BGS Auction brandmark
Search:
 
Frequently Asked Questions - All, sorted by number

Do you have a question? Click here.

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.

 

Go to page: 1(newest)  2  3  4  5  6  7(oldest)  Next 

FAQ-123

Please provide the 2019-2020 Peak Load Contribution ("PLC") and 2019 Network Service Peak Load ("NSPL") data for each of the four EDCs.


The EDCs provide only historical data. The EDCs expect to provide Network Service Peak Load (“NSPL”) data for a day in January as soon as the data becomes available.



1/8/2019, in Data.
FAQ-122

Please provide contact information for each beneficiary of the Pre-Auction Letter of Credit.


Contact information for the beneficiaries of the Pre-Auction Letter of Credit is available upon request from the Auction Manager.  Please send your request to BGS-Auction@nera.com.  



1/8/2019, in Credit.
FAQ-121

Why does Annex 2 of the Pre-Auction Letter of Credit have the signature line for a single EDC (rather than signature lines for each of the four EDCs like Annex 1)?


When drawing upon the Pre-Auction Letter of Credit, the EDCs together would present a notice in the form of Annex 1.  Annex 2 is structured so that an EDC would individually present Annex 2 if it is to receive an amount pursuant to the draw.  (It is possible that some but not all EDCs would receive an amount under a draw and Annex 2 is structure with that possibility in mind). 



1/8/2019, in Credit.
Back to Top
FAQ-120

When does the Auction Manager expect to update the EDC Municipal Aggregation Enrollment data?


Updated: On January 9, 2019, the Auction Manager posted an updated EDC Municipal Aggregation Enrollment file on the Additional Data page of the BGS Auction website. The previously posted EDC Municipal Aggregation Enrollment file, dated January 8, 2019, was incomplete.  Please refer to the version of the EDC Municipal Aggregation Enrollment file dated January 9, 2019.

[This response was updated on January 10, 2019]  



1/8/2019, in General.
FAQ-119

If we are awarded tranches in a BGS Auction, when must we meet the credit requirements of the BGS Supplier Master Agreement?


The New Jersey Board of Public Utilities (“BPU”) is expected to render its decision on the results of the BGS-CIEP and BGS-RSCP Auctions within two business days of the close of the BGS-CIEP or BGS-RSP Auction, whichever occurs later.  If the BPU approves the results of a BGS Auction, the Auction Manager will notify any winning bidders of such approval that same day.  Winning bidders will then be contacted directly by the EDCs regarding the execution of the BGS Supplier Master Agreement.  Winning bidders must execute the SMA, and must meet all credit requirements of the SMA, within three business days of the BPU’s decision.



1/8/2019, in Credit, SMA Section 15.9.
FAQ-118

Are all Pre-Auction Security documents required to be submitted as hardcopy originals? Or can we submit scans of the Letter of Reference or the Letter of Intent to Provide a Guaranty?


All Pre-Auction security documents must be provided as hardcopy originals and delivered to the BGS Auction Manager’s office.



1/4/2019, in Application.
FAQ-117

Are bidders committed to bidding in round 1 of the Auction the number of tranches in their indicative offer at the maximum starting price as submitted in their Part 2 Application?


A bidder cannot bid more in the first round of the Auction than its indicative offer at the maximum starting price (the number of tranches for which the bidder has submitted Pre-Auction Security as required by the Part 2 Application). While a bidder cannot bid more in the first round of the Auction than its indicative offer at the maximum starting price, a bidder can bid less than that amount, including submitting a bid for zero tranches.



1/4/2019, in Application.
Back to Top
FAQ-116

Is cash an acceptable form of pre-auction security?


No, cash is not acceptable as pre-auction security. Each Qualified Bidder in an auction must submit a Pre-Auction Letter of Credit (or Bid Bond) for that auction (either the BGS-CIEP Auction or the BGS-RSCP auction) with its Part 2 Application.



1/4/2019, in Application.
FAQ-115

When should the expiry date be for the BGS Pre-Auction Letter of Credit?


The expiry date must be at least sixty (60) calendar days from date of issuance of the BGS Pre-Auction Letter of Credit.



1/4/2019, in Application.
FAQ-114

Does a winning supplier execute a new BGS Supplier Master Agreement every year or can new tranches won this year fall under the terms of the BGS Supplier Master Agreement that we previously signed with an EDC?


A new BGS Supplier Master Agreement is used every year between a supplier and an EDC for which the supplier has won tranches at the auction, regardless of whether the supplier is a current or past BGS Supplier for that EDC. After the 2019 BGS Auctions, if the New Jersey Board of Public Utilities approves the results of the auctions, all suppliers with winning tranches for an EDC will be required to execute the final 2019 BGS Supplier Master Agreement with that EDC.



1/4/2019, in Application.
FAQ-113

What happens if a Qualified Bidder cannot make one or more of the certifications in the Part 2 Application?


