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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 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-36

Does the Auction Manager advise potential bidders of the schedule for the BGS proceeding?


The dates of the schedule for the BGS proceeding are included on the ‘calendar’ tab of the BGS Auction website. Furthermore, the Auction Manager sends reminders of upcoming deadlines, which are available on the ‘announcements’ page of the ‘news’ tab on the BGS Auction website.



11/4/2019, in General.
FAQ-35

We are calculating various statistics using JCP&L switching data and we are not able to reconcile to the Peak Load Allocation data for JCP&L.  What could cause the discrepancy?


The customer population in the aggregate switching statistics file is different than that of the BGS-RSCP Eligible PLA file. Each load range in the aggregate switching statistics data is actually a mix of CIEP and RSCP customers based on their current capacity obligations, while the daily PLA file and Switching Statistics by Rate Class (in the additional data section of the data room) are based on the designation of a customer as having a PLA for a year that would qualify the customer for RSCP. The daily PLA data and the switching statistics by rate class are the best guide to actual RSCP eligible load, BGS-RSCP load, and RSCP eligible load served by TPSs recognizing the annual designation of a customer as an RSCP customer. Reported switching data provides additional, complementary information but is not constructed using the same definitions as used to determine the BGS-RSCP peak load allocation on any given day.



11/4/2019, in Data.
FAQ-34

Will previously acceptable modifications to the letters of credit remain acceptable this year?


The lists of acceptable modifications to the letters of credit are posted to the ‘contract and credit’ page of the ‘bidder info’ tab of the BGS Auction website. The EDCs review the list of previously acceptable modifications to ensure that such modifications remain acceptable to the EDCs.



11/4/2019, in Credit.
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FAQ-33

Can we propose modifications to the Letter of Reference?


Three (3) samples for the letter of reference will be made available to bidders. There is no process to request a modification to a sample letter of credit. A bidder that uses any of one of these samples can be assured that the letter of reference will be acceptable to the EDCs. If a bidder uses a different letter of reference and it is not acceptable to the EDCs, the bidder will have two business days to provide a replacement document.



11/4/2019, in Credit.
FAQ-32

When will bidders receive their login credentials to access the Part 1 Application?


Under the schedule proposed by the EDCs, the online application portal will be made available to bidders starting December 18, 2019. We would expect to send the login credentials to returning bidders as well as to any bidders that have requested an account by December 16, 2019. Please note that this schedule is subject to change depending on the Board decision in the proceeding. Should this timing change, we will update this response.



11/4/2019, in General.
FAQ-31

We proposed modifications to the letters of credit in a previous auction.  Do we need to resubmit these modifications or do you keep previously proposed modifications for reconsideration in the current BGS Auction process?  


If the modifications that you previously proposed appear in the list of acceptable modifications posted to the ‘contract and credit’ page of the ‘bidder info’ tab of the BGS Auction website, then there is no need to propose the same modifications again. If you are unsure or if some of your previously proposed modifications do not appear in the list of acceptable modifications, then please resubmit your proposed modifications. We do not keep proposed modifications from prior auctions for consideration in the current BGS Auction process.



11/4/2019, in Credit.
FAQ-30

Are bidders allowed to submit a Letter of Reference as part of their financial guarantee?


A Letter of Reference in addition to the Pre-Bid Letter of Credit is acceptable. Such financial guarantee must be submitted in the Part 2 Application.   

A Qualified Bidder for the BGS-RSCP Auction will be required to post a letter of credit in an amount of $500,000 per tranche of its indicative offer at the maximum starting price. A Qualified Bidder that does not rely on the financial standing of a guarantor and that does not have unsecured credit sufficient to meet an amount equal to $2.4M times the number of tranches in its indicative offer at the maximum starting price will be required to submit a letter of reference in an amount of $1.9M per tranche of its indicative offer at the maximum starting price.  Alternatively, the Qualified Bidder can increase the amount of its letter of credit to $2.4M per tranche of its offer at the maximum starting price.



11/4/2019, in Credit.
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FAQ-29

Under the proposed change proposed by the EDCs, when would the BGS Supplier be required to transfer RECs? 


