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Frequently Asked Questions - #75

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FAQ-75

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-73.



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

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