It depends on the certification. Some certifications of the Part 2 Applications are required for a Qualified Bidder to become a Registered Bidder. For example, a Qualified Bidder must certify that, other than agreements disclosed in the Part 1 Application, the Qualified Bidder has not entered into any agreement with any other Qualified Bidder regarding participation in the auction for which it is applying. If a Qualified Bidder is unable to make this certification, the Qualified Bidder will not be able to participate in the Auction. Other certifications of the Part 2 Application allow the Qualified Bidder to make an information disclosure to explain why it is unable to make a certain certification. For example, a Qualified Bidder that is unable to certify that it is not associated with any other Qualified Bidder will be asked to identify the Qualified Bidder(s) with which it is associated, and will be asked to describe the nature of the association. If a Qualified Bidder makes such a disclosure because it cannot make one of the certifications in the Part 2 Application, this disclosure will be considered when the Part 2 Application is processed. The Auction Manager may require additional information and will decide on a course of action on a case-by-case basis to preserve the competitiveness and integrity of the Auction. This course of action could include allowing the Qualified Bidder to complete the Part 2 Application successfully without additional undertakings, could include requiring additional undertakings as a condition for the successful completion of the Part 2 Application and for participation in the Auction, or could include rejection of the Part 2 Application.



1/4/2019, in Application.
Back to Top
FAQ-112

Is there a requirement that the bank that issues the Pre-Auction Letter of Credit be the same as the bank that issues the Letter of Reference?


Both the Pre-Auction Letter of Credit and the Sample Letters of Reference require that the issuing bank have an unsecured debt rating of “A” from Standard & Poor’s or “A2” from Moody’s. Furthermore, the 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. However, there is no requirement for the bank issuing the Pre-Auction Letter of Credit to be the same as the bank that issues any letter of reference.



1/4/2019, in Application.
FAQ-111

The BGS-RSCP Peak Load Allocations in the BGS Data Room for the December 2018 data update shows the data for BGS Peak Load Allocations. Please post the revised file with corrected data.


Thank you for bringing this to our attention. We apologize for this error. The BGS-RSCP Peak Load Allocation files for each of the four EDCs have been posted to the BGS Data Room on December 20, 2018.



1/3/2019, in Data.
FAQ-110

Can we submit a Letter of Intent to Provide a Guaranty that does not follow the sample provided on the BGS Auction website?


The sample Letter of Intent to Provide a Guaranty available on the “application process” page of the “bidder info” tab is acceptable to all the EDCs. Should you submit with your Part 2 Application a Letter of Intent to Provide a Guaranty that does not follow this sample, the Letter of Intent to Provide a Guaranty will be evaluated by the EDCs at the time of your Part 2 Application. If the Letter of Intent to Provide a Guaranty is not acceptable to all EDCs, you will have two business days to amend the Letter of Intent to Provide a Guaranty so that it is acceptable to all EDCs.



12/19/2018, in Application, Credit.
FAQ-109

Is the Letter of Intent to Provide a Guaranty posted as a “sample” to the BGS Auction website the final one, or will there be another version marked “final” posted at a later time? 


The sample Letter of Intent to Provide a Guaranty available on the “application process” page of the “bidder info” tab is final and is acceptable to all the EDCs.



12/19/2018, in Application, Credit.
Back to Top
FAQ-108

What is JCP&L’s NITS revenue requirement for 2019?


JCP&L’s NITS rate was provided as part of the settlement agreement filed with the FERC in Dockets ER17-217-000, ER17-217-001, and ER17-217-003.  The annual NITS revenue requirement for 2019 is $135,000,000.  (Please note that this is the NITS revenue requirement only and does not include Transmission Enhancement Charges). 



12/19/2018, in General.
FAQ-107

Should the Daily Zonal Scaling Factors (DZSF) provided for ACE be used to adjust the ACE Capacity Peak Load Allocation (“PLA”) data or the ACE Transmission PLA data?


The Daily Zonal Scaling Factors (DZSF) provided for ACE should be used to adjust the ACE Capacity PLA data. ACE provides Transmission PLA data already scaled, and this data does not need to be adjusted. Please see the Data Description document posted on the “monthly data” page for more information.



12/12/2018, in Data.
FAQ-106

I uploaded a document in error to the online form.  How do I delete the file?


Documents uploaded to the online application forms cannot be deleted. If you uploaded an incorrect file, you can supersede the incorrect file by uploading a new file. If you intended to leave an upload space blank, you can either: (1) upload a blank document; or (2) note in Section 11, Justification of Omissions, that the BGS Auction Manager should disregard the uploaded file when assessing your application.



12/6/2018, in Application.
FAQ-105

Where should the Pre-Auction Letter of Credit be sent?  Do you have contact information for the beneficiaries at this time?


