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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 as time permits.

Your use of this page (site) constitutes an acceptance of the Terms as  described in the disclaimer.

 

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FAQ-91

Does a winning supplier execute a new BGS Supplier Master Agreement every year or can new tranches won this year fall under the terms of the BGS Supplier Master Agreement that we previously signed with an EDC?


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 2026 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 2026 BGS Supplier Master Agreement with that EDC.



12/19/2025, in Pre-Auction Security.
FAQ-90

What happens if a Qualified Bidder cannot make one or more of the certifications in the Part 2 Application?


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.



12/19/2025, in Application.
FAQ-89

Is there a requirement that the bank that issues the Pre-Auction Letter of Credit be the same as the bank that issues the Letter of Reference?


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.



12/19/2025, in Application.
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FAQ-88

Does the New Jersey Board of Public Utilities (“Board”) need to approve any assignments of the BGS Supplier Master Agreements?


Assignment is possible under Section 15.3 of the BGS Supplier Master Agreements.  Thus, if an entity participates at the auction and wins, that entity could assign its tranches to another entity at a later time, subject to the conditions of Section 15.3. Regulatory approval from the New Jersey Board of Public Utilities is not required for such an assignment.



12/11/2025, in Supplier Master Agreement .
FAQ-87

Entity A and Entity B are affiliated. Can both entities submit a Part 1 Application with only one entity submitting a Part 2 Application and with that remaining entity signing the BGS Supplier Agreement should the entity win at 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. Your question, however, implies that both Entity A and Entity B are aware that the other is submitting a Part 1 Application. Thus, if 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 ACI-47 or ACI-48 found in the Association and Confidential Information Rules Q&A.

Any Arrangement pertaining to bidding in an auction must be disclosed in the Part 1 Application using the Insert prepared for this purpose. If the parties to this Arrangement qualify, the parties do so as a single “Joint Bidder”. The Joint Bidder receives a single notification of qualification naming the entities that are parties to the Arrangement. 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 Arrangement. Applicants certify in their Part 1 Application that they will not assign or transfer their status as a Qualified Bidder to another party.

Further, an entity that receives a Notification of Qualification, either as a single entity or as a Joint Bidder, acquires Qualified Bidder status and retains this status until the end of the Auction Process. Similarly, an entity, either as a single entity or as a Joint Bidder, that receives a Notification of Registration acquires Registered Bidder status and retains this status until the end of the Auction Process. There is no possibility to rescind or change this status. This means that an entity that becomes a Qualified Bidder and that does not submit a Part 2 Application is bound by all the certifications it has made in the Part 1 Application; this applies to both entities that enter an Arrangement. Similarly, an entity, either as a single entity or as a Joint Bidder, that becomes a Registered Bidder is bound by all the certifications it has made in the Part 1 and Part 2 Applications, regardless of whether the Registered Bidder subsequently participates in the auction.

Please review the certifications in the Part 1 and Part 2 Applications for more details and in particular for the time period during which these certifications must remain in effect.

Please note that assignment is possible under Section 15.3 of the BGS Supplier Master Agreements.  Thus, if one of Entity A or Entity B participates at the auction and wins, that entity could assign its tranches to the other entity at a later time, subject to the conditions of Section 15.3.



12/10/2025, in Auction Rules.
FAQ-86

Where do you post the presentation slides and accompanying audio for the bidder information webcasts?


The presentation slides and accompanying audio for the first and second bidder information webcasts are posted to the Webcast Materials page of the BGS Auction website.



12/4/2025, in General.
FAQ-85

Will the EDCs review a draft Pre-Auction Letter of Credit prior to our bank issuing such document?


With the Part 2 Application, bidders must submit their executed Pre-Auction Letter(s) of Credit. The EDCs do not provide courtesy reviews of draft documents. Bidders must use the final version of the Pre-Auction Letter(s) 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 BGS Auction website.



12/4/2025, in Pre-Auction Security.
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FAQ-84

Which Part 1 Inserts are required for Bidders participating in both the BGS-RSCP Auction and the BGS-CIEP Auction? 


Bidders participating in both the BGS-RSCP Auction and the BGS-CIEP Auction should complete Inserts #P1-1 through #P1-5 and Inserts #P1-9 through #P1-11. 



12/2/2025, in Application.
FAQ-83

When do the Trial Auctions start on January 29, 2026 and February 3, 2026? 


Qualified Bidders will be provided with schedules for the Trial Auctions with their Part 2 Notification on January 22, 2026.



