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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-24

Are winning bidders shielded from upcoming changes to Renewable Portfolio Standards (“RPS”) as well as Board Orders or legislation that may come into effect related to the RPS?


The EDCs and the BGS Auction Manager cannot analyze or comment on pending or future legislation.  The BGS Supplier Master Agreements (“SMAs”) are clear that it is the BGS Supplier’s responsibility to comply with RPS requirements as they may evolve from time to time.  There is no exemption under the SMAs from future increases in RPS requirements. 

We note that, in the past, the Legislature, when increasing solar requirements, exempted existing BGS Suppliers from the increase.  Hence, while Legislative precedent incorporates an exemption, there is no guarantee that future legislation, Board Orders, or other changes would continue to provide such an exemption for BGS Suppliers.



8/11/2020, in Renewable Portfolio Standards.
FAQ-23

What are the RPS obligation percentages by year for winners of BGS-RSCP load? Are winners in the BGS Auctions responsible for additional solar requirements avoided by exempt BGS-RSCP contracts?


Please see N.J.A.C.§ 14:8-2.3 Amount of renewable energy required.  Table A in this reference provides the RPS percentage obligations that apply to non-exempt BGS contracts to be the following:

Energy Year Solar Class I Class II Total
2022 (ending May 31, 2022) 5.10% 21.00% 2.50% 23.50%
2023 5.10% 22.00% 2.50% 24.50%
2024 4.90% 27.00% 2.50% 29.50%

A BGS Supplier (both BGS-RSCP and BGS-CIEP) will also be responsible for its share of the solar requirements avoided by exempt BGS-RSCP contracts.



8/11/2020, in Renewable Portfolio Standards.
FAQ-22

Each Supplement to the BGS-RSCP Supplier Master Agreement (“BGS-RSCP SMA”) will specify the capacity proxy price that bidders can use to formulate their bids.  Will the Supplement also specify the Forecasted Pool Requirement and Obligation Peak Load Scaling Factors for the delivery period?


When the BRA results are known before the BGS auction occurs, it is also the case that the “obligation peak load scaling factors” and the “forecast pool requirement” are also known.  In the 2020 BGS proceeding, IEPNJ noted that these values will not be fully known for the 2022/2023 delivery period because of the delay in the PJM capacity auction.  IEPNJ requested that the New Jersey Board of Public Utilities (“Board”) make an adjustment to the Supplement to take into consideration the possible uncertainty regarding quantities.  The Board noted that BGS is always for a percentage of load and that bidders take on the risk of variable quantities.  As such, the Board stated that this is not an issue that needs to be addressed.



8/11/2020, in Supplier Master Agreement .
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FAQ-21

If a BGS-RSCP Supplier is granted an Independent Credit Threshold (“ICT”) that more than fully covers the aggregate ICR amounts under all BGS Agreements with an EDC, is it correct that such a BGS-RSCP Supplier will not be required to post security in the form of cash or a letter of credit upon execution of the BGS-RSCP Agreement with that EDC?


That is correct.  The ICT for a BGS-RSCP Supplier can be used to partially or fully cover the aggregate ICR amounts due under the all BGS Agreements with the EDC. If the ICT more than fully covers the aggregate ICR amounts, the BGS-RSCP Supplier is not required to post security in the form of cash or a letter of credit.  Please note that such a BGS-RSCP Supplier may still be required to post cash or a letter of credit for purposes of Please see Article 6 of the BGS-RSCP Supplier Master Agreement for additional information.



8/11/2020, in Supplier Master Agreement .
FAQ-20

Can you confirm that the data in Table VII-2 of the BGS-RSCP Auction Rules  includes the 10 MW attributable to the St. Lawrence project and the historical data in the Data Room is gross of the St Lawrence 10 MW?


Yes, the Peak Load Share in Table VII-2 of the BGS-RSCP Auction Rules includes the 10 MW attributed the St Lawrence Project.  The data in the Data Room of the BGS Auction website is gross of the 10 MW of the St Lawrence Project.



