A bidder cannot bid more in the first round of the Auction than its indicative offer at the maximum starting price (the number of tranches for which the bidder has submitted Pre-Auction Security as required by the Part 2 Application). While a bidder cannot bid more in the first round of the Auction than its indicative offer at the maximum starting price, a bidder can bid less than that amount, including submitting a bid for zero tranches.

No, cash is not acceptable as pre-auction security. Each Qualified Bidder in an auction must submit a Pre-Auction Letter of Credit (or Bid Bond) for that auction (either the BGS-CIEP Auction or the BGS-RSCP auction) with its Part 2 Application.

The expiry date must be at least sixty (60) calendar days from date of issuance of the BGS Pre-Auction Letter of Credit. The date of issuance is expected to be no earlier than the Notification of Qualification date, namely on or after December 20, 2024.

A new BGS Supplier Master Agreement is used every year between a supplier and an EDC for which the supplier has won tranches at the auction, regardless of whether the supplier is a current or past BGS supplier for that EDC. After the 2025 BGS Auctions, if the New Jersey Board of Public Utilities approves the results of the auctions, all suppliers with winning tranches for an EDC will be required to execute the final 2025 BGS Supplier Master Agreement with that EDC.

It depends on the certification. Some certifications of the Part 2 Applications are required for a Qualified Bidder to become a Registered Bidder. For example, a Qualified Bidder must certify that, other than agreements disclosed in the Part 1 Application, the Qualified Bidder has not entered into any agreement with any other Qualified Bidder regarding participation in the auction for which it is applying. If a Qualified Bidder is unable to make this certification, the Qualified Bidder will not be able to participate in the Auction.

Other certifications of the Part 2 Application allow the Qualified Bidder to make an information disclosure to explain why it is unable to make a certain certification. For example, a Qualified Bidder that is unable to certify that it is not associated with any other Qualified Bidder will be asked to identify the Qualified Bidder(s) with which it is associated, and will be asked to describe the nature of the association. If a Qualified Bidder makes such a disclosure because it cannot make one of the certifications in the Part 2 Application, this disclosure will be considered when the Part 2 Application is processed. The Auction Manager may require additional information and will decide on a course of action on a case-by-case basis to preserve the competitiveness and integrity of the Auction. This course of action could include allowing the Qualified Bidder to complete the Part 2 Application successfully without additional undertakings, could include requiring additional undertakings as a condition for the successful completion of the Part 2 Application and for participation in the Auction, or could include rejection of the Part 2 Application.

There is no requirement for the bank issuing the Pre-Auction Letter of Credit to be the same as the bank that issues any letter of reference. Both the Pre-Auction Letter of Credit and the Sample Letters of Reference, however, require that the issuing bank have an unsecured debt rating of “A” from Standard & Poor’s or “A2” from Moody’s. Furthermore, the Pre-Auction Letter of Credit must be issued by a United States commercial bank or a foreign commercial bank with U.S. branches that are subject to the jurisdiction of New York federal or state courts. 

With the Part 2 Application, bidders must submit their executed Pre-Auction Letters of Credit. The EDCs do not provide courtesy reviews of draft documents. Bidders must use the final version of the Pre-Auction Letter of Credit or include only modifications that are acceptable to the EDCs on an optional basis as posted to the BGS Auction website. The list of modifications acceptable to the EDCs on an optional basis is available in the document entitled “Final Acceptable Modifications to Pre-Auction Letter of Credit” posted to the Application Process page of the “bidder info” tab.

Yes.

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 EDCs do not currently provide ancillary services data. Historical ancillary services data is available through January 2020 for JCP&L in their archived “Additional Data Prior to June 2021” zip file on the Additional Data page of the BGS Auction site. Historical ancillary services data is not available for the other EDCs. 

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.

The EDCs do not prepare or provide ARR data. The EDCs will, however, provide NSPL data for a day in January once available. Please see PJM's website for more information on historical ARR allocation here: https://www.pjm.com/markets-and-operations/ftr. 

The deadline to propose modifications to the standard form of the Pre-Auction and Post-Auction Letters of Credit was October 29, 2024.

The issuing bank of the Letter of Reference must meet a minimum credit rating requirement, which requires the issuing bank to have a senior unsecured debt rating of “A” or better by S&P Global Ratings (“S&P”) if rated by S&P or “A2” or better by Moody’s Investors Service Inc. (“Moody’s”) if rated by Moody’s, or “A” or better by Fitch Ratings (“Fitch”) if rated by Fitch. Additionally, the Letter of Reference must be issued by a United States commercial bank or a foreign commercial bank with U.S. branches that are subject to the jurisdiction of New York federal or state courts.

Generally, the load data in the BGS Data Room is at the wholesale level.  All hourly load data series include applicable transmission as well as distribution losses.  However, hourly load data must be adjusted by the hourly de-ration factors in order to achieve settlement loads. The hourly de-rating factors are available on the Monthly Data page of BGS Auction site.

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.

Confirmed; BGS-RSCP Suppliers would receive payment under the scenario described in your question. Please also see the response to FAQ-20 posted to the BGS Auction website for a full description of the Supplements to the BGS-RSCP Supplier Master Agreement.

• BGS-RSCP: $24,500/tranche 
• BGS-CIEP: $19,400/tranche

• to provide a Pre-Auction Letter of Credit in an amount of $500,000 per tranche of the indicative offer at the maximum starting price and a Letter of Intent to Provide a Guaranty in an amount of $1.9M per tranche of the indicative offer at the maximum starting price; or:
• to provide a Pre-Auction Letter of Credit in an amount of $2.4M per tranche of the indicative offer at the maximum starting price.

Neither the Authorized Representative, nor the Officer who names the Authorized Representative in the Part 1 Application, is required to be the individual who would execute the applicable SMA should the bidder win at the Auction.

If you become a winning bidder in the Auction, the entity that executes the applicable SMA must be the same entity that has agreed to the terms of the SMA in the Part 1 and Part 2 Applications. However, the individual who signs the SMA can be any officer or representative who is authorized to execute contracts and bind the bidder.

No, the Applicant is not required to be a PJM LSE at the time of submitting the Part 1 Application. However, if the Applicant is not a PJM LSE at the time of submitting the Part 1 Application, the Applicant must certify in its Part 1 Application that there exist no impediments for the Applicant to become a PJM LSE by the start of the supply period (by using the LSE Certification Insert labelled #P1-4).

Section 3 of the Part 1 Application does not compel the Applicant to have an office in New Jersey or to have legal counsel in New Jersey. Section 3 requires that the Applicant name a legal representative; for purposes of the Part 1 Application, a legal representative 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 provide an address in New Jersey. If a company agrees to accept service of process on your behalf, an individual from that company must sign the Legal Representative Insert (labelled #P1-3).  The name of the individual and contact information must be provided.

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