12/2/2025, in General.
FAQ-82

Where are materials relevant to the submission of the Part 1 Application posted to the BGS Auction website?


The materials relevant for the submission of the Part 1 Application are posted to the Application Process page on the BGS Auction website.



12/2/2025, in Application.
FAQ-81

When is the Part 1 Application made available to bidders?


The Part 1 Application is made available to bidders on Tuesday, December 2, 2025.



11/26/2025, in Application.
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FAQ-80

Entity A is contemplating selling a hybrid swap/credit-support product to Entity B, akin to a contingent credit sleeve.  Entity A and Entity B are each a BGS Supplier.  It is possible that each intends to bid in the next auction; however, these entities have not and do not intend to discuss with each other participation in future auctions.  Further, Entity A and Entity B are not related entities, always bid separately, and have no agreements related to bidding in the auctions in any way. 

The transaction can be described as follows.  Entity B would pay Entity A a premium in exchange for Entity A standing ready and posting cash or a letter of credit directly to the EDC (not Entity B) if the PJM forward energy price exceeded a particular threshold.  This would assist Entity B to meet its credit obligations under an existing Supplier Master Agreement. 

This "contingent credit sleeve" product is negotiated after the close and certification of the results of the last BGS Auctions, and before the beginning of the next BGS Auction cycle.  This product is not for the purposes of bidding in future BGS Auctions.  Are there any issues with such a transaction under the Association and Confidential Information Rules?


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.



11/25/2025, in Association and Confidential Information Rules.
FAQ-79

If two Qualified Bidders are associated, will these bidders be jointly subject to the load caps? 


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.



11/25/2025, in Association and Confidential Information Rules.
FAQ-78

Is it possible for two entities that are affiliated both to participate in 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-76. 



11/25/2025, in Association and Confidential Information Rules.
FAQ-77

FAQ-76 describes how entities that enter into a bidding agreement, joint venture for purposes of the auction, bidding consortium, or other arrangement pertaining to the auction (the “Arrangement” among Entities) participate in the Application Process and submit bids at the auction.  The response assumes that it is known which of the Entities participating in the Arrangement would execute the Supplier Master Agreement (and thus would submit to the creditworthiness requirements) should the Entities win tranches at the auction. 

How would this process be different if either: the Entities do not know which Entity will execute the Supplier Master Agreement; or: two or more of the Entities participating in the Arrangement intend to execute the Supplier Master Agreement for a portion of the tranches won should they be winners at the auction?


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 preliminary maximum 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 preliminary maximum 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.



11/25/2025, in Association and Confidential Information Rules.
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FAQ-76

Two entities enter into a bidding agreement, joint venture for purposes of the auction, bidding consortium, or other arrangement pertaining to the auction.  Can you please explain how these entities would typically proceed through the Application Process and how they would submit bids in the auction?  Do both entities submit to the Application Process and submit bids separately?


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 which 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).



11/25/2025, in Association and Confidential Information Rules.
FAQ-75

Do the load caps apply jointly to entities that enter into bidding agreements, joint ventures for the purpose of bidding in the auction, bidding consortiums, or other arrangements pertaining to bidding in the auction?


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



11/25/2025, in Association and Confidential Information Rules.
FAQ-74

An entity enters into a bidding agreement, joint venture for the purpose of bidding in the auction, bidding consortium, or other arrangement pertaining to bidding in an auction and the entity becomes a qualified bidder.  If the bidding partner subsequently withdraws its support at a later time, would the entity still be a qualified bidder able to continue its participation in the Auction Process?


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.



11/25/2025, in Association and Confidential Information Rules.
FAQ-73

We understand that bidding agreements must be fully disclosed to the Auction Manager before the auctions start.  Can a bidder enter into a bidding agreement with another entity at any point during the Auction Process as long as such disclosure is made?


No.  Any bidding agreement, joint venture for the purpose of bidding in the auction, bidding consortium, or other arrangement pertaining to bidding in the auction, must be fully disclosed in the Part 1 Application.  This implies that any such arrangement must be entered into before the Part 1 Applications are received and cannot be entered into later in the Auction Process.  In the Part 2 Application, a Qualified Bidder will be required to certify that, other than agreements disclosed in the Part 1 Application, the Qualified Bidder has not entered and will not enter into any agreement regarding bidding or participation in the auction.



11/25/2025, in Association and Confidential Information Rules.
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FAQ-72

When do applicants disclose bidding agreements to the Auction Manager?


Bidding agreements are disclosed in the Part 1 Application.



11/25/2025, in Association and Confidential Information Rules.

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