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Answers to Frequently Asked Questions are provided in this section. 

The first posting of FAQs will be in August. The last posting of FAQs will be 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-46

Where can I find the calendar for the BGS Auctions?


A calendar for the 2018 BGS Auctions can be found here: http://bgs-auction.com/bgs.calendar.asp. The deadline to submit the Part 1 Application is December 12, 2017. The BGS-CIEP Auction will begin on February 2, 2018, and the BGS-RSCP Auction will begin on February 5, 2018.

Each year, the New Jersey Board of Public Utilities (“Board”) solicits proposals to procure supply for BGS customers. The EDCs file a proposal with the Board including a calendar for the upcoming procurement process. Since their inception in 2002, the BGS Auctions have started in the first week of February each year.



11/15/2017, in General.
FAQ-45

Are there specific rules that define what it means to be bidding independently?


Yes. Association and Confidential Information Rules are included in the BGS-RSCP Auction Rules (Section IX.E.) and the BGS-CIEP Auction Rules (Section VIII.E.). The intent of the Association and Confidential Information portion of the Auction Rules is to promote the competitiveness of the auction, to uphold the integrity of the Auction Process, to prohibit collusive arrangements, and to ensure that no bidder gains superior information regarding its competitors that might affect the Auction Process. A bidder shows compliance with these rules by making a number of certifications in the Part 1 Application and the Part 2 Application. When a Qualified Bidder is making certifications in the Part 2 Application, such Qualified Bidder will have access to the list of all Qualified Bidders.

The objectives of the Association and Confidential Information Rules of preventing collusive arrangements and of preventing any one bidder from gaining superior information regarding its competitors mean that these rules do imply some restrictions on the day-to-day market activities of bidders and on possible supply arrangements. For example, each bidder is asked to certify that it has not entered into a supply arrangement that would provide explicit instructions on how to bid (see certification 5 of the Association and Confidential Information Rules portion of the Auction Rules, section VIII.E.4 in the BGS-CIEP Auction Rules and section IX.E.4 in the BGS-RSCP Auction Rules). This is a restriction on supply arrangements that aims to prevent coordination of bidding of several bidders if these bidders all entered into supply arrangements that provided bidding instructions. The Association and Confidential Information Rules attempt to place only necessary restrictions on supply arrangements and on day-to-day market activities. Such restrictions are unavoidable if these rules are to meet their goals.

The BGS-RSCP Auction Rules and the BGS-CIEP Auction Rules are posted to the Auction Rules page of the BGS Auction website. The Auction Manager will be providing shortly a Q&A that helps to clarify the intent and ambit of the Association and Confidential Information Rules. The Auction Manager will send an announcement to website registrants when this Q&A is posted.



11/7/2017, in Association and Confidential Information Rules.
FAQ-44

Do we have to own capacity or transmission in PJM in order to participate in the BGS Auctions?


No, there are no such requirements. Previous winners in the BGS Auctions are available in the files posted to the Past Results page of the BGS Auction website. Some of the previous winners were neither transmission nor generation owners.



11/7/2017, in General.
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FAQ-43

Is it possible to review the Mark-to-Market Information Release from the 2017 BGS-RSCP Auction?


You can access the Mark-to-Market Information Release from the 2017 BGS-RSCP Auction here.



11/7/2017, in Credit.
FAQ-42

We have questions regarding PJM’s Reliability Assurance Agreement (“RAA”). Does the BGS Auction Manager answer questions related to that document?


While the Auction Manager and the EDCs provide assistance with documents and procedures associated with the BGS Auction Process, bidders should contact PJM for questions related to PJM’s RAA. The contact information for PJM assistance via email and phone can be found here. PJM also has training materials, some of which may provide the sort of information you seek.



11/7/2017, in General.
FAQ-41

Section 15.9 requires that the Board approve a change in the rates charged to BGS customers so that BGS Suppliers can be paid if charges for Firm Transmission Service increase. Is it the BGS Supplier’s responsibility to petition the Board to be compensated for changes in transmission-related charges under Section 15.9 of the BGS Supplier Master Agreements?


No. Under the terms of the BGS Suppliers Master Agreements, within forty-five (45) days of the rate change, the EDCs will notify the BGS Suppliers of such change, and will seek approval from the Board to change the charges to BGS customers by the amount of such rate adjustment for Firm Transmission Service.

Please review Section 15.9 of the BGS Supplier Master Agreements available on the Contract and Credit page for the full description of this provision. Filings and Orders regarding changes in the transmission rate under Section 15.9 of the Supplier Master Agreement can be found on the BPU Docs page.



