ACE has confirmed that the data provided is accurate.

Please note that each bidder is entirely responsible for analysis of the data provided. All data are provided for informational purposes only. The EDCs have compiled the data in good faith from sources believed by the EDCs to be reliable but do not warrant the accuracy of the data. It is the responsibility of users of the posted data to determine whether and how they should be applied; by utilizing the data, users assume all risk associated therewith.

A bidder always has the option, instead of providing a letter of reference for $1.9M per tranche of the indicative offer at the maximum starting price, to increase the amount of the pre-auction letter of credit from $0.5M to $2.4M per tranche of the indicative offer at the maximum starting price.

Cash is not acceptable as pre-auction security. Each Qualified Bidder must submit a Pre-Auction Letter of Credit (or Bid Bond) with its Part 2 Application. Furthermore, a Qualified Bidder in the BGS-RSCP Auction may also be required to provide additional pre-auction security in the form of a letter of intent to provide a guaranty or a letter of reference.

The BGS Auction Manager’s email, BGS-Auction@nera.com, should be used in Paragraph 12 of the Pre-Auction Letters of Credit.

The EDCs are in the process of updating the data for the EDC Municipal Aggregation Enrollment file. We will revise this response when the updated file is available in the BGS Additional Data room. 

Redlines between the July Filing SMAs and the Final SMAs for the 2023 BGS Auctions are posted to the Contract and Credit page of the ''bidder info" tab of the auction website.

Should a bidder win tranches with more than one of the EDCs, each EDC individually shall have full discretion, without liability or obligation to the Guarantor or the BGS-RSCP or BGS-CIEP Supplier, to evaluate the sufficiency of the documents submitted by the Guarantor. Such documentation would need to be separately submitted to each EDC with which a bidder wins tranches in the BGS-CIEP and/or BGS-RSCP Auctions.

As a reminder, bidders relying on the financial standing of a foreign Guarantor for the BGS Auctions are required to submit the following additional documents upon execution of either the BGS-CIEP or BGS-RSCP SMA as a condition of being granted credit limits as applicable under the SMAs:

(i) a legal opinion of counsel qualified to practice in the foreign jurisdiction in which the Guarantor is incorporated or otherwise formed that the Guaranty has been duly authorized, executed and delivered and is the legal, valid and binding obligation of the Guarantor in the jurisdiction in which it has been incorporated or otherwise formed;

(ii) the sworn certificate of the corporate secretary (or similar officer) of such Guarantor that the person executing the Guaranty on behalf of the Guarantor has the authority to execute the Guaranty and that the governing board of such Guarantor has approved the execution of the Guaranty; and

(iii) the sworn certificate of the corporate secretary (or similar officer) of such Guarantor that the Guarantor has been authorized by its governing board to enter into agreements of the same type as this Guaranty.

Bidders were invited to submit drafts of these additional documents for review by the EDCs on or before November 29, 2022. There is no mechanism or opportunity for a bidder to request a review of these additional documents after the November 29, 2022 deadline.

The total amount of pre-auction security required with the Part 2 Application for the BGS-RSCP Auction is $2.4M per tranche of the indicative offer at the maximum starting price.  A Pre-Auction Letter of Credit in the amount of $0.5M per tranche is always provided and the Notification of Qualification states for each bidder how the remaining $1.9M per tranche should be provided.  If a bidder is asked to provide a Letter of Reference from a bank, this Letter of Reference is simply to state that as of the date of the letter, there is a sufficient unused credit facility between the bidder and the bank to cover the $1.9M per tranche of the indicative offer at the maximum starting price. The Letter of Reference has two portions: a statement from the bank; and a certification from the bidder.

Three (3) samples for the Letter of Reference are made available to bidders on the Contract and Credit page of the BGS Auction website.  A bidder that uses any of these samples can be assured that the Letter of Reference will be acceptable to the EDCs.  If a bidder uses a different Letter of Reference and it is not acceptable to the EDCs, the bidder will have two business days to provide a replacement document.

Please note that a bidder always has the option, instead of providing a Letter of Reference for $1.9M per tranche of the indicative offer at the maximum starting price, to increase the amount of the Pre-Auction Letter of Credit to $2.4M per tranche of the indicative offer at the maximum starting price.

