GEN 00001

Question: Can you please post the W-9 and articles of incorporation for all 3 utilities?

Answer: The W-9 will be provided to winning bidders upon request.  The articles of incorporation for each of the Ohio Utilities are posted on the Documents page.

GEN 00002

Question: Are the tranches being procured by planning year or by each 12, 24, and 36 month term?

Answer: Tranches are being procured for each product in the auction.  Each product in the auction has its own tranche target.  For example, there is a tranche target for the 12-month product, a tranche target for the 24-month product, and a tranche target for the 36-month product.

GEN 00003

Question: What does “applicable delivery period” mean in this statement, “Each tranche represents one percent (1%) of the actual hourly energy required for SSO Load for the applicable Delivery Period”?

Answer: Different products in the auction have different Delivery Periods. A tranche for a product represents one percent (1%) of the actual hourly energy required for SSO Load during that product's Delivery Period.

GEN 00004

Question: For the auctions with three products (12/24/36 month terms), will all three products be procured simultaneously during the auction? Will three different prices be associated with the products?

Answer: Yes. For auctions with more than one product, all products will be procured simultaneously in the auction. Each product will have its own price.

GEN 00005

Question: What does market based transmission mean? Please provide a list of all market-based transmission costs. Which specific sections or costs are included?

Answer: In this context, market based transmission generally means transmission and ancillary charges whose rates/costs are set in total or in part by the PJM energy market.  Congestion and incremental losses would be two examples.  The Master SSO Supply Agreement lists all current transmission costs that will not be the responsibility of SSO Suppliers.  All other transmission costs that are incurred by suppliers as the LSE will be the responsibility of the supplier.

GEN 00006

Question: Can you please provide a detailed description of how capacity will be handled and priced in this auction? Is it going to be priced in $/MWh of energy served? Specifically, how will FEOU provide each planning year’s capacity price prior to the auction?

Answer: SSO bidders will be bidding a $/MWh price per tranche.  Winning bidders will be responsible for providing a full requirements product, which includes capacity, with the exception of certain non-market transmission related expenses as listed in the Master SSO Supply Agreement.

SSO bidders in the auction will know the price of capacity to be delivered to the ATSI zone for each of the three PJM planning years prior to the auction taking place.  The FRR auction results are currently posted for planning years 2011/2012 and 2012/2013 on the PJM FRR Website.  http://www.pjm.com/markets-and-operations/atsi-integration/~/media/markets-ops/rpm/rpm-auction-info/atsi-frr-integration-auction-results.ashx

On May 14, 2010, PJM will post on its Website the results of the RPM Base Residual Auction for the entire market, including ATSI zone, for the planning year 2013/2014.  The following is a link to the PJM schedule for this PJM BRA.  http://www.pjm.com/~/media/markets-ops/rpm/rpm-auction-info/rpm-auction-schedule.ashx

GEN 00007

Question: How are ARR revenue allocations handled?

Answer: ARR revenue allocations are performed by PJM per Section 17: Auction Revenue Rights Settlements contained in PJM's Manual 28: Operating Agreement Accounting.  http://www.pjm.com/~/media/documents/manuals/m28.ashx

GEN 00008

Question: Where are the tranche targets/size posted that were released on 4/23/2010?

Answer: The tranche target and size are posted on the News page of the Information Website.

GEN 00009

Question: Is it correct that NITS and transmission charge components based on demand will be direct pass-through items to end-use consumers for the upcoming auction (delivery period 2011-2014) while in the previous auction for the 2009-2011 delivery period, NITS and demand component transmission charges were included in the clearing price and charged to suppliers?

Answer: Items that are listed in Section 2.3 of the Master Standard Service Offer Supply Agreement are not part of the auction product for the SSO Supplier to provide.  These products/services will be direct-billed to retail customers by the Companies.

GEN 00010

Question: Does the Legal Representative listed on the Online Account Application need to be our Legal Representative in Ohio? If so, can we also list an internal Legal Representative that does not have an address in Ohio?

Answer: Indicating the Legal Representative in the Online Account Request Form is optional. However, you must identify the Legal Representative in the Part 1 Application. The Legal Representative is legal counsel or a representative agent that is authorized and agrees to accept service of process on the applicant’s behalf and the Legal Representative must have an address in Ohio.

GEN 00011

Question: In your April 15, 2010 presentation, you stated that SSO suppliers would not be obligated to provide alternative or renewable energy requirements. Can you point out where this is stated in the Master SSO Supply Agreement?

Answer: Please see the definition of SSO Supply and Standard Service Offer in the Master Standard Service Offer Supply Agreement. 

GEN 00012

Question: If I fill out an online application and upload all the financial data (10K, 10Q, etc.) and also the PJM documentation, do I also have to send hardcopies of the financial data and other supporting documentation when I send the original hardcopy of the application with signatures?

Answer: You need to send a hardcopy only of the Part 1 Application itself.  We do not need hardcopies of the financial data and other supporting documentation.

GEN 00013

Question: If the supporting documentation for the Part 1 Application (i.e., ratings information, financial information, etc.) is provided through the online tool, is it still necessary to send a hardcopy of the supporting documentation along with the rest of the Part 1 Application?

Answer: The only document that needs to be sent to the CBP Manager in hardcopy form is the signed and notarized Part 1 Application itself.  If the supporting documentation is uploaded through the applicant's online account, then hardcopies of the supporting documentation are not required.

