ISEO Releases Addendum To LRP Contract

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:

1. 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).
2. 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.