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 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.

 

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

FAQ-54

The Part 2 Application states:

“Completion of the following certifications signifies:

• your agreement not to take any action during the period to which each certification applies that might affect the accuracy of the certifications; and

• your acknowledgement that you do not know of or cannot reasonably anticipate, at the time of this Part 2 Application, any event(s) that might cause these certifications to become untrue during the period to which each certification applies.”

What if a certification becomes untrue, but not as a direct consequence of an action taken by the applicant?


The applicant is subject to sanctions if a certification it makes becomes untrue. The certifications are designed so that the applicant should either know or be able to control whether the certification stays true during the period to which a certification applies. There is no exception from sanctions if a certification becomes untrue, even if an action taken by the applicant is not the proximate cause.

In weighing the appropriateness of a sanction, we would expect that the Board would consider whether the applicant should have reasonably been aware of the possibility of the event that caused the certification to become untrue, as well as the nature of the relationship between the applicant and the party whose action caused the certification to become untrue.



11/20/2017, in Association and Confidential Information Rules.
FAQ-53

What would happen to a bidder that had made all the certifications of the Association and Confidential Information Rules in the Part 1 and Part 2 Applications and that had been found subsequently to have violated one or more of these certifications?


Sanctions can be imposed for such a violation. These sanctions include loss of all rights to serve any BGS Load won in the auction, forfeiture of the Pre-Auction Letter of Credit, liquidated damages of $100,000, action under state or federal laws, debarment from participation in future BGS Auctions, prosecution under applicable state and federal laws, or other sanctions that the Board may consider appropriate. The Auction Manager will make a recommendation to the Board on a possible sanction and the Board will make the final determination.



11/20/2017, in Association and Confidential Information Rules.
FAQ-52

What would happen to a bidder if the 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, and could include rejection of the Part 2 Application.



11/20/2017, in Association and Confidential Information Rules.
Back to Top
FAQ-51

Are the Association and Confidential Information Rules evaluated on a separate and independent basis in the two auctions?


Yes. The BGS-RSCP and BGS-CIEP Auctions are separate in all important respects. The evaluation of the Association and Confidential Information Rules pertains to each auction separately. A bidder in the BGS-RSCP Auction is asked in its Part 1 and Part 2 Applications to make a number of certifications found in the BGS-RSCP Auction Rules. In these rules, a “bidder” means a bidder in the BGS-RSCP Auction. Most of these certifications are made in Insert #P2-1 required by the Part 2 Application, where it is stated: "In these certifications, a “Qualified Bidder” refers to an entity qualified to participate in the BGS-RSCP Auction." Similarly, a bidder in the BGS-CIEP Auction is asked in its Part 1 and Part 2 Applications to make a number of certifications found in the BGS-CIEP Auction Rules. In these rules, a “bidder” means a bidder in the BGS-CIEP Auction. Most of these certifications are made in Insert #P2-3 required by the Part 2 Application, where it is stated: "In these certifications, a “Qualified Bidder” refers to an entity qualified to participate in the BGS-CIEP Auction.”



11/20/2017, in Association and Confidential Information Rules.
FAQ-50

Do the Association and Confidential Information Rules, through the certifications that the bidder must make in the Part 2 Application, de facto restrict the type of supply arrangements that bidders can make for the auction product or restrict their day-to-day market activities?


The objectives of the Association and Confidential Information Rules of preventing collusive arrangements and of preventing any one bidder from gaining superior information regarding its competitors mean that these rules do imply some restrictions on the day-to-day market activities of bidders and on possible supply arrangements.

For example, if one bidder (Bidder A) transacts with another bidder (Bidder B) and in the process Bidder A learns Bidder B’s valuation for the auction product, then Bidder A would have gained superior information about a competitor, and this transaction could foster collusion (see, for instance, FAQ-64 and FAQ-65). The fact that the Association and Confidential Information Rules aim to prevent a bidder from gaining superior information about its competitors that might affect the Auction Process implies that Bidder A cannot sell a full-requirements product to Bidder B. Such a supply arrangement would provide Bidder A with reliable information regarding Bidder B’s valuation of the auction product. This is an example of a restriction on supply arrangements implied by the Association and Confidential Information Rules. As another example, each bidder is asked to certify that it has not entered into a supply arrangement that would provide explicit instructions on how to bid (see certification 5 of the Association and Confidential Information Rules portion of the Auction Rules, section VIII.E.4 in the BGS-CIEP Auction Rules and section IX.E.4 in the BGS-RSCP Auction Rules). This is a restriction on supply arrangements that aims to prevent coordination of bidding of several bidders if these bidders all entered into supply arrangements that provided bidding instructions.

