and 2 of the CSA, or in the Sample Confirmation, all of which contain the specific terms of the contract tailored for this transaction. All of these are posted as Microsoft Word documents.
In what format should comments to the proposed ISDA Master Agreement be submitted?
The exclusive method for submitting comments is electronically in Microsoft Word with tracked changes (redline markup of a document). You are strongly encouraged to provide an accompanying document with explanatory notes or to add an explanation beside each tracked change. Please submit your comments by email to the Procurement Administrator at pa@ComEd-EnergyRFP.com. Please provide phone and email contact information in the event that clarification is needed regarding your comments. More information on the comment process is available in our invitation to provide comments, which is posted to the Long-Term Renewable Energy and RECs Documents page.
Is it correct that the transaction is with margining by generators only under the draft Master Agreement used for the ComEd Long-Term RFP?
That is correct.
Would ComEd consider a REC-only fixed price offer?
ComEd may not consider a REC-only fixed price offer. The Procurement Plan approved by the Illinois Commerce Commission specifies that the transaction will be for renewable energy and RECs. It also specifies that a single bundled price will be bid for both energy and RECs.
Will the Long-Term RFP have a Solar REC component? If yes, what is the anticipated target? What is the anticipated contracting date?
The anticipated start of delivery under contracts from the Long-Term RFP is anticipated to be June 1, 2012. The Illinois Power Agency Act was amended so that a specified amount of renewable energy resources would be procured from photovoltaics starting in 2015. Bill HB6202, expected to become law, would further amend this provision to allow for a ramp-up to the photovoltaic requirement starting in 2012. The Commission Order regarding this Long-Term RFP provides that it will be conducted in accordance with the preferences of the Illinois Power Agency Act. The Draft Long-Term RFP is expected to be posted on August 24, 2010 and the documents will at that point provide information regarding the way in which the preferences of the Illinois Power Agency Act will be recognized in the Long-Term RFP, including any preferences for solar.
Would a project that comes on line in the fourth quarter of 2012 be eligible to offer into this RFP 40,000 RECs in the first year and 100,000 RECs in each subsequent year of the contract?
The Draft Long-Term RFP is due to be released on August 24, 2010 and would set out the conditions for eligibility.
We also draw your attention to the Draft ISDA Master Agreement, which was posted on August 13, 2010. The Draft ISDA Master Agreement provides for a constant quantity of energy and associated RECs in every year of the contract. The Draft ISDA Master Agreement addresses potential short-falls in RECs and energy in Paragraphs 3 and 4 of Section B of the Confirmation.
Is any information available regarding the workshops scheduled in Chicago?
The workshops are currently expected to be held on August 30, August 31, as well as September 1 in Chicago. It is expected that the workshop on August 30 will be a bidder meeting on the terms of the Long-Term RFP for both the ComEd and Ameren portfolios and it is expected that the meeting would start early in the afternoon. This tentative schedule is subject to availability of a suitable venue and we expect to confirm the schedule shortly. Please stand by for an announcement early in the week of August 16.
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