GEN 00014

Question: Are applicants allowed to submit proposed changes to the Master SSO Supply Agreement with the Part 1 Application, or is the period for comments to this document closed?

Answer: No changes to the Master SSO Supply Agreement will be accepted.

GEN 00015

Question: In the Part 1 Application, section 1.6, part 4.(c), p. 14, applicants are asked to certify that they have no civil penalties, judgments, consent decrees, etc. As a large organization we are uncertain whether we can certify to that in full. We can provide a qualification in the box on p. 14. We can certify to (a), (b), (d), and (e). Should we sign or not sign under part 4 on p. 14?

Answer: Please sign in section 1.6, part 4, but list the qualification on page 14.

GEN 00016

Question: Can you please provide an electronic Word doc version of the post-bid LOC format for us to make changes to?

Answer: A Word version of the Form of SSO Supplier Letter of Credit is available on the Supplier Documents Web page on the CBP Information Website.

GEN 00018

Question: Can you please confirm when the auction results will be made available to the public?

Answer: Please see Section 6.1, "Notification of Results," and Section 11.3, "Certifications and Disclosures to Be Made," in the "Bidding Rules" document on the Information Website for more information. 

GEN 00019

Question: What time will an auction begin?

Answer: The starting time will be announced to the Registered Bidders close to the auction date.

GEN 00020

Question: When will the minimum and maximum starting prices for round 1 of an auction be announced?

Answer: The minimum and maximum starting prices for an auction will be announced no later than the start of the online Part 2 Application process for the auction.

GEN 00021

Question: Can you please clarify the options open to bidders in regards to complying with the certification to be registered and authorized to do business in the State of Ohio. Do bidders either need to be organized in the State of Ohio or have an agent there?

Answer: As part of the Part 1 Application process, Applicants are required to identify the Applicant’s Legal Representative in Ohio, who must be a legal counsel or representative agent, have an address in Ohio, and be authorized and agree to accept service of process on the Applicant’s behalf.

GEN 00022

Question: Under the Master SSO Supply Agreement, winning bidders organized outside of Ohio must be registered and authorized to do business and in good standing in Ohio. By registering to do business in Ohio, will we be exposed to Ohio's gross receipts tax across all of our business units? Are there any options or strategies to minimize exposure to the Ohio gross receipts tax?

Answer: FEOU is an Ohio company and this transaction is taking place in Ohio and is therefore subject to Ohio laws and taxes. FEOU cannot provide tax advice to any bidders - - bidders will need to do their own due diligence related to tax obligations.

GEN 00023

Question: Can a successful Part 1 Applicant (i.e., a Qualified Bidder) add a parental guarantee during the Part 2 Application process? More generally, can a Qualified Bidder alter its credit worthiness by either adding a guarantor, changing its guarantor, dropping the member of its bidding consortium, or changing out a member of its bidding consortium with a more credit-worthy entity?

Answer: Prior to the Part 2 Application Due Date, a Qualified Bidder may alter its credit worthiness as follows:

1) Add a guarantor, in the case where a guarantor was not named in the original Part 1 Application

2) Change its guarantor from the one named in the original Part 1 Application to a new one

3) Modify the composition of its bidding consortium so as to drop the member with the lowest creditworthiness, thereby raising the credit worthiness to the next highest credit status (to the extent there is no guarantor)

A Qualified Bidder may not add a new member to its bidding consortium from what was disclosed in the Part 1 Application.

In all cases where the credit worthiness of the Qualified Bidder is changed, a new set of information in the relevant Part 1 Application forms must be submitted to the CBP Manager prior to the Part 2 Application deadline. To the extent the financial status of a Qualified Bidder changes, either through Part 1 Application modifications or external factors, the Qualified Bidder must inform the CBP Manager.

A Registered Bidder also is required to report any change in financial status before the auction.

GEN 00024

Question: As a follow-up to FAQ PJM 00007, the Appendix G Sample Invoice has the Generation Deactivation charge as the Companies' responsibility. Can you confirm if the FAQ PJM 00007 or if the Appendix G Sample Invoice is correct?

Answer: Appendix G Sample Invoice is correct and FAQ PJM 00007 is incorrect. The Companies will be responsible for the Generation Deactivation charge. We have updated the answer to PJM 00007 to reflect the correct information.

GEN 00025

Question: How will the auction prices be converted into rates for the individual classes? Can you please provide us with the calculations that will be used?

Answer: After the results of both auctions -- the October auction and the subsequent January auction -- are known in late January, retail rates for the individual classes will be calculated per the terms of the Stipulation filed in Case No. 10-388-EL-SSO which states in part, “The rate design currently in effect remains in place other than as modified below.” The modifications are listed in Section A.5. of the Stipulation. It is not possible to provide the calculations that will be used until after the results of both auctions are known.

GEN 00026

Question: Have there been any PJM studies to estimate specific ancillary charges for FirstEnergy Ohio Utilities, like the RTO Start-up Recovery Charge, Sychronized Reserve, Expanision Cost Recovery, and Blackstart Charges? In addition, are there any SECA filings that could result in future SECA charges for FirstEnergy Ohio Utilities?

Answer: FEOU does not know of any studies done by PJM on ancillary charges for the ATSI footprint.  Most ancillary charges are market-based and are determined by the PJM market for ancillary services.  Suppliers should contact PJM with specific questions regarding ancillary services.

FEOU does not know of any potential SECA filings that would affect suppliers to this auction.

GEN 00027

Question: Are there any auction administration tranche fees?

Answer: No, there are no auction administration tranche fees. 

