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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.

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FAQ-42

Can you please confirm whether the BGS-RSCP Transmission Peak Load Allocations (“PLA”) and the Capacity PLAs for the period 6/1/2018 through 6/30/2018 posted in the BGS Auction monthly are accurate for JCP&L?  Generally, are the Capacity and Transmission PLAs provided in the BGS Data Room scaled by the Daily Zonal Scaling Factor or unscaled?


The transmission PLAs for JCP&L for this period must be adjusted by a Daily Zonal Scaling Factor (“DZSF”) provided in the “Miscellaneous” matrix on the ‘monthly data’ page of the BGS Data Room. JCP&L has confirmed that the data provided is accurate.

JCP&L has recently confirmed that, starting June 1, 2017, the Capacity PLAs and the Transmission PLAs provided are unscaled and should be adjusted by the applicable DZSF. JCP&L has provided a DZSF data series for the Capacity PLAs and a DZSF data series for the Transmission PLAs. These are provided as two separate tabs in a single file in the “Miscellaneous” matrix on the ‘monthly data’ page of the BGS Data Room. Prior to June 1, 2017, the Capacity PLAs and the Transmission PLAs for JCP&L are already scaled and do not need to be adjusted by the applicable DZSF.

The other three EDCs (PSE&G, ACE, and RECO) provide the Capacity PLAs unscaled and these should be adjusted by the DZSF for the applicable EDC as provided in the “Miscellaneous” matrix on the ‘monthly data’ page of the BGS Data Room. The other three EDCs (PSE&G, ACE, and RECO) provide the Transmission PLAs already scaled and these do not need to be adjusted. The methodology for the other three EDCs has not changed over the period of data provided in the BGS Data Room.



9/5/2018, in Data.
FAQ-41

Can the EDCs make available historical data comparing the transmission service rates charged by PJM to the monthly rate paid to BGS suppliers by each of the EDCs?


Unfortunately, the EDCs cannot make the data that you seek available at this time as it is not collected by the EDCs in the normal course of business.  The filings related to Section 15.9 and the Board’s Orders, which provide any changes approved by the Board to rates under Section 15.9, are available on the ‘transmission documents’ page of the ‘auction tab’ of the BGS Auction website.



9/5/2018, in SMA Section 15.9.
FAQ-40

Where can I find more information on how to submit comments to the New Jersey Board of Public Utilities (“Board”) as part of the 2019 BGS proceeding?


The deadlines for submitting comments in the BGS proceeding are provided on the ‘calendar’ page of the BGS Auction website (September 5 for initial comments, September 28 for comments presented at a legislative-type hearing, and October 12 for final comments). 

The Board Order initiating the 2019 BGS proceeding, posted on the ‘bgs orders’ page of the ‘auction’ tab of the BGS Auction website, states that initial and final comments must be filed with the Board's Secretary (customarily one original and 10 copies at the following address):

Aida Camacho-Welch, Secretary of the Board, Board of Public Utilities 44 South Clinton Avenue, 3rd Floor, Suite 314 Post Office Box 350 Trenton, New Jersey 08625-0350

Such comments must also be electronically served via email to parties on the BGS e-service list.  Parties wishing to be added to the BGS e-service list may do so by emailing Director Peterson (email address available upon request).  Final Comments can only be used to respond to issues raised in the Initial Comments, issues raised at the Legislative-type hearing or questions issued by Board staff.

A hearing will be held from 10 AM to 12:30 PM at the Board’s Office at 44 S. Clinton Avenue – 1st Floor, Multi-Purpose Conference Room, Trenton, New Jersey. The purpose of the hearing is to take comments on the EDC BGS proposal.  Interested parties will be allowed a fixed amount of time to present comments, after which President Fiordaliso and Board Staff may have some clarifying questions. The amount of time allotted to each speaker will be determined at the hearing. Parties wishing to be heard should email Director Peterson by September 18, 2018. If working from prepared comments, speakers should bring at least 15 copies to the hearing.



8/28/2018, in General.
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FAQ-39

PJM has introduced Billing Line Items #1108A and 1115, which are in regards to the reallocation of transmission costs from Linden VFT and Hudson Transmission Partners (HTP) pursuant to FERC Order EL05-121-009. Are these transmission costs eligible for recovery under Section 15.9 of the BGS Supplier Master Agreements?


