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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-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.
FAQ-22

For FAQ-18, what is No. 4 “Total Retail”?  Do we need to apply de-ration factors to excess generation?


Total Retail Hourly Load, as defined in the Data Description document posted to the Data Room page of the BGS Auction website, is zonal load (all customers) less wholesale customer load.  All hourly load data must be adjusted by the Hourly De-Ration Factors in order to achieve settlement loads.  After summing excess generation to the gross loads, it would be appropriate to adjust the net load by the Hourly De-Ration Factors in order to achieve estimates of settlement loads.



8/14/2018, in Data.
FAQ-21

With reference to FAQ-18, can you confirm that the data posted for BGS-RSCP corresponds to settlement data?


Generally, as stated in the data description document posted to the BGS Data Room, hourly load data must be adjusted by the hourly de-ration factors in order to achieve settlement loads.  Also generally, BGS-RSCP data is calculated as a residual (as Total BGS less BGS-CIEP).

Please note that for JCP&L, the load data in the BGS Data Room was developed without netting excess generation.  To develop BGS-CIEP load data that is consistent with how BGS-CIEP load has been reported to PJM for settlement purposes, a bidder would sum the excess generation with the BGS-CIEP load data reported in the BGS Data Room.  To develop Total BGS hourly load data, a bidder would sum the excess generation with the Total BGS load data reported in the BGS Data Room.  To develop BGS-RSCP load would then involve subtracting the developed BGS-CIEP load data from the developed Total BGS load data.  Please also refer to FAQ-18 for more information.



8/14/2018, in Data.
FAQ-20

Can you confirm that winning suppliers in the BGS-CIEP Auction will be paid a separate payment for firm transmission service multiplied by the applicable transmission obligation in addition to the BGS-CIEP auction clearing price multiplied by the applicable capacity obligation. Both of these payments are in addition to the payment for ancillary services, CIEP stand-by fees, and real-time LMP for the EDC's zone.


Yes.  That is correct.

A BGS-CIEP supplier receives the price determined at the Auction applied to the supplier’s share of the BGS-CIEP capacity obligation.  A BGS-CIEP Supplier also receives the following payments:

(i) an EDC-specific network transmission rate applied to the supplier’s share of the BGS-CIEP transmission obligation;

(ii) a fixed ancillary service payment rate applied to the supplier’s share of BGS-CIEP Load (energy);

(iii) the “Hourly Real-Time Spot Price”, which refers to the PJM load-weighted average Residual Metered Load aggregate Real-Time Locational Marginal Price for the zone, applied to the supplier’s share of BGS-CIEP Load (energy); and

(iv) the CIEP Standby Fee.

Please consult the BGS-CIEP Supplier Master Agreement for details regarding the payments and obligations of the BGS-CIEP Supplier.



8/14/2018, in Rates.
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FAQ-19

Can you provide estimated PLCs for planning year 18/19 for RSCP customers by EDC based on current migration statistics?


The information you are requesting cannot be made available from the EDCs as it is not historical data developed in the normal course of business. The EDCs have never provided implied or derived data.



8/14/2018, in Data.
FAQ-18

The BGS-CIEP Hourly Load data for JCP&L posted to the BGS Data Room seems to be 10-13% more than our PJM settlement data.  What is the explanation for this?


JCP&L has identified the source of the discrepancy.  Some JCP&L CIEP customers have on-site generation.  For PJM settlement purposes, JCP&L (consistent with the other EDCs) reports the net BGS-CIEP load (i.e., net of on-site generation) to PJM.  The net BGS-CIEP load (reduced by excess generation) was then assigned to suppliers based on BGS-CIEP responsibility shares.  The BGS-CIEP load in the BGS Data Room was developed without netting excess generation.  The result is a discrepancy between the BGS-CIEP load data in the BGS Data Room and the load that was used for settlement.

Files of excess generation are provided for:

1. BGS-CIEP

2. CIEP Eligible

3. Total BGS

4. Total Retail

5. Certain BGS-CIEP Eligible Customers (GS/GST)

Excess generation data is provided for November 2014 forward for BGS-CIEP, Total BGS, and Total Retail.  Excess generation data is provided for November 2015 forward for CIEP-Eligible and Certain BGS-CIEP Eligible Customers.  Each excess generation file is posted alongside its corresponding hourly load file in the BGS Data Room.

To develop BGS-CIEP load data that is consistent with how BGS-CIEP load has been reported to PJM for settlement purposes, a bidder would sum the excess generation with the BGS-CIEP load reported in the BGS Data Room.  The same calculation can also be used to develop total hourly BGS load, total hourly retail load, total hourly CIEP-Eligible load, and total hourly load for certain CIEP-Eligible customers net of excess generation.

Please note that JCP&L believes the data within these files are good estimates, the resulting calculations may not be exact and may not exactly replicate PJM settlement data.



8/14/2018, in Data.
FAQ-17

Will the EDCs provide PJM with the data necessary in time for winning BGS Suppliers to have the opportunity to nominate ARR paths associated with their load obligations?


The EDCs have every intention to provide PJM with estimates of the June 1, 2018 Network Service Peak Load (NSPL) contributions for all load serving entities (including bidders that successfully acquired tranches in the 2018 BGS Auction) by the close of business on February 15, 2018, consistent with PJM’s directives in this matter.

However, please note that there are circumstances that could occur and under which the data could not be provided to PJM in time.  The EDCs cannot communicate such data to PJM prior to the New Jersey Board of Public Utilities approving the BGS Auction results and prior to the execution of the contracts with winning BGS Suppliers.  The execution of contracts with BGS Suppliers occurs no later than three business days after a decision by the Board to approve the auction results.  The decision by the Board occurs no later than two business days from the close of the last auction but this may be delayed due to weather or other conditions that make the Board’s offices inaccessible.  The close of the BGS Auctions does not occur on a certain date and rather is a function of a number of factors that the EDCs do not control.



8/14/2018, in Data.
FAQ-16

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


The EDCs have provided Network Service Peak Load (“NSPL”) data for a day in January.

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

RECO BGS NSPL MW (1/11/2018):
Total TPS:      131.0
Total BGS:     315.0
CIEP Eligible: 54.3
BGS-CIEP:     6.0
RSCP Eligible: 391.4
BGS-RSCP:    308.7



8/14/2018, in Data.
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FAQ-15

What is the definition of “wholesale requirements” as mentioned in the glossary of the BGS CIEP/RSCP Auction Rules?


Wholesale requirements refers to the electricity requirements of wholesale customers within the EDC zone.  These are municipal or cooperative electric utilities.



8/14/2018, in General.
FAQ-14

What is the interest rate that BGS Suppliers are paid for changes transmission costs that EDCs accrue?


For the amounts tracked and retained by the EDCs in the event of an increase in transmission rates, the EDCs will pay simple interest calculated as the lower of the Interest Index, defined as the average Federal Funds Effective Rate for the period of time the funds are on deposit, or six (6) percent per year.

The Federal Funds Effective Rate is published daily on the Federal Reserve website http://www.federalreserve.gov/releases/h15/update/.



8/14/2018, in Rates.
FAQ-13

Does the ‘Historical Load Profiles’ data in the Additional Data page of the BGS Data Room include both BGS and BGS-eligible customers?


The data under the ‘Historical Load Profiles’ is equivalent to BGS-Eligible data in that it is intended to represent all customers in the class and not just BGS customers.  However, with the exception of ACE, these profiles are not reconciled to adjust for actual losses and profiling differences with actual loads nor do they necessarily contain all groups. Hence, the sum of profile loads will not equal total retail load.



8/14/2018, in Data.
FAQ-12

If we advise the Auction Manager that we have decided not to bid in the Auction, will our Pre-Auction Security documents be returned?


No. The Auction Manager will hold the Pre-Auction Security documents until the New Jersey Board of Public Utilities (“Board”) has rendered a decision regarding the auction results and either:

  1. the bidder is confirmed not to have won any tranches at the auction; or
  2. the bidder has won tranches, has signed the applicable BGS Supplier Master Agreement (“SMA”), and has provided any security required under the SMA.

At that time, the Auction Manager will return the cancelled pre-auction letter of credit with the executed certificate of expiration to the bank (or according to the instructions provided by the bidder in its Part 2 Application). Letters of Reference and Letters of Intent to Provide a Guaranty are destroyed unless the bidder provided specific alternative instructions.

Please note that a status as a Registered Bidder cannot be rescinded or changed after the Auction Manager has provided the entity with the Notification of Registration. All Registered Bidders remain bound by all the certifications made in the Part 1 Application and the Part 2 Application. Further details on this point are available in the Association and Confidential Information Q&A posted to the Auction Rules page of the BGS Auction website.



8/14/2018, in Credit.
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FAQ-11

There are no questions posted to the FAQ archives on the BGS Auction website. Where can I find FAQs from previous auctions?


The documents and FAQs of the BGS Auction website are refreshed every year to include only content relevant for the upcoming BGS Auctions. The FAQ Archive page is for FAQs posted since the refresh of the BGS Auction website but that are no longer relevant at the present time. FAQs from prior BGS Auctions are no longer available.



8/14/2018, in General.

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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 >>

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

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

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

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

POSTING: First FAQs...   GO >>

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