The IESO has released an addendum to the Large Renewable Procurement I Request for Proposals and Contract.
The amendments to the RFP and the Contract contained in the addenda clarify several matters that had been raised in respect of the LRP program, including:
- Equity Compensation upon Voluntary Termination by the IESO – It is now made explicitly clear that Equity Capital that has been invested in a Project as of the Termination Date will be recoverable by the Supplier (in addition to the nominal after-tax internal average annual rate of return to the Termination Date).
- Affiliated Debt – The definitions of “Junior Lenders” and “Senior Lenders” now explicitly exclude Affiliates of the Supplier and Sponsor and other Persons that are not at Arm’s Length to the Supplier or Sponsor. Thus, compensation in respect of Affiliate funding following a voluntary termination by the IESO will effectively be treated as equity rather than lender debt.
- Early Completion – There is no longer a restriction on an early date for Commercial Operation (in the previous draft, the Commercial Operation Date could not occur earlier than 1 month prior to MCOD). Projects that are completed early can now achieve Commercial Operation as soon as is otherwise possible.
- Return of Completion and Performance Security – The revised LRP Contract clarifies that the Pre-COD Completion and Performance Security will be returned to Supplier after the Commercial Operation Date (while the Post-COD Completion and Performance Security, of course, is returned at the end of the term of the LRP Contract).
Additionally, the IESO is accepting comments on the revised Voluntary Termination provisions issued with the addenda (Section 9.6) until June 30, 2015.
These new documents can be found here: http://www.ieso.ca/Pages/Participate/Generation-Procurement/Large-Renewable-Procurement/Program-Resources.aspx
The IESO has also posted answers to additional questions raised during the Question and Comment Period (found here: http://www.ieso.ca/Pages/Participate/Generation-Procurement/Large-Renewable-Procurement/Questions-and-Comments.aspx).