The EDCs have proposed that BGS Suppliers would either:  (i) provide RECs and SRECs to the EDCs after each of the first three quarters of the Energy Year; or (ii) post collateral for the value associated with such RECs and SRECs.  Starting on September 10, 2020, and on the tenth (10th) Business Day of each December, March, and September thereafter during the term of this Agreement, the EDC would provide to the BGS Supplier a statement with an estimate of the BGS Supplier’s obligations under the Renewable Portfolio Standards for the previous three (3) months.  By the last business Day of the month following the month during which the statement is received, the BGS Supplier would then either transfer the RECs or SRECs or post collateral for the value of the RECs and SRECs.  The Board is expected to render a decision on the EDCs’ initial proposal (filed on July 1, 2019) as well as the supplemental proposal prior to the due date for the Part 1 Applications.   



11/4/2019, in General.
FAQ-28

What have the EDCs proposed to address the capacity price uncertainty during the 2022/2023 delivery year?


The EDCs filed a supplemental proposal to the Board on October 8, 2019.  The supplemental proposal is available on the "contract and credit" page of the "bidder info" tab of the BGS Auction website.  In the supplemental proposal, the EDCs have proposed to set a proxy price for the 2022/2023 delivery year.  In the 2022/2023 delivery year, winning BGS-RSCP suppliers would be paid the difference between the value of the actual capacity price charged to them by PJM and the proxy price (or their payment for load served will be reduced by this difference should the proxy price be greater than the actual capacity price) as well as the closing price (cents/kWh) in the BGS-RSCP Auction for the load served.  The Board is expected to render a decision on the EDCs’ initial proposal (filed on July 1, 2019) as well as the supplemental proposal prior to the due date for the Part 1 Applications.   



11/4/2019, in Rates.
FAQ-27

Can you please provide the deadline for filing initial written comments on the EDCs’ proposal and the deadline by which we must provide notice if we want to present oral comments in person at the Legislative-type hearing on September 19th?


Initial Comments in the 2020 BGS proceeding are due September 4, 2019.  Initial Comments are written comments on any aspect of the EDCs’ proposal.  The Legislative-type hearing, scheduled for September 19th, is for parties wishing to appear in person and provide oral comments to the Board.  Parties wishing to be heard at the Legislative-type hearing should e-mail Stacy Peterson, at stacy.peterson@bpu.nj.gov by September 9, 2019.  Final Comments, which are due October 4, 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.



9/3/2019, in General.
FAQ-26

When will the online Part 2 Form become available?


It is expected that the online Part 2 Form will become available on the day when bidders are notified that they have qualified for the 2020 BGS Auctions pursuant to a successful Part 1 Application.  For the 2020 BGS Auctions, this is expected to be January 14, 2020.



8/21/2019, in Application.
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FAQ-25

If we have comment on the proposed BGS Supplier Master Agreements, should these be included in the Initial Comments or in the Final Comments?


In its April 18, 2019 procedural order initiating the BGS proceeding for the period starting June 1, 2020 (Docket No. ER19040428), the New Jersey Board of Public Utilities (“Board”) set a deadline of September 4, 2019 for Initial Comments.  Initial Comments are intended to be comments on any aspect of the EDCs’ proposal.  In particular, any comments that suppliers have on the Supplier Master Agreements should be submitted as Initial Comments.  Final Comments, which are due October 4, 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.

Initial Comments must be filed by September 4, 2019 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

Initial 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 Stacy Peterson at Stacy.Peterson@bpu.nj.gov.



8/21/2019, in General.
FAQ-24

Will the proposed BGS process be amended given the postponement of PJM’s BRA?


The EDCs are aware of the FERC Order issued on July 25, 2019 pertaining to the postponement of the Base Residual Auction planned for August 2019.  The EDCs are continuing to monitor the activity and filings at the FERC and PJM concerning potential changes to the PJM capacity market.  As events unfold and the impact of any subsequent and related FERC or PJM actions on the 2020 BGS Auctions can be assessed, the EDCs will consider and may propose subsequent enhancements to the BGS process to the New Jersey Board of Public Utilities as appropriate.



8/13/2019, in General.
FAQ-23

Can you please confirm that the data within the JCP&L BGS-RSCP Peak Load Allocations file as well as the data within the Switching Statistics for BGS-RSCP Eligible Customers are correct for June 2019?


JCP&L has confirmed that the values in both the “BGS-RSCP Peak Load Allocations” file and the “Switching Statistics for BGS RSCP Eligible < 750 kW Customers” file are correct for June 2019.



8/13/2019, in Data.
FAQ-22

Can you please confirm that myself and my colleague are registered to receive announcements about the BGS Auctions?  Can you please also provide information specific to the upcoming BGS Auction process?


We can confirm that the two email addresses you have provided are now registered to receive information and updates on future BGS events from the Auction Manager.

