Category: REC Contract

Group B Large DG Block 2 Closing

The Illinois Power Agency (“IPA”) and Program Administrator announce that Block 2 for the Group B, Large Distributed Generation (“DG”) project category (i.e. DG projects from 10 kW-2MW) is closing. Block 2 will remain open for the next 14 days per the Long-Term Renewable Resources Procurement Plan’s “soft closing” concept which states that blocks will be “held open until the later of (i) 45 calendar days after opening, or (ii) when the block is filled (in which case the block would be held open for an additional 14 additional calendar days after it is filled).”

Block 2 will close Friday, April 5, 2019 at 5:00 PM Central Prevailing Time. Assuming available capacity, projects in batches submitted during this 14-day window will receive Block 2 pricing if the project application is approved by the Program Administrator, with approval subject to the availability of capacity within this category (capped by the combined capacity of Blocks 2 and 3) plus any discretionary capacity allocated to Group B, Large DG that is announced. Once the 14-day window has concluded, Block 2 will be considered closed and Block 3 will open, to the extent that any Block 3 capacity remains available. Once the combined capacity of Blocks 1-3 has been reached, batches will be considered on a first come/first served basis, and will be deemed eligible for any Block 4 discretionary capacity allocated to the Group B, Large DG category on that basis should the Agency allocate discretionary capacity to Group B, Large DG.

Consistent with the process described in the paragraph A.2 of the Program Guidebook, all Group B, Large DG projects that applied to the Adjustable Block Program in the first 14 days after Program opening (January 30, 2019) will receive Block 1 pricing if the project application is approved. Because the capacity of project applications received during those 14 days (approximately 97 MW) was at least 100% and under 200% of Block 1 capacity, Block 2 in the Group B, Large DG category opened automatically after the first 14 days.

The IPA expects to announce its allocation of discretionary capacity next week, which will provide additional Program capacity at Block 4 pricing.

As a reminder, Group A, Large DG, and both Group A and Group B, Community Solar categories will be subject to the lottery procedures, with each of those three lotteries scheduled for April 10, 2019. Groups A and B, Small DG remain open in Block 1.

Final REC Delivery Contract Posted

The Illinois Power Agency, through its Procurement Administrator and Adjustable Block Program (“ABP”) Administrator and in consultation with the Ameren Illinois Company, Commonwealth Edison Company, MidAmerican Energy Company, and the Staff of the Illinois Commerce Commission (as required by the Long-Term Renewable Resources Procurement Plan or “Plan”), has now published its Final REC Delivery Contract, which will serve as the standard contract form for the delivery of RECs under the ABP. More information for stakeholders about changes in this final contract compared to the Second Draft REC Contract dated January 11, 2019 can be found in the Final REC Contract Announcement linked below.

The Agency has set the following schedule for the opening of the Adjustable Block Program to project applications:

• Wednesday, January 30, 2019: Adjustable Block Program will open for project applications at 9:00 AM CST
• Wednesday, February 13, 2019, 12:00 PM CST: Deadline for project applications/batches to be submitted in order to qualify for any required lottery in a Group/category combination

 

 

 

PUBLISHED FOR COMMENT: Second Draft of the Adjustable Block Program REC Delivery Contract

The Illinois Power Agency, through its Procurement Administrator and Adjustable Block Program (“ABP”) Administrator and in consultation with the Ameren Illinois Company, Commonwealth Edison Company, MidAmerican Energy Company, and the Staff of the Illinois Commerce Commission (as required by the Long-Term Renewable Resources Procurement Plan or “Plan”), has developed a second draft of its ABP REC Delivery Contract (“Second Draft Contract”), which takes into account comments received from stakeholders on the first draft of the ABP REC Contract previously published on December 7, 2018 (“First Draft Contract”).

Comments on this Second Draft Contract are due by 5:00 PM CPT on January 18, 2019 to comments@illinoisabp.com. Once finalized, this contract will serve as the standard contract form for the delivery of RECs under the ABP.   More information for stakeholders about changes in this draft and next steps in the contract development process can be found in the Second Draft Contract Announcement linked below.

Second Draft Contract Announcement (11 January 2019)

Second Draft REC Contract (11 January 2019)

Redline (reflects the differences between the First Draft Contract posted on 7 December 2018 and the Second Draft Contract posted on 11 January 2019)

Update on Program Opening Date and REC Contract Development Process

The opening of the Adjustable Block Program for project applications will be postponed from January 15, 2019 to January 30, 2019. This postponement is to allow for additional time to refine the standard REC contract between Approved Vendors and the utilities.

