BGS Auction brandmark
Search:
 
Frequently Asked Questions - This Week

Do you have a question? Click here.

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 through the close of the Auctions, 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.

 

 

FAQ-11

Are utility-scale battery storage systems procured through the BGS Auctions?


Utility-scale battery storage systems are not procured through the BGS Auctions. 

While the BGS Auction website contains some general information of interest to all stakeholders, this website is mainly established for suppliers that bid to provide supply to BGS customers.  “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 those customers who do not switch to a third party supplier.

8/11/2022, in General.
FAQ-10

It appears some of the Peak Load Share values for certain months in the “JCPL 0-750kW Size Distribution Switching Statistics July 2022 Update” file fluctuate more than would be expected within a particular Energy Year.  Can you please confirm that the values in this file are correct?


Thank you for bringing this to our attention. The “JCPL 0-750kW Size Distribution Switching Statistics July 2022 Update” file has been updated and is available on the monthly data page of the BGS Auction site.

8/11/2022, in Data.
FAQ-9

Appendix B of the BGS-RSCP Supplier Master Agreement (“BGS-RSCP SMA”) provides a description of the mark-to-market (“MtM”) exposure amount calculation and mentions the use of broker quotes. Can you provide further details as to how broker quotes are used to calculate the forward market prices for purposes of the MtM methodology?


Forward market prices are calculated using data from brokers, which is defined in the BGS-RSCP SMA to include both independent brokers and exchanges active in the energy markets. Data sources have changed periodically based on data availability. The sources currently used are Intercontinental Exchange, Inc. (“ICE”), NYMEX, TFS Energy LLC (“TFS”), and Amerex Brokers LLC (“Amerex”).

The forward market prices are calculated by averaging the available broker quotes and the broker quotes may be for individual months, two-month blocks, or quarterly blocks. The “MtM Exposure Amount Calculation Information” section of Appendix B describes how the EDCs unpack multi-month blocks to derive forward market prices for individual months in instances where a block and a component of the block are available. Using multiple sources and employing a method to unpack two-month blocks and quarterly blocks allows the EDCs to maximize the number of quotes used to calculate the forward market prices.

When quotes are available from more than one data source, the forward market prices are calculated by averaging the available broker quotes. When quotes are only available from a single broker or data source, and that source is ICE, then the forward market prices are calculated as the average of the ICE quotes over the preceding five (5) days. Forward market prices for the months, two-month blocks, or quarterly blocks where broker quotes are unavailable from any broker will be equal to the last available broker quote or in case they have not been quoted since the BGS-RSCP Auction closed, they will be equal to the marks set at the close of the BGS-RSCP Auction.

Please see Appendix B of the BGS-RSCP SMA for additional details surrounding the MtM calculation.

8/11/2022, in Credit, Supplier Master Agreement .
Back to Top
FAQ-8

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.

8/11/2022, in General.
FAQ-7

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”).

8/11/2022, in Data.
FAQ-6

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.

8/11/2022, in Rates.
FAQ-5

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.

8/11/2022, in General.
Back to Top
FAQ-4

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.

8/11/2022, in General.
FAQ-3

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.

8/11/2022, in General.
FAQ-2

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.

8/11/2022, in General.
FAQ-1

When are the 2023 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 on July 1, 2022 (the “July Filing”). This proposal included a tentative auction timeline. The proposed start dates were February 3, 2023 and February 6, 2023 for the BGS-CIEP Auction and the BGS-RSCP Auction, respectively.

8/11/2022, in General.
Back to Top

Back to Top

What's New