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Q&A
The Procurement Administrator will endeavor to answer all submitted questions in a timely and professional manner in accord with the goals of the RFP process. Questions will be answered by the Procurement Administrator in the order they are received, except in those cases where a specific question requires additional consideration, thereby extending the response period.
#L51:
Will technology- or unit-specific hourly production profiles be used in the bid evaluation calculations?
No, the bids will be adjusted based on the Resource Energy Value Factors: 1.20 for solar PV, 0.988 for wind, and 1.0 for all other technology types. Hourly profiles will not be used in bid evaluation.
(Posted 12/6/10)
#L50:
Please clarify whether the Supplier Fee is paid only once or each year.
The Supplier Fee is only paid once; each winning bidder's supplier fee payment will be calculated by multiplying the Supplier Fee ($3.50/MWh) by the awarded annual contract quantity (up to 600,000 MWh).
(Posted 12/6/10)
#L49:
Please provide examples of how the Yes/No options work in the Percentage Commitment section of the bid form (cell G7).
This question is used to determine the final Percentage Commitment for a resources which is awarded MWh for contract preparation. Answering "Yes" indicates that the Percentage Commitment will vary based on the quantity awarded. Answering "No" indicates that the Percentage Commitment will be fixed and will not vary based on the quantity awarded.
"Yes" Example: Bidder has a resource with an annual capacity of 1,000,000 MWh, of which 500,000 MWh is bid into the procurement. The Unit Minimum is 100,000 MWh, therefore the Procurement Administrator could accept any quantity between 100,000 MWh and 500,000 MWh. If the bidder will sell a proportional percentage between 10% and 50% of the resource's daily output based on the quantity that is awarded, "Yes" should be selected, and 1,000,000 entered as the 100% Percentage Commitment level. Assuming that 350,000 MWh were awarded to this resource, the calculated Percentage Commitment would be 35% [350,000/1,000,000]. "No" Example: Bidder has a resource with an annual capacity of 300,000 MWh, of which the entire capacity is bid into the procurement. The Unit Minimum is 200,000 MWh, therefore the Procurement Administrator could accept any quantity between 200,000 MWh and 300,000 MWh. If the bidder will sell all of the resource's output to the Buyer until the contract quantity has been met, "No" should be selected and 100% entered as the fixed Percentage Commitment. Assuming that 225,000 MWh are awarded, the supplier will sell the 100% of the resource's output to Buyer until the annual quantity of 225,000 MWh is met, at which point the contract will be fulfilled for the year. (Posted 11/29/10)
#L48:
Can an unaffiliated corporate entity provide a corporate guaranty under the provisions of the Ameren PPA?
Yes, the guaranty can be provided by an unaffiliated entity, as long as that entity has been submitted through the pre-qualification process for a credit review.
(Posted 11/3/10)
#L47:
Which version of the contract should bidders submit comments to for the 10/22 deadline?
Comments should be submitted with the version of the contract that was previously indicated as the final contract for the 9/30 procurement event, which was posted on 9/9. This version is currently listed as RFP Attachment B - Long-Term Power Purchase Agreement (Revised Draft).
(Posted 10/19/10)
#L46:
If a bidder was previously pre-qualified during the initial Pre-Qualification Application submission period, is the bidder required to re-submit a new Pre-Qualification Application?
No, bidders who have previously submitted Pre-Qualification Applications do not need to re-submit unless information has changed. If a previously pre-qualified bidder chooses to submit additional resources, only new Resource Information Forms are needed.
(Posted 10/19/10)
#L45:
Will the Supplier Fee of $1.20/MWh be applied to all years of the contract?
No, the Supplier Fee will be applied only to the first year's awards. That is, the maximum total amount to be collected through the Supplier Fee will be $1.20/MWh * 600,000 MWh.
(Posted 9/24/10)
#L44:
What does the 9/22 announcement regarding the Unit Minimum cap being set at 450,000 MWh mean?
From the RFP, Section 3.6 on page 5:
"Bidders will be able to specify the minimum Percentage Commitment and Annual Contract Quantity Commitment that the Procurement Administrator can accept from each generating unit, subject to a cap on the minimum selection quantity of MWh on a per unit basis" In effect, this cap means that a bidder cannot specify a minimum selection quantity for a given Unit that is higher than 450,000 MWh; alternatively stated, a bidder cannot submit an unbreakable bid with a quantity larger than 450,000. For example, a 600,000 MWh non-divisible bid would not be accepted; a 600,000 MWh bid with a minimum selection quantity of 450,000 MWh could be submitted, in which case the Procurement Administrator could accept either zero MWh, or any quantity between 450,000 and 600,000 MWh. (Posted 9/23/10)
#L43:
What is the minimum amount for the guaranty to be posted at contract execution?
