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. Cash is not acceptable as pre-auction security.

A related entity (e.g. parent company) may submit pre-auction security on behalf of the Qualified Bidder. If the BGS-CIEP Pre-Auction Letter of Credit and/or the BGS-RSCP Pre-Auction Letter of Credit are issued from an entity other than the Qualified Bidder itself, the first sentence of Paragraph 1 should read:

“We hereby establish in your favor this irrevocable Letter of Credit (this ‘Letter of Credit’) for the account of [related entity] on behalf of [Bidder], an Applicant to the Part 2 Application process of the BGS Auction(s) who has successfully completed the Part 1 Application (the ’Bidder’), in the amount of USD $________________, effective immediately and available to you at sight upon demand by all of you at our counters at __________________(U.S. address) and expiring on ___________ which is at least sixty (60) calendar days from date of issuance, unless terminated earlier in accordance with the provisions hereof or otherwise extended”.

There is no state licensing requirement as part of the BGS application process.  An Applicant is not required to be a third-party supplier in New Jersey in order to participate in the BGS Auctions.

By May 1, 2027, each BGS-RSCP Supplier and each BGS-CIEP Supplier must: (i) be a member of the PJM Interconnection, L.L.C. (“PJM”); (ii) meet all applicable obligations that PJM ascribes to a Load Serving Entity (“LSE”); and (iii) be a signatory of the PJM Reliability Assurance Agreement as amended and/or superseded. If an Applicant is not yet qualified as a PJM LSE at the time of submission of the Part 1 Application, the Applicant must certify that there exist no impediments for the Applicant to become a PJM LSE by May 1, 2027. In the Part 2 Application, such Applicant will be required to provide evidence that either it has since satisfied requirements (i) – (iii) described herein, or that it has submitted to PJM all documents required to become a member of PJM, including all documents required by PJM to meet all applicable obligations that PJM ascribes to an LSE, and that PJM has begun its review of said documents.

A Legal Representative, for purposes of the Part 1 Application, is a person or company that agrees to accept service of process on the Applicant's behalf. The Legal Representative can be either legal counsel or a representative agent. The individual or company serving as the Applicant's Legal Representative must have an address in New Jersey, and must be authorized, and agree, to accept service of process on the Applicant’s behalf. The Applicant must provide contact information for the Legal Representative and duly complete the Legal Representative Insert (#P1-3). 

The Applicant must have a continuous Legal Representative. Should the Applicant’s Legal Representative be unable to continue to perform the duties described in the previous paragraph, a new Legal Representative must be named prior to the previous Legal Representative relinquishing its duties.

The presentation slides and accompanying audio for the first and second bidder information webcasts get posted to the webcast materials page of the “bidder info” tab on the BGS Auction website typically within a day of the event.

It is not a requirement of the BGS-RSCP application process that a potential BGS-RSCP Supplier be rated by at least two (2) of S&P, Moody’s, Fitch, or A.M. Best.

The requirement that a BGS-Supplier be rated by at least two (2) of the rating agencies cited in your question is only applicable to BGS-RSCP Suppliers seeking to qualify for unsecured credit under the BGS-RSCP Supplier Master Agreement (“SMA”). To receive an Independent Credit Threshold, the BGS-RSCP Supplier must: (1) be rated by at least two of S&P, Moody’s, Fitch, or 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 “Minimum Rating”).

For BGS-RSCP Suppliers who cannot meet these requirements, the posting of cash or a letter of credit in an acceptable form as defined in Section 6.9(b) of the BGS-RSCP SMA for the entire aggregate Independent Credit Requirement amount under the BGS-RSCP SMA and any other BGS Supply agreement(s) between the BGS-RSCP Supplier and the Company will be required at the time of, or prior to, the execution of the BGS-RSCP SMA.

The Part 1 Application will be made available to bidders no later than Tuesday, December 1, 2026.  Bidders that requested an account for purposes of accessing and completing the online Part 1 Application prior to the Part 1 Application being made available, as well as returning Bidders that have participated in past BGS Auctions, will be issued accounts on Tuesday, December 1, 2026.  Bidders in need of an account to access the online application forms can request one by clicking here.

