The Illinois Commerce Commission has published the wholesale price that is used in various retail electric supplier financial qualification requirements

The Illinois Commerce Commission ordered (Docket 19-0172) that pursuant to 83 Ill. Adm. Code 451.110(a)(4), 83 Ill. Adm. Code 451.220(a)(4), and 83 Ill. Adm. Code 451.320(a)(4), the index of $42.72 per MWh is adopted for the purpose of setting the dollar amounts of any unconditional guarantee, payment bond, or letter of credit.

The index of $42.72 per MWh reflects the average of the 45 highest values of the daily averages of the hourly PJM Day-Ahead Locational Marginal Prices for the Northern Illinois Hub during 2018

In 83 Ill. Adm. Code 451, Certification of Alternative Retail Electric Suppliers, the Illinois Commerce Commission had established certain financial qualifications for applicants seeking to provide alternative retail electric service. Subparts B, C, and D each contain similar requirements for the applicants subject to the respective Subparts. The language in Section 451.110(a)(4), pertaining to the criterion that an applicant possess sufficient financial capabilities, is repeated in Section 451.220(a)(4) and Section 451.320(a)(4), and it reads as follows:

Under such regulations, the applicant shall execute and maintain an unconditional guarantee, payment bond, or letter of credit that upon failure to comply with its contractual obligations to supply energy to its customers, shall be payable to the People of the State of Illinois. Any dollar limitation on the unconditional guarantee, payment bond, or letter of credit shall equal not less than the product of 1080 times the applicant's expected peak hourly demand expressed in MWs over the next 12 months times the average of the 45 highest daily market prices of electric energy traded during the previous year. Each February, the Commission shall choose a published price index for electricity for use in this subsection (a)(4). The daily market price of electric energy shall equal the published price index for electricity traded in Illinois, except in the event that no price index for electricity traded in the State of Illinois is published, then the daily market price of electricity shall be determined by the use of a published price index for electricity traded at the nearest location to the State of Illinois. The unconditional guarantee, payment bond, or letter of credit shall be valid for a period of not less than one year. All payments to be made through the unconditional guarantee, payment bond, or letter of credit under this Section shall be paid in accordance with a Commission Order authorizing such payment.

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