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Frequently Asked Questions - #39

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FAQ-39

Can a marketer, who becomes a Qualified Bidder in the BGS-RSCP Auction, purchase full-requirements supply to serve a particular zone should it win at the BGS-RSCP Auction from a generator/wholesaler, who is also a Qualified Bidder in the BGS-RSCP Auction?  Could these two Qualified Bidders, in good faith, make all the certifications in the Part 2 Application for the BGS-RSCP Auction?


No, they could not.  The contractual arrangements with the generator for supply to serve full-requirements BGS-RSCP load should the marketer be a winner at the auction would reveal confidential information relative to the marketer's bidding strategy.  There is no other use (or market) for full-requirements BGS-RSCP supply other than bidding in the BGS-RSCP Auction; further, the product is sufficient to meet virtually all supply requirements of a BGS-RSCP Supplier.  Thus, a generator that is qualified for the BGS-RSCP Auction and that sells full-requirements supply for BGS-RSCP to a marketer that is also qualified for the BGS-RSCP Auction, has knowledge of confidential information relative to the bidding strategy of the marketer.  The generator would not be able to certify that it does not have any knowledge of confidential information relative to the bidding strategy of another Qualified Bidder.  The marketer may not be able to certify that it does not have any knowledge of confidential information relative to the bidding strategy of the generator if it has acquired knowledge of the generator's estimation of the risks associated with serving BGS-RSCP load or of serving a particular Electric Distribution Company (“EDC”) through the transaction.  Further, the marketer would not be able to certify that it has not disclosed confidential information relative to its own bidding strategy to another Qualified Bidder. 



11/25/2024, in Association and Confidential Information Rules.

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