 

A draft REC contract for the Program was released on December 7, 2018. Following two rounds of comments from stakeholders on that draft REC contract, as well as a webinar conducted on December 28, 2018, the Illinois Power Agency has now determined that the Program will benefit from the publication of a second draft REC contract followed by a stakeholder comment period focused on the revisions between the two drafts, prior to issuing a final version of the REC contract.  Several issues raised by stakeholders in comments, and during the webinar, on the first draft of the contract required careful deliberation by the Agency, the Program Administrator, the three involved electric utilities, and the Staff of the Illinois Commerce Commission, in order to calibrate the interests of the contractual parties and the requirements of the Program as directed by the Illinois General Assembly through the enactment of Public Act 99-0906, and the Illinois Commerce Commission through the approval of the Long-Term Renewable Resources Procurement Plan.  The Agency has considered the benefits and drawbacks of a minor delay and believes that an additional round of comments will ensure that any unintended consequences of new provisions and wordings in the second draft contract are identified and addressed prior to finalizing the contract.

 

As a result of this modification to the contract development process, the Agency is postponing the opening of the Program to project applications for a short period of time – to January 30, 2019.  The Agency appreciates that stakeholders have anticipated and planned for the projected January 15, 2019 application opening date since the Agency announced it in August of 2018.  However, it is crucial that the provisions of the REC delivery contract, which will govern 15-year relationships between Approved Vendors and utilities, accommodate the legitimate needs of the solar industry.  Additionally, the majority of stakeholder comment has favored a short extension of the Program’s application opening date to allow for further stakeholder feedback.  The short delay in the project application opening date will also allow solar developers additional time to consider the distributed generation installation contract requirements (which are currently under development and will be finalized during January) and to prepare and complete disclosure forms.

 

The Agency through the Program Administrator (in consultation with the utilities and the Staff of the Illinois Commerce Commission) is setting the following schedule for the remainder of the REC contract development process and the opening of the Adjustable Block Program to project applications:

 

  • Friday, January 11, 2019: Second Draft REC Contract will be released
  • Friday, January 18, 2019: Stakeholder comments on Second Draft REC Contract due
  • Monday, January 28, 2019: Final REC Contract will be released
  • Wednesday, January 30, 2019: Adjustable Block Program will open for project applications
  • Wednesday, February 13, 2019: Deadline for project applications/batches to be submitted in order to qualify for any required lottery in a Group/category combination

 

In response to stakeholder comment provided on December 19, 2018 and December 31, 2018, the Second Draft REC Contract to be released on January 11 will address the following key areas of concern; among others, these include:

 

  • Allowing for assignment at the Product Order or Transaction (i.e. batch) level; facilitating limited assignment of the REC contract to financing parties that are not Approved Vendors; limiting Buyer’s rights to deny assignment
  • Allowing for systems already energized at the time of contract execution to avoid posting 5% collateral and instead immediately exercise the option to have 5% of contract value held back as collateral
  • Clarifying calculation of the three-year rolling average for evaluating REC delivery performance
  • Adding additional flexibility on final system size compared to proposed system size
  • Clarifications regarding community solar projects: process for subscription reporting, flexibility on meeting full subscription levels, and ownership of RECs from unsubscribed shares of project
  • Additional corrections and editorial clarifications

 

The Second Draft REC Contract will reflect the consensus of the IPA, Program Administrator, Procurement Administrator, utilities, and ICC Staff in considering proposals contained in stakeholder comments. To the extent that any such proposals are not included in the Second Draft REC Contract, it should be understood that those comments were carefully considered, but not adopted.

Recording of REC Contract Webinar Available

The recording of the REC Contract Webinar which was held on December 28, 2018 is now available. You can also download the presentation used during the webinar.

The IPA and its Program Administrator will be accepting a second round of comments on the contract; any such comments must be submitted by 5:00 PM Central Time on December 31, 2018. Comments should be sent to comments@illinoisabp.com.

The draft contract published for stakeholder comments on December 7, 2018 and comments received on the contract are available here.

Adjustable Block Program Contract Stakeholder Webinar Friday, December 28, 2018 11:00 AM – 12:30 PM Central Time

Adjustable Block Program Contract
Stakeholder Webinar
Friday, December 28, 2018
11:00 AM – 12:30 PM Central Time

The purpose of this Webinar is to:

(1) Provide an overview and walkthrough of the Adjustable Block Program contract structure.
(2) Offer updates on the contract development process based on stakeholder comments on the draft contract.
(3) Answer written questions and offer clarifications about the draft contract document.

