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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-33

Is the CIEP Threshold expected to change for the 2018 BGS Auctions?


In their Joint Proposal, the EDCs have proposed that the CIEP line remain unchanged at 500 kW. There have been no comments in the proceeding on this issue. That being said, the Board, in its Order in the BGS proceeding, is expected to rule on all issues, including the CIEP Threshold, so the CIEP Threshold for the 2018 BGS Auctions will only be established at that time.



10/18/2017, in General.
FAQ-32

What are the BGS-RSCP seasonal factors included in the EDCs’ BGS proposal?


The seasonal factors included in the EDCs’ BGS proposal is 1.0 for each EDC as a result of the methodology described in each EDC’s Company Specific Addendum. Please note that these seasonal factors are provisional as the methodology is subject to Board approval. Furthermore, the EDCs will update the calculations with the most recent PJM data in early 2018 and the BGS Auction Manager will announce the final seasonal factors no later than six (6) days prior to the Auction.



10/18/2017, in Rates.
FAQ-31

BGS customers with a peak load contribution of 500 kW or greater must, if they take BGS, do so on a CIEP tariff or rate. Has this “CIEP line” changed over the course of the BGS Auctions?


Yes. The “CIEP Line” or “CIEP Threshold” is the criterion used to determine whether a customer is a CIEP customer. CIEP customers are customers taking BGS-CIEP service or customers who, if they took BGS, would do so on a CIEP tariff of rate. All other customers are RSCP Customers.

The CIEP Threshold was introduced in August 2003 and at that time, customers served at transmission voltages were CIEP customers. The CIEP Threshold has changed five times since 2003. The most recent change became effective June 1, 2013; customers served at transmission voltages or customers with a peak load contribution (“PLC”) of 500 kW or greater are CIEP customers. You can find a complete history of the changes to the CIEP Threshold from August 2003 to the present beginning at page 6 of the Data Description document posted to the BGS Monthly Data page of the BGS Data Room.



10/18/2017, in General.
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FAQ-30

Is there an opportunity to change the Bidder Team throughout the BGS process to account for employee turnover?


The Bidder Team consists of an Authorized Representative and up to three (3) Nominees.

The Authorized Representative is authorized by an officer or director of the Applicant to represent the Applicant in the auction or auctions for which the Applicant is applying. The Authorized Representative may designate up to three (3) Nominees in the Part 1 Application or at any point during the Auction Process. The Nominees are individuals who are also authorized to represent the Applicant in the Auction Process.

You may change the Nominees at any time by re-submitting the Nominee Insert (#P1-2). Changing the Authorized Representative is not impossible but requires a substantial change to the application; a Bidder that requires such a change should contact the Auction Manager for instructions in this regard if necessary.



10/18/2017, in Application.
FAQ-29

How is the target for an EDC filled if from one round to the next the target for an EDC goes from being oversubscribed to undersubscribed?


Once an EDC is oversubscribed once in an auction, the target will always be filled for the remainder of the auction. In order to fill the target, offers are taken in price order. This means that in a given round, the bids will be stacked to fill the target as follows:

1) First, all tranches bid at the going price are taken;

2) Second, tranches withdrawn are retained to fill the target from lowest to highest exit price. The exit price is the last and best offer for the tranche. The exit price must be greater than the going price for the round and less than or equal to the prior round price; and

3) Last, if all withdrawals are retained and the target is still not met, switches from the EDC will be denied at the previous round’s going price, which is the price at which they were last freely bid.

Bidders receive information about their own retained exits and denied switches in the round report each round.



10/18/2017, in Auction Rules.
FAQ-28

I have a question on how the responsibilities of a Load Serving Entity (“LSE”) described in PJM’s Reliability Assurance Agreement applies to a BGS Supplier. Is there documentation to that effect available on the BGS Auction website?


While the Auction Manager and the EDCs provide assistance with documents and procedures associated with the BGS Auction Process, please contact PJM for questions you may have related to PJM Agreements. The contact information for PJM assistance via email and phone can be found here.



10/18/2017, in General.
FAQ-27

Are presentations from webcasts posted to the BGS Auction website?