The guaranty must be signed and provided at the same time the bidder executes and returns a contract with Ameren Illinois Company. The bidder may provide a guaranty in the amount they choose, up to the unsecured credit cap, with the understanding that Ameren Illinois Company will margin for any exposures in excess of the amount of the guaranty. If the bidder believes the Ameren Illinois Company's calculations would show that AIC does not have positive exposure to the bidder, the bidder must still provide a guaranty at contract signing for an initial nominal amount that the bidder can be comfortable providing.
(Posted 9/22/10)
#L42:
Can unsecured credit be applied to REC Collateral?
No, as per Appendix K to the IPA's Procurement Plan, REC Collateral can only be provided as cash or a letter of credit.
(Posted 9/22/10)
#L41:
What Term does the credit guaranty need to be or how long will the guaranty need to be outstanding?
The guaranty is structured as a continuing guaranty, as no specific end date for validity appears within the guaranty. Note that the guarantor may terminate the guaranty at any time upon 30 days prior written notice to the guaranteed party, which termination shall be effective only upon receipt by the guaranteed party of alternative means of security or credit support, as specified in the contract and in a form reasonably acceptable to the guaranteed party.
(Posted 9/22/10)
#L40:
At what frequency will Ameren being updating and requesting credit collateral LC additions or reductions once the unsecured collateral has been accounted for and the initial credit requirement under the PPA has been established? Daily, Monthly or annually?
Ameren Illinois Company (AIC) will be performing updated calculations on a daily basis and may request collateral additions as often as daily to the extent needed. If reductions are warranted, it will be the responsibility of the supplier to identify and request appropriate reductions with respect to any collateral held by AIC. Similar to additions, the reductions may be requested as often as daily.
(Posted 9/22/10)
#L39:
Is a bidder required to submit a bid for each unit listed on the Bidder Registration Form?
No, the purpose of listing the units in the Bidder Registration Form is to confirm the contract counterparty for each unit.
(Posted 9/21/10)
#L38:
Can cash be posted in place of a letter of credit as pre-bid collateral?
(Posted 9/21/10, Revised 11/8/10)
#L37:
The Financial Settlement Point for energy will be the MISO CP Node AMIL.BGS6. Does this imply that generation from a source in PJM needs to be delivered to MISO? Or can generation in PJM simply be delivered to the nearest PJM node with the understanding that there may be a price difference between the nearest PJM node and MISO CP Node AMIL.BGS6; and the difference is the responsibility of the supplier?
The energy produced by the supplier does not need to be delivered to any particular point under of the contract. The price paid under the contract will be fixed as bid, and not adjusted for basis from the delivery node to AMIL.BGS6.
(Posted 9/21/10)
#L36:
If the bidder submit multiple bids at different prices for same unit (example: 10,000 MWh at $5/MWh and a second 10,000 MWh at $10/MWh) and is allocated only 10,000 MWh, is the bidder still obligated to build capacity for 20,000 MWh, or can capacity for only 10,000 MWh be built?
Nameplate capacity of the Committed Unit(s) is not stated in the contract. However, the Percentage Commitment that corresponds to the Annual Contract Quantity Commitment for each Committed Unit will be applied to actual generation, therefore if a bidder will only generate what is awarded, the bidder should indicate on the bid form that the Percentage Commitment is not dependent on the award quantity.
(Posted 9/21/10)
#L35:
Please clarify whether the Renewable Resource Budget announced for this procurement will be applied to the total bid prices or only the imputed REC component of the bid prices?
As stated in Appendix K to the IPA's 2010 Procurement Plan, only the REC portion of the procurement will be counted toward the RPS bill-impact cap. Therefore, the announced budget will be applied only to the imputed REC component of the bid prices.