The Association and Confidential Information Rules attempt to place only necessary restrictions on supply arrangements and on day-to-day market activities. Such restrictions are unavoidable if these rules are to meet their goals. These rules may impact hedging activities and supply arrangements of bidders. Each bidder should be aware of these rules at all times, should be aware of the entities that have become Qualified Bidders for the auction in which it is participating, and should be especially mindful of these rules from the start of the auction until the Board renders a decision on the auction results. For additional information, see, for instance, FAQ-68, FAQ-69, and FAQ-70, as well as other questions and answers in the “Transactions and Hedging” section of this document.



11/20/2017, in Association and Confidential Information Rules.
FAQ-49

Do the Association and Confidential Information Rules permit or prohibit specific types of transactions? If so, where can I find a list of such transactions?


The Association and Confidential Information Rules do not “permit” or “prohibit” any specific transaction. Rather, these rules focus on employing a system of certifications to ensure that competition in the auction is not compromised either because bidders are not bidding independently, or because a bidder gains superior information about its competitors that might affect the Auction Process. If a bidder is unable to make a certification, typically the bidder will make an information disclosure and the Auction Manager may ask for more information to decide, on a case-by-case basis, upon a remedy that will ensure that competitiveness at the auction is not jeopardized (see, for instance, FAQ-52). A list of permitted or prohibited transactions is not feasible or practicable: a given transaction may in one context allow the bidder to make all the certifications in the Association and Confidential Information Rules, while the same bidder may be unable to make one or more certifications with respect to the same type of transaction in another context. The bidder must make this determination considering the full context in which the transaction is made.



11/20/2017, in Association and Confidential Information Rules.
FAQ-48

What is the intent of the Association and Confidential Information Rules?


The intent of the Association and Confidential Information portion of the Auction Rules is to promote the competitiveness of the auction, to uphold the integrity of the Auction Process, to prohibit collusive arrangements, and to ensure that no bidder gains superior information regarding its competitors that might affect the Auction Process. A bidder shows compliance with these rules by making a number of certifications in the Part 1 Application and the Part 2 Application. If a bidder is able to make all the certifications, the bidder complies with the Association and Confidential Information Rules. The certifications ensure that the bidder is not part of a collusive arrangement, the bidder does not gain superior information regarding its competitors that might affect the Auction Process, and the bidder is not providing to others information related to the auction or its bidding strategy.



11/20/2017, in Association and Confidential Information Rules.
Back to Top
FAQ-47

Can a winning BGS Supplier use another entity as an agent for its dealings with PJM?


Yes.



11/20/2017, in Association and Confidential Information Rules.
FAQ-46

Where can I find the calendar for the BGS Auctions?


A calendar for the 2018 BGS Auctions can be found here: http://bgs-auction.com/bgs.calendar.asp. The deadline to submit the Part 1 Application is December 12, 2017. The BGS-CIEP Auction will begin on February 2, 2018, and the BGS-RSCP Auction will begin on February 5, 2018.

Each year, the New Jersey Board of Public Utilities (“Board”) solicits proposals to procure supply for BGS customers. The EDCs file a proposal with the Board including a calendar for the upcoming procurement process. Since their inception in 2002, the BGS Auctions have started in the first week of February each year.



11/15/2017, in General.
FAQ-45

Are there specific rules that define what it means to be bidding independently?


Yes. Association and Confidential Information Rules are included in the BGS-RSCP Auction Rules (Section IX.E.) and the BGS-CIEP Auction Rules (Section VIII.E.). The intent of the Association and Confidential Information portion of the Auction Rules is to promote the competitiveness of the auction, to uphold the integrity of the Auction Process, to prohibit collusive arrangements, and to ensure that no bidder gains superior information regarding its competitors that might affect the Auction Process. A bidder shows compliance with these rules by making a number of certifications in the Part 1 Application and the Part 2 Application. When a Qualified Bidder is making certifications in the Part 2 Application, such Qualified Bidder will have access to the list of all Qualified Bidders.

The objectives of the Association and Confidential Information Rules of preventing collusive arrangements and of preventing any one bidder from gaining superior information regarding its competitors mean that these rules do imply some restrictions on the day-to-day market activities of bidders and on possible supply arrangements. For example, each bidder is asked to certify that it has not entered into a supply arrangement that would provide explicit instructions on how to bid (see certification 5 of the Association and Confidential Information Rules portion of the Auction Rules, section VIII.E.4 in the BGS-CIEP Auction Rules and section IX.E.4 in the BGS-RSCP Auction Rules). This is a restriction on supply arrangements that aims to prevent coordination of bidding of several bidders if these bidders all entered into supply arrangements that provided bidding instructions. The Association and Confidential Information Rules attempt to place only necessary restrictions on supply arrangements and on day-to-day market activities. Such restrictions are unavoidable if these rules are to meet their goals.