11/7/2017, in SMA Section 15.9.
FAQ-40

When will the firm transmission service rates be announced for the 2018 BGS Auctions? Will the rates announced be constant over the course of the supply period covered by the contract?


Firm transmission service rates will be announced as early as practicable in January 2018. In the BGS-CIEP Supplier Master Agreement, these rates correspond to the Transmission Charge for each EDC. In the BGS-RSCP Supplier Master Agreement, these rates correspond to the baseline Firm Transmission Rate against which changes will be calculated.

While the value of these base rates are fixed for the duration of the BGS Supplier Master Agreements, charges faced by BGS Suppliers for Firm Transmission Service could change during the term of the Agreement. Section 15.9 of the BGS Supplier Master Agreements describes the procedures that will apply if during the term of this Agreement, a filing is made with the FERC to increase or decrease the charges for Firm Transmission Service, including any charge or surcharge imposed on customers receiving Firm Transmission Service, or if PJM implements a transmission cost reallocation or other change that effectively increases or decreases transmission costs for BGS Suppliers, or if the charges for Firm Transmission Service are adjusted pursuant to a FERC-authorized formula rate.

Please note that the EDCs have, as part of their Joint Proposal filed in the current BGS proceeding, put forth changes to Section 15.9. The New Jersey Board of Public Utilities (“Board”) is expected to render a decision on all Proposals, including the change to Section 15.9 proposed by the EDCs at their November agenda meeting. The webcast for bidders scheduled for November 27 will discuss the Board’s decision in this regard.



11/7/2017, in Rates.
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FAQ-39

Could you please provide the firm transmission service rates announced before each of the last three Auctions?


The base rates for firm transmission service announced before the past three Auctions are provided below.

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

 

2017

2016

2015

PSE&G

249.93

225.45

199.15

JCP&L

41.40

41.40

41.40

ACE

100.85

111.29

87.81

RECO

87.98

87.98

87.98

In the BGS-CIEP Supplier Master Agreement, these rates correspond to the Transmission Charge for each EDC. In the BGS-RSCP Supplier Master Agreement, these rates correspond to the baseline Firm Transmission Rate against which changes will be calculated.

These rates reflect the Open Access Transmission Tariff (or “OATT”) rates in effect on January 1, 2017 and reflect Reliability Must Run (“RMR”) and Transmission Enhancement Charges (“TECs”) of zero. (For PSE&G, TECs applicable to projects being developed by PSE&G and which are applicable to customers in PSE&G’s service territory are included in the rate for Firm Transmission Service.) The actual monthly levels of the RMR and TECs that prevail during the supply period will, for purposes of Section 15.9 of the BGS-CIEP and BGS-RSCP Supplier Master Agreements, be considered in their entirety to be changes to the rates for Firm Transmission Service.



11/7/2017, in Rates.
FAQ-38

Where can I find the bidder information packet for the October 2017 webcast? Are there hard copies available this year?


Materials for the October 2017 webcast, including the presentation and the bidder information packet, can be found online only; the materials are posted under the “bidder info” tab on the “info sessions” page on the BGS Auction website.



10/31/2017, in General.
FAQ-37

Can you please provide an example of the invoice that would be received by a BGS Supplier?


While the Auction Manager and the EDCs provide assistance with documents and procedures associated with the BGS Auction Process, bidders should contact PJM for questions related to PJM statements, agreements, or procedures. The contact information for PJM assistance via email and phone can be found here. PJM also has training materials, some of which may provide the sort of information you seek.

The EDCs do not provide sample invoices showing line by line allocation of responsibility between the EDC and the BGS Supplier. Such a sample invoice is not necessary as invoice items are not divided between the EDC and the BGS Supplier. BGS Suppliers are responsible for all PJM charges associated with the responsibilities of a Load Serving Entity.



10/24/2017, in Supplier Master Agreement .
FAQ-36

Are Reliability Must Run (“RMR”) charges covered under Section 15.9? Where are these charges explicitly addressed in the BGS Supplier Master Agreements (“SMAs”)?


RMR charges (Generation Deactivation) have been, and will continue to be, charges for which the EDCs will request approval from the New Jersey Board of Public Utilities (“Board”) for treatment under Section 15.9. All RMR charges to date have been the subject of a request from the EDCs to the Board to recover these charges from customers on behalf of BGS Suppliers. As RMR charges are an increase in transmission-related costs for BGS Suppliers, they are covered by Section 15.9. There is no need to explicitly address these charges in the BGS Supplier Master Agreements and, for this reason, such charges are not mentioned by name in the SMAs.