The presentation slides and accompanying audio for the first and second Bidder Information Webcasts get posted to the Presentations page and Info Session Materials page of the BGS Auction website within a day of the event.



10/18/2017, in General.
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FAQ-26

Has the data on municipal aggregation been updated recently?


Yes. Files on the Additional Data were generally updated on September 15, 2017, including the data on municipal aggregation. We expect to update the data further in early January 2018.



10/18/2017, in Data.
FAQ-25

Who manages the process for potential suppliers to register to participate in the BGS Auctions? Does a supplier have to show that it is already a PJM Load Serving Entity (“LSE”) in order to qualify?


A potential supplier must submit to a two-part application process to register to participate in the BGS Auctions. This application process is managed by the BGS Auction Manager on behalf of the Electric Distribution Companies (“EDCs”). The application process is conducted online at https://www.bgs-application.com. The Part 1 Application in which Applicants submit basic information and financial information. The Part 2 Application in which Applicants present indicative offers and submit financial guarantees. Interested parties may request an account to access the online forms. Illustrative Part 1 and Part 2 Forms were posted to the BGS Auction website on October 18, 2017 and November 15, 2018 respectively. Furthermore, the webcast held on November 27, 2017 goes into the details of the application process.

The application process does not require a potential supplier to already be a Load Serving Entity in PJM at the time of application. However, as a requirement of the BGS Supplier Master Agreement (“SMA”), a BGS Supplier must be a Load Serving Entity by the start of the delivery period (i.e., as of June 1, 2018). Thus, the applicant must have investigated the requirements of becoming an LSE in PJM and must be able to certify, at the time of the Part 1 Application, that there are no impediments to the potential supplier becoming an LSE by the start of the supply period. The contact information for PJM assistance via email and phone can be found here. PJM also has training materials relating to settlements and the responsibilities of LSEs.



10/18/2017, in Application.
FAQ-24

Are there any state licensing requirements for a BGS Supplier? Do we have to register in some way with the New Jersey Board of Public Utilities?


There are no state licensing requirements associated with becoming a BGS Supplier. Thus, a potential supplier does not have to register in any fashion with the New Jersey Board of Public Utilities in order to participate in the BGS Auctions or in order to become a BGS Supplier.



10/18/2017, in Application.
FAQ-23

How can I become qualified to participate in the BGS Auctions?


The Application Process is conducted online at https://www.bgs-application.com.The Application Process is in two parts. The first is the Part 1 Application in which Applicants submit basic information and financial information. The second is the Part 2 Application in which Applicants present indicative offers and submit financial guarantees. Interested parties may request an account to access the online forms. Illustrative Part 1 and Part 2 Forms were posted to the BGS Auction website on October 18, 2017 and November 15, 2017 respectively. Furthermore, the webcast held on November 27, 2017 goes into the details of the application process.



10/17/2017, in Application.
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FAQ-22

The BGS Post-Auction Letter of Credit states: “This Letter of Credit is transferable one or more times, but in each instance only to a single transferee for the full amount available to be drawn under the Letter of Credit at the time of such transfer.” Who would the Post-Auction Letter of Credit be transferred to?


Under the terms of the Post-Bid Letter of Credit, the Beneficiary (Atlantic City Electric Company, Jersey Central Power & Light Company, Public Service Electric and Gas Company, or Rockland Electric Company) has the right to transfer the Letter of Credit to another entity. Instances where such right could be exercised includes, but is not limited to, an event where the Beneficiary undergoes a change to its corporate structure.



10/17/2017, in Credit.
FAQ-21

When are the BGS Auctions held and when are the BGS Auction results released by the New Jersey Board of Public Utilities?


The start for the 2018 Auction for large commercial and industrial customers (the “BGS-CIEP Auction”) with a one-year term ending May 31, 2019 is February 2, 2018. The start date for the 2018 Auction for residential and smaller commercial customers (the “BGS-RSCP Auction”) with a three-year term ending May 31, 2021 is February 5, 2018. The BGS Auction results (the auction-clearing prices and the names of the winners) would typically be released by the Board on the day on which it renders a decision on the Auction results. The Board has two business days after the close of the last auction to render a decision on the auction results; however, at its discretion, the Board has the option of rendering a decision on the results of one Auction and of rendering a decision on the results of the other Auction at different points in time.