The definition of Forward Market Price from the 2021 and 2022 BGS Auctions is as follows:

Forward Market Price – the price for On-peak Energy Forwards as determined by averaging concurrent quotations obtained by all of the EDCs from the same three or more independent brokers active in the electric markets as available.

Yes. If your Part 1 Application is incomplete or requires clarification, you will receive a deficiency notice. You will have until noon on the Part 1 Application Date, or until 6 PM on the business day following the business day during which a deficiency notice is sent to you, whichever comes later, to respond. If you do not correct or adequately explain the deficiency within the time allowed, your Part 1 Application may be rejected and you may be unable to participate in the BGS-RSCP Auction, or the BGS-CIEP Auction, or both.

Documents from prior auctions are removed from the BGS Auction website as the information in such documents may no longer be relevant.

BGS Suppliers are responsible for meeting New Jersey’s RPS requirements for solar electric generation, Class I renewable energy, and Class II renewable energy. The RPS requirements for June 1, 2023 through May 31, 2026 are as follows:

Note that the EDCs apply the RPS percentages specified by the BPU to energy supplied by the supplier (and not to energy associated with sales at the retail meter) and hence, apply the RPS percentages to energy that includes distribution and transmission losses and is de-rated by the marginal loss factor. To determine the energy that a Load Serving Energy must supply, PJM uses loss-loaded schedules and de-rates these schedules by marginal losses to arrive at energy settlement values. The factors used in de-ration are determined for each hour for each EDC by PJM and are available in the BGS Data Room. When calculating the BGS Supplier’s obligations under the RPS, each EDC applies the RPS percentages to the values from the PJM settlement, which are also the values for settlement under the BGS Supplier Master Agreement, and which are equal to the energy that a BGS supplier must provide.

Compliance with Offshore Wind Renewable Energy Certificate (“OREC”) obligations, compliance with Transition Renewable Energy Certificate (“TREC”) obligations, and compliance with SREC-II obligations arising from the Solar Successor Incentive Program (“SuSI”) are also a component of a BGS Supplier’s Class I obligation. BGS Suppliers have the responsibility to retire ORECs, but BGS Suppliers bear no cost to acquire the ORECs. Additionally, BGS Suppliers bear no cost to acquire TRECs. Instead, TRECs are retired to the TREC Administrators GATS account and then the statewide Class I requirement is reduced on a 1-to-1 basis. The EDCs expect SREC-II to be administered in the same way as TRECs.

The Auction Manager will make available an example that demonstrates the calculation of a supplier’s RPS obligation. An announcement will be made when this document becomes available.

In order to become a Qualified Bidder, it is not possible to forgo making this certification. Section VII.E.4 of the BGS-RSCP Auction Rules and Section VI.E.4 of the BGS-CIEP Rules require that the Applicant certify that it will destroy any document distributed by the Auction Manager that lists the Qualified Bidders within five (5) days of the Board rendering a decision on the Auction results. An Applicant that does not make this certification will not become a Qualified Bidder. The documents to be destroyed relate solely to the application process in view of possible participation in the BGS Auctions and do not relate to any transaction that may arise as a result of the supplier winning tranches in the BGS Auctions.

It is not possible to forego the receipt of the list of Qualified Bidders from the Auction Manager. Qualified Bidders that submit a Part 2 Application are required to make several certifications with respect to other Qualified Bidders as listed in the document received from the Auction Manager.

Each potential bidder must consult the Auction Rules (including the Certifications and Disclosures to Be Made portion of the Auctions Rules) before submitting its Part 1 Application and reach its own determination as to whether it is able to make each required certification. Each potential bidder should seek advice from its legal counsel as necessary. Neither the Auction Manager nor the EDCs can make a determination as to whether the circumstances of a potential bidder are consistent or inconsistent with a particular certification.

An applicant wishing to rely on the financial standing of a Guarantor must provide the information required by Section 7 of the Part 1 Application for the Guarantor, including credit ratings and certain financial information. Specifically, in order to rely on the financial standing of a Guarantor and to receive unsecured credit under the BGS Supplier Master Agreements, the Guarantor must: (1) be rated by at least two of the following rating agencies: S&P Global Ratings (“S&P”), Moody’s Investors Services, Inc (“Moody’s”), Fitch, Inc (“Fitch”), or A.M. Best Company (“A.M. Best); and (2) have a minimum senior unsecured debt rating (or, if unavailable, corporate issuer rating discounted one notch) of at least “BBB-” from S&P, “Baa3” from Moody’s, “BBB-” from Fitch, or “bbb” from A.M. Best.

