ABP 5% Utility Collateral

One of the requirements for participation in the Illinois Adjustable Block Program (ABP) is the 5% Performance Collateral.  This is 5% of your total REC contract value that is held by the utility your system is contracted with (either ComEd or Ameren).  This 5% is withheld by the utility for the full 15 year period of the REC contract and is used to ensure that your system continues to operate as projected and generate RECS.

If your system under-performs during any year in the 15 year period and fails to generate the RECs projected for that year the utility may “clawback” REC payments.  This means that you may have to pay the utility back for some RECS that were not generated.  The projected delivery schedule will be included in your REC contract and updated once the IPA has confirmed your systems participation and delivery schedule.

If your system is energized when you apply for the ABP the 5% collateral can be withheld from your first REC payment.  If your system is not energized when you apply to the ABP the 5% collateral will be collected by CSG upon contracting and sent to the utility to hold for the duration of the 15 year period.

 

Example Calculation of 5% Collateral:

 

10kW AC Fixed-Tilt System using the Standard Capacity Factor

Ameren Territory: $85.10/REC

Total # of RECS on Contract = 216

Total Contract Value = $85.10 x 216 = $18,381.60

5% Collateral = $18,381.60 x 5% = $919.08

 

Please note some systems may have additional collateral withheld from the first REC payment by CSG if the capacity factor appears significantly higher than the Standard Capacity Factor.  This will be outlined in your REC contract if this is the case.