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Frequently Asked Questions - #58

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Please clarify the definition of an Advisor. Does legal counsel count as an Advisor? 

An Advisor is an entity or person(s) that will be advising or assisting a bidder with bidding strategy in the BGS-RSCP Auction, with estimation of the value of a system’s tranches, or with the estimation of the risks associated with serving BGS load.  This advice may be with respect to the round-by-round submission of bids and analysis of the information on the general progress of the auction.  This advice may be in preparation for submitting bids at the auction in terms of analyzing the risks and rewards of supplying tranches for a given EDC.

A bidder may, for example, be obtaining general market information from an entity (i.e., subscribing to a service that educates its readers with respect to the market or provides to its subscribers general trends in market prices).  This entity would not be an Advisor because the information obtained is general in nature and not specific to the auction.  A bidder may, as another example, retain a person to provide updates on the market or educate the bidder as to items such as the responsibilities of being an LSE in PJM.  This person would not be an Advisor because the information obtained is general in nature and not specific to the auction.  A bidder may retain a person that will analyze the migration risk of customers of different BGS-RSCP classes for a given EDC.  This person would be an Advisor as such an analysis would be one element of estimating the value of a system’s tranches. In general, an Advisor provides assistance that is specific to the auction.

In general, legal counsel for the bidder would not be considered an Advisor under this definition unless legal counsel provides both legal advice and advice of the type described above.

Please note that, for a Qualified Bidder to be able to make and uphold its certification that it will not disclose confidential information relative to its bidding strategy or regarding the Auction Process, the bidder, when obtaining general information from a person that is not its Advisor, cannot disclose confidential information, including the fact that it has qualified to participate in one or both of the BGS Auctions.

11/15/2021, in Association and Confidential Information Rules.

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