A committee of representatives from the EDCs determines the credit rating as well as the tangible net worth for the Guarantor and calculates the unsecured credit granted to the Guarantor as described in the BGS-Supplier Master Agreements.  This determination is provided to Qualified Bidders on December 16, 2022 with the Notification of Qualification in a creditworthiness assessment. There is no mechanism to request an early creditworthiness assessment for the Guarantor. Further, there is no mechanism or opportunity for the Qualified Bidder to request a creditworthiness assessment of another entity (including itself) after the Part 1 Application process is complete.

Each Qualified Bidder, regardless of the creditworthiness assessment of such Qualified Bidder or its Guarantor, must provide a Pre-Auction Letter of Credit with their Part 2 Application.

For the BGS-CIEP Auction, the Pre-Auction Letter of Credit must be in an amount of $375,000 per tranche of the Qualified Bidder’s indicative offer at the maximum starting price.

For the BGS-RSCP Auction, the Pre-Auction Letter of Credit must be in an amount of $500,000 per tranche of the Qualified Bidder’s indicative offer at the maximum starting price.  For a Qualified Bidder to the BGS-RSCP Auction that is relying on the financial standing of a creditworthy Guarantor, such Qualified Bidder is required to provide a Letter of Intent from the Guarantor in an amount of $1.9M per tranche of the Qualified Bidder’s indicative offer at the maximum starting price.  For a Qualified Bidder to the BGS-RSCP Auction that is not investment grade credit and that does not rely on the financial standing of a creditworthy Guarantor, such Qualified Bidder will be required to provide a Letter of Reference from a financial institution in an amount of $1.9M per tranche of the Qualified Bidder’s indicative offer at the maximum starting price.  (Alternatively, the Qualified Bidder can provide a Pre-Auction Letter of Credit for the full amount, namely $2.4M per tranche of the Qualified Bidder’s indicative offer at the maximum starting price.).

The EDCs may re-evaluate a Bidder’s and/or their Guarantor’s creditworthiness should the Bidder be a winner at BGS Auctions.

As we understand your inquiry, Entity A would sell to Entity B a product that would obligate Entity A to post margin as an agent for Entity B when forward prices for PJM exceeded a certain threshold.  As you have described the product, the product applies for BGS obligations only and not for a wider range of trading obligations.  Further, it applies to BGS load won in Auctions already held and ruled upon by the BPU.

There is no issue, with respect to BGS certifications that have been made, with the two entities transacting such a product that relate to positions won in past auctions once the Supplier Master Agreements have been signed for the relevant supply period.  Your concern is also whether entering into such a transaction could make it difficult for Entity A or Entity B to make the certifications required to participate in future BGS Auctions.

Without going through each certification in detail, an entity will generally be required to certify in future auctions that the entity has no bidding agreements, no knowledge of another bidder’s bidding strategy, no knowledge of another bidder's preference for bidding on any product, or no knowledge of another bidder's valuation of any product in the upcoming auction.  You will also be required to certify that you have not revealed any such information to anyone, including another bidder.  It does not seem that selling the product you describe, in the particular timeframe you describe, related only to past BGS obligations, would create any type of bidding arrangement for a future auction, would reveal confidential information with respect to bidding strategy, would reveal either entity’s valuation of the BGS product for future auctions, or would reveal an entity's preference for bidding on any specific product.  Hence, it would seem that if Entity A and Entity B entered into this contingent credit sleeve arrangement in the timeframe you describe, the transaction would not have an impact on the certifications to be made for future auctions.