Pursuant to Section 15.9 of the Supplier Master Agreement (“SMA”), the EDCs intend to seek approval from the Board for transmission cost increases (including those associated with billing line items 1108A and 1115) to be recovered from customers, tracked for the benefit of BGS Suppliers, and paid to BGS suppliers upon a Final FERC Order (as defined in the SMA).  When the Board approves the change in retail rates to BGS customers, the EDCs begin collecting such change in BGS customer rates and track those amounts for the benefit of the BGS Suppliers.  



8/28/2018, in SMA Section 15.9.
FAQ-38

The JCP&L RSCP Eligible Capacity PLA data posted in the BGS Data Room for June 2018 is not the same number as the Capacity PLA value provided in the JCP&L BGS-RSCP Rate Spreadsheet for last year’s auction. Can you please explain?


The 4438.1 MW value listed in JCP&L’s BGS-RSCP Rate Spreadsheet for the 2018 BGS-RSCP Auction reflects all eligible BGS-RSCP accounts to become effective 6-1-2018 as such information was known on 1-1-2018. JCP&L makes no representation that Peak Load Allocation (“PLA”) data used in the rate design spreadsheet will exactly correspond to the ultimate PLA data after the fact.  JCP&L confirms that the data currently posted to the BGS Data Room is accurate.



8/28/2018, in Data.
FAQ-37

I am looking for a presentation from last year that provided the Renewable Portfolio Standard (“RPS”) obligations applicable to BGS Suppliers. If that presentation no longer is available, where can I find information regarding current RPS obligations for BGS Suppliers?


Documents from prior auctions are removed from the BGS Auction website as the information in such documents may no longer be relevant.  In this case, the New Jersey Assembly passed Bill A3723 (the “Bill”) on April 12, 2018, amending the percentage requirements that would have been provided in the presentation you are seeking.

The Bill, which was signed into law on May 23, 2018, increases Class I and solar RPS percentage requirements for New Jersey suppliers, including BGS Suppliers.  Our understanding is that BGS Suppliers with contracts effective prior to the enactment of the law appear to be exempt from the increased solar RPS requirements so that these BGS Suppliers would only be responsible for the solar RPS requirements in effect at the time their existing supply contracts were executed.  Our understanding is that BGS Suppliers do not appear to be exempt from the increased Class I RPS requirements coming in effect June 1, 2020.  

Prior to passing of Bill A3723, the RPS requirements for June 1, 2019 through May 31, 2022 were as follows:

Period   Solar Electric Generation Class I Renewable Energy Class II Renewable Energy
June 1, 2019 to May 31, 2020 3.380%

16.029%

2.5%
June 1, 2020 to May 31, 2021 3.470% 17.880% 2.5%
June 1, 2021 to May 31, 2022 3.560% 17.880% 2.5%

Bill A3723 introduced the changes to RPS requirements for June 1, 2019 through May 31, 2022 and our understanding of these is as follows:

Period   Solar Electric Generation Class I Renewable Energy Class II Renewable Energy
June 1, 2019 to May 31, 2020 4.900% 16.029% 2.5%
June 1, 2020 to May 31, 2021 5.100% 21.000% 2.5%
June 1, 2021 to May 31, 2022 5.100% 21.000% 2.5%

The Bill has been posted to the “misc regulatory” page of the “auction” tab on the BGS Auction website.  BGS Suppliers and participants in the BGS Auctions are entirely responsible for keeping current with new legislation and evaluating its impact on their obligations under the BGS Supplier Master Agreements.  We note that the Bill contemplates that the New Jersey Board of Public Utilities will hold a proceeding regarding the implementation of these renewable energy portfolio standards and that this proceeding has not yet occurred. 

Generally, RPS requirements are part of the New Jersey Administrative Code; the New Jersey’s Clean Energy Program website provides instructions on how to access the relevant portions of the New Jersey Administrative Code here: http://njcleanenergy.com/renewable-energy/program-activity-and-background-information/rps-background-info



8/28/2018, in Supplier Master Agreement .
FAQ-36

I am seeing reductions in JCP&L’s BGS-RSCP Capacity PLC data relative to JCP&L’s BGS-RSCP Transmission PLC data between 5/31/2018 and 6/1/2018 in the data posted to the monthly data room. Could you please confirm that the data provided in the monthly data room is accurate?