GEN 00028

Question: Are all FirstEnergy Ohio Utilities' customers eligble for default service? Stated another way is the sum of the "total shopped" and "not shopped" load equal to the total load published for the ATSI Zone load?

Answer: The sum of the "shopped" and "not shopped" load is equal to the "total" load published for the ATSI Zone load.

GEN 00029

Question: For a previously Qualified Bidder that submitted a successful Part 1 Application for the October 2010 auction, if their only change is a new 10-Q, do they only need to upload that electronically? Is there any need to provide a new signed Part 1 Application?

Answer: The previously Qualified Bidder needs to upload the new financial document online, update their financial data online (Sections 1.7 & 1.8 of the Part 1 Application), and submit the Part 1 Application online again. The Authorized Representative of the bidder will need to sign and date only the sections that has changes, and send those by email to cbpmanager@crai.com, followed by a hardcopy to the CBP Manager.

GEN 00030

Question: 1. Is the SSO Supplier or the Companies responsible for paying the NITS? 2. Does the SSO Supplier receive the ARR rights for the load or do they stay with the Companies?

Answer: (1) The Companies are responsible for paying NITS for all retail customers. As noted in FAQ GEN 00009, NITS will be direct-billed to retail customers by the Companies.    

(2) SSO Suppliers will receive ARR revenue allocations based upon calculations performed by PJM per Section 17: Auction Revenue Rights Settlements contained in PJM's Manual 28: Operating Agreement Accounting (also see FAQ GEN 00007). 

GEN 00031

Question: Is it necessary to become a CRES Supplier to participate in the competitive bidding process in which the FirstEnergy Ohio Utilities seek full requirements service for their SSO customers?

Answer: No, it is not necessary to be a Competitive Retail Electric Service (CRES) Supplier to participate in the FEOU competitive bidding process or to be an SSO supplier.

GEN 00032

Question: When is the pre-bid collateral due and when will it be returned? Can cash be posted instead of a letter of credit?

Answer: Pre-Bid Security has the same due date as the Part 2 Application.  It will remain in full force, at a minimum, until the fifth calendar day after the conclusion of the auction. Subsequently, a bidder’s Pre-Bid Security will be cancelled and returned. Yes, cash can be posted (via wire transfer) instead of a letter of credit.

GEN 00033

Question: Can a bidder submit multiple Part 1 Applications for different companies within the corporation as long as they disclose this? If so, does each company being submitted need different AR and ADs? Then, once the companies become Qualified Bidders, you then have to make the determination of which ONE company to proceed in the Part 2 Application process and ultimately the auction. Is this understanding correct?

Answer: A bidder can submit multiple Part 1 Applications for different companies within the corporation as long as they disclose this.  The same Authorized Representative and Delegate can be used across the different companies.  Only one of the companies will be allowed to proceed to the Part 2 Application process.  Once the companies become Qualified Bidders from the Part 1 Application process, you must decide which one of the Qualified Bidders will proceed to the Part 2 Application process and ultimately participate in the auction.

GEN 00034

Question: Will winning suppliers in the January auction (who had also won tranches in the previous October auction) be required to sign a new Master SSO Supply Agreement or will an additional Appendix A be added for any incremental tranches won?

Answer: The winning suppliers in the January auction who have also won tranches in the previous October auction will be required to sign a new Master SSO Supply Agreement.

GEN 00035

Question: Can you please elaborate on the difference between the MW requirement (115 MW) and the capacity requirement (130 MW) for each tranche awarded?

Answer: Both of these values assume there is no customer shopping.  The 115 MW represents an estimate of the maximum hourly energy a supplier may need to supply and the 130 MW represents an estimate of the PJM capacity requirement a supplier may be obligated to.

GEN 00036

Question: How do the FirstEnergy Ohio Utilities plan to approach billing each SSO Supplier? Specifically should the SSO supplier expect the three FirstEnergy Ohio Utilities will be combined into one bill. If this is the case, what is the legal name of the entity that will be billing each SSO supplier?

Answer: Please refer to FAQ's PJM00009 and AGR00011.

GEN 00037

Question: Is there a cure deficiency period for the Part 1 Application? Will you notify participants if we need to make any updates to the application?

Answer: As is outlined in the instructions for the Part 1 Application, the CBP Manager will notify applicants of any deficiency in their Part 1 Application and the applicant will be allowed time to remedy any such deficiencies. 

The CBP Manager will send a deficiency notice to the Authorized Representative by email. You will have until 12:00 p.m. noon prevailing Eastern Time on the Part 1 Application Due Date, or until 5:00 p.m. prevailing Eastern Time on the Business Day following the Business Day during which a deficiency notice is sent, whichever comes later, to respond. If you do not correct or adequately explain the deficiency within the time allowed, your Part 1 Application may be rejected and you may be unable to participate in the CBP.

GEN 00038

Question: Can you please answer the following in regards to the auction scheduled for October 25, 2011? (1) When will the list of Registered Bidders be made available assuming we have successfully completed the Part 2 Application and are a Registered Bidder ourselves? (Bidding Rules, Section 4.2.2) (2) When will the initial eligibility aggregated across all Registered Bidders be available? (Bidding Rules, Section 4.2.2) (3) When will the reporting ranges referenced in Section 5.4 of the Bidding Rules be available? (4) When will the starting price for the auction be available?

