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Answers to Frequently Asked Questions are provided in this section. 

The first posting of FAQs is in August. The last posting of FAQs is in the latter part of January, after bidders are registered to participate in the Auctions. From that point, questions and answers are emailed directly to Registered Bidders and are not posted to the BGS Auction website. Questions that are not from Registered Bidders or their advisors are answered strictly on a best efforts basis.

Your use of this page (site) constitutes an acceptance of the Terms as described in the disclaimer.

 

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FAQ-124

Can you please confirm the Capacity PLA values for RECO?


Thank you for bringing this to our attention.  We will provide revised data as soon as it becomes available.



1/15/2021, in Data.
FAQ-123

What are the submission instructions for providing a bid bond as pre-auction security?


The Bid Bond must be submitted as an electronic PDF file ONLY (not in hardcopy) with the two signatures from the Surety. The Bid Bond must be executed with the Surety’s and the Principal’s signatures together in one document or separately in two documents. If providing the Principal’s (Qualified Bidder’s) signature in a separate document, the Principal may:

• Complete using a digital signature (using commercially available software such as DocuSign) and submit the separate document via email to the BGS Auction Manager at BGS-Auction@nera.com or by upload to the online Part 2 Application Form with an accompanying document or information verifying the identity of the signatory; or

• Complete with a scanned wet signature or an electronic signature (such as an image of a signature) and submitted via email to the BGS Auction Manager at BGS-Auction@nera.com by the signatory or with the signatory on copy."



1/14/2021, in Application, Pre-Auction Security.
FAQ-122

Which email address should we use in Paragraph 12 of the Pre-Auction Letters of Credit?


The BGS Auction Manager’s email, BGS-Auction@nera.com, should be used in Paragraph 12 of the Pre-Auction Letters of Credit.



1/11/2021, in Application, Credit, Pre-Auction Security.
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FAQ-121

Is there an alternative to posting a Pre-Auction letter of Credit?


Each Qualified Bidder must provide a Pre-Auction Letter of Credit proportional to its indicative offer at the maximum starting price.  Alternatively, a Qualified Bidder can provide a Bid Bond.  The Auction Manager has posted the standard form of the Bid Bond to the contract credit page of the bidder info tab of the BGS Auction website.



1/7/2021, in Application, Pre-Auction Security.
FAQ-120

Can we add a paragraph 15 to the Pre-Auction Letter of Credit that would read as follows:

"15. THIS LETTER OF CREDIT MAY BE SIGNED BY THE ISSUING BANK WITH EITHER A DIGITAL OR ORIGINAL SIGNATURE, EITHER OF WHICH SHALL BE LEGALLY-VALID AND ENFORCEABLE. THE ISSUING BANK MAY TRANSMIT THIS LETTER OF CREDIT TO THE BENEFICIARY BY MAIL, FAX OR ELECTRONIC TRANSMISSION. FOR THE AVOIDANCE OF DOUBT, ANY ELECTRONIC PDF VERSION OF THIS LETTER OF CREDIT RECEIVED BY THE BENEFICIARY SHALL BE AN OPERATIVE INSTRUMENT AND MAY BE USED BY THE BENEFICIARY AS IT WOULD A HARDCOPY ORIGINAL."


The proposed paragraph states that the bank may transmit a hardcopy of the Pre-Auction Letter of Credit by mail or fax.  This is inconsistent with the terms of the Pre-Auction Letter of Credit and the addition of this paragraph is not acceptable.  Paragraph 14 of the Pre-Auction Letter of Credit specifies that the Pre-Auction Letter of Credit is to be sent as an electronic PDF file ONLY via electronic means to the BGS Auction Manager at BGS-Auction@nera.com.  Additionally, Paragraph 14 already specifies that the electronic PDF serves as the operative instrument and that the EDCs may use the electronic PDF file of the Letter of Credit as they would a hardcopy original.



1/7/2021, in Application, Pre-Auction Security.
FAQ-119

Would it be acceptable for our bank to clarify in the first sentence of Paragraph 6 that a copy of the Pre-Auction Letter of Credit will NOT be returned to the bank upon cancellation?


Yes, it is acceptable for Paragraph 6 to read “This Letter of Credit shall automatically terminate on the earliest of…”, omitting the phrase “and be delivered to us for cancellation” immediately after the word terminate.

The intent is for the Pre-Auction Letter of Credit to be provided via electronic means only to the BGS Auction Manager. Consistent with this intent, the bank may clarify that it is not required for a copy of the Pre-Auction Letter of Credit to be delivered upon cancellation.



1/7/2021, in Application, Pre-Auction Security.
FAQ-118

How will the monthly payment to BGS-RSCP Suppliers be adjusted to account for the transfer of the transmission obligation from the BGS-RSCP Supplier to the EDC if we elect to execute the Transmission Amendment(s)?


The Transmission Amendments are signed at the discretion of the BGS Supplier.  Each EDC with which a BGS Supplier has an existing Supplier Master Agreement (“SMA”), and each auction to which the existing SMA applies, will require a separate amendment.  Executing the Transmission Amendments will transfer the responsibility of transmission from the BGS Supplier to the EDC with which that BGS Supplier has an existing SMA. 

The term “Applicable Transmission Rate” within the 2020 BGS-RSCP, 2019 BGS-RSCP, and 2018 BGS-RSCP Transmission Amendments is the transmission rate announced in the month of January immediately prior to the Effective Date of the SMA.  The term “Auction Price” is the price set forth in Appendix A of the SMA resulting from the applicable BGS-RSCP Auction.  The term “Monthly Transmission Adjustment” is an amount calculated each Billing Month that will be equal to the product of (i) the Applicable Transmission Rate in $ per MW-day and (ii) the monthly BGS-RSCP transmission obligation (MW-days) associated with the BGS-RSCP Load served by the BGS-RSCP Supplier. The Auction Price and the Monthly Transmission Adjustment are the basis for financial settlement with the BGS-RSCP Supplier for BGS-RSCP Supply it supplies under the SMA and for the transfer of transmission obligation to the Company.

The BGS-RSCP Transmission Amendments edit Article 9 of the SMA (specifically, Sections 9.1(a) and 9.1(d)) and provide additional information regarding payment to the BGS-RSCP Supplier and how payment is adjusted by the Monthly Transmission Adjustment.  Table 1 in Attachment 1 in the BGS-RSCP Transmission Amendments calculates the adjustment to the payment received by the BGS-RSCP Supplier for the removal of transmission from the obligations of the BGS-RSCP Supplier.

The rates for firm transmission service announced in January immediately prior to the Effective Date of the applicable SMA are provided below:

Rate for Firm Transmission Service ($/MW-day)

EDC

2020

2019

2018

PSE&G

378.41

286.87

277.25

JCP&L

70.52

66.02

68.69

ACE

153.89

147.33

139.62

RECO

116.57

116.57

122.74



1/6/2021, in Transmission.
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FAQ-117

When does the RPS example get posted to the additional data room of the BGS website?


The RPS example will be posted in advance of the 2021 BGS Auctions. The Auction Manager will provide notice upon posting.



1/6/2021, in Renewable Portfolio Standards.
FAQ-116

Are the BGS Auctions held to procure all supply for BGS customers or do the EDCs also procure some supply outside of the auctions?  


The BGS Auctions are held to procure 100% of the supply for all BGS customers.   



12/30/2020, in General.
FAQ-115

Is cash an acceptable form of pre-auction security?


Cash is not acceptable as pre-auction security. 



12/30/2020, in Application, Pre-Auction Security.
FAQ-114

Can the Pre-Auction Security be issued by a foreign commercial bank?


This is acceptable provided that the issuing bank satisfies two conditions.  First, the issuing bank must meet the minimum credit rating requirement provided in Paragraph 10, which requires the issuing bank to have a senior unsecured debt rating of “A” or better by S&P Global Ratings (“S&P”) if rated by S&P or “A2” or better by Moody’s Investors Service Inc. (“Moody’s”) if rated by Moody’s. Second, the bank is required to comply with the footnote in Paragraph 3, which states: “This Pre-Auction Letter of Credit must be issued by a United States commercial bank or a foreign commercial bank with U.S. branches that are subject to the jurisdiction of New York federal or state courts. [emphasis added]”



12/30/2020, in Pre-Auction Security.
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FAQ-113

Do the EDCs warrant the accuracy of the data posted in the BGS Data Room?


All data in the BGS Data Room are provided for informational purposes only. The EDCs have compiled the data in good faith from sources believed by the EDCs to be reliable but do not warrant the accuracy of the data. It is the responsibility of users of the posted data to determine whether and how they should be applied; by utilizing the data, users assume all risk associated therewith.



12/24/2020, in Data.
FAQ-112

There appears to be an error in accounting for  daylight savings in the November 2019 PSE&G hourly load data.  Can you also please post corrected data and explain how PSE&G accounts for daylight savings dates in their data?


Thank you for bringing this to our attention.  The issue was corrected and the following files were updated and posted to the monthly data page of the BGS Data Room on December 22, 2020:

  • PSE&G BGS Hourly Load
  • PSE&G BGS CIEP Hourly Load
  • PSE&G BGS RSCP Hourly Load
  • PSE&G Total Retail Hourly Load
  • PSE&G CIEP-Eligible Hourly Load
  • PSE&G RSCP-Eligible Hourly Load

On daylight savings dates, PSE&G reports their hourly load data as the first 24 hours of that day.  The 25th hour of data on daylight savings dates is omitted.



