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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-114

When will the tranche fees for the 2020 BGS Auction be announced and when will they be due?


The tranches fees will be announced on Tuesday, January 21, 2020. The tranche fee will be netted against the first payment made to the BGS Supplier during the supply period. FAQ-11 provides, for informational purposes, the tranche fees from the 2019 BGS Auctions. This information can be found on the "calendar" tab of the BGS Auction website.



1/13/2020, in General.
FAQ-113

Are the hourly load and peak load allocation historical monthly data series in the BGS Data Room for JCP&L gross or net of the 10 MW allocation of the St Lawrence project that JCP&L has been receiving historically?  


The hourly load and peak load allocation values in the historical monthly data in the BGS Data Room for JCP&L are gross of the 10 MW allocation of the St Lawrence project received by JCP&L historically; the 10 MW associated with the St. Lawrence project has not been deducted from these monthly data series.



1/13/2020, in Data.
FAQ-112

Can you please confirm or correct the values in the file “JCP&L_CIEP_Eligible_Hourly_Excess_Generation_December_2019_Update.xlsb”, which are entirely positive?  Is there an excess generation file for BGS-RSCP?


JCP&L has reviewed the data in question and has provided updated values for the CIEP-Eligible Hourly Load Excess Generation data to correct the sign. On January 10, 2020 the BGS Auction Manager posted an updated "JCP&L_CIEP_Eligible_Hourly_Excess_Generation" file to the monthly data page of the BGS Data Room.

The excess generation data can be summed with the load data reported in the BGS Data Room to derive net load. Generally, BGS-RSCP data is calculated as the residual (as Total BGS less BGS-CIEP). As the BGS Auction Manager does not provide excess generation data for the BGS-RSCP Hourly Load data, to develop BGS-RSCP load net of excess generation, one would subtract the BGS-CIEP Hourly load data (net of any excess generation) from the Total BGS Hourly load data (net of excess generation).



1/13/2020, in Data.
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FAQ-111

Will the EDCs review a draft credit instrument prior to our bank issuing such document?


The EDCs do not provide courtesy reviews of draft documents. Samples of the Letter of Reference are available on the “application process” page of the “bidder info” tab of the BGS Auction website. A bidder that uses these samples can be assured that they are acceptable to the EDCs. If a bidder submits a Letter of Reference in another format, this executed and final Letter of Reference will be reviewed by a committee of the EDCs after receipt of the Part 2 Application. The bidder will be notified of any needed amendment as soon as the committee has made its evaluation and in no event later than 6 PM EPT on January 10, 2020.



1/3/2020, in Credit.
FAQ-110

Is the individual named in the BGS-RSCP Contract Insert (#P2-2) as the individual who will witness the signature of the BGS-RSCP Supplier Master Agreement expected to sign the SMA as well?  Additionally, is the witness required to be a notary?


The individual named in the BGS-RSCP Contract Insert (#P2-2) that will witness the signature of the BGS-RSCP Supplier Master Agreement (“SMA”) is expected to sign the BGS-RSCP SMA; however, the individual named as the witness is not required to be a notary.



1/3/2020, in Supplier Master Agreement .
FAQ-109

Is a Bidder’s bid in the BGS-RSCP Auction required to reflect that Bidder’s preliminary interest provided in the online Part 2 Application?


A Bidder’s preliminary interest in each EDC is provided for informational purposes only and not binding.  A Bidder may submit bids during the BGS-RSCP Auction that do not reflect that Bidder’s preliminary interest in each EDC.



1/3/2020, in Auction Rules.
FAQ-108

The NITS rate for PSE&G is expected to increase.  How will this be handled for winners in the 2020 BGS Auctions and for existing BGS Suppliers?


On December 9, PSE&G filed the increase in its NITS rate with the New Jersey Board of Public Utilities (“Board”). This is a filing that occurs on a yearly basis. It is anticipated that, upon approval of the filing by the Board, the transmission rate that would be announced in January 2020 and that would be the effective rate for the 2020 BGS Supplier Master Agreements would include the increase in NITS rate. For existing BGS Suppliers, as with any Section 15.9 filing, PSE&G will track the revenue collected for the benefit of BGS Suppliers and pay BGS Suppliers upon approval by the Board.