Our response does not contemplate, and would not necessarily apply, to a situation in which Entity A and Entity B entered into a general corporate agreement where Entity A would be supporting all of Entity B’s trading obligations.  Similarly, we are assuming that the arrangement is not a transaction that would entail Entity A conducting due diligence with respect to Entity B’s trading operations, or BGS supply arrangements, or valuations (and vice versa).  Further, we are assuming, as you have stated, that this credit product is not for the purposes of bidding in future BGS Auctions.  Were any of these assumptions to be incorrect, the guidance we are providing could differ as the level of knowledge that each entity may have about the other’s valuation methods and preferences could make it difficult to make some of the required certifications.  However, trading a contingent credit sleeve on a one time basis, without a review of the other entity’s trading strategies and BGS hedging and supply arrangements, does not in itself appear to pose any problem for future auctions.  Finally, we note that the transaction you describe would not "make" one entity a financial institution for the other, and that any provisions for additional information to be provided to a financial institution under the Association and Confidential Information Rules would not apply to the circumstance described.

In general, Qualified Bidders that are associated with one another are considered as one bidder for the purposes of application of the load caps and for the administration of the auction.

Two affiliated entities may each be considering bidding in the auction and may separately submit a separate Part 1 Application, unaware that the other is also submitting a Part 1 Application.  In the Part 1 Application, each entity will be asked to declare either that 1) it is bidding independently; or 2) it is part of a bidding agreement, joint venture for the purpose of bidding in the auction, bidding consortium, or other arrangement pertaining to bidding in the auction.  Each entity would indicate that it is bidding independently given that it is unaware that the other is preparing an application to the auction.  Each entity would learn that an affiliated entity is also preparing to submit a bid in the same auction upon seeing the list of Qualified Bidders after having qualified through a successful Part 1 Application.

A Qualified Bidder may submit a Part 2 Application but is not required to do so.  If one or both of these affiliated Qualified Bidders subsequently submits a Part 2 Application, it would name the other (i.e., would name the affiliated entity) as a bidder with which it is associated.  Whether or not the other Qualified Bidder submits a Part 2 Application is irrelevant to the requirement imposed on the Qualified Bidder that is submitting the Part 2 Application to disclose the association.  Furthermore, the Qualified Bidder submitting the Part 2 Application will be asked to make a number of other certifications or to make information disclosures that may be affected by the presence of the associated bidder.  In general, Qualified Bidders that are associated with one another are considered as one bidder for the purposes of application of the load caps and for the administration of the auction.  It is certainly possible for two affiliated entities both to participate in the same auction.  Should both affiliated entities submit a Part 2 Application, the Auction Manager will make a determination on a case-by-case basis of whether the two affiliated entities would be able to bid separately and whether the two affiliated would be considered as one bidder for the application of the load caps.

If instead the two affiliated entities know that the other is preparing a Part 1 Application for the auction so that these entities will have communicated their potential intention to bid to each other, these entities are considered to be bidding as part of a bidding agreement, joint venture for the purpose of bidding in the auction, bidding consortium, or other arrangement (“Arrangement”) pertaining to bidding in the auction.  These entities should follow the procedures for entities that have entered into an Arrangement, as described in FAQ-67.

When Entities participate in an Arrangement, it is typical to nominate one Entity to fulfill the creditworthiness requirements and to sign the Master Supplier Agreement.  If the Entities participating in the Arrangement are either uncertain as to which Entity will sign the Supplier Master Agreement or if any or all Entities may sign a Supplier Master Agreement, all Entities must submit to the creditworthiness evaluation in the Part 1 Application.  All Entities should then submit separate Part 1 Applications, with all required documents, and in the Insert for the Part 1 Application prepared specifically for that purpose, each Entity states that it is NOT bidding independently, each Entity describes the Arrangement, and each Entity names all other Entities that are participating in the Arrangement.  In this same Insert, the Authorized Representative of each Entity signs to confirm that the Entity will be subject to the creditworthiness requirements (since the Entity may execute the Supplier Master Agreement should the Entities under the Agreement win at the auction).  Each Entity would respond to any request for additional information from the Auction Manager.  For example, the Auction Manager may require that the Entities designate a single point of contact for purposes of providing materials related to the auction, including the confidential information needed to submit bids.  Each Entity would present its financial information for purposes of a creditworthiness assessment.  Assuming that all Entities submit all required materials and respond to all requests for information from the Auction Manager and provide all information requested by the Part 1 Application process, the Entities participating in the Arrangement would qualify as a single bidder (“Joint Bidder”).  The Entities participating in the Arrangement would receive a single notification of qualification, and would be designated as a single bidder on the list of Qualified Bidders.  However, because at the time of qualification it is not known which Entity or Entities would sign the Supplier Master Agreement, each Entity would receive a separate creditworthiness assessment that would specify the pre-auction security that the Entity must provide with the Part 2 Application.  Please note that each Qualified Bidder will consider all Entities named on the list of Qualified Bidders when making their certifications in the Part 2 Application, including all Entities participating in the Arrangement.