On July 1, 2019, the four New Jersey EDCs filed a proposal for the procurement of BGS Supply for the period beginning June 1, 2020 (the “July Filing”). The proposal, including the documents proposed to be the Auction Rules and Supplier Master Agreements, can be found on the “bgs proceeding” page of the BGS Auction website. 

Additional information regarding the BGS Auctions will be available on the BGS website when it becomes available.



8/13/2019, in General.
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FAQ-21

If we become a winning bidder, can we include the ICRT Table within the Post-Auction Letter of Credit or should we expect to amend the amount as the ICRT declines over the term of the contract?


Winning BGS-RSCP bidders that choose to meet the credit requirements of the BGS-RSCP Supplier Master Agreement using a letter of credit must do so using the standard form of the Post-Auction Letter of Credit or including only modifications acceptable to the EDCs.  The standard form of the Post-Auction Letter of Credit as well as the list of Acceptable Modifications to the Post-Auction Letter of Credit can be found on the contract and credit page of the BGS website.  Please note that the Schedule for the Independent Credit Requirement per Tranche (“ICRT”) is not included in either of these documents so that the Post-Auction Letter of Credit is expected to be amended as the ICRT declines over the term of the contract.



8/13/2019, in Credit.
FAQ-20

Does the Auction Manager provide contact information for the EDCs for purposes of the contract execution process?


After the New Jersey Board of Public Utilities (“BPU”) renders its decision on the results of the BGS Auctions,  winning bidders are contacted directly by the EDCs with which they have won tranches.  No contact information for the EDCs is provided prior to that point.



8/13/2019, in Supplier Master Agreement .
FAQ-19

Will BGS suppliers be responsible for paying for Zero Emission Credits?


On November 19, 2018, the Board issued an Order (Docket E018080899) approving a Zero Emission Certificates (“ZEC”) program including a mechanism for the EDCs to purchase ZECs from selected nuclear power plants.  As required by Senate Bill 2313 (the “Act”), each EDC filed with the Board a tariff to recover from its retail distribution customers a non-bypassable, irrevocable charge in the amount of $0.004 per kWh. Also on November 19, 2018, the Board approved the modified tariff filed by JCP&L and ordered the remaining three EDCs to file revised tariffs to implement the charge (Docket E018080899, Agenda Items: 9C-9). Thus, BGS suppliers bear no cost to acquire the ZECs.



8/13/2019, in General.
FAQ-18

Do the transmission rates announced in FAQ-9 assume that ConEd Wheel, Linden VFT, and Hudson Transmission Partners (“HTP”) have been approved?  Will the EDCs then withhold the portion of the announced transmission rate that reflects these reallocations?


The payments made by PSE&G to BGS Suppliers will reflect these cost reallocations from ConEd Wheel, Linden VFT, and Hudson Transmission Partners (“HTP”) only when a Final FERC Order as defined in the Supplier Master Agreement (“SMA”) is entered in these matters or when PSE&G otherwise receives authorization from the New Jersey Board of Public Utilities (“Board”) to pay BGS Suppliers.

The transmission rate listed for PSE&G in FAQ-9 does include the cost reallocations from ConEd Wheel, Linden VFT, and HTP.   The transmission rate announced for PSE&G corresponds to the rate that BGS Suppliers are currently seeing on their PJM statements and is the basis for the rates paid by BGS customers.  The portion of this announced transmission rate that corresponds to the cost reallocations from ConEd Wheel, Linden VFT, and HTP will be withheld from BGS Suppliers.   The amounts are collected from BGS customers and held by PSE&G for the benefit of BGS Suppliers.

For the other EDCs, these cost reallocations do not affect the announced transmission rate and only affect the Transmission Enhancement Charges (“TECs”). The portion of TECs corresponding to the cost reallocations for ConEd Wheel, Linden VFT, and HTP are collected from BGS customers but are withheld from BGS Suppliers.  BGS Suppliers will be paid when a Final FERC Order as defined in the SMA is entered in these matters or when the Board otherwise authorizes these EDCs to pay BGS Suppliers.



8/13/2019, in Supplier Master Agreement .
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FAQ-17

Can you please clarify whether the NSPL values provided in FAQ-16 are already scaled by their corresponding NSPL Daily Zonal Scaling Factors?


The NSPL values provided for both ACE and PSE&G in FAQ-16 are already scaled. 

The NSPL values provided for RECO have not been scaled. 

The values provided for JCP&L have not been scaled except for Total TPS, which is already scaled.



8/13/2019, in Application.

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