Potential bidders wishing to rely on the financial standing of a Guarantor and who cannot use the Guaranty appended to the BGS-CIEP Supplier Master Agreement (“SMA”) and to the BGS-RSCP SMA are invited to propose an alternate form of guaranty. This process is entirely optional. The alternate form of guaranty must meet the requirements specified in the Alternate Guaranty Process document posted on the Contract & Credit page. 

The data you request is not available. Each EDCs’ BGS-RSCP pricing factors and tariff sheets previously filed with the NJ BPU may be located through the BPU’s docket search feature. This resource may be used to identify documents, data, and other materials associated with prior BGS proceedings.

The BGS Auction Manager has made available redlines between the Final 2026 BGS-CIEP and BGS-RSCP SMAs and the SMAs filed as part of the EDCs’ Proposal for the provision of Basic Generation Service for the period beginning June 1, 2027. The redlines are available on the Contract and Credit page of the “bidder info” tab of the BGS Auction website.

JCP&L has confirmed that the data provided in the “Electric_Switching_Historical” file is accurate. For JCP&L, the Residential Switching Accounts values are based on customer counts as of each month-end. The Load values (MW) are not load based on consumption each month, but rather the capacity obligation.

Information regarding the number of tranches won by each BGS Supplier in each EDC territory is typically released in early May, approximately one month before the supply period starts.  Results of previous BGS Auctions, including the 2026 BGS Auctions, can be found on the Past Results page of the BGS Auction website. The New Jersey Board of Public Utilities (“Board”)’s order approving the results of the 2026 BGS Auctions can be found here.

The BGS-CIEP and BGS-RSCP Supplier Master Agreements make the BGS Supplier responsible for legislative changes as well as for the Renewable Energy Portfolio Standards (“RPS”) that are in effect during the term of the contract, including any changes to the RPS.

The data you request is not available. However, please find below a description of how broker quotes are used to calculate the forward market prices for purposes of the mark-to-market (“MtM”) exposure amount calculation.

Forward market prices are calculated using data from brokers, which is defined in the BGS-RSCP SMA to include both independent brokers and exchanges active in the energy markets. Data sources have changed periodically based on data availability.  The sources currently used are Intercontinental Exchange, Inc. (“ICE”), TFS Energy LLC (“TFS”), and Amerex Brokers LLC (“Amerex”). 

The forward market prices are calculated by averaging the available broker quotes and the broker quotes may be for individual months, two-month blocks, or quarterly blocks. The “MtM Exposure Amount Calculation Information” section of Appendix B describes how the EDCs unpack multi-month blocks to derive forward market prices for individual months in instances where a block and a component of the block are available. Using multiple sources and employing a method to unpack two-month blocks and quarterly blocks allows the EDCs to maximize the number of quotes used to calculate the forward market prices. 

When quotes are available from more than one data source, the forward market prices are calculated by averaging the available broker quotes. When quotes are only available from a single broker or data source, and that source is ICE, then the forward market prices are calculated as the average of the ICE quotes over the preceding five (5) days. Forward market prices for the months, two-month blocks, or quarterly blocks where broker quotes are unavailable from any broker will be equal to the last available broker quote or in case they have not been quoted since the BGS-RSCP Auction closed, they will be equal to the marks set at the close of the BGS-RSCP Auction.

Please see Appendix B of the BGS-RSCP SMA for additional details surrounding the MtM calculation.

As stated in section VI.D. of the BGS-CIEP Rules and section VII.D. of the BGS-RSCP Rules, each winner and each EDC will have three days from the time at which the Board approves the Auction results to execute the applicable agreement. Each winner will have these three days to demonstrate compliance with the creditworthiness requirements set forth in the applicable agreement. Please review the BGS-CIEP Rules and BGS-RSCP Rules for further information.

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.

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

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.

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.

“BGS” refers to Basic Generation Service, which is the service that each Electric Distribution Company (i.e., Public Service Electric and Gas Company (“PSE&G”), Jersey Central Power & Light Company (“JCP&L”), Atlantic City Electric Company (“ACE”), and Rockland Electric Company (“RECO”)) provides to its customers.  Each year since 2002, these four New Jersey Electric Distribution Companies have procured electric supply to serve their BGS customers through a statewide auction process held in February.

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