At the Part 2 Application stage, each Entity to the Arrangement would make the certifications of the Part 2 Application or make appropriate information disclosures.  The Entity responsible for the creditworthiness requirements and for signing the Supplier Master Agreement would be the Entity providing the pre-auction security required with the Part 2 Application and would be the Entity submitting the Part 2 Application.  If the issue of which Entity is to sign the Supplier Master Agreement and is to be subject to the creditworthiness requirements is still not resolved by the Part 2 Application deadline, or should multiple Entities intend to enter into the Supplier Master Agreement upon winning at the auction, each Entity participating in the Arrangement would submit a Part 2 Application. In each Part 2 Application, the indicative offer and maximum preliminary interest (if applying to the BGS-RSCP Auction) would be expected to reflect the interest of Joint Bidder and thus would be expected to be identical in the Part 2 Application submitted by each Entity.  The indicative offer for Joint Bidder is subject to the same statewide load cap as any other single bidder in the auction.  The maximum preliminary interest of Joint Bidder, if applying to the BGS-RSCP Auction, is subject to the same EDC load caps as any other single bidder in the auction.  Each Entity would post the entire amount of pre-auction security required for the indicative offer presented at the maximum starting price.  The amounts of pre-auction security for each Entity participating in the Arrangement may be different depending on the creditworthiness assessment of the particular Entity but these amounts should all be based on the same indicative offer at the maximum starting price valid for Joint Bidder.  Each Entity will separately agree that the submission of any bid creates a binding and irrevocable offer to provide service under the terms of the Supplier Master Agreement and will separately agree to any other certification of the Part 2 Application applicable to the entity that would execute the Supplier Master Agreement should the entities participating in the Arrangement win at the auction.  Each Entity would additionally be required to agree that upon conclusion of the auction, Joint Bidder would provide to the Auction Manager any division among the Entities of tranches won by Joint Bidder for purposes of signing the Supplier Master Agreement.  The Entities participating in the Arrangement would receive a single notification of registration, would appear as a single bidder on the list of Registered Bidder, and would receive a single confidential information packet with information for the submission of bids.

If Joint Bidder wins at the auction, it may be the case that the issue of which Entity is to sign the Supplier Master Agreement has not been resolved at the conclusion of the auction or that multiple Entities intend to enter into the Supplier Master Agreement.  In accordance with their undertakings at the Part 2 Application stage, the Entities participating in the Arrangement are entirely responsible for providing to the Auction Manager, within one business day of the close of the auction, the names of the Entities that will sign the Supplier Master Agreement, and the number of tranches that each such Entity will serve.  Any failure of the Entities to agree on a division among themselves of the tranches won by Joint Bidder may result in the EDCs drawing upon the Pre-Auction Letters of Credit of any or all Entities participating in the Arrangement.  Should the Board approve the auction results, each such Entity will be responsible for signing the Supplier Master Agreement and meeting the creditworthiness requirements within three (3) business days of the Board decision.  The EDCs may draw upon the Pre-Auction Letter of Credit of an Entity that fails to abide by these obligations.  When the contract execution process is successfully concluded, the Auction Manager will cancel the Pre-Auction Letter of Credit separately for each Entity participating in the Arrangement.

Although such arrangements can take a variety of forms and the Auction Manager may require different procedures in specific circumstances, entities that bid jointly through a bidding agreement, joint venture for purposes of the auction, bidding consortium, or other arrangement pertaining to the auction (“the Arrangement”) would typically proceed as follows through the Application Process and proceed as follows for the submission of bids.

