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Energy RFP Products Overview The wholesale energy products to be procured include financial swap products for the following total contract quantities and terms:
The wholesale energy products are financially settled fixed for floating electricity swaps that will be settled monthly, with the floating price to be settled at the average MISO Real-Time LMP for the Ameren Illinois Utilities Load Zone. The parties will financially settle the difference between the agreed fixed price and the floating price. Documents Bidder Information Session Presentation - February 28th Request for Proposals RFP Attachment A - ISDA Confirmation Letter - Final Comments to the ISDA Confirmation Letter are closed. An MSWord version of the final contract is available to Pre-Qualified Bidders after logging in. RFP Attachment B - Form of Pre-Bid Letter of Credit - Final Comments to the Form of Pre-Bid Letter of Credit are closed. An MSWord version of the final contract is available to Pre-Qualified Bidders after logging in. Notice of Intent to Bid
Additional documents can be found on the Procurement
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Q&A #E18: Are the results of the Energy RFP available? Yes, general information about the Energy RFP results was released by the ICC and can be downloaded here. (Posted 3/26/08) #E17: In regards to the Letter of Credit, why aren't the more recent regulations of UPC 600 and the 2007 regulations (rather than 1998) used? UCP 600 (and its predecessor UCP 500) are both used primarily for documentary credits (i.e. used for payment obligations for cross-border, trans-ocean type transactions), whereas ISP98 was specially created for standby letters of credit (i.e. letters of credit posted as security in the event a "drawing event" occurs). So, since our letter of credit is a standby letter of credit, it seems to make much more sense to use the ISP98. (Posted 3/13/08) #E16: Friday the 21st is Good Friday and Financial Markets will be closed. Will this have any effect on the energy procurement schedule? Due to the Good Friday holiday, Levitan & Associates, Inc., anticipates but cannot guarantee that the date for notification of the winning bidders will be Thursday March 20, 2008 by 2 pm EDT. While required by the Illinois Public Utilities Act to provide confidential reports to the Illinois Commerce Commission within two business days (such reports to contain the results of bidding and recommendations for acceptance or rejection), both Levitan & Associates, Inc. and the Procurement Monitor (Boston Pacific Company, Inc.) are committing to provide these reports on Tuesday, March 18, 2008 (i.e., within only one business day). According to the Illinois Public Utilities Act, "The Commission shall review the confidential reports submitted by the procurement administrator and procurement monitor, and shall accept or reject the recommendations of the procurement administrator within 2 business days after receipt of the reports." Thus, if such reports are received on Tuesday, March 18, the Commission would be statutorily bound to issue its decision by Thursday, March 20. Levitan & Associates, Inc. notes that the Commission has scheduled Special Open Meetings for Wednesday, March 19, at 1:30 PM, Thursday, March 20, at 10:00 AM, and Friday, March 21, at 10:30 AM. (Posted 3/13/08) #E15: Please confirm that the Peak Definition in this RFP is consistent with the Midwest ISO OATT which states the peak hours are HE 0700 to HE 2200 EST. According to NYMEX, the power markets trade MISO electricity using the market convention of eastern prevailing time that is used to define peak and off-peak time blocks for all other eastern markets, a convention that is also used for the futures contracts. For the futures contracts, peak hours are from the hour ending (HE) 0800 to HE 2300, eastern prevailing time. Peak days are Mondays through Fridays, excluding North American Electric Reliability Council (NERC) holidays. Please refer to the following link for a further explanation: http://www.nymex.com/misohrs.aspx. (Posted 3/11/08) #E14: Is there a maximum number of blocks that a bidder can win, i.e., is there a load cap? Bidders may bid for any or all Products in 25-MW blocks up to the full quantity to be procured for each Product. (Posted 3/11/08) #E13: Can the Procurement Administrator notify bidders that they are part of the recommended winning group on March 19th, the same day that the report is submitted to the ICC? This would provide bidders the option of hedging in advance of final ICC approval or rejection on March 21st, and could reduce the volatility premium in the bids. Please see #E15 for additional information on this question. While we understand the advantage of being notified on the day we submit the report to the ICC, winning bidders will not be notified until March 21st. (Posted 3/11/08) #E12: When exactly will the winning bidders receieve a preliminary notification of selection for the Energy RFP? Please see #E15 for additional information on this question. Winning bidders for the energy procurement will be notified by the end of the business day on Friday, March 21st. At this point we cannot identify a precise time by which the winning bidders will be notified on that day. (Posted 