JCP&L has confirmed that the data provided is accurate.

Please note that each bidder is entirely responsible for analysis of the data provided. All data 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.



8/21/2018, in Data.
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FAQ-35

There is an approximately 6% drop in JCP&L’s BGS-RSCP Capacity PLC between 5/31/2018 and 6/1/2018. Could you please confirm that the data provided in the monthly data room is accurate?


JCP&L has confirmed that the data provided is accurate.

Please note that each bidder is entirely responsible for analysis of the data provided. All data 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.



8/21/2018, in Data.
FAQ-34

Will winners in the BGS Auctions be responsible for providing Offshore Renewable Energy Credits (ORECs) as a result of the Executive Order referenced below?
https://nj.gov/governor/news/news/562018/approved/20180131a_eo.shtml


As the EDCs understand the New Jersey legislation and the proposed funding mechanism for ORECs, BGS Suppliers and TPSs would be responsible for paying for ORECs, once offshore wind facilities begin production.  The Executive Order does not address or change legislation but does direct the Board to fill regulatory gaps and provides for the implementation of the existing legislation.  It is the bidder’s responsibility to determine whether the Executive Order would impact winners in the BGS Auctions and whether the Board would consider mitigating any such impacts if such obligations did materialize.



8/21/2018, in General.
FAQ-33

Will BGS suppliers be exempt from any future increases to RPS requirements that may arise from legislation which is passed in the future?


The BGS Supplier Master Agreements (“SMAs”) are clear that it is the BGS Supplier’s responsibility to comply with RPS requirements as they may evolve from time to time.  There is no exemption under the SMAs from future increases in RPS requirements.  We would note that in the past, the Legislature, when increasing solar requirements, exempted existing BGS suppliers from the increase.  The exemption was made up by assigning the unfilled requirements to BGS suppliers not already under contract and to TPSs.  Hence, while Legislative precedent incorporates an exemption for increases in solar requirements, there is no guarantee that future legislation would reflect an exemption.



8/21/2018, in Supplier Master Agreement .
FAQ-32

Where can I find current EDC Municipal Aggregation Enrollment data?


The Municipal Aggregation Enrollment data can be found on the BGS Auction website on the Additional Data page of the BGS Data Room.



8/21/2018, in Data.
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FAQ-31

In the case of the Capacity Performance Product, the Board approved a means to compensate BGS suppliers that had agreed to serve BGS load for the unanticipated cost for that product.  PJM has released a white paper (https://www.pjm.com/-/media/library/reports-notices/special-reports/20171115-proposed-enhancements-to-energy-price-formation.ashx?la=en) regarding potential improvements to price formation.  Will the Board take action to compensate BGS suppliers for any increase in cost arising from this proposal?


As LSEs are responsible for all costs assessed by PJM to serve load, each of these potential changes would be the responsibility of BGS suppliers.  As the question indicates, in the case of the Capacity Performance Product, the Board provided a means to compensate BGS suppliers that had agreed to serve BGS load for this unanticipated cost.  The range of potential PJM actions to which the attached paper refers is broad and the adoption of any of these proposals is uncertain.  The EDCs cannot speculate as to what actions the Board may take were any of these proposals to be adopted.  Additionally, any such speculation would be of no value as the EDCs cannot speak for the Board.  We suggest that you review the Board’s actions over the long history of the BGS process, and how such actions took into consideration ratepayers’ interests, to draw your own conclusions as to how the Board may act with respect to these proposals, were any to be adopted.



8/21/2018, in Rates.
FAQ-30

Is the settlement under the terms of the BGS Supplier Master Agreements monthly or weekly like the PJM settlement procedures?


Settlement is monthly under the terms of the BGS Supplier Master Agreements (“SMAs”).  The BGS SMAs specify that the EDC sends a statement to the BGS Supplier within eight (8) business days after the end of the Billing Month and the EDC will make payment on the first business day after the 19th day of each calendar month. Please consult the BGS SMAs for additional details.



8/15/2018, in Rates.
FAQ-29

What were the tranche fees for the 2018 auction?