The Pre-Auction Letter of Credit should be sent to:

BGS Auction Manager

One Gateway Center, Suite 720

Newark, NJ 07102

Phone: (973) 297-0880

This mailing address is also provided in Paragraph 14 of the Pre-Auction Letters of Credit.  The BGS Auction Manager will provide contact information for the beneficiaries (an individual at each of the EDCs) as soon as available.



12/6/2018, in Credit.
Back to Top
FAQ-104. If we present financial information for a Guarantor in the Part 1 Application and we are qualified on that basis, can we change the entity upon whose financial standing we are relying at a later time?

No. The Auction Manager provides to each Qualified Bidder a notification of qualification that includes the requirements for presenting pre-auction security with the Part 2 Application. These requirements are based on the financial information provided in the Part 1 Application.  In particular, a Qualified Bidder that named a Guarantor in the Part 1 Application is required either:

  • to provide a Pre-Auction Letter of Credit in an amount of $500,000 per tranche of the indicative offer at the maximum starting price and a Letter of Intent to Provide a Guaranty in an amount of $1.9M per tranche of the indicative offer at the maximum starting price; or:
  • to provide a Pre-Auction Letter of Credit in an amount of $2.4M per tranche of the indicative offer at the maximum starting price.

There is no mechanism or opportunity for the Qualified Bidder to request a creditworthiness assessment of another entity (including itself) after the Part 1 Application process is complete.



12/3/2018, in Application.

Go to page: 1(newest)  2  3  4  5  6  7(oldest)  Next 

Back to Top

What's New

POSTING: BGS-CIEP Opt-Ins File...   GO >>

REMINDER: Part 2 Application Deadline is Thursday, January 10, 2019...   GO >>

REMINDER: Part 2 Application Deadline is Thursday, January 10, 2019...   GO >>

POSTING: Revised Order Regarding RPS Obligations for BGS Suppliers...   GO >>

POSTING: Order Regarding RPS Obligations for BGS Suppliers...   GO >>

ANNOUNCEMENT: Technical Issues Resolved...   GO >>

ANNOUNCEMENT: Online Part 2 Form Now OPEN!...   GO >>

ANNOUNCEMENT: Temporary Technical Issues...   GO >>

DEADLINE: Part 1 Application is Due by NOON TODAY!...   GO >>

DEADLINE: Part 1 Application is Due TOMORROW!...   GO >>

POSTING: Bidder Information Materials...   GO >>

REMINDER: Part 1 Application is Due Tuesday, December 18! ...   GO >>

ANNOUNCEMENT: Compliance Filing Documents Approved as Final Documents ...   GO >>

REMINDER: Part 1 Application is Due Tuesday, December 18!...   GO >>

POSTING: Compliance Filing Documents...   GO >>

ANNOUNCEMENT: Daily FAQ Postings; REMINDER: Part 1 Applications Due by NOON on December 18...   GO >>

ANNOUNCEMENT: Online Part 1 Form Now Open!...   GO >>

ANNOUNCEMENT: Stakeholder Meeting Regarding RPS Obligations for BGS Suppliers...   GO >>

POSTINGS: Bidder Information Webcast Presentation and Board Order on BGS Auction Process...   GO >>

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

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

ANNOUNCEMENT: Board Decision on BGS Proposals INVITATION: RSVP for BGS Webcast...   GO >>

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

ANNOUNCEMENT: Minimum and Maximum Starting Prices, Tranche Targets, and Load Caps for the 2019 BGS-RSCP Auction...   GO >>

ANNOUNCEMENT: Minimum and Maximum Starting Prices, Tranche Targets, and Load Caps for the 2019 BGS-CIEP Auction...   GO >>

POSTING: Association and Confidential Information Rules Q&A...   GO >>

POSTINGS: Pre-Auction Security Documents and Post-Auction Letter of Credit...   GO >>

REMINDER: Deadline to Propose Modifications to the Letters of Credit is TOMORROW!...   GO >>

REMINDER: Deadline to Propose Modifications to the Letters of Credit is Tuesday, October 23; POSTING: Bidder Information Packet...   GO >>

POSTINGS: Illustrative Application Forms and Bidder Information Webcast Presentation...   GO >>

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

Deadline for Final Comments on Proposals for Procurement of BGS is Tomorrow, Friday, October 12...   GO >>

FINAL REMINDER: Bidder Information Webcast TODAY!...   GO >>

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

REMINDER: Alternate Guaranty Process: Expressions of Interest Due October 23...   GO >>

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

ANNOUNCEMENT: Hearing on Proposals for Procurement of BGS...   GO >>

POSTING: Alternate Guaranty Process...   GO >>

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

POSTING: BGS-RSCP Pricing Spreadsheet Tool...   GO >>

POSTING: First FAQs...   GO >>

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

Board Approves Results of 2018 BGS Auctions...   GO >>