If you have questions for the Webinar that you would like to submit in advance, please email them to comments@illinoisabp.com by 5:00 PM Central Time on Thursday, December 27, 2018.

The IPA and its Program Administrator will also be accepting a second round of comments on the contract; any such comments must be submitted by 5:00 PM Central Time on December 31, 2018. Comments should be sent to comments@illinoisabp.com.

The draft contract published for stakeholder comments on December 7, 2018 and comments received on the contract are available here.

Participants can join the webinar at the following link:
https://zoom.us/j/732964800

Audio can be accessed through the webinar software or at
+1 646 558 8656 US
+1 720 707 2699 US
Meeting ID: 732 964 800

To automatically add this link to your calendar you can click:
Google Calendar – https://zoom.us/meeting/732964800/calendar/google/add
Outlook Calendar – https://zoom.us/meeting/732964800/ics

The Webinar will be recorded and posted to the Adjustable Block Program website.

Invitation to Comment on the Contract Form

On December 7, 2018, the Program Administrator posted to the www.illinoisabp.com website a draft of the Adjustable Block Program REC Contract (the “DRAFT REC Contract”). The DRAFT REC Contract is proposed to be the standard contract form for the Adjustable Block Program between each Approved Vendor and Ameren Illinois Company (“AIC”), Commonwealth Edison Company (“ComEd”) or MidAmerican Energy Company (“MEC”). Except as otherwise expressly set forth in the Draft REC Contract, the Draft REC Contract is governed by all the terms and conditions of the form of the agreement entitled “Master Renewable Energy Certificate Purchase and Sale Agreement,” which is attached thereto.

The Program Administrator invites interested parties to submit their comments on the DRAFT REC Contract. All comments received in accordance with the process outlined below will be reviewed by representatives from the IPA, the Program Administrator, AIC, ComEd, MEC, Staff of the ICC and NERA Economic Consulting. The timeline and process for interested parties to provide comments is as follows:

  • Please submit your comments on the DRAFT REC Contract by email to the Program Administrator at: comments@illinoisabp.com
  • Please provide telephone and email contact information in the event that the Program Administrator seeks clarification regarding your comments.
  • Each of your comments must be clearly indicated with tracked changes in Microsoft Word. We strongly encourage you to provide explanatory notes either in a separate document or highlighted in tracked changes.

The deadline to provide comments is 12 PM (Noon) Central Prevailing Time (“CPT”) on Wednesday, December 19, 2018.

Written comments submitted to the Program Administrator according to the process above and submitted prior to the deadline will be posted to the illinoisabp.com website and made publicly available. The Program Administrator will redact the name of the submitter but will not attempt to redact any information that may otherwise identify the submitter.

Please direct all questions to the Program Administrator at: admin@illinoisabp.com

 

Explanatory Notes

To facilitate the review of the Draft REC Contract by interested parties, we provide the following notes:

(a) The REC Contract contains eight exhibits as follows:

• Exhibit A – Form of Product Order
• Exhibit B – Bi-Annual System Status Form
• Exhibit C – Community Solar Quarterly Report
• Exhibit D – REC Annual Report
• Exhibit E – Form of Letters of Credit
• Exhibit F – Delivery Schedule Example
• Exhibit G – Surplus RECs and Drawdown Payments Example
• Exhibit H – Master REC Purchase and Sale Agreement (“Master REC Agreement”)

(b) The REC Contract constitutes the “Cover Sheet,” and modifies the terms of the Master REC Agreement (Exhibit H). The exhibits and the guidance notes appended to the end of the Master REC Agreement shall not apply; and the only exhibits that are applicable are those indicated in (a) above.

(c) Capitalized terms used in the REC Contract are provided in pages 11-18 of the Cover Sheet. Capitalized terms used and not otherwise defined in the Cover Sheet or modified by the Cover Sheet shall have the same meaning as in the Master REC Agreement.

(d) The REC Contract may include multiple Transactions. One batch of systems submitted by Seller and approved by the ICC corresponds to one Transaction, and the key terms of such Transaction (such as pricing and size of the Designated Systems within the batch) are specified in the Product Order applicable to such Transaction.

(e) The form of the Product Order is provided in Exhibit A, and each Product Order contains two (2) schedules, Schedule A and Schedule B. Schedule A to a Product Order shall include summary information of each Designated System proposed by Seller under the ABP for which batch has been approved by the ICC for inclusion in the REC Contract. Once a Designated System is Energized, the IPA or its designee shall prepare and complete Schedule B to the Product Order for such Designated System, which includes updated summary information related to the Designated System, and which shall be the basis for determining applicable payments under the REC Contract.