The BGS-RSCP Auction Rules and the BGS-CIEP Auction Rules are posted to the Auction Rules page of the BGS Auction website. The Auction Manager provided a Q&A that helps to clarify the intent and ambit of the Association and Confidential Information Rules. The Q&A is dated November 20, 2018, is entitled Association and Confidential Information Rules Q&A, and is posted to the Auction Rules page of the BGS Auction website.



11/7/2017, in Association and Confidential Information Rules.
FAQ-44

Do we have to own capacity or transmission in PJM in order to participate in the BGS Auctions?


No, there are no such requirements. Previous winners in the BGS Auctions are available in the files posted to the Past Results page of the BGS Auction website. Some of the previous winners were neither transmission nor generation owners.



11/7/2017, in General.
Back to Top
FAQ-43

Is it possible to review the Mark-to-Market Information Release from the 2017 BGS-RSCP Auction?


You can access the Mark-to-Market Information Release from the 2017 BGS-RSCP Auction here.



11/7/2017, in Credit.
FAQ-42

We have questions regarding PJM’s Reliability Assurance Agreement (“RAA”). Does the BGS Auction Manager answer questions related to that document?


While the Auction Manager and the EDCs provide assistance with documents and procedures associated with the BGS Auction Process, bidders should contact PJM for questions related to PJM’s RAA. The contact information for PJM assistance via email and phone can be found here. PJM also has training materials, some of which may provide the sort of information you seek.



11/7/2017, in General.
FAQ-41

Section 15.9 requires that the Board approve a change in the rates charged to BGS customers so that BGS Suppliers can be paid if charges for Firm Transmission Service increase. Is it the BGS Supplier’s responsibility to petition the Board to be compensated for changes in transmission-related charges under Section 15.9 of the BGS Supplier Master Agreements?


No. Under the terms of the BGS Suppliers Master Agreements, within forty-five (45) days of the rate change, the EDCs will notify the BGS Suppliers of such change, and will seek approval from the Board to change the charges to BGS customers by the amount of such rate adjustment for Firm Transmission Service.

Please review Section 15.9 of the BGS Supplier Master Agreements available on the Contract and Credit page for the full description of this provision. Filings and Orders regarding changes in the transmission rate under Section 15.9 of the Supplier Master Agreement can be found on the Transmission Docs page.



11/7/2017, in SMA Section 15.9.
FAQ-40

When will the firm transmission service rates be announced for the 2018 BGS Auctions? Will the rates announced be constant over the course of the supply period covered by the contract?


Firm transmission service rates will be announced as early as practicable in January 2018. In the BGS-CIEP Supplier Master Agreement, these rates correspond to the Transmission Charge for each EDC. In the BGS-RSCP Supplier Master Agreement, these rates correspond to the baseline Firm Transmission Rate against which changes will be calculated.

While the value of these base rates are fixed for the duration of the BGS Supplier Master Agreements, charges faced by BGS Suppliers for Firm Transmission Service could change during the term of the Agreement. Section 15.9 of the BGS Supplier Master Agreements describes the procedures that will apply if during the term of this Agreement, a filing is made with the FERC to increase or decrease the charges for Firm Transmission Service, including any charge or surcharge imposed on customers receiving Firm Transmission Service, or if the charges for Firm Transmission Service are adjusted pursuant to a FERC-authorized formula rate.



11/7/2017, in Rates.
Back to Top
FAQ-39

Could you please provide the firm transmission service rates announced before each of the last three Auctions?


The base rates for firm transmission service announced before the past three Auctions are provided below.

Rates for Firm Transmission Service ($/MW-day)

 

2017

2016

2015

PSE&G

249.93

225.45

199.15

JCP&L

41.40

41.40

41.40

ACE

100.85

111.29

87.81

RECO

87.98

87.98

87.98

In the BGS-CIEP Supplier Master Agreement, these rates correspond to the Transmission Charge for each EDC. In the BGS-RSCP Supplier Master Agreement, these rates correspond to the baseline Firm Transmission Rate against which changes will be calculated.

