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Frequently Asked Questions - Topics - Pre-Auction Security

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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.

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Application (19)
Association and Confidential Information Rules (52)
Auction Rules (2)
Credit (4)
Data (13)
General (17)
Pre-Auction Security (10)
Rates (1)
Renewable Portfolio Standards (9)
Supplier Master Agreement  (9)
Transmission (6)

Pre-Auction Security

FAQ-123

What are the submission instructions for providing a bid bond as pre-auction security?


The Bid Bond must be submitted as an electronic PDF file... Read Answer

1/14/2021.


FAQ-122

Which email address should we use in Paragraph 12 of the Pre-Auction Letters of Credit?


The BGS Auction Manager’s email,... Read Answer

1/11/2021.


FAQ-121

Is there an alternative to posting a Pre-Auction letter of Credit?


Each Qualified Bidder must provide a Pre-Auction Letter of... Read Answer

1/7/2021.


FAQ-120

Can we add a paragraph 15 to the Pre-Auction Letter of Credit that would read as follows:

"15. THIS LETTER OF CREDIT MAY BE SIGNED BY THE ISSUING BANK WITH EITHER A DIGITAL OR ORIGINAL SIGNATURE, EITHER OF WHICH SHALL BE LEGALLY-VALID AND ENFORCEABLE. THE ISSUING BANK MAY TRANSMIT THIS LETTER OF CREDIT TO THE BENEFICIARY BY MAIL, FAX OR ELECTRONIC TRANSMISSION. FOR THE AVOIDANCE OF DOUBT, ANY ELECTRONIC PDF VERSION OF THIS LETTER OF CREDIT RECEIVED BY THE BENEFICIARY SHALL BE AN OPERATIVE INSTRUMENT AND MAY BE USED BY THE BENEFICIARY AS IT WOULD A HARDCOPY ORIGINAL."


The proposed paragraph states that the bank may transmit a... Read Answer

1/7/2021.


FAQ-119

Would it be acceptable for our bank to clarify in the first sentence of Paragraph 6 that a copy of the Pre-Auction Letter of Credit will NOT be returned to the bank upon cancellation?


Yes, it is acceptable for Paragraph 6 to read “This... Read Answer

1/7/2021.


FAQ-115

Is cash an acceptable form of pre-auction security?


Cash is not acceptable as pre-auction security.   Read Answer

12/30/2020.


FAQ-114

Can the Pre-Auction Security be issued by a foreign commercial bank?


This is acceptable provided that the issuing bank satisfies... Read Answer

12/30/2020.


FAQ-111

Would it be acceptable for our bank to add the below address for informational purposes only, in place of and similar to the EDC addresses provided in acceptable modification B.6 in the List of Acceptable Modification posted to the BGS Auction website?

To: the Electric Distribution Companies (“EDCs”)

c/o NERA Economic Consulting (“NERA”)

BGS Auction Manager

One Gateway Center, Suite 720

Newark, NJ 07102

THIS ADDRESS FOR INFORMATIONAL PURPOSES ONLY

NOT A DELIVERY ADDRESS – Letter of Credit delivered electronically only to NERA


This is acceptable.  The intent of acceptable... Read Answer

12/24/2020.


FAQ-94

Can we provide an “evergreen” pre-auction letter of credit (we would amend the amount to $1 at the end of the auction and leave the pre-auction letter of credit in place for the next auction)?


No. The BGS Auctions occur annually and the pre-auction... Read Answer

12/7/2020.


FAQ-43

When is the Pre-Auction Letter of Credit due?


The Pre-Auction Letter of Credit is due with the Part 2... Read Answer

11/12/2020.


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