Only the entity that intends to execute the Supplier Master Agreement should the entities participating in the Arrangement win at the auction (“Entity A”) submits the Part 1 Application.  In the Insert for the Part 1 Application prepared specifically for that purpose, Entity A states that it is NOT bidding independently, Entity A describes the Arrangement, and Entity A names the other entity that is participating in the Arrangement.  In this same Insert, the Authorized Representative of Entity A signs to confirm that Entity A will be the entity that will fulfill the creditworthiness requirements (since it is the entity that would execute the Supplier Master Agreement should the entities participating in the Agreement win at the auction).  The applicable Insert is Insert #P1-8 if Entity A is applying to participate only in the BGS-RSCP Auction; Insert #P1-14 if Entity A is applying to participate only in the BGS-CIEP Auction; or Insert #P1-11 if Entity A is applying to participate in both the BGS-RSCP Auction and the BGS-CIEP Auction, in which case Entity A notes in Insert #P1-11 whether the arrangement pertains to the BGS-RSCP Auction, or to the BGS-CIEP Auction, or to both Auctions.  An Arrangement is specific to a particular Auction; it is possible, for example, for two entities to be participating in an Arrangement that only pertains to one Auction (say the BGS-RSCP Auction) and for one of the two entities to apply to bid independently in the other Auction (i.e., the BGS-CIEP Auction).

Please note that this same procedure for the Part 1 Application would be followed if more than two entities were participating in the Arrangement.

If the Part 1 Application for an auction complied with all requirements, both entities participating in the Arrangement qualify as a single bidder (“Joint Bidder”) for that auction.  Joint Bidder receives a single notification of qualification naming the two entities.  With the notification of qualification, each Qualified Bidder receives a list of Qualified Bidders for that auction.  The list of Qualified Bidders has a single entry for Joint Bidder, naming both entities participating in the Arrangement (e.g., the entities typically are listed as “Entity A and Entity B” on a single line or in some other manner that makes it clear that Entity A and Entity B have qualified as a single bidder).

In the Part 2 Application for a given auction, each entity on the list of Qualified Bidders makes certifications for compliance with the Association and Confidential Information Rules (or makes appropriate information disclosures) using the list of all entities on the list of Qualified Bidders in that auction.  Thus, each Qualified Bidder is asked whether it can make each certification with respect to Entity A and whether it can make each certification with respect to the other entity participating in the Arrangement, “Entity B”.  Joint Bidder makes certifications for compliance with the Association and Confidential Information Rules (or makes appropriate information disclosures) that apply to both Entity A and Entity B.  These certifications are submitted by Entity A to apply to Joint Bidder or are submitted separately by Entity A and by Entity B.  The indicative offer of Joint Bidder is subject to the same statewide load cap as any other single bidder in the auction.  For the BGS-RSCP Auction, the preliminary interest of Joint Bidder is subject to the same EDC load caps as any other single bidder in the auction.

Entity A submits the Part 2 Application including any required pre-auction security based on Entity A’s creditworthiness assessment at the Part 1 Application stage and on the indicative offer of Joint Bidder.  For the required Pre-Auction Letter of Credit in an auction, Joint Bidder has the following options:      (i) Entity A submits a single Pre-Auction Letter of Credit that names Entity A and Entity B as the “Bidder”; or (ii) Entity A names Entity A as the “Bidder” strictly for the purposes of the Pre-Auction Letter of Credit and the Authorized Representative from Entity A acknowledges in writing that the EDCs may draw upon the letter if Entity B has made a material omission or misrepresentation in the Part 1 Application or the Part 2 Application submitted to participate in the auction or has violated the Auction Rules; or (iii) Entity A submits a Pre-Auction Letter of Credit that names Entity A as the “Bidder” and Entity B also submits a Pre-Auction Letter of Credit that names Entity B as the “Bidder”, each letter of credit being for the full required amount (i.e., $500,000 per tranche of Joint Bidder’s indicative offer at the maximum starting price for the BGS-RSCP Auction or $375,000 per tranche of Joint Bidder’s indicative offer at the maximum starting price for the BGS-CIEP Auction).  Entity A submits any additional pre-auction security that is required.  Entity A submits a letter of intent to provide a guaranty if it relies on the financial standing of a guarantor and/or submits a letter of reference from its financial institution if required.  These documents refer to Entity A only as Entity A fulfills the creditworthiness requirements and would be the signatory to the Supplier Master Agreement should Joint Bidder win at the auction.  Entity A alone submits any certification of the Part 2 Application that is applicable to the entity that would execute the Supplier Master Agreement should the entities participating in the Arrangement win at the auction.

