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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.

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Is there a sealed bid round at the end of an auction? How is the target for an EDC filled if from one round to the next the target for an EDC goes from being oversubscribed to undersubscribed?

No. There is no sealed bid round at the end of an auction. Once an EDC is oversubscribed in an auction, the target will always be filled for the remainder of the auction. In order to fill the target, offers are taken in price order. This means that in a given round, the bids will be stacked to fill the target as follows:

1) First, all tranches bid at the going price are taken;

2) Second, tranches withdrawn are retained to fill the target from lowest to highest exit price. The exit price is the last and best offer for the tranche. The exit price must be greater than the going price for the round and less than or equal to the prior round price; and

3) Last, if all withdrawals are retained and the target is still not met, switches from the EDC will be denied at the previous round’s going price, which the price at which they were last freely bid.

Bidders receive information about their own retained exits and denied switches in the round report each round.

10/16/2023, in General.

The “JCP&L Historical Hourly Load by Class Jun20-May23” file does not contain data through May 2023. Can you please provide the updated file?

Thank you for bringing this to our attention. The “JCP&L Historical Hourly Load by Class Jun20-May23” file has been updated and is available on the additional data page of the BGS Auction site.

9/27/2023, in Data.

Are redlines available between the final 2023 Supplier Master Agreements (“SMAs”) and the provisional 2024 SMAs?

The BGS Auction Manager has made available redlines between the Final 2023 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, 2024. The redlines are available on the Contract and Credit page of the “bidder info” tab of the BGS Auction website.

8/10/2023, in Supplier Master Agreement .
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When do we need to sign the applicable SMAs if we win tranches in the BGS Auctions?

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.

8/10/2023, in Supplier Master Agreement .

There are no questions posted to the FAQ archives on the BGS Auction website. Where can I find FAQs from previous auctions?

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.

8/10/2023, in General.

Is the hourly load data reported in Eastern Standard Time or Eastern Prevailing Time?

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

8/10/2023, in Data.

Does the BGS-CIEP closing price determine the payment to BGS-CIEP Suppliers as well as the rates for BGS-CIEP customers?

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.

8/10/2023, in Rates.
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Are BGS suppliers paired with individual customers or with customers within an EDC’s subzone?

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.

8/10/2023, in General.

What is BGS?

“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.

8/10/2023, in General.

What is the primary function of the BGS Auction website?

While the BGS Auction website contains some general information of interest to all stakeholders, most of the more detailed information on the BGS Auction website is directed to suppliers that bid to provide supply to BGS customers. The BGS Auction website maintains results from previous auctions (on the “past results” page of the “auction” tab) and provides historical load data in the BGS Data Room. The BGS Auction website does not maintain other historical data such as past auction documents or historical rates. Stakeholders may wish to consult other sources for information of that type, such as their Electric Distribution Company’s (“EDC’s”) website.

8/10/2023, in General.

How does the New Jersey Board of Public Utilities (“Board”) grant authority for BGS suppliers to sell full requirements supply to the EDCs?

The Board issues an Order at the conclusion of the Auction Process. The Orders are found on the “bgs orders” tab of the “auction” page. If the Board approves the auction results, the Board certifies the final results of the Auctions, approves the closing prices, and orders the EDCs to execute the BGS Supplier Master Agreements by which the BGS suppliers sell full requirements supply to the EDCs.

8/10/2023, in General.
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When are the 2024 BGS Auctions expected to take place?

In response to a request by the New Jersey Board of Public Utilities, the EDCs filed a proposal to procure supply to meet BGS load by July 3, 2023 (the “July Filing”). This proposal includes a tentative auction timeline. The proposed start dates are February 2, 2024 and February 5, 2024 for the BGS-CIEP Auction and the BGS-RSCP Auction, respectively.

8/10/2023, in General.

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