These rates reflect the Open Access Transmission Tariff (or “OATT”) rates in effect on January 1, 2017 and reflect Reliability Must Run (“RMR”) and Transmission Enhancement Charges (“TECs”) of zero. (For PSE&G, TECs applicable to projects being developed by PSE&G and which are applicable to customers in PSE&G’s service territory are included in the rate for Firm Transmission Service.) The actual monthly levels of the RMR and TECs that prevail during the supply period will, for purposes of Section 15.9 of the BGS-CIEP and BGS-RSCP Supplier Master Agreements, be considered in their entirety to be changes to the rates for Firm Transmission Service.



11/7/2017, in Rates.
FAQ-38

Where can I find the bidder information packet for the October 2017 webcast? Are there hard copies available this year?


Materials for the October 2017 webcast, including the presentation and the bidder information packet, can be found online only; the materials are posted under the “bidder info” tab on the “info sessions” page on the BGS Auction website.



10/31/2017, in General.
FAQ-37

Can you please provide an example of the invoice that would be received by a BGS Supplier?


While the Auction Manager and the EDCs provide assistance with documents and procedures associated with the BGS Auction Process, bidders should contact PJM for questions related to PJM statements, agreements, or procedures. The contact information for PJM assistance via email and phone can be found here. PJM also has training materials, some of which may provide the sort of information you seek.

The EDCs do not provide sample invoices showing line by line allocation of responsibility between the EDC and the BGS Supplier. Such a sample invoice is not necessary as invoice items are not divided between the EDC and the BGS Supplier. BGS Suppliers are responsible for all PJM charges associated with the responsibilities of a Load Serving Entity.



10/24/2017, in Supplier Master Agreement .
FAQ-36

Are Reliability Must Run (“RMR”) charges covered under Section 15.9? Where are these charges explicitly addressed in the BGS Supplier Master Agreements (“SMAs”)?


RMR charges (Generation Deactivation) have been, and will continue to be, charges for which the EDCs will request approval from the New Jersey Board of Public Utilities (“Board”) for treatment under Section 15.9. All RMR charges to date have been the subject of a request from the EDCs to the Board to recover these charges from customers on behalf of BGS Suppliers. As RMR charges are an increase in transmission-related costs for BGS Suppliers, they are covered by Section 15.9. There is no need to explicitly address these charges in the BGS Supplier Master Agreements and, for this reason, such charges are not mentioned by name in the SMAs.



10/18/2017, in SMA Section 15.9.
Back to Top
FAQ-35

What are included as “transmission-related charges” under Section 15.9 of the BGS Supplier Master Agreements?


Section 15.9 of the BGS SMAs, as proposed, contains a process by which BGS Suppliers can be compensated for changes in transmission-related charges. Within 45 days of a filing with the Federal Energy Regulatory Commission (“FERC”) for a change in Network Integration Transmission Service (“NITS”) charge, or within 45 days of PJM’s implementation of a transmission cost reallocation or other change that effectively increases or decreases transmission costs for BGS Suppliers, the Electric Distribution Companies (“EDCs”) file with the New Jersey Board of Public Utilities (“NJ BPU” or “the Board”) to change the retail rate to reflect the filed change in the NITS charges or cost reallocation or other PJM-implemented change. If the Board approves the change in retail rates, and the filing has been an increase in transmission-related charges, the EDCs will track the revenue collected for the benefit of BGS Suppliers. The EDCs propose to pay BGS Suppliers upon Board Approval. The payment, as proposed, will include simple interest and will be reflective of the amount filed. If the Board approves the change in retail rates, and there has been a decrease in the NITS charges or a decrease in transmission costs to BGS Suppliers due to a PJM-implemented cost reallocation or an other decrease in rates, the EDCs will decrease the Auction Prices by the amount of the decrease approved by the Board. Hence, transmission related charges under Section 15.9 include items that effectively increase or decrease transmission costs for BGS Suppliers.

To date, the EDCs have implemented this procedure and paid suppliers for Seams Elimination Cost Adjustment (“SECA”) charges and Reliability Must Run (“RMR”) (Generation Deactivation) Charges, NITS Formula Rate changes and Regional Transmission Expansion Plan (“RTEP”) charges. Each EDC filing relating to Section 15.9 of the BGS SMAs is subject to Board.

Please review Section 15.9 of the BGS SMAs available on the Contract and Credit page for the full description of this provision. The response to this question includes the clarifications to Section 15.9 that the EDCs have included in their Joint Proposal. The Board will render a decision on the Joint Proposal in November 2017.



10/18/2017, in SMA Section 15.9.

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

Back to Top

What's New

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

ANNOUNCEMENT: Processing Priorities for Bidder Questions...   GO >>

POSTINGS: Final Decrement Formulas and Mark-to-Market Information Release...   GO >>

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 >>