If the Part 2 Application for an auction complied with all requirements, both entities participating in the Arrangement register as Joint Bidder for that auction.  Joint Bidder receives a single notification of registration naming the two entities.  With the notification of registration, each Registered Bidder receives a list of Registered Bidders for that auction.  The list of Registered Bidders has a single entry for Joint Bidder, naming both entities participating in the Arrangement.  The notification of registration for Joint Bidder includes the initial eligibility for Joint Bidder in the auction.

The Auction Manager provides to Joint Bidder a single confidential information packet, including a single Login ID and password, for purposes of participating in the Trial Auction and for submitting bids in the auction.  Joint Bidder submits a single bid each round.  Entities A and B are entirely responsible for agreeing among themselves on all logistics associated with the submission of bids, including the bidding location and the point of contact for the Auction Manager, it being understood that the Auction Software may not function properly when more than one individual is logged in as a bidder.  Entity A and Entity B can communicate freely regarding their bidding strategy as well as regarding any other matter related to the auction for which they have declared the Arrangement to the Auction Manager.

If Joint Bidder does not win any tranches in the auction, the Pre-Auction Letter(s) of Credit is(are) cancelled as soon as practicable after the Board decision.  If Joint Bidder is a winner at the auction and the Board approves the auction results, the Auction Manager provides to the EDC(s) the contact information for representatives of Entity A for execution of the Supplier Master Agreement.  If Entity B submitted a Pre-Auction Letter of Credit, it is cancelled as soon as practicable after the Board decision.  The Pre-Auction Letter of Credit submitted by Entity A is cancelled as soon as practicable after all EDCs with whom Entity A is executing a Supplier Master Agreement have confirmed that Entity A has executed the Supplier Master Agreement and met the creditworthiness requirements of the Supplier Master Agreement (including the posting of any necessary security).

Yes, all entities in any such arrangements together cannot bid or win more than the applicable load caps.

Any bidding agreement, joint venture for the purpose of bidding in the auction, bidding consortium, or other arrangement pertaining to bidding in an auction must be disclosed in the Part 1 Application using the Insert prepared for this purpose. Any such agreement cannot be first disclosed at a later point in time. If the parties to this agreement qualify, the parties do so as a single “Joint Bidder”. Joint Bidder receives a single notification of qualification naming the entities that are parties to the agreement. The list of Qualified Bidders included with the notification of qualification has a single entry for the Joint Bidder, naming all entities participating in the Arrangement (e.g., the entities are listed as “Entity A and Entity B” on a single line or in some other manner that makes it clear that the entities have qualified as a single joint bidder).

Thus it is the Joint Bidder that becomes the Qualified Bidder able to submit a Part 2 Application; each party separately does not have the status of a Qualified Bidder and cannot continue in the Auction Process separately. Status as a Qualified Bidder cannot be rescinded or changed after the Auction Manager has issued the Notification of Qualification. In particular, the Qualified Bidder status of the Joint Bidder cannot be assigned or transferred to one of the parties to the agreement. Applicants certify in their Part 1 Application that they will not assign or transfer their status as a Qualified Bidder to another party.

For the Joint Bidder to continue in the Auction Process after the Joint Bidder has become a Qualified Bidder, the entity that presented its financial information for creditworthiness purposes (“Entity A”) submits the Part 2 Application including any required pre-auction security. For the Pre-Auction Letter of Credit, Joint Bidder has the following options: (i) Entity A submits a single Pre-Auction Letter of Credit that names all parties to the agreement as the “Bidder”; or (ii) Entity A names Entity A as the “Bidder” strictly for the purposes of the Pre-Auction Letter of Credit and the Authorized Representative from Entity A acknowledges in writing that the EDCs may draw upon the letter of credit if any of the parties to the agreement have made a material omission or misrepresentation in the Part 1 Application or the Part 2 Application submitted to participate in the auction or has violated the Auction Rules; or (iii) each party to the agreement separately submits a Pre-Auction Letter of Credit for the full required amount. Entity A submits any additional pre-auction security that is required. The Part 2 Application for Joint Bidder must include the certifications for compliance with the Association and Confidential Information Rules (or appropriate information disclosures) from each party to the agreement.

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