8/11/2020, in Data.
FAQ-19

Can the EDCs provide 2020 NSPL data for a day in January for RSCP and CIEP?


Please find below NSPL data for each EDC for a day in January 2020.

PSE&G BGS NSPL MW (01/09/2020)

Total TPS

3,505.8

Total BGS

6,196.7

TPS CIEP

1,381.2

BGS CIEP

339.4

TPS RSCP

2,124.6

BGS RSCP

5,857.3

JCP&L BGS NSPL MW (01/01/2020)

Total TPS

5,903.5

Total BGS

3,622.4

TPS CIEP Eligible

809.3

BGS-CIEP

95.7

TPS RSCP Eligible

5,094.2

BGS-RSCP

3,526.7

ACE BGS NSPL MW (01/10/2020)

Total TPS

854.8

Total Eligible                 

2625.8

CIEP Eligible

321.4

BGS-CIEP

61.5

RSCP Eligible

2304.4

BGS-RSCP

1709.5

RECO BGS NSPL MW (1/09/2020)

Total TPS

116.3

Total BGS

331.9

CIEP Eligible

50.2

BGS-CIEP

5.7

RSCP Eligible

397.9

BGS-RSCP

326.2



8/11/2020, in Data.
FAQ-18

What were the tranche fees for the last three BGS Auctions?


The tranches fees for the last three BGS Auctions are provided below:

2018 BGS Auctions:

BGS-CIEP: $22,500/tranche

BGS-RSCP: $26,900/tranche

2019 BGS Auctions:

BGS-CIEP: $25,700/tranche

BGS-RSCP: $21,400/tranche

2020 BGS Auctions:

BGS-CIEP: $21,100/tranche

BGS-RSCP: $24,200/tranche



8/11/2020, in General.
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FAQ-17

Where can I find the percentage requirement for RPS Class I for Energy Year 2023?


The percentage requirement for Class I is 22% for Energy Year 2023.  Please see the regulations, which are published here: 

§ 14:8-2.3 Amount of renewable energy required



8/11/2020, in Renewable Portfolio Standards.
FAQ-16

Should the compliance percentages from the Renewable Portfolio Standards (“RPS”) be applied to energy at the wholesale or at the retail meter for BGS Suppliers?


The EDCs apply the RPS compliance percentages to energy supplied by the BGS Supplier (and not to sales at the retail meter) and hence apply the RPS compliance percentages at the “wholesale meter”.  The Board approved this methodology in its Order in the 2020 BGS proceeding (Decision and Order in BPU Docket No. ER19040428, dated November 13, 2019, pp. 16-17).



8/11/2020, in Renewable Portfolio Standards.
FAQ-15

The RPS example posted to the BGS Data Room uses the RPS compliance percentages obligations that were in effect prior to the Clean Energy Act.  Where can I find these?


You can find the RPS percentage obligations that were in effect prior to the Clean Energy Act in the text of the Clean Energy Act; all deleted and replaced text is in square brackets.  For example, the solar percent obligation for Energy Year 2020 was 3.38% and was increased to 4.90% (see page 5).



8/11/2020, in Renewable Portfolio Standards.
FAQ-14

The RPS example posted to the BGS Data Room uses various figures for electricity sales used for purposes of RPS compliance.  Where can I find on the BGS Auction website the figures for electricity sales that have been or will be used for purposes of RPS compliance?


The numbers in the RPS example are for illustrative purposes only.  Retail sales figures for purposes of RPS compliance are not posted to the BGS Auction website.  Please see the website of the New Jersey Office of Clean Energy:

https://njcleanenergy.com/renewable-energy/program-updates/rps-compliance-reports



8/11/2020, in Renewable Portfolio Standards.
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FAQ-13

In regard to the Clean Energy Act, are exempt BGS contracts exempt from the increase in the solar obligation or exempt from the entire solar obligation?