10/18/2017, in SMA Section 15.9.
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FAQ-35

What are included as “transmission-related charges” under Section 15.9 of the BGS Supplier Master Agreements?


Section 15.9 of the BGS SMAs, as proposed, contains a process by which BGS Suppliers can be compensated for changes in transmission-related charges. Within 45 days of a filing with the Federal Energy Regulatory Commission (“FERC”) for a change in Network Integration Transmission Service (“NITS”) charge, or within 45 days of PJM’s implementation of a transmission cost reallocation or other change that effectively increases or decreases transmission costs for BGS Suppliers, the Electric Distribution Companies (“EDCs”) file with the New Jersey Board of Public Utilities (“NJ BPU” or “the Board”) to change the retail rate to reflect the filed change in the NITS charges or cost reallocation or other PJM-implemented change. If the Board approves the change in retail rates, and the filing has been an increase in transmission-related charges, the EDCs will track the revenue collected for the benefit of BGS Suppliers. The EDCs propose to pay BGS Suppliers upon Board Approval. The payment, as proposed, will include simple interest and will be reflective of the amount filed. If the Board approves the change in retail rates, and there has been a decrease in the NITS charges or a decrease in transmission costs to BGS Suppliers due to a PJM-implemented cost reallocation or an other decrease in rates, the EDCs will decrease the Auction Prices by the amount of the decrease approved by the Board. Hence, transmission related charges under Section 15.9 include items that effectively increase or decrease transmission costs for BGS Suppliers.

To date, the EDCs have implemented this procedure and paid suppliers for Seams Elimination Cost Adjustment (“SECA”) charges and Reliability Must Run (“RMR”) (Generation Deactivation) Charges, NITS Formula Rate changes and Regional Transmission Expansion Plan (“RTEP”) charges. Each EDC filing relating to Section 15.9 of the BGS SMAs is subject to Board.

Please review Section 15.9 of the BGS SMAs available on the Contract and Credit page for the full description of this provision. The response to this question includes the clarifications to Section 15.9 that the EDCs have included in their Joint Proposal. The Board will render a decision on the Joint Proposal in November 2017.



10/18/2017, in SMA Section 15.9.
FAQ-34

I registered to receive login credentials to access the online Part 1 Application. When should I expect to receive those credentials?


The online application portal will be made available to bidders Tuesday, November 28, 2017 and login credentials will be provided shortly prior to that date.



10/18/2017, in Application.
FAQ-33

Is the CIEP Threshold expected to change for the 2018 BGS Auctions?


In their Joint Proposal, the EDCs have proposed that the CIEP line remain unchanged at 500 kW. There have been no comments in the proceeding on this issue. That being said, the Board, in its Order in the BGS proceeding, is expected to rule on all issues, including the CIEP Threshold, so the CIEP Threshold for the 2018 BGS Auctions will only be established at that time.



10/18/2017, in General.
FAQ-32

What are the BGS-RSCP seasonal factors included in the EDCs’ BGS proposal?


The seasonal factors included in the EDCs’ BGS proposal is 1.0 for each EDC as a result of the methodology described in each EDC’s Company Specific Addendum. Please note that these seasonal factors are provisional as the methodology is subject to Board approval. Furthermore, the EDCs will update the calculations with the most recent PJM data in early 2018 and the BGS Auction Manager will announce the final seasonal factors no later than six (6) days prior to the Auction.



10/18/2017, in Rates.
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FAQ-31

BGS customers with a peak load contribution of 500 kW or greater must, if they take BGS, do so on a CIEP tariff or rate. Has this “CIEP line” changed over the course of the BGS Auctions?


Yes. The “CIEP Line” or “CIEP Threshold” is the criterion used to determine whether a customer is a CIEP customer. CIEP customers are customers taking BGS-CIEP service or customers who, if they took BGS, would do so on a CIEP tariff of rate. All other customers are RSCP Customers.

The CIEP Threshold was introduced in August 2003 and at that time, customers served at transmission voltages were CIEP customers. The CIEP Threshold has changed five times since 2003. The most recent change became effective June 1, 2013; customers served at transmission voltages or customers with a peak load contribution (“PLC”) of 500 kW or greater are CIEP customers. You can find a complete history of the changes to the CIEP Threshold from August 2003 to the present beginning at page 6 of the Data Description document posted to the BGS Monthly Data page of the BGS Data Room.



10/18/2017, in General.
FAQ-30

Is there an opportunity to change the Bidder Team throughout the BGS process to account for employee turnover?


