The Illinois Power Agency seeks to procure 100% of the Ameren Illinois Utilities' monthly capacity requirements for 2009/10, 50% of 2010/11 and 33% of 2011/12. Each "Capacity Amount" represents the quantity in MW of UCAP.
Request for Proposals
RFP Attachment A - Confirmation Agreement (Final)
MSWord version is available to bidders after logging inRFP Attachment B - Form of Pre-Bid Letter of Credit (Final)
MSWord version is available to bidders after logging inBidder Pre-Qualification Application
The Pre-Qualification Application requires a signature from an Authorizing Officer. Electronic and faxed signatures will be accepted. The application can be submitted via email to firstname.lastname@example.org, via fax to 617-531-2826, or via courier to Levitan & Associates, Inc., Attn: Sara Pierce, 100 Summer St. Ste. 3200, Boston, MA 02110.
Additional documents can be found on the Procurement Information page.
Submit a Question
Are the results of the Capacity RFP available?
Yes, the results have been posted to the ICC website.
Please provide submission instructions for the bidder registration materials.
Submission instructions are posted on the Bidder Registration page.
Are the values in the table on the Capacity RFP page the actual values being requested, or does the percentages quoted above the table need to be applied to those table numbers?
The numbers in the table are the actual values that will be procured, the percentages have already been applied. See also page 3 of the Capacity RFP.
Can a party other than the bidder or guarantor post the Pre-Bid Letter of Credit on behalf of a bidder?
Yes. Another party may post the pre-bid ILOC for a bidder's offer as long as that party uses the final Form of Pre-Bid ILOC provided as Attachment B, which will be posted on or before Wednesday, April 8th.
If a bidder has an existing EEI or other contractual agreement already in place with the Ameren Illinois Utilities, is it still necessary to post a Pre-Bid Letter of Credit?
Yes. All bidders must post a Pre-Bid Letter of Credit using the final Form, which will be posted on or before Wednesday, April 8th.
Will there only be one acceptable letter of credit for execution next week or will the acceptable changes be published for use? If possible can an answer to the changes be provided before April 8th in order to execute the Letter of credit with the bank? Lastly, will you accept a fax of the pre-bid letter of credit by April 10th with the hard copy to follow in the mail?
All bidders will be required to use the final Form of Pre-Bid Letter of Credit as posted on or before April 8th, without additional modifications. We are aware of the tight timeline to turn around the Letter of Credit, and best efforts will be made to issue the final document as early as possible, but we cannot guarantee anything earlier than April 8th. Fax submissions will be accepted on April 10th in order to meet the deadline.
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 5.6, Bidder Registration, of the Capacity 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.
This requirement is consistent with the 2008 AIU Capacity RFP that was successful last year. 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.
What impact would FERC approval of MISO proposal for pro rata involuntary load shedding under emergencies in Docket No. ER09-660-000 have on Ameren’s requirement for a daily resource adequacy requirement?
It is possible that a FERC ruling on MISO’s proposal for pro rata load shedding may remove the daily resource adequacy requirement from MISO planning requirements. However, SERC/NERC operating standards may still require the daily resource adequacy requirement. Any ruling by FERC on this issue will be reviewed at that time for the impact on the daily resource adequacy requirement.
Beyond being designated as a MISO network resource and complying with MISO requirements, what other requirements must be met by a Capacity Seller in order for Buyer to be able to “utilize the Capacity Source as Daily Capacity to meet the Buyer’s LBA daily resource requirement”?
The Contract Quantity must be offered into the MISO Day-Ahead Energy Market in a manner that complies with the offer requirements of a Planning Resource under Section 69 of the TEMT. The Capacity Source or any replacement Capacity will be deemed to be “Available” to Buyer on any given day if it is not experiencing an Outage at the time the Ameren Illinois System Peak occurred on that day.
If the Capacity Source is unavailable because of a planned or force outage, the Seller shall provide an Outage Notice to Buyer’s LBA, and provide notice to Buyer if seller intends to provide replacement Capacity and the specifics of the replacement Capacity during such Outage. The Minimum Monthly Availability requirements in the Confirmation Agreement determine how the monthly Capacity Payment is adjusted based on Daily Availability during the month.
Our understanding is that any local requirements from SERC or the Local Balancing Authority would be included in MISO’s OATT, and ultimately reflected in MISO’s operating requirements. Therefore, wouldn’t a Capacity Supplier meet this part of the definition by the mere fact of being designated as a MISO network resource? If not, please explain.