Answer: In response to questions (1) and (2): Applicants will be informed no later than three (3) business days after the Part 2 Application Due Date whether they have become a Registered Bidder. The list of Registered Bidders along with the total initial eligibility aggregated across all Registered Bidders will be sent, as soon as is reasonably possible, after all individual bidders have received their Notifications of Registration.

In response to question (3): The reporting ranges referenced in Section 5.4 of the Bidding Rules will be sent to all bidders in advance of the live auction. The CBP Manager does not have an exact date for when this information will become available. In the past, this information was sent out to all bidders, via email, not long after the mock auction.

In response to question (4): The starting price will become available no later than the date indicated on the CBP Calendar. This Calendar may be viewed on the CBP Information Website: http://www.firstenergycbp.com/Calendar.aspx.

GEN 00039

Question: If a customer switches and then comes back to FirstEnergy Ohio Utilities, does this customer load then become part of the SSO load?

Answer: Yes.  The following is taken from page 18 of the FirstEnergy Ohio Utilities Electric Generation Supplier Coordination Tariff as approved by the Public Utilities Commission of Ohio:

F. Customer Return to Standard Service Offer Supply

A Customer’s return to Standard Service Offer Supply may be a result of Customer choice, supplier default, termination of a supplier contract, opt out or termination of a governmental aggregation program, or supplier withdrawal. A Customer may contact the Company to return to the Company’s Standard Service Offer Supply. The return to the Standard Service Offer Supply shall be conducted under the same terms and conditions applicable to an enrollment with a Certified Supplier. Thus, the Company will provide a rescission period consistent with the Commission rules. Provided the Customer has observed the applicable notification requirements and the Company has effectuated the request to return to the Standard Service Offer Supply twelve (12) calendar days prior to the next regularly scheduled Meter Read Date, the Customer will be returned to the Standard Service Offer Supply on the next regularly scheduled Meter Read Date.

Large Commercial and Industrial Customers Return to Standard Service Offer Rate

Return to Standard Service Offer Supply will be pursuant to the Company’s Electric Service Regulations Section XIII Return to Standard Offer Supply.

Residential and Small Commercial Customers Return to Standard Service Offer Rate

Residential and Small Commercial Customers return to Standard Service Offer Supply will be pursuant to the Company’s Electric Service Regulations Section XIII Return to Standard Offer Supply.

RUL 00001

Question: If more than one product is in the auction, how do the tranches work in each product with the switching that is allowed? For example, we bid 1 tranche in the 12-mo product, but then switch the 1 tranche to the 36-mo product. What does this equate to in the 36-mo product? Is this still considered 1 tranche, or is it now considered 3 tranches since the product is 3 times the term? If we move 1 tranche from the 36-mo product to the 12-mo product, do we need to enter that as 3 tranches in the 12-mo product since the 36-mo term is 3 times the length of time/MWh served?

Answer: One tranche for the 12-month product means the SSO Supplier is obligated to deliver one percent (1%) of the actual hourly energy required for SSO Load for the 12-month delivery period as well as one percent (1%) of the PJM capacity requirement for the 12-month delivery period.  One tranche for the 36-month product means the same, but the obligation to deliver covers the 36-month delivery period.  If a tranche that was bid on the 12-month product is switched to be bid on the 36-month product, it is considered a single tranche bid on the 36-month product, not three tranches bid on the 36-month product.  If a tranche that was bid on the 36-month product is switched to be bid on the 12-month product, only one tranche needs to be entered for the 12-month product.

RUL 00002

Question: The load cap is lower than the maximum supply. Can we bid up to the maximum supply of tranches and allow you to allocate our bids to the load cap that work best or do we have to limit our bid to the load cap? Also, does the same logic apply to Table 2.1 in the Part 2 Application? Should we submit an indicative offer and LOC so as not to exceed what is allowed by the load cap?

Answer: Your initial eligibility to bid tranches in the auction will not be allowed to exceed the load cap. If you try to submit a bid quantity that exceeds your eligibility or the load cap, the bidding Website software will prevent you from submitting such a bid. In Table 2.1 of the Part 2 Application, the number of tranches must not exceed the load cap.

RUL 00003

Question: If more than one product is in the auction, will the number of tranches at the Maximum Starting Price on any of the products indicated in a bidder’s Part 2 Application restrict the number of tranches a bidder can bid for that specific product on the day of the auction?

Answer: No it will not. The maximum number of tranches a bidder will be allowed to bid on a product will be no higher than: (a) the tranche target for the product and (b) the bidder’s eligibility. Note that the number of tranches a bidder bids across all products will not be allowed to exceed the bidder’s eligibility. Also note that a bidder’s initial eligibility will not be allowed to exceed the load cap for the auction, so a bidder will never be able to bid more tranches across all products than the load cap.

RUL 00004

Question: If more than one product is in the auction, the Bidding Rules say that the announced prices will decrease round by round by a decrement for over-subscribed products. If a product happens to be just-subscribed, will the announced price decrease or stay the same in next round?

Answer: If more than one product is in the auction, and if a product happens to be subscribed for a given round, there will be no change in that product’s announced price for the next round.

DAT 00001

Question: Please provide up-to-date data files regarding load, switching, etc.

Answer: The data and information have been updated.

DAT 00002

Question: (1) Are the load data provided initial, resettled or a combination of the two? If a combination, can you please give the cut-off date for resettled data? (2) Can you please provide customer counts for both total and default service for each load type? (3) Can you please provide load data for customers on default service by load type? Is there a breakout of the 37% on service by load type. (4) What is meant by 5 summer peaks? Which 5 hours make up these peaks?