12/24/2020, in Data.
FAQ-111

Would it be acceptable for our bank to add the below address for informational purposes only, in place of and similar to the EDC addresses provided in acceptable modification B.6 in the List of Acceptable Modification posted to the BGS Auction website?

To: the Electric Distribution Companies (“EDCs”)

c/o NERA Economic Consulting (“NERA”)

BGS Auction Manager

One Gateway Center, Suite 720

Newark, NJ 07102

THIS ADDRESS FOR INFORMATIONAL PURPOSES ONLY

NOT A DELIVERY ADDRESS – Letter of Credit delivered electronically only to NERA


This is acceptable.  The intent of acceptable modification B.6 is to alert bidders and their banks that the Pre-Auction Letter of Credit is to be provided via electronic means only to the BGS Auction Manager.  Thus, any address provided in the Beneficiary Block must be clearly marked “FOR INFORMATIONAL PURPOSES ONLY” AND “NOT A DELIVERY ADDRESS”. 

The BGS Auction Manager has supplemented acceptable modification B.6 to clarify that the addresses used for informational purposes only and not as delivery addresses may be the addresses for the EDCs or the address of the BGS Auction Manager.



12/24/2020, in Application, Credit, Pre-Auction Security.
FAQ-110

For Qualified Bidders that submit a Letter of Intent to Provide a Guaranty, must the statement from the Guarantor be completed using a digital signature or are there alternate acceptable methods?


The Letter of Intent to Provide a Guaranty includes two portions: a statement from the Guarantor and a certification from the Qualified Bidder.  The statement from the Guarantor must be completed with a digital signature with an accompanying document or information verifying the identity of the signatory.  There is no alternate acceptable method for the Guarantor to complete the statement.



12/24/2020, in Application.
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FAQ-109

Are RPS obligations for BGS Suppliers calculated on the basis of wholesale or retail metered volumes?


The EDCs apply the RPS compliance percentages to energy supplied by the BGS Supplier and hence apply the RPS compliance percentages to the PJM settlement data at the “wholesale meter”.  The Board approved this methodology in its Order in the 2020 BGS proceeding (Decision and Order in BPU Docket No. ER19040428, dated November 13, 2019, pp. 16-17).



12/24/2020, in Renewable Portfolio Standards.
FAQ-108

What are the PJM E-Account requirements necessary to complete the Transmission Amendments?


Section 7 of each Transmission Amendment lists events that must occur by January 15, 2021 for the Transmission Amendment to take effect on February 1, 2021.  One such event is for the BGS Supplier to work with the EDC and PJM to establish any new PJM E-Account as may be necessary.  The PJM E-Account in question must be used exclusively for BGS Supply provided to the Company.  Furthermore, the PJM E-Account is subject to additional specifications communicated by the EDC to the BGS Supplier. For example, at this point, ACE does not anticipate any additional specifications beyond requiring that the PJM E-Account be used exclusively for BGS Supply to ACE while PSE&G anticipates requiring that each BGS Supplier create separate PJM subaccounts and corresponding short names for supply under each of the Supplier Master Agreements in effect on February 1, 2021.



12/17/2020, in Transmission.
FAQ-107

Can you please provide redlines comparing the Supplier Master Agreements included as part of the July filing and their final versions?


There are no changes between the Supplier Master Agreements included in the July filing and their final versions as approved by the Board on December 10, 2020. 



12/14/2020, in Supplier Master Agreement .
FAQ-106

If we are electing to use digital signatures on our Inserts, what should we provide as “an additional document or information that can be used by the BGS Auction Manager to verify the identity of the signatory”?


Applicants that elect to complete an Insert with a digital signature must provide an additional document or information that can be used by the BGS Auction Manager to verify the identity of the signatory. A “digital” signature is one that is created using commercially available software, such as DocuSign, Adobe Acrobat, or Adobe Sign. The additional document or information that allows the BGS Auction Manager to verify the identity of the signatory is: (i) for DocuSign, the certificate of completion; (ii) for Adobe Acrobat, the banner showing that the signature has been certified; and (iii) for Adobe Sign, the final audit report.

For your convenience, we attach to this response the Digital Signature Instructions document, which provides additional information including screenshots from the signature process under DocuSign and Adobe Acrobat.



12/14/2020, in Application.
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FAQ-105

Is information provided in the bidder’s application and bidder-specific activity during the Auction under confidentiality provisions in the BGS Auctions?


The BGS Auctions are held under a process proposed by the New Jersey Electric Distribution Companies (“EDCs”) and approved by the New Jersey Board of Public Utilities (“Board”) on a yearly basis. Section IV.B. Confidentiality of Auction Information of the EDCs’ Joint Proposal contains a list of information that the EDCs proposed to remain confidential throughout the Auction Process. The Board has reaffirmed the confidentiality of the auction data in its Order approving the 2021 Auction Process. Please see in the Confidentiality section (p. 17) as well as in Attachment C.



12/14/2020, in Application.

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