(Posted 9/17/10)
#L34:
With regard to the following paragraph from the REC Performance Security section of the contract (can be found on page 6 of the final contract):
"As security for the performance of Party A’s obligations pursuant to this PPA, Party A hereby pledges, assigns, conveys and transfers to Party B, and hereby grants to Party B a present and continuing security interest in and to, and a general first lien upon and right of setoff against, all REC Collateral that has been or may in the future be transferred to, or received by, Party B (or a Qualified Institution acting as escrow agent), and all dividends, interest, and other proceeds from time to time received, receivable or otherwise distributed in respect of, or in exchange for, any or all of the foregoing, and Party A agrees to take such action as Party B reasonably requests in order to perfect Party B’s continuing security interest in, and lien on (and right of setoff against), such REC Collateral." Does the general first lien only apply to the REC Collateral (cash or letter of credit) when the required number of RECs are not delivered in the term specified by the contract? Isn’t this what the REC Collateral is for? Please explain. Any agreement in the US that includes cash collateral will include language that the party holding the collateral has a first lien on the cash that it holds (which is perfected by possession by the party holding the cash). That is true in the CSA with respect to margining, and also true for the REC Collateral, if it is cash. In the event of a bankruptcy, it allows the party holding the cash to liquidate the cash against the amounts it is owed.
(Posted 9/16/10)
#L33:
When are suppliers required to post collateral if products are awarded?
Counterparties will not need to provide cash or LC collateral postings at contract signing. Upon or after contract execution, the Ameren Illinois Utilities will determine for each supplier the amount of cash or LC postings needed, if any. Then, if such a collateral posting will be required from a counterparty, the Utilities will send notice to that counterparty indicating the need to post, the amount, and the date/time by which the posting needs to be received.
If, however, a counterparty is utilizing a guaranty, that guaranty will be needed at contract signing, and should be sent to the Utilitiess along with the executed original contracts following notification of award. (Posted 9/15/10)
#L32:
Please clarify the application of the announced renewable resources budget to the bid evaluation process? Is it correct to calculate that average imputed value for RECs under this procurement will be limited to approximately $15/REC?
The renewable resources budget will be applied during bid evaluation as stated in Attachment A to the RFP. It is correct that the maximum average of the REC components of the bids selected for this RFP can be calcualted by dividing the budget ($8,992,297) by the procurement quantity (600,000 MWh) to get a value of approximately $15/MWh.
(Posted 9/10/10)
#L31:
Does the $500 check for the Bid Participation Fee need to be received by the Pre-Qualification Application deadline of 12 noon CPT on Monday, September 13th?
No, the Bid Participation Fee payment can follow the Pre-Qualification Application, but the Preocurement Administrator must be able to confirm its receipt prior to Bid Day.
(Posted 9/10/10)
#L30:
If a bidder submits Resource Information for multiple units as part of the Pre-Qualification Application, will the bidder be required to submit bids for all pre-qualified units?
No. Bids can only be submitted for units that have been pre-qualified, but being pre-qualified does not require a bidder to submit a bid for each unit.
(Posted 9/9/10)
#L29:
If a bidder submits multiple bids for a given unit for different MWh quantities and one of the bid prices is higher than benchmark, are are all the bids for that unit disqualified or just the one bid over the benchmark eliminated?
Only bids over the benchmark will be eliminated from evaluation. For example, if a bidder offered 50,000 MWh from a unit at $5/MWh, 50,000 MWh at $10/MWh, and 50,000 MWh at $15/MWh, and the applicable benchmark price was $12/MWh, the 50,000 MWh at $15/MWh would be eliminated, but the 50,000 MWh at $5/MWh and the 50,000 MWh at $10/MWh would be evaluated.
(Posted 9/9/10)
#L28:
If a legal entity is bidding for different units, does it need to post different Letters of Credit for each unit?
The $100,000 pre-bid letter of credit needs to be posted by each bidder, independent of the number of units that bidder is bidding into the procurement.
(Posted 9/9/10)
#L27:
Please clarify the instructions for submitting the Bid Participation Fee.
The Bid Participation Fee of $500 should be submitted by check (made out to the Illinois Power Agency) directly to the Illinois Power Agency at the following address: Illinois Power Agency, Attn: Mark Pruitt, James R. Thompson Center, 100 West Randolph Street, Suite 3-355l Chicago, IL 60601.
(Posted 9/8/10)
#L26:
Please confirm the financial settlement point for the contract under this RFP.
The initial Financial Settlement Point shall be the MISO CP Node AMIL.BGS6.
(Posted 9/8/10)
#L25:
Please clarify the submission information for the pre-bid ILOC.
The original of the L/C should be submitted to: Tim Moloney, Managing Supervisor, Credit Risk Management, Ameren Services, 1901 Choteau Avenue, MC 960, St. Louis, MO 63103; 314-613-9139 (phone). Additionally, a copy of the L/C should be emailed or faxed to the Procurement Administrator at aiurfp@levitan.com or 617-531-2826.
(Posted 9/8/10)
#L25:
Please clarify the submission information for the pre-bid ILOC.