Answer: (1) The load data that have been provided include a column entitled settlement. When that column has a 7 in it, that indicates the load data are based on the original MISO settlement. When that column has a 55 or 105 in it, the load data are based on the standard MISO resettlements with the 55 and 105 essentially representing the number of days since power flow.

(2) Please see the Load Data section of the CBP Information Website for customer counts by load type by both total and shopped. The number of customers taking default service can be calculated by a simple subtraction. http://www.firstenergycbp.com/portals/0/LoadData/Historic Customer Switching.pdf.

(3) Load data for customers on default service by load type will be posted on the CBP Information Website periodically.

(4) This question is answered in the PJM section of these FAQs.

DAT 00003

Question: 1. Can you please provide PLC data by load class, i.e., Residential, Commercial and Industrial? 2. Can you explain the dramatic change in the 10-day capacity forecast on 11/2/09 for each of the three utilities? 3. There appear to be some changes in the 10-day capacity allocations across the 3 utilities on 6/2/10. Can you please explain?

Answer: 1.  PLC data for the planning year 2011/2012 will not be available until early 2011 as that is based on actual data through September 2010 per the PJM OATT and Business Manuals. In the meantime, historical load data by class is available on the Competitive Bidding Process Information Website: http://www.firstenergycbp.com/Documents/LoadData.aspx. Once PLC data are calculated, the Companies will update the data to show PLC by class and post the file to the Website.

2.  The forecast did not change on 11/2/09.  The actual number of MW's shopping changed on that date.

3.  Data for two of the utilities were inadvertently switched on the postings made to the 10-day capacity forecast on that date.  This has been corrected and reposted to the Information Website.

DAT 00004

Question: Can you please provide historical transmission losses?

Answer: Historical marginal transmission losses cannot be provided.  These losses are a function of the supplier's source.

DAT 00005

Question: Could you please provide the latest customer counts on and off Default Service?

Answer: The historical switching file is updated periodically, and can be viewed on the FEOU CBP Information Site, available at the Load Data page.

DAT 00007

Question: Historical load data have been provided by class respective to company. Will a winning SSO supplier continue to have access to this level of detail in the data going forward?

Answer: Yes.

DAT 00008

Question: For the load data set released October 14, 2010 (FE Ohio Utilities' Historical Hourly Loads and FE Ohio Utilities' Historical Hourly Loads by Class): Hourly load aggregated at the utility level while separated by Total/NonShop/Shop customers is not consistent for all hours across both files. While the difference is minimal up until 5/8/2010, the difference is significant after this date, causing approximately a 5% disparity in %On-Service Customers between the two data sets. Is there an explanation for this inconsistency?

Answer: There was an inconsistency with the data posted from May 8, 2010 through June 4, 2010.  This inconsistency has been corrected.

DAT 00009

Question: Do you plan to update the Load and Other Data page before January 25, 2011? If so, what data do you expect to be available and when?

Answer: The data page you are inquiring about is up to date commensurate with source data availability and applicability. Please note that some of these data are continually updated on a weekly or bi-weekly basis.

DAT 00010

Question: Can you please confirm that PIPP load is included in the historical load by class file?

Answer: The historical load by class file includes all customer load, including the PIPP load.

DAT 00011

Question: May I request that updated load data files be added under the Documents tab? It appears the data are almost a year old.

Answer: You likely are looking at the wrong file. Please look at the other load file, which contains all load data in various presentations.  It is updated twice a week and is always current.

DAT 00012

Question: Will the preliminary historical data after June 1, 2011 be updated with final settlement data prior to the auction on October 25, 2011?

Answer: Yes. The data are revised on the CBP Information Website on an ongoing basis, as the Secondary (RECON) energy settlement data are made available by PJM.

DAT 00013

Question: Is the Capacity PLS associated with the PIPP load contained in the Shopping or Non-Shopping data? If it is part of the Non-Shopping data, can you please provide a breakdown between PIPP PLS and the rest of the Non-Shopping load?

Answer: PIPP load is classified as shopping.  It is not part of the non-shopping data posted on the CBP Information Website.

DAT 00014

Question: Do the data prior to June 1, 2011 include both distribution and transmission losses? Have these losses changed since FE Ohio moved to PJM?

Answer: Yes, the data include both distribution and transmission losses.  The Companies have not changed the distribution and transmission loss factors due to the transition to PJM.  However, the Companies can not guarantee they will not change in future planning periods.

DAT 00015

Question: Can you please provide the distribution and transmission losses pre and post transition to PJM?

Answer: Please see the Supplier Tariff and PJM OATT for these values.

DAT 00016

Question: Can you explain why Unaccounted-for-Energy (UFE) was allocated only to non-shopping load for part of June 2011?

Answer: The UFE for the part of June you are referring to was allocated to all customers when the data were revised due to PJM Secondary (RECON) energy settlements.

DAT 00017

Question: Could you please update the Percentage of Income Payment Plan (PIPP) load data? What percentage of residential customers are eligible for PIPP? What percentage of PIPP-eligible customers are being served by PIPP?

Answer: The PIPP load data will not be updated.  PIPP customers are not supplied through the CBP auction or through retail suppliers.  The hourly loads by class file have not contained PIPP data since 5/31/2011.  Prior to 6/1/2011 the PIPP load data were included in the non-shopping load data and correspondingly in the total load data.  In addition, historical PIPP load data are provided in a separate file.  The percentage of residential customers eligible for PIPP is an unknown since customers need to apply and document their income level to get on the PIPP program.  It is determined if they qualify for PIPP only after their application.  Likewise, the percentage of PIPP-eligible customers being served by PIPP is an unknown.

