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Frequently Asked Questions - All, sorted by number

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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-134

What are the meanings for the labels in the NSPL data for JCP&L?


In FAQ-129, the labels for the JCP&L data are not the same as those used elsewhere on the BGS Auction website and they have the following meanings:

- 5,592.2, labelled Total TPS, is Total Eligible (TPS and BGS combined)
- 3,270.8, labelled Total BGS, is for all customers taking BGS (CIEP and RSCP combined)
- 868.7, labelled TPS CIEP Eligible, is Total CIEP Eligible (CIEP customers on BGS and CIEP customers with TPSs combined)
- 96.2 labelled BGS-CIEP is the figure for CIEP customers on BGS
- 4,723.5 labelled TPS RSCP Eligible, is Total RSCP Eligible (RSCP Customers on BGS and RSCP customers with TPSs combined)
- 3,169.4 labelled BGS-RSCP is the figure for RSCP customer on BGS

 



1/18/2018, in Data.
FAQ-133

There are no announcements under ‘announcement archives’ on the website. Why is that?


Information, including announcements, is removed from the BGS Auction website every year in an effort to provide to bidders only information that is most relevant to the upcoming Auctions. The announcement archives are used solely for announcements regarding the 2018 BGS Auctions that are superseded or that cease to be relevant. There have been no archived announcements for the 2018 BGS Auctions.



1/18/2018, in General.
FAQ-132

Is it necessary to obtain the name and title of the individuals expected to execute the Annexes of the Pre-Auction Letter of Credit?


No, the signature blocks of the Annexes to the Pre-Auction Letters of Credit should remain blank. It is not known at this time which specific authorized individual will be available to sign Annex 3 (and Annex 1 if needed). The EDCs will provide the name and title of the signatory at that time.



1/11/2018, in Credit.
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FAQ-131

What are the circumstances under which the EDCs can draw upon a Pre-Auction Letter of Credit? Do these circumstances include not presenting a bid at the Auction?


No. The circumstances under which a Pre-Auction Letter of Credit may be drawn upon are listed in Paragraph 2 of the BGS Pre-Auction Letter of Credit, provided below:

“…This Letter of Credit may be drawn by presenting documents required in Paragraph 3 hereof and your certificate stating that the Bidder

a) “has made a material omission or misrepresentation in the Part 1 Application or the Part 2 Application submitted to participate in the BGS-CIEP Auction; or has violated the BGS-CIEP Auction Rules (the “Rules”)”; or

b) “has a winning bid in the BGS-CIEP Auction and has failed to execute the BGS-CIEP Supplier Master Agreement within three (3) business days of the certification of the BGS-CIEP Auction results by the New Jersey Board of Public Utilities (“Board”) as specified in the Rules”; or

c) “has a winning bid in the BGS-CIEP Auction and has failed to meet the creditworthiness requirements of the BGS-CIEP Supplier Master Agreement within three (3) business days of the certification of the BGS-CIEP Auction results by the Board as specified in the Rules.”



1/11/2018, in Credit.
FAQ-130

Is the deadline for the hardcopy originals of the Pre-Auction Security documents the same as the due date for the Part 2 Form?


Yes. All materials for the Part 2 Application, including Pre-Auction Security documents, have a deadline of noon, January 10, 2018 (the Part 2 Application deadline). Pre-Auction Security documents must be provided as hardcopy originals and delivered to the BGS Auction Manager’s office.



1/11/2018, in Credit.
FAQ-129

Please provide 2018 Network Service Peak Load ("NSPL") data for each of the four EDCs.


PSE&G, JCP&L and ACE have provided Network Service Peak Load (“NSPL”) data for a day in January. The data for RECO will be provided as it becomes available.

PSE&G BGS NSPL MW (01/10/2018):
Total TPS: 3,793.1
Total BGS: 5,725.9
TPS CIEP: 1,554.3
BGS CIEP: 295.6
TPS RSCP: 2,238.8
BGS RSCP: 5,430.3

JCPL-BGS NSPL MW (01/01/2018):
Total TPS: 5592.2
Total BGS: 3270.8
TPS CIEP Eligible: 868.7
BGS-CIEP: 96.2
TPS RSCP Eligible: 4723.5
BGS-RSCP: 3169.4

ACE BGS NSPL MW (01/10/2018):
Total TPS: 873.3
Total Eligible: 2408.0
CIEP Eligible: 306.1
BGS-CIEP: 50.5
RSCP Eligible: 2101.9
BGS-RSCP: 1484.2



1/11/2018, in Data.
FAQ-128

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.



1/11/2018, in Credit.
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FAQ-127

What steps must be taken by the bidder if the committee of EDC representatives reviewing pre-auction security instruments rejects the bidder’s submitted letter of reference?


A bidder always has the option, instead of providing a letter of reference for $1.9M per tranche of the indicative offer at the maximum starting price, to increase the amount of the pre-auction letter of credit from $0.5M to $2.4M per tranche of the indicative offer at the maximum starting price.

As a matter of practice, in the case that you describe, the committee would also provide an opportunity for the bidder to cure any deficiencies with the letter of reference (by resubmitting the executed hardcopy letter of reference with amended text).



1/8/2018, in Credit.
FAQ-126

What are the seasonal factors provided by the EDCs in their compliance filing? Are these final?


The seasonal factors included in the EDCs’ rate design spreadsheets dated December 4, 2017 are 1 for all EDCs as a result of the methodology described in each EDCs’ Company Specific Addendum included with the EDCs’ compliance filing. The EDCs update these calculations with the most recent PJM data and the BGS Auction Manager announces the final seasonal factors no later than six (6) days prior to the Auction.



1/8/2018, in Rates.
FAQ-125

Can you please provide contact information for each of the beneficiaries for purposes of preparing the Pre-Auction Letter of Credit?


The contact information for the beneficiaries of the Pre-Auction Letters of Credit is available from the BGS Auction Manager upon request. Please send your request via email to BGS-Auction@nera.com



1/4/2018, in Credit.
FAQ-124

We did not submit a Part 1 Application. Is there a way we can still bid in the BGS Auctions?


No. All parties interested in participating in the BGS Auctions must become registered to bid by completing a two-part application process, specifically by meeting the requirements of the Part 1 Application and of the Part 2 Application. Bidders that successfully meet the requirements of the Part 1 Application become Qualified Bidders and are the only entities invited to complete the Part 2 Application. In the Part 2 Application for an auction, all Qualified Bidders are asked to make certifications with respect to the list of all Qualified Bidders in that auction so that the list of Qualified Bidders cannot be modified. Qualified Bidders that successfully meet the requirements of the Part 2 Application become Registered Bidders and may bid in the BGS Auctions.



1/4/2018, in Application.
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FAQ-123

Is the bank that issues the Pre-Auction Letter of Credit required to have a New York address?


No. However, the bank is required to comply with the footnote to 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.”



1/2/2018, in Credit, Application.
FAQ-122

Do the signatures on the Letter of Intent to Provide a Guaranty by our Guarantor and by the Bidder on the certification need to be on the same original copy or can the Bidder’s signed portion be delivered to the BGS Auction Manager’s office separately?


The Bidder’s signature of the certification on the Letter of Reference may be submitted separately.



1/2/2018, in Credit, Application.
FAQ-121

Do the signatures on the Letter of Reference by the Issuing Bank and by the Bidder need to be on the same original copy or can the Bidder’s signed portion be delivered to the BGS Auction Manager’s office separately?


The Bidder’s signature of the certification on the Letter of Reference may be submitted separately.



1/2/2018, in Credit, Application.
FAQ-120

Are all Pre-Auction Security documents required to be submitted as hardcopy originals including the Letter of Reference and 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.



1/2/2018, in Credit, Application.
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FAQ-119

Can we submit modifications to the Letter of Intent to Provide a Guaranty?


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.



1/2/2018, in Credit, Application.
FAQ-118

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.



1/2/2018, in Application, Auction Rules.
FAQ-117

Is cash an acceptable form of pre-auction security?


No, cash is not acceptable as pre-auction security. Each Qualified Bidder must submit a Pre-Auction Letter of Credit (or Bid Bond) with its Part 2 Application.



1/2/2018, in Credit, Application.
FAQ-116

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.



1/2/2018, in Credit, Application.
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FAQ-115

Does a Qualified Bidder in the BGS-RSCP Auction need to submit one Pre-Auction Letter of Credit for each EDC or a single Pre-Auction Letter of Credit for all EDCs?


Each Qualified Bidder provides a single Pre-Auction Letter of Credit made to the benefit of all four Electric Distribution Companies (“EDCs”) in its Part 2 Application for the BGS-RSCP Auction. The final Pre-Auction Letter of Credit for BGS-RSCP Bidders, along with a list of acceptable modifications and additional Pre-Auction security documents, can be found on the BGS Auction website on the “application process” page under the “bidder info” tab.



1/2/2018, in Credit, Application.

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What's New

POSTING: EDC Municipal Aggregation Enrollment and CIEP Opt-In Files ...   GO >>

ANNOUNCEMENT: Final Seasonal Factors POSTING: Updated BGS-RSCP Rate Spreadsheets and Rate Spreadsheet Tool...   GO >>

Announcement: Rates for Firm Transmission Service...   GO >>

REMINDER: Part 2 Application Deadline is TODAY, Wednesday, January 10, 2018...   GO >>

REMINDER: Part 2 Application Deadline is TOMORROW, Wednesday, January 10, 2018...   GO >>

REMINDER: Part 2 Application Deadline is Wednesday, January 10, 2018...   GO >>

Announcement: Rates for Firm Transmission Service Expected to be Announced by January 16, 2018...   GO >>

REMINDER: Part 2 Application Deadline is Wednesday, January 10, 2018...   GO >>

ANNOUNCEMENT: Online Part 2 Form AVAILABLE!...   GO >>

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

ANNOUNCEMENT: Compliance Filing Documents Approved as Final Documents; POSTING: Terms and Conditions of Auction Software ...   GO >>

REMINDER: Part 1 Application is Due TOMORROW, Tuesday, December 12!...   GO >>

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

REMINDER: Part 1 Application is Due Tuesday, December 12!...   GO >>

POSTING: Compliance Filing Documents...   GO >>

REMINDER: Part 1 Application is Due Tuesday, December 12!...   GO >>

POSTING: Auction Rules and Supplier Master Agreements...   GO >>

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

ANNOUNCEMENT: Daily FAQ Postings; POSTING: Association and Confidential Information Rules Q&A ...   GO >>

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

ANNOUNCEMENT: Board Decision on BGS Proposals...   GO >>

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 >>