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Frequently Asked Questions - #6

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Does the BGS-CIEP closing price determine the payment to BGS-CIEP Suppliers as well as the rates for BGS-CIEP customers?

A BGS-CIEP Supplier provides full-requirements service for the percentage of the EDC’s BGS-CIEP Load corresponding to the number of tranches won.  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) a fixed ancillary service payment rate applied to the supplier’s share of BGS-CIEP Load (energy); (ii) 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 (iii) the CIEP Standby Fee.

With respect to the rates paid by BGS-CIEP customers, the transmission rate is based on either a demand charge or transmission obligation charge, depending on the EDC.  The energy rate is the Hourly Real-Time Spot Price, which will be adjusted each hour by the relevant EDC loss expansion factor.  The ancillary service rate will be a pre-determined value based on the ancillary service payment rate to suppliers adjusted for losses.  The price for an EDC is the final Auction price for that EDC and will be assessed as a specific capacity obligation charge, demand charge, or energy charge.

8/12/2021, in Rates.

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