No. MISO’s requirements for Capacity address the need for capacity from a planning perspective. The local requirements for Capacity from SERC or the LBA address daily operating issues which is different than planning requirements.
The Product Description on page 1 of the Confirmation Agreement (and in section 3.1 of the RFP) indicates as part of the definition for Capacity the right of the Buyer “to utilize the Capacity Source as Daily Capacity to meet the Buyer’s Local Balancing Authority (“LBA”) daily resource adequacy requirement.” Does this requirement imply in any way that a Capacity Supplier must be located within the Ameren territory?
No. The Capacity Supplier must be able to deliver capacity to the Ameren Illinois Utilities load zone.
Is it possible to get get feedback on specific contract comments prior to the posting of the final contracts?
No. All comments will be reviewed following the April 3rd submission deadline, and final contracts will be made available to all bidders and other interested parties on or before April 8th.
There are two Letter of Credit documents, Attachment B to the RFP (Form of Pre-Bid Letter of Credit) and Exhibit E to Attachment A of the RFP (Form of Letter of Credit). Which is the LOC document bidders should use and provide comments on by April 3rd?
The two Forms of Letter of Credit are for two different purposes. The Form of Pre-Bid Letter of Credit (RFP Attachment B) is to be used for the Letter of Credit that must be in place prior to bid submission, the purposes of which is to ensure that winning bidders sign contracts with the Ameren Illinois Utilities. The Form of Letter of Credit that is Exhibit E to the Confirmation Agreement (RFP Attachment A) will be used as Performance Assurance (as needed) following the signing of the Confirmation Agreement. Bidders are invited to submit comments to both documents (RFP Attachments A and B) prior to 5:00 pm CPT on Friday, April 3rd.
Can final binding bids be submitted prior to April 13th?
Final bids will only be accepted from 7:00 am CPT to 12:00 noon CPT on April 13th. The bid submission form (an Excel document) will, however, be available earlier and can be prepared in advance if so desired and then submitted on the Bid Date. The submission process will consist of uploading the saved Excel file to the secure procurement website.
When will the bidder registration and bid submission materials be available?
Bidder registration materials (including the final Form of Pre-Bid Irrevocable Letter of Credit and the Bidder Registration Form) will be provided to pre-qualified bidders on or before April 8th. Bid submission materials will be available to pre-qualified bidders prior to the Bidder Practice Session on April 9th.
What is the likelihood that the Confirmation Agreement will be revised to include bilateral performance assurance/collateral thresholds for both parties?
All bidders have the opportunity to submit comments to the Confirmation Agreement and Pre-Bid Letter of Credit. These comments will be reviewed and considered for inclusion in the final documents, which will be posted on April 8th.
Does each month require a price and will each month be evaluated separately? May we submit one price for June 2009 - May 2010 only to be procured for that term as a whole, but not each month separately?
Bids for each month will be evaluated independently. A price will be required for each 10-MW block bid, although more than one block can be bid at a given price. As stated in section 3.2 of the Capacity RFP: "Bidders may not offer bids with contingencies, such that acceptance of one bid is conditioned upon the acceptance or rejection of another bid." This holds true for bids within the same month and bids between different months.
Do bidders need to have an EEI in place?
The Confirmation Agreement is based on the EEI, therefore bidders do not need to have one previously in place, only the Confirmation Agreement will be needed.
Is the Confirmation Agreement negotiable? Do bidders need to have an EEI in place?
Bidders may submit proposed changes to the Confirmation Agreement in redlined form. All comments will be reviewed before finalizing the Confirmation Agreement (the final document will be available on April 8th). All winning bidders will use the same Confirmation and Pre-Bid Letter of Credit, therefore no negotiation will take place outside of the comment period.
In section 5.3.3 of the RFP it says that the bidder needs to certify that they are not part of a bidding agreement with another bidder. How should this certification be made?
This certification will be made as part of the Bidder Registration package, it does not need to be included with the Pre-Qualification Application. Language in a form that bidders will need to sign and return.
Section 5.3.2 of the RFP requests the latest 10-K and the latest 10-Q. Do you need the latest 10-Q if it is prior to the latest 10-K?
Yes, as stated in the RFP, please submit links to the latest 10-Q, latest 10-K, and any 8-Ks filed since the last 10-K or 10-Q, whichever is most recent. Paper copies of these documents do not need to be submitted if the documents are available electronically.
Other questions can be found on the All Q&A page.
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