10/17/2017, in General.
FAQ-20

We are seeing three sets of BGS Supplier Master Agreements posted to the BGS Auction website. One set is dated December 11, 2017, one set is dated June 30, 2017, and the third is dated November 21, 2016. Which BGS Supplier Master Agreements relate to the 2018 BGS Auctions?


The BGS Supplier Master Agreements dated December 11, 2017 are the final BGS Supplier Master Agreements as approved by the Board; these will be used for the 208 BGS Auctions. The BGS Supplier Master Agreements dated June 30, 2017 are those filed by the EDCs with the Board at that time and are superseded in their entirety by the BGS Supplier Master Agreements dated December 11, 2017. The BGS Supplier Master Agreements dated November 21, 2016 are the final BGS Supplier Master Agreements from the 2017 BGS Auctions and are provided for comparison purposes.



10/17/2017, in General.
FAQ-19

Should I receive an acknowledgment if I register for a webcast? When is dial-in information generally distributed?


Confirmation of your registration will be sent to you by email. Dial-in information for webcasts is provided to registrants on the morning of the webcast. If you fail to receive either of these communications please let us know so that we can verify your registration information and ensure that you receive all our communications going forward.



10/17/2017, in General.
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FAQ-18

What is the difference between Initial Comments (due September 6, 2017) and Final Comments (due October 4, 2017) on BGS proposals?


Suppliers have an opportunity to comment on any BGS proposal as part of the regulatory proceeding (Docket No. ER17040335) before the New Jersey Board of Public Utilities (“Board”). Initial Comments follow the BGS proposals filed with the Board by July 1. Suppliers can use the Initial Comments to submit comments on the EDCs’ proposal and filing. Final Comments follow the Legislative-type hearing by the Board schedule for September 28. While there are no restrictions on the nature of the Initial Comments, Final Comments should only be used to respond to issues raised either in the Initial Comments or at the Legislative-type Hearing. They should not be used to raise new issues in this proceeding.

All comments must be filed with the Board’s Secretary, and also be electronically served via email to parties on the e-service list. Parties wishing to be added to this list may send a request by email to Stacy Peterson (address available from the BGS Auction Manager upon request).



8/29/2017, in General.
FAQ-17

How will NJ Solar bill Assembly # 441 impact BGS Suppliers’ solar obligations?


The bill does not appear to have any interaction with or impact on BGS Suppliers’ solar obligations. However, it is the responsibility of each bidder to reach its own conclusions and evaluation of regulatory or legal changes.



8/15/2017, in Supplier Master Agreement .
FAQ-16

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.



8/15/2017, in General.
FAQ-15

What accounts for changes in Peak Load Shares that are observable between May and June?


The Peak Load Share is based on PJM’s determination of the zonal peak for capacity. PJM determines the peak load for capacity purposes based on historical weather normalized peak loads in the five highest load hours on different days in the previous year. Capacity peak load shares are updated by PJM effective each June 1 and apply for one year.



8/15/2017, in Data.
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FAQ-14

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


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

PSE&G (01/19/2017):

Total TPS: 3,984.6
Total BGS: 5,765.4
TPS CIEP: 1,668.3
BGS CIEP: 286.3
TPS RSCP: 2,316.3
BGS RSCP: 5,479.1

JCP&L (01/02/2017):
Total TPS: 5,820.9
Total BGS: 3,356.8
TPS CIEP Eligible: 874
BGS-CIEP: 100.5
TPS RSCP Eligible: 4,946.9
BGS-RSCP: 3,252.4

ACE (01/12/2017):
Total TPS: 950.2
Total Eligible: 2,539.9
CIEP Eligible: 351.4
BGS-CIEP: 46.9
RSCP Eligible: 2,188.5
BGS-RSCP: 1,542.8

RECO (1/19/2017):
Total TPS: 128.4
Total BGS: 314.0
CIEP Eligible: 52.4
BGS-CIEP: 4.9
RSCP Eligible: 390.0
BGS-RSCP: 309.1



8/15/2017, in Data.

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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 >>