Common use of MtM Exposure Amount Methodology Clause in Contracts

MtM Exposure Amount Methodology. To calculate the daily exposure for the BGS-FP Supplier, the MtM Exposure Amount methodology will be used. The “Initial Mark” for each Billing Period will be determined at the time the Illinois Auction is completed based on the available On-Peak Forward Market Prices and, for the remaining Billing Periods for which such prices are not available, will be derived using a proprietary method that reflects forward market conditions. At the time the Illinois Auction is completed, the MtM Exposure Amount for the BGS-FP Supplier shall be equal to zero. Subsequently, the differences between the Initial Mark and the available On-Peak Forward Market Prices on the valuation date (“Mark”) for the corresponding Billing Periods will be used to calculate the daily exposures for the BGS-FP Supplier. The total MtM Exposure Amount will be equal to 1.1 times the sum of the MtM for each Billing Period, less amounts then due the BGS-FP Supplier. The methodology for calculation of the Initial Mark, Mark and MtM is described in Appendix D.