3/11/08) #E11: When looking at the historical data for the CP Nodes AMIL.BGS3, AMIL.BGS6 and AMIL.BGS9, the data goes back to March 2007. Was there an equivalent node for these points prior to March 2007? For historical analysis, CP Nodes AMIL.AIU1, AMIL.AIU2,...,AMil.AIU8 provide the best historical representation. However, these data will not be a perfect match given then MISO model changes that were completed in December 2007 and that will be implemented starting June 1, 2008. (Posted 3/3/08) #E10: Can you confirm that emailed comments on the ISDA Agreement and associated confirmations will be accepted up until 5:00 pm on February 29th? Yes. Emailed comments on documents pertaining to the Energy RFP will be accepted up until 5:00 CPT on February 29th. (Posted 2/28/08) #E9: The Confirmation Letter states on page 6 that the Payment Due Date is 10 Business Days following receipt of the notice of settlement requirements. Which party is responsible for issuing the notice of settlement requirements? When and how does the MISO provide final approval of RT expost LMPs for a given settlement month? The Calculation Agent is the party that is providing the invoices/notices of settlement (and here we name the Calculation Agent as Party A). The Calculation Agent is defined in the 2005 ISDA Commodity Definitions, Section 4.5. MISO LMPs are final five business days after the operating day. Therefore, final LMPs for each settlement month will be available five business days after the last day of the month. (Posted 2/28/08) #E8: The Energy RFP, page 4, indicates that the floating price will be at the Ameren Illinois Utilities Load Zone, which implies a single settlement node. However, the confirmations indicate different settlement indices for each of the three utilities. Will there be different settlement points and different settlement prices for each utility? MISO model changes starting June 1, 2008 will result in AMIL.BGS3, AMIL.BGS6 and AMIL.BGS9 being slices of the AIU system with the same LMPs. (Posted 2/28/08) #E7: The schedule as stated in the Energy RFP indicates that the turn-around time from receiving notification of pre-qualification and the final Form of Pre-Bid Letter of Credit to Bidder Registration and submission of the Pre-Bid Letter of Credit is only from Friday to Monday. Is it possible to extend this period in order to allow for additional bank interaction time? The Bidder Registration period has been extended to cover the period from March 10th to March 14th to allow for additional time to acquire a Pre-Bid Letter of Credit. (Posted 2/27/08) #E6: If a participant submits an offer for 100 MW for a combination product, can the offer consist of individual prices for each month of the combination product? For example: can an offer for the annual ATC product be comprised of 12 individual prices? If the answer is no, does that mean that the competition for each product is exclusive of the competition for every other product? Energy bids will be for each of the six products, i.e., 25 MW blocks for the annual 7x24, Jan/Feb 5x16, June 5x16, September 5x16, July/Aug 5x16, and 4th Qtr 5x16. No other combinations nor individual months bids are permitted. The bids for each product will be evaluated independently. (Posted 2/27/08) #E5: With respect to delivery point, is the RTLMP at each of the three nodes (BGS3, BGS6, and BGS9) the same in each hour? Yes, the RTLMP at each of the three Nodes will be the same in each hour starting June 1st. (Posted 2/27/08) #E4: Can portions of bids be accepted or are all bids treated as "All or None"? For example, if someone were to bid in 100 MW of energy at a given price, it is possible that 25 MW or 50 MW may be accepted? Bids for Energy will be submitted in blocks of 25 MW. Therefore, if 100 MW are offered at a given price, 25, 50, 75 or 100 MW could be accepted. (Posted 2/27/08) #E3: If a bidder already has a negotiated ISDA master agreement in place with the three Ameren Illinois Utilities, will an ISDA long form confirmation letter be required, or will a one-page confirmation letter be adequate? The ISDA long form confirmation letter will be required. (Posted 2/27/08) #E2: The schedule shows that energy bids are due on 3/17 and then the winning bidder will be notified on 3/21, four business days later. Is it expected that market volatility be priced into the 3/17 offer or is there a chance to recalibrate to the current market on 3/21? Binding bids are due on 3/17, there will not be a chance to recalibrate the bid following notification on 3/21. Therefore, the bidder should expect to price the market volatility into the 3/17 bid. (Posted 2/21/08) #E1: Can you confirm that the MISO CP Node that we will settle against is AMIL.AIU7? The energy swaps will be settled at the following CP Nodes: CILCO, AMIL.BGS3; CIPS, AMIL.BGS6; IP, AMIL.BGS9. In the current market, these nodes are configured as slices of the individual utility load zone LMPs. However, as of June 1, 2008, MISO model changes that were announced in December 2007 will result in each of these nodes reflecting AIU system LMPs. Currently the CP Nodes AMIL.AIU1, AMIL.AIU2 through AMIL.AIU8 are configured to reflect the AIU system LMPs. (Posted 2/15/08) Other questions can be found on the All Q&A page.
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