12/31/2019, in SMA Section 15.9.
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FAQ-107

Is it expected that a winner at the 2020 BGS-RSCP Auction would be in a position to nominate ARRs?


The BGS-RSCP Auction begins on February 03, 2020. The New Jersey Board of Public Utilities (“Board”) will render a decision on the auction results within two business days of the auction close. Following Board approval of the results, the EDCs and BGS-RSCP Suppliers proceed to complete the contract execution process within three business days. While various events such as winter weather could impact this schedule, it is expected that bidders that become BGS-RSCP Suppliers pursuant to a winning bid in the 2020 BGS-RSCP Auction would be in a position to nominate ARRs for the upcoming 2020/21 delivery year as the ARR nomination process takes place in March.



12/31/2019, in General.
FAQ-106

Is Appendix A intended to serve as the transaction confirmation under the BGS Supplier Master Agreement or is there a separate document that serves as the transaction confirmation? 


There is no separate transaction confirmation under the BGS Supplier Master Agreements. While the BGS contracts are called “master agreements”, a winning supplier at a BGS Auction in a given year will execute an entirely new contract. Appendix A serves to memorialize the final auction price and the supplier responsibility share for that year, as well as to provide contact information for the supplier.



12/31/2019, in Supplier Master Agreement .
FAQ-105

Our internal procedures require us to obtain W-9s for each of the EDCs as beneficiaries to the Pre-Auction Letter of Credit. Can you please provide those documents?


These documents are available upon request from the Auction Manager.



12/20/2019, in Application, Pre-Auction Security.
FAQ-104

Are we required to submit separate letters of credit to participate in the BGS-CIEP and BGS-RSCP Auctions?


Yes. You are required to submit a BGS-CIEP Pre-Auction Letter of Credit and a BGS-RSCP Pre-Auction Letter of Credit to participate in the BGS-CIEP and BGS-RSCP Auctions. The standard forms of the Pre-Auction Letter of Credit to be used by BGS-RSCP Bidders and the Pre-Auction Letter of Credit to be used by BGS-CIEP Bidders in the submission of their Part 2 Applications are posted to the Contract & Credit page of the “Bidder info” tab of the BGS Auction website.



12/20/2019, in Pre-Auction Security.
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FAQ-103

Where can I find the final BGS-RSCP Pre-Auction Letter of Credit and the final BGS-CIEP Pre-Auction Letter of Credit?


The standard forms of the Pre-Auction Letter of Credit to be used by BGS-RSCP Bidders and the Pre-Auction Letter of Credit to be used by BGS-CIEP Bidders in the submission of their Part 2 Applications are posted to the Contract & Credit page of the “bidder info” tab of the BGS Auction website. A list of modifications to the Pre-Auction that are acceptable to the EDCs and that can be incorporated by any supplier on an optional basis is also posted to this page.



12/20/2019, in Pre-Auction Security.
FAQ-102

Can the BGS-RSCP and BGS-CIEP Pre-Auction Letters of Credit expire in late February?


Paragraph 1 of the BGS-RSCP Pre-Auction Letter of Credit states that the BGS-RSCP Pre-Auction Letter of Credit shall expire at least sixty (60) calendar days from the date of issuance. Paragraph 1 of the BGS-CIEP Pre-Auction Letter of Credit states that the BGS-CIEP Pre-Auction Letter of Credit shall expire at least sixty (60) calendar days from the date of issuance. The standard forms of the Pre-Auction Letter of Credit to be used by BGS-RSCP Bidders and the Pre-Auction Letter of Credit to be used by BGS-CIEP Bidders in the submission of their Part 2 Applications are posted to the Contract & Credit page of the “bidder info” tab of the BGS Auction website. The deadline to submit the Part 2 Application is 12 PM EPT.



12/20/2019, in Pre-Auction Security.
FAQ-101

Is it acceptable to change Paragraph 4 of the Pre-Auction and Post-Auction Letter of Credit so that the bank transfer funds later than what is contemplated by this paragraph?  