The original of the L/C should be submitted to: Tim Moloney, Managing Supervisor, Credit Risk Management, Ameren Services, 1901 Choteau Avenue, MC 960, St. Louis, MO 63103; 314-613-9139 (phone). Additionally, a copy of the L/C should be emailed or faxed to the Procurement Administrator at aiurfp@levitan.com or 617-531-2826.
(Posted 9/8/10)
#L24:
Can financing-contingent bids be submitted?
No, all bids will be binding as submitted.
(Posted 9/8/10)
#L23:
Which hours are committed to the Ameren Illinois Utilities under this contract?
The Percentage Commitment applies to all generation from a given unit, the supplier cannot choose the hours during which it supplies products under this contract.
(Posted 9/8/10)
#L22:
Does the forward price curve affect the price paid to suppliers?
The price paid to supplier under this contract is determined by the contract price alone, the forward price curve is used for renewable resource budget calculations.
(Posted 9/8/10)
#L21:
If a unit has a Percentage Commitment of 100% under a contract resulting from this RFP, but generates more than the Annual Contract Quantity Commitment, what happens to the additional products?
Assuming a year with no short-falls or carry-overs if a unit generates more than the Annual Contract Quantity Commitment, the supplier retains the full benefir and value of all energy and RECs produced by the unit until the start of the next Delivery Year on the subsequent June 1st.
(Posted 9/8/10)
#L20:
Will the Resource Energy Value Factors be applied / calculated by renewable resource type or by unit?
The Resource Energy Value Factors will be applied by renewable resource type. The Factors have been set at 0.98 for wind resources, 1.20 for solar photovoltaic resources, and 1.00 for all other qualified renewable energy resources.
(Posted 9/8/10)
#L19:
Can more than one offer be submitted for the same unit?
As stated in Section 3.7 of the RFP, each MWh bid can be offered at a different price. For example, a bidder could offer 50,000 MWh from a unit at $5/MWh, 50,000 MWh at $10/MWh, and 50,000 MWh at $15/MWh; the bids would be ranked by price, and if 100,000 MWh were selected, the weighted average award price for that unit would be $7.50/MWh.
(Posted 9/8/10)
#L18:
Can the same unit be bid into both the Ameren Illinois Utilities and ComEd procurements?
The same products cannot be bid into both procurements, but percentages of the same project can be bid into each procurement, as long as the percentages sum to less than 100%. For example, a wind farm could be bid 60% to the Ameren Illinois Utilities and 40% to ComEd, but not 60% to Ameren and 60% to ComEd.
(Posted 9/8/10)
#L17:
Is there any option for a contract start date other than June 1, 2012?
No, all contracts signed as a result of this RFP will have the same term, from June 1, 2012, through May 31, 2032.
(Posted 9/8/10)
#L16:
What is the purpose of Exhibit 1, Annex A (Attestation)? When does it need to be executed? Bullet 2 in Annex A makes reference to the "Trade Date," what is the Trade Date? Does the unit have to be operational at the time of contract execution? If a Bidder has a renewable unit which will come online sometime prior to the beginning of the delivery term can we still bid the unit into this Long term RFP without violating any of the Attestations? What to the Start and End Dates in the Attestation represent?
Annex A is an attestation form from the Seller of the RECs to the Buyer, that the RECs meet what is stated in the attestation. It needs to be executed as RECs are being retired and delivered with each invoice. It is acceptable for the Trade Date to be prior to the beginninf of the delivery term. The unit does not have to be operational at the time of contract execution. Units that will come online prior to the beginning of the delivery term can bid into the RFP without violating any of the Attestations. The Start and End Dates in the attestation would be for the period when the RECS were generated.
(Posted 8/27/10)
#L15:
If a Generation Unit/Renewable Resource is currently up for re-licensing in the near future, will this unit be able to participate in the RFP as a resource?
Yes, but the risk is on the bidder for the Generation Unit/Renewable Resource to be licensed and operational during the term of the agreement.
(Posted 8/27/10)
#L14:
Are the Ameren Illinois Utilities open to non-conforming bids, such as for terms other than 20 years?
No, non-conforming bids will not be accepted. All PPAs must be for 20-year terms.
(Posted 8/27/10)
#L13:
Can a bidder post cash in lieu of an LC for the Pre-Bid LC requirement where the same terms of the LC would apply?
Section 5.7.1, Pre-Bid Letter of Credit, of the RFP requires pre-qualified bidders to provide a pre-bid irrevocable letter of credit (ILOC) in the amount of $100,000. The RFP also specifies the form, date, and validity period for the ILOC.