The Bidder Team consists of an Authorized Representative and up to three (3) Nominees.

The Authorized Representative is authorized by an officer or director of the Applicant to represent the Applicant in the auction or auctions for which the Applicant is applying. The Authorized Representative may designate up to three (3) Nominees in the Part 1 Application or at any point during the Auction Process. The Nominees are individuals who are also authorized to represent the Applicant in the Auction Process.

You may change the Nominees at any time by re-submitting the Nominee Insert (#P1-2). Changing the Authorized Representative is not impossible but requires a substantial change to the application; a Bidder that requires such a change should contact the Auction Manager for instructions in this regard if necessary.



10/18/2017, in Application.
FAQ-29

How is the target for an EDC filled if from one round to the next the target for an EDC goes from being oversubscribed to undersubscribed?


Once an EDC is oversubscribed once in an auction, the target will always be filled for the remainder of the auction. In order to fill the target, offers are taken in price order. This means that in a given round, the bids will be stacked to fill the target as follows:

1) First, all tranches bid at the going price are taken;

2) Second, tranches withdrawn are retained to fill the target from lowest to highest exit price. The exit price is the last and best offer for the tranche. The exit price must be greater than the going price for the round and less than or equal to the prior round price; and

3) Last, if all withdrawals are retained and the target is still not met, switches from the EDC will be denied at the previous round’s going price, which is the price at which they were last freely bid.

Bidders receive information about their own retained exits and denied switches in the round report each round.



10/18/2017, in Auction Rules.
FAQ-28

I have a question on how the responsibilities of a Load Serving Entity (“LSE”) described in PJM’s Reliability Assurance Agreement applies to a BGS Supplier. Is there documentation to that effect available on the BGS Auction website?


While the Auction Manager and the EDCs provide assistance with documents and procedures associated with the BGS Auction Process, please contact PJM for questions you may have related to PJM Agreements. The contact information for PJM assistance via email and phone can be found here.



10/18/2017, in General.
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FAQ-27

Are presentations from webcasts posted to the BGS Auction website?


The presentation slides and accompanying audio for the first and second Bidder Information Webcasts get posted to the Presentations page and Info Session Materials page of the BGS Auction website within a day of the event.



10/18/2017, in General.

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What's New

REMINDER: RSVP Now for the Upcoming Bidder Information Webcast!...   GO >>

ANNOUNCEMENT UPDATE: Total 2018 Auction RSCP Peak Load Share (MW) Update...   GO >>

POSTING: Final Part 2 Application Form...   GO >>

ANNOUNCEMENT: Minimum and Maximum Starting Prices, Tranche Targets, and Load Caps for the 2018 BGS-RSCP Auction...   GO >>

ANNOUNCEMENT: Minimum and Maximum Starting Prices, Tranche Targets, and Load Caps for the 2018 BGS-CIEP Auction...   GO >>

INVITATION: RSVP Now for the Upcoming Bidder Information Webcast!...   GO >>

POSTING: Post-Auction Letters of Credit...   GO >>

POSTING: BGS Pre-Auction Letters of Credit...   GO >>

FINAL REMINDER: Deadline for Comments on Letters of Credit is TOMORROW, October 24...   GO >>

POSTINGS: Illustrative Application Forms and Webcast FAQs...   GO >>

REMINDER: Comment Process for Letters of Credit...   GO >>

POSTING: Bidder Information Webcast Materials...   GO >>

Comment Process for Letters of Credit: Posting of Further Documents...   GO >>

Comment Process for Letters of Credit: Posting of Further Documents...   GO >>

REMINDER: RSVP Now for the Upcoming Bidder Information Webcast!...   GO >>

REMINDER: RSVP Now for the Upcoming Bidder Information Webcast!...   GO >>

REMINDER: RSVP Now for the Upcoming Bidder Information Webcast!...   GO >>

ANNOUNCEMENT: RSVP Now for the Upcoming Bidder Information Webcast!...   GO >>

INVITATION: Comment Process for Letters of Credit...   GO >>

POSTING: Alternate Guaranty Process...   GO >>

Deadline for Initial Comments on Proposals for Procurement of BGS is Tomorrow...   GO >>

Deadline for Initial Comments on Proposals for Procurement of BGS...   GO >>

POSTING: First FAQs and BGS-RSCP Pricing Spreadsheet Tool...   GO >>

ANNOUNCEMENT: EDCs' Filing is Available on the BGS Auction Website...   GO >>

Board Approves Results of 2017 BGS Auctions...   GO >>