With its Part 2 Application, a Qualified Bidder is required to submit a Pre-Auction Letter of Credit using either the standard form or using only modifications that are acceptable to the EDCs. The final list of acceptable modifications to the Pre-Auction Letter of Credit does not include a modification that would allow the bank to transfer funds later than the deadlines provided by Paragraph 4. The deadline for proposing modifications has passed and the EDCs will not consider additional requests in this regard. The same holds true for the Post-Auction Letter of Credit. Please note that under the term of the BGS Supplier Master Agreement, a BGS Supplier can use cash instead of a letter of credit to post any required collateral.



12/19/2019, in Credit, Pre-Auction Security.
FAQ-100

It appears that there is no December update in the following file: RECO_BGS-RSCP_Hourly_Load_December_2019_Update.  Can you please post a new file with the update?


Thank you for bringing this to our attention.  The Auction Manager has posted a new RECO_BGS-RSCP_Hourly_Load_December_2019_Update file to the Monthly Data Page of the BGS Auction website.



12/19/2019, in Data.
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FAQ-99

Which party is responsible for paying any transfer fees should the post-auction letter of credit be transferred to a different beneficiary?


Any and all transfer fees, expenses and costs are borne by the Applicant.



12/19/2019, in Credit, Pre-Auction Security.
FAQ-98

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.



12/11/2019, in Pre-Auction Security.
FAQ-97

In the event that we become a winning bidder in the Auction, is it required for the Authorized Representative or the Officer who names the Authorized Representative in the Part 1 Application to be the individual who executes the applicable Supplier Master Agreement (“SMA”)?


Neither the Authorized Representative, nor the Officer who names the Authorized Representative in the Part 1 Application, is required to be the individual who would execute the applicable SMA should the bidder win at the Auction.

In the event that you become a winning bidder in the Auction, the entity that executes the applicable SMA must be the same entity that has agreed to the terms of the SMA in the Part 1 and Part 2 Applications. However, the individual who signs the SMA can be any officer or representative who is authorized to execute contracts and bind the bidder.



12/11/2019, in Supplier Master Agreement .
FAQ-96

Is an Applicant to the BGS Auctions required to be a Load-Serving Entity (“LSE”) in the PJM Interconnection, L.L.C. (“PJM”) at the time of submitting the Part 1 Application?


No, the Applicant is not required to be a PJM LSE at the time of submitting the Part 1 Application. However, if the Applicant is not a PJM LSE at the time of submitting the Part 1 Application, the Applicant must certify in its Part 1 Application that there exist no impediments for the Applicant to become a PJM LSE by the start of the supply period (by using the LSE Certification Insert labelled #P1-4).



12/11/2019, in Application.
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FAQ-95

We do not have an office in New Jersey and we do not have a legal representative in New Jersey. What are our options to comply with the requirements of Section 3 of the Part 1 Application?


Section 3 of the Part 1 Application does not compel the Applicant to have an office in New Jersey or to have legal counsel in New Jersey. Section 3 requires that the Applicant name a legal representative; for purposes of the Part 1 Application, a legal representative is a person or company that agrees to accept service of process on the Applicant’s behalf. The legal representative can be either legal counsel or a representative agent. The individual or company serving as the Applicant’s legal representative must provide an address in New Jersey. If a company agrees to accept service of process on your behalf, an individual from that company must sign the Legal Representative Insert (labelled #P1-3). The name of the individual and contact information must be provided.



12/11/2019, in Application.

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What's New

REMINDER: Part 2 Application Deadline is TODAY, January 09, 2020 at 12PM (noon) EPT...   GO >>

REMINDER: Part 2 Application Deadline is TOMORROW, January 09, 2020...   GO >>

UPDATE to JCP&L Peak Load Share and MW-Measure...   GO >>

ANNOUNCEMENT: Board Issues an Order on St. Lawrence Petition...   GO >>

REMINDER: Part 2 Application Deadline is Thursday, January 09, 2020...   GO >>

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

Board Approves Results of 2019 BGS Auctions...   GO >>