AIU has not established a procedure or rules for accepting cash or other collateral in place of the pre-bid ILOC. The Procurement Administrator does not consider the ILOC requirement unduly burdensome for bidders. Therefore cash or other collateral cannot be provided as a substitute for the pre-bid ILOC.
(Posted 8/26/10)
#L12:
Are separate $500 Bid Participation Fees needed to participate in the Ameren Illinois Utilities and ComEd 2010 long-term renewable resources RFPs?
No, a single $500 Bid Participation Fee covers participation in the RFPs for both utilities.
(Posted 8/26/10)
#L11:
Is a separate $500 Bid Participation Fee required for each unit a bidder wishes to bid?
No, the $500 Bid Participation Fee is per bidder, not per unit.
(Posted 8/26/10)
#L10:
Can components of the Pre-Qualification Application, such as financial reports, be submitted in advance?
Yes, there is no requirement that all materials be submitted simultaneously, as long as the Bidder identity is clear for all submissions.
(Posted 8/26/10)
#L9:
Is the submission of a Resource Information Form in the pre-qualification phase binding? That is, if a Information Form is submitted, is the Bidder required to submit a bid for that resource?
No. Resource Information Forms must be submitted for all units that bids are submitted for, but submitting a Resource Information Form does not require the Bidder to submit a bid for that, or any other, resource.
(Posted 8/26/10)
#L8:
Is there a day set aside for discussion of the credit requirements in the workshop?
Credit requirements will be discussed during both the Monday and Tuesday workshops, with regard to the RFP and the PPA, respectively.
(Posted 8/25/10)
#L7:
If a potential bidder has existing ISDAs in place with all of the Ameren Utilities, does the bidder have to enter into a separate ISDA for this RFP, or just a confirm that covers the particulars of the transaction?
The structure of the Long-Term PPA is a long form confirmation; meaning that all transactions between a bidder and a utility will be placed into Table 1 and will be governed by this single document. The long form confirmation incorporates the 1992 ISDA Master Agreement and 1994 ISDA Credit Support Annex. This structure is different from a master agreement with different confirmations underneath it, but functionally works in the same way by having all transactions and legal documents act as a single agreement; the long form confirmation, though, is one document with only one signature block.
Bidders who are awarded long-term PPAs through the 2010 procurement process must execute independent PPAs in the form of the final Attachment A to the RFP to cover the awards. The Transaction shall be subject to and governed by all the terms and conditions from the ISDA Master Agreement and Credit Support Annex that are included as Attachments 1 and 2 to the confirmation letter. (Posted 8/25/10)
#L6:
The IPA has scheduled workshops on 8/26 in Chicago and 8/31 in Springfield, are these workshops related to the Long-Term Renewable Resources RFP?
No, these IPA-hosted workshops will discuss the draft procurement plan for the period starting in June 2011.
(Posted 8/25/10)
#L5:
Due to the fact that Ameren and ComEd are both asking for binding proposals, can we respond to both? How do we do this?
As stated in Section 5.3.6 of the RFP, evaluation of Ameren Illinois Utilities and ComEd bids will proceed independently, therefore Bidders cannot bid to commit the same products from the same units into both procurements. Bidders may, however, participate in both procurements by bidding products from separate units to each.
(Posted 8/25/10)
#L4:
If Bidder intends to issue an LC to cover collateral exposure, what information would you like for Bidder to provide regarding Guarantor (assuming LC provide is to be determined, but will be an A rated, or better, financial institution?
Pages 7 (Guarantor Information) and 8 (Guarantor Financial Information) of the Pre-Qualification Application (Bidder Information) state the information to be provided about a Bidder's Guarantor.
(Posted 8/25/10)
#L3:
For project companies that do not have publicly rated debt, what type of financial information are you seeking?
As stated in Section 5.3.2 of the RFP, if a Bidder (or its Guarantor, as applicable) is unrated or cannot provide financial statements as requested, that Bidder will not be awarded any unsecured credit.
(Posted 8/25/10)
#L2:
What is the solar volume being procured?
The solar target will be announced on the website and in an addendum to the RFP prior to the deadline for submitting bidder registration materials.
(Posted 8/25/10)
#L1:
Are demand-side management solutions, including demand response and energy efficiency, eligible solutions?
The Long-Term Power Purchase Agreement in this procurement requires the generation and delivery of renewable energy and RECs, therefore demand-side solutions are not eligible.
(Posted 8/18/10)
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