Exempt BGS contracts are exempt from the increase in the solar obligation from the Clean Energy Act and not for the entire solar obligation.



8/11/2020, in Renewable Portfolio Standards.
FAQ-12

Our bank has noted that Paragraph 8 of the Post-Auction Letter of Credit says that the Applicant pays fees, including transfer fees, while Annex 4 of the Post-Auction Letter of Credit seems to indicate that transfer fees are paid by the Beneficiary.  Will the EDCs include a modification to account for any inconsistency between these provisions?


Yes, a modification has been included by the EDCs as part of their 2021 BGS proposal.



8/11/2020, in Supplier Master Agreement .
FAQ-11

The BGS-RSCP Supplier Master Agreement states that if a BGS-RSCP Supplier fails to provide collateral on time in response to a margin call, there is no cure period and this results in an automatic termination.  How is this managed in practice?  Could we expect the EDC to follow up if collateral is not received at the expected time?


A BGS-RSCP Supplier that receives a margin call and is required to post cash or a letter of credit always has the option to take a pro-active approach to avoid termination.  Such BGS-RSCP Supplier can contact the representatives of the EDC and make sure that any bank transfers or letters of credit are received as and when expected. 

For a BGS-RSCP Supplier that does not take this approach, an EDC would, in the normal course of events, follow up with a BGS-RSCP Supplier if a margin call has been made, collateral is not received at the expected time, and termination is about to occur.  Note, however, that the EDC is under no obligation to do so and each EDC reserves the right to declare termination as provided under the terms of the BGS-RSCP Supplier Master Agreement. 



8/11/2020, in Supplier Master Agreement .
FAQ-10

The Clean Energy Act directs the EDCs to reduce annual electricity usage by two percent of the annual average usage in the prior three years within five years.  Where can I find the EDCs’ plans to fulfill these objectives?


On June 10, 2020, the New Jersey Board of Public Utilities issued an Order approving Staff’s recommendations in this matter, directing New Jersey utilities to design energy efficiency and peak demand reduction programs that maximize access to and participation by all customers.  The Board also directed the utilities to work with Staff on a public stakeholder process to gather public input on proposed core program design. Please see the New Jersey Clean Energy website at the link below for information about this proceeding:

https://njcleanenergy.com/main/njcep-policy-updates-request-comments/policy-updates-and-request-comments

The Board’s Order dated June 10, 2020 can be found here

Additional information can be found on the BPU website.



8/11/2020, in General.
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FAQ-9

We require specific documents and information from the EDCs prior to execution of the BGS Supplier Master Agreement for our internal systems. What is the best way to obtain/request such information?


Please visit each EDC’s website for any information that may be publicly available.  If you become a winning supplier for an EDC, you may request such information from the EDC after full execution of the BGS Supplier Master Agreement.  Please note that, under the terms of the BGS Supplier Master Agreement, an EDC is under no obligation to supply this information to you.



8/11/2020, in General.
FAQ-8

Can you please provide a sample monthly invoice for the BGS-CIEP product? I am interested to see how the PMEA and PHEA charges/credits are lined out separately.


Sample invoices are available from the BGS Auction Manager upon request.



8/11/2020, in Supplier Master Agreement .
FAQ-7

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.



8/11/2020, in General.
FAQ-6

Is the hourly load data reported in Eastern Standard Time or Eastern Prevailing Time?


The data in the BGS Data Room is reported in Eastern Prevailing Time (“EPT”).



8/11/2020, in Data.
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FAQ-5

Are BGS Suppliers paired with individual customers or with customers within an EDC’s subzone?


Each tranche represents a set percentage of BGS (BGS-RSCP or BGS-CIEP) Load for the EDC.  The tranches are neither specific to a set of customers or to a subzone.  BGS Suppliers are not paired with individual customers.



8/11/2020, in General.

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