The tranche fees for the 2018 BGS Auctions were as follows:
BGS-CIEP: $22,500/tranche
BGS-RSCP: $26,900/tranche



8/15/2018, in Rates.
FAQ-28

Does the JCP&L Firm Transmission Rate for 2018 include costs other than NITS? The announced rate for JCP&L is $68.69/MW-day, but the NITS rate posted by PJM is $64.65/MW-day.


The rate also includes Transmission Enhancement Charges (“TECs”) applicable to JCP&L’s Customer Share of Schedule 12 TECs for projects being developed by JCP&L.  The rate is net of credits for TECs received from other zones for these projects.  Attachment 1 of JCP&L’s January 9, 2018 filing with the Board shows the derivation of the $68.69/MW day rate and illustrates how Schedule 12 charges are treated.  The $68.69/MW day reflects a “black box” rate settlement that is based on an annual revenue requirement of $135 million (excluding Schedule 12 revenue requirements) and an additional annual revenue requirement of $8.43 million related to the JCP&L Customer Share of Schedule 12 TECs.



8/15/2018, in Rates.
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FAQ-27

Where can I find FAQs from previous BGS Auctions?  I have specific FAQs from prior auctions that I would like to review.


Information, including FAQs, is removed from the BGS Auction website every year in an effort to provide to bidders only information that remains relevant to the current BGS Auctions. However, the Auction Manager posts on a regular basis FAQs from prior auctions that remain relevant.  Please review the postings made on August 14 and August 21.  If the FAQs you are seeking are not posted, please submit your questions to the Auction Manager.



8/15/2018, in General.
FAQ-26

Does the quantity associated with the RPS obligation on the part of BGS suppliers include or not include distribution losses?


The quantity associated with the RPS obligation includes distribution and transmission losses and is de-rated by the marginal loss factor.  The EDCs apply the RPS percentages specified by the BPU to energy supplied by the supplier (and not to sales at the retail meter) and hence apply the RPS percentages to energy including losses. To determine the energy that an LSE must supply, PJM uses loss-loaded schedules and de-rates these schedules by marginal losses to arrive at energy settlement values. The factors used in de-ration are determined for each hour for each EDC by PJM and are available in the BGS Data Room. When calculating the BGS Supplier’s obligations under the RPS, each EDC uses the values from the PJM settlement, which are also the values for settlement under the BGS Supplier Master Agreement, and which are equal to the energy that a BGS supplier must provide.



8/14/2018, in Data.
FAQ-25

Would the Auction Manager consider input from bidders regarding the auction schedule so as to reduce the time commitment of bidders?


The length of the various phases of the auction as well as other auction parameters such as decrements and starting price levels are selected with multiple objectives in mind.  The objective of reducing the time commitment for bidders is an important objective but it is not the only one.  Decrements are calibrated to allow the alignment of relative prices in response to bidder behavior and the amount of information provided to bidders through the decrements is carefully considered.  The Auction Manager as well as the consultant for the Board perform various functions during the bidding rounds, including the verification of results before they are provided to bidders, which take time that must be factored into the schedule.



8/14/2018, in Auction Rules.
FAQ-24

Why is there an automatic extension in round 1?


The automatic extension in round 1 was recommended by the Staff’s consultant in its report following the 2008 BGS Auctions, adopted the following year, and approved by the Board.  The automatic extension is in place not because the Auction Manager believes bidders need the additional time to bid but because the automatic extension in round 1 means that bidders will not gain information that there is at least one bidder that was registered to bid but chose not to participate in the auction when an extension is triggered on the bidder or bidders’ behalf in round 1.  The bidding phase in round 1 is typically longer to allow bidders that may have technical difficulties with the login process to resolve these and still be able to submit a bid.



8/14/2018, in Auction Rules.
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FAQ-23

This is a follow-up on FAQ-18.  Do the following files need adjustments also?

BGS-CIEP Eligible Hourly Load
BGS-CIEP Eligible Peak Load Allocations
BGS-CIEP Peak Load Allocations
BGS-RSCP Eligible Hourly Load
BGS-RSCP Eligible Peak Load Allocations
BGS-RSCP Peak Load Allocations


Yes, the JCP&L hourly load data in the BGS Data Room was developed without netting excess generation and will need to be adjusted.  The peak load allocation files do not need to be adjusted.



8/14/2018, in Data.

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