DAT 00018

Question: Can you provide shopping and non-shopping NSPL (network transmission service peak loads) and capacity PLS (peak load shares) values for FirstEnergy Ohio broken out by rate class?

Answer:

We will provide these values by rate class (residential, commercial, industrial) starting on Wednesday, October 19, 2011.

DAT 00019

Question: (1) The Shopping and Non-Shopping hourly data provided in the file “FirstEnergy Utilities' Historical Hourly Loads by Class Ohio.xls” states that starting June 1, 2011 the data do not include Unaccounted-for-Energy (UFE). Is this correct for the months of June 2011 and July 2011 for which data have been provided that have been adjusted for PJM’s 60 day revisions? (2) Can you please provide UFE data or factors for the months where PJM’s 60 day revision has taken place?

Answer: (1)  Correct, the primary and reconciliation data do not include UFE.  The data currently are posted for June and July.

(2)  UFE Factors are currently up to date for all primary and reconciliation data.

DAT 00020

Question: Can you explain the change in the Industrial customer counts between January 2011 and February 2011? Was there a reclassification of commercial and industrial customers and if so, what are the old and new class definitions? Why is the change in the customer count data not reflected in the historical hourly data by class?

Answer: A reclassification of commercial and industrial customers did occur.  The old class definitions were set forth in previously existing tariffs resulting from historical regulatory processes.  The new definitions are set forth in current tariffs and are based upon voltage level served.  The customer count data are reflected in the historical hourly data by class.  The customer count data are net -- there were customers of different sizes reclassified in both directions.  To the extent that the hourly data were impacted, it can be seen by January 1, 2011. 

DAT 00021

Question: Are the capacity PLCs posted in the Historical Hourly Loads by Class file adjusted for Daily Zonal Scaling Factors? For example on 9/30/2011, total PLC is 11,125,336. Is the capacity obligation 11,125,336 or 10,358,800 (11,125,336 * 0.9311)? Will Network Service Peak Load (NSPL) be posted?

Answer:

The Peak Load Shares that are posted have not been adjusted for Daily Zonal Scaling Factors.  To adjust the posted PLS's you would multiply them by the Daily Zonal Scaling Factors.

NSPL's will not be posted at this time.

DAT 00022

Question: Will the 10-Day capacity forecast file be updated to include summer of 2011?

Answer: No.  That file was provided when the FirstEnergy Ohio Utilities were in MISO.  Peak Load Share (PLS) is the corresponding information pertinent for PJM and is being provided on the last tab included the data file that contains the hourly load information.

DAT 00023

Question: Will the data that have been posted on the Information Website be updated to include Settled data for October 2011 instead of Preliminary data? If so, could you please provide an estimated date and time of the update?

Answer: FirstEenrgy Ohio Utilities will make every attempt to post updated data prior to January 24, 2012, but can make no guarantees as these data just recently became available from PJM per their normal business practices.

CRE 00001

Question: Please advise when the Word documents for the Pre-Bid letter of credit and for the Supplier letter of credit will be added to your Website, so we may contact our banks.

Answer: The Word documents for the Pre-Bid Letter of Credit and the post-auction Supplier Letter of Credit (Attachment E, Appendix D to the Master SSO Supply Agreement) have been posted to the Supplier Documents page of the Information Website.

CRE 00002

Question: Where can Appendix B with the alternate guaranty rules be found?

Answer: "Appendix B - Alternate Guaranty Forms" is on page 32 of the Part 1 Application: http://www.firstenergycbp.com/Portals/0/SupplierDocuments/Part_1_Application.pdf

CRE 00003

Question: If a foreign guarantee is rated by one or more rating agencies do you still need a legal opinion with respect to a foreign guarantee?

Answer: Yes. Pursuant to the Part 1 Application language, even if a Guarantor that is incorporated in a foreign jurisdiction is rated by one or more rating agencies, a legal opinion still is needed with respect to the Guaranty.

CRE 00004

Question: May we place an evergreen clause in the Pre-Bid Letter of Credit (LC) so we can issue the LC for future procurements and adjust the amounts between auctions?

Answer: The evergreen clause is not applicable for the Pre-Bid Letter of Credit due to the limited timeframe that the LOC is in place.

CRE 00005

Question: If three products are in the auction: In the Part 2 Application, a bidder needs to specify, at the Maximum Starting Prices, its indicative offer for each of the three products and a total number of tranches summed across products. Which tranche number should a bidder use to calculate the amount of the Pre-Bid Security and additional Pre-Bid Security?

Answer: If three products are in the auction, the tranche number that a bidder should use to calculate the amount of the Pre-Bid Security and additional Pre-Bid Security is the total number of tranches in the bidder’s indicative offer summed across all three products at the Maximum Starting Prices.

CRE 00006

Question: The following paragraph appears in the Letter of Intent to Provide a Guarantee: "Should there be no material change in affairs, we would consider providing a financial guaranty on behalf of Bidder, such that our liability does not exceed $____________[amount]. We understand that this amount would be in excess of the amount of any guaranty that we have provided on behalf of Bidder. This letter, however, should not and cannot be taken as an indication of financing commitment of any kind whatsoever, or an absolute commitment to provide a financial guaranty." Can you explain the meaning of the sentence: "We understand that this amount would be in excess of the amount of any guaranty that we have provided on behalf of Bidder."

Answer: The sentence "We understand that this amount would be in excess of the amount of any guaranty that we have provided on behalf of Bidder" means that the amount that is stated in this letter is the highest amount that the Guarantor would issue in the guaranty, but is not necessarily the actual amount of the guaranty issued.

CRE 00007

Question: If I am a winning bidder, will I be required to post any collateral against my supply obligation?

Answer: The winning bidders will be subjected to the credit requirements as set forth in Article 6 - Creditworthiness; Performance Assurance in the Master SSO Supply Agreeement.  Depending on the creditworthiness of the bidder, the winning bidder may be required to post collateral in the form acceptable to the Companies. 

CRE 00008

Question: Assuming the Part 1 Applicant is not rated by a rating agency and did identify a Guarantor, please confirm that the following options are available to this Qualified Bidder: 1) Guarantor may provide the required bid security on behalf of the Part 1 Applicant in the form of cash or a letter of credit. 2) Guarantor will agree to or sign FirstEnergy Ohio Utilities' Letter of Intent to Provide a Guaranty, but then replace that guaranty with the required Master SSO Supply Agreement security in the form of cash or a letter of credit at or before the time of execution of the Master SSO Supply Agreement.

Answer: Both options are available.

CRE 00009

Question: When will my pre-bid security be returned to me?

Answer: Considerations related to pre-bid security are outlined in Section 4.2.2 of the Bidding Rules for the FirstEnergy Ohio Utilities' CBP Auctions: Letters of credit and additional security (if required) will remain in full force, at a minimum, until the fifth calendar day after the conclusion of the auction. Subsequently, a bidder’s financial guaranty will be marked cancelled and returned: (a) as soon as practicable if the bidder has won no tranches or (b) after the bidder has signed the Master SSO Supply Agreement and has complied with all creditworthiness requirements of the Master SSO Supply Agreement for the tranches that it has won. The FirstEnergy Ohio Utilities can collect on the financial guarantees of bidders that win tranches but that fail to sign the Master SSO Supply Agreement or fail to comply with the creditworthiness requirements immediately following the close of the auction.

CRE 00010

Question: Can you clarify the Independent Credit Requirement (ICR) for the October 2011 and January 2012 auctions?

Answer: Since the October 2011 and January 2012 procurements are for 24-month delivery periods, the ICR starting amount is $1.5 million and will decline over the 24-month term.

CRE 00011

Question: In the definition of Total Exposure Amount in the Master SSO Supply Agreement, is the intention that each of clauses (ii) and (iii) be without duplication to each other (e.g., that a “credit exposure” not include any “mark-to-market exposure amount”)?

Answer: Yes, clauses (ii) and (iii) in the defintion of Total Exposure Amount do not duplicate each other. Clause (ii) includes only the mark-to-market exposure amount under any Other SSO Supply Agreement.  Clause (iii) includes the payable from the Companies to the SSO Supplier under any Other SSO Supply Agreement.

CRE 00013

Question: Can we keep our Pre-bid Letter of Credit in force (at some nominal amount) between auctions so the language does not need to be reviewed and approaved for each CBP Auction?

Answer: FEOU can accept a Pre-bid Letter of Credit that would remain in force (at some nominal amount) between auctions as long as the expiration date is updated for the next CBP auction.

CRE 00014

Question: The Ohio Letter of Intent to Provide a Guaranty contains the following: "We understand that this amount would be in excess of the amount of any guaranty that we have provided on behalf of Bidder." This sentence is not included in the Pennsylvania Letter of Intent to Provide a Guaranty. Our maximum credit limit for both procurements is 16% of total net worth. Do we need to provide two different guarantees not to exceed the Credit Limit in aggregate?

Answer: The sentence "We understand that this amount would be in excess of the amount of any guaranty that we have provided on behalf of Bidder" means that the amount that is stated in this letter is the highest amount that the Guarantor would issue in the guaranty, but is not necessarily the actual amount of the guaranty issued.

CRE 00015

Question: In the Part I Application, Section 1.7, Financial and Credit Information for the Applicant, if the Applicant is relying on a Guarantor, is it okay to simply skip (a)-(f)?

Answer: Applicants relying on a Guarantor do not need to complete Section 1.7 (a) to (f) of the Part 1 Application.  Applicants relying on a Guarantor will need to complete everything in Section 1.8 of the Part 1 Application.

CRE 00016

Question: Our president executed the Part I Application, but he may not be available to execute the Letter of Intent to Provide a Guaranty on behalf of the Bidder. Do the Companies require an officer of the Bidder to execute this form, or can the Bidder's Authorized Representative make this attestation on behalf of the Bidder? Is a new Part I Application required if a different officer executes the LIPG on behalf of the Bidder?

Answer: Either the officer of the Bidder specified in the Part 1 Application or the Bidder's Authorized Representative can execute the LIPG, i.e., make the attestation on behalf of the Bidder.  A new Part I application is required if a different officer executes the LIPG on behalf of the Bidder.

PJM 00001

Question: In PUCO Case No. 10-388-EL-SSO, the FirstEnergy Ohio Utilities and various parties filed a Stipulation and Recommendation on March 23, 2010, concerning among other things, the competitive bidding process for the upcoming FEOU SSO auctions. On page 10, paragraph A.5.iv, the Stipulation and Recommendation states that “the PJM capacity costs auction results at the wholesale level, converted to an energy basis, will be subtracted from the auctions results under paragraph A.1 of this Stipulation to develop the non-capacity related energy charge for Rider GEN”. Please provide the PJM capacity costs on an energy basis that will be subtracted from the cleared auction results for the FE transitional auctions. Also, when the PJM BRA results for PY 13/14 are posted, please provide the PJM capacity costs on an energy basis that will be subtracted from the auction results.

Answer: This question does not pertain to the wholesale auction process.  The calculation referred to in this question is part of the Companies' retail tariffs filed in Case No. 10-388-EL-SSO.  Please review the referenced Stipulation and applicable tariffs for questions pertaining to retail rate design.

PJM 00002

Question: Which party receives the marginal loss surplus allocation from PJM?

Answer: The LSE ("Load Serving Entity") receives the marginal loss surplus allocation from PJM.

PJM 00003

Question: Does the SSO supplier need to be a certified retail provider in Ohio or just an LSE according to PJM?

Answer: As indicated in Section 2.9, "PJM Membership," of the Master SSO Supply Agreement, a supplier must be qualified as a Load Serving Entity ("LSE") in PJM.  While the FirstEnergy Ohio Utilities are not aware of an additional requirement to be a certified retail provider in the state of Ohio for purposes of providing SSO load requirements under this solicitation, suppliers should do their own due diligence with respect to state qualifications that suppliers must satisfy as stated in Section 2.11, "Regulatory Authorizations," of the Master SSO Supply Agreement.

PJM 00005

Question: Will you provide PLC values by class as if FE were in PJM today?

Answer: No, Peak Load Contribution (PLC) values by class will not be provided. For PLC values that may be in effect for 2011/2012, suppliers can determine PJM's 5 peaks from data posted here: http://www.pjm.com/markets-and-operations/energy/real-time/loadhryr.aspx.  From this information, suppliers can use the 5 PJM peak hour date/times and get each customer class peak coincident with the PJM peaks from data located here: http://www.firstenergycbp.com/Documents/LoadData.aspx.  Suppliers can then use RPM scaling factors and other required values currently in effect to estimate the PLC for each customer class.  For more information on how all the PLC calculations work, please see PJM Manual 18 located here: http://pjm.com/~/media/documents/manuals/m18.ashx.

PJM 00006

Question: Is the definition of the FE Load Zone in PJM defined? If so, what is the definition of the FE Load Zone (e.g. what nodes are a part of the zone)?

Answer: PJM needs to complete any necessary network model enhancements prior to determining the set of pricing nodes that will be applicable to the ATSI zone. Both lists will be posted publicly once they are determined, but that is not likely to occur before late 2010 or early 2011.

PJM 00007

Question: Will Generation Deactivation charges (PJM OATT Part V) be the responsibility of the SSO Suppliers or the Companies?

Answer: Generation Deactivation charges will be the responsibility of the Companies.

PJM 00008

Question: It is our understanding that PJM would derate the reported hourly loads for marginal losses and settle on the loss-derated loads. Does the historical load data provided include this deration? If not, can the deration factors (or estimates) be provided?

Answer: PJM does settle on a loss-derated basis. The historical load data provided are based on a loss-derated basis.

PJM 00009

Question: Will each of the Companies' load be billed and settled separately? Or will the load from the three Companies (CEI, OE, & TE) be combined and settled as one load by both PJM and the Companies?

Answer: The load will billed and settled as the three companies combined both by PJM and the Companies.

PJM 00011

Question: Section 4.4 of PJM manual M-19 (http://www.pjm.com/~/media/documents/manuals/m19.ashx) states that PJM calculates the zonal weather normalized coincident peak based on the 5 highest peaks for PJM (5CP). Was the 12,150 MW peak of ATSI calculated (2009 Weather Normalized Coincident Peak Load) using a different methodology ie using 1 CP? The ATSI manual for calculating PLC (link provided below) states that the zone’s share of the five PJM Weather Normalized peaks is allocated over the zone’s average restricted as metered load over the time of the five PJM peaks. Based on this, would the supplier need to allocate the weather normalized peak of 12,150MW over the metered load of 9,700 MW? http://www.firstenergycorp.com/supplierservices/files/Supplier_Registration/2009_PJM_Capacity_Website_Document_09-09-08.pdf

Answer: PJM has responded that it has calculated the ATSI zone Weather Normalized Coincident Peak in accordance with the methodology outlined in the latest version of PJM Manual 19, Section 4 (Weather Normalization and Coincident Peaks). http://www.pjm.com/~/media/documents/manuals/m19.ashx

We have not been able to determine the source of the 9,700 MW referenced in this question.

 The 12,150 MW is the 2009 weather normalized peak load and represents all load in the ATSI control area as found on the PJM Website in the document that describes the “ATSI Zone FRR Preliminary Daily UCAP Obligation”.  This load would include: 1) all unaffiliated wholesale load inside ATSI, and all retail load receiving distribution service from the ATSI affiliates of  2) Ohio Edison Company, 3) The Cleveland Electric Illuminating Company, 4) The Toledo Edison Company, and 5) Pennsylvania Power Company.
 
The loads posted on this CBP Information Website are the actual retail loads receiving distribution service from: 1) Ohio Edison Company, 2) The Cleveland Electric Illuminating Company, and 3) The Toledo Edison Company.

PJM 00012

Question: Are there loads within the ATSI Zone that are served by wholesale LSEs and subsequently not included in the SSO load in which suppliers are offering to serve through the auction? If yes, what is the peak load contribution of those loads and/or what is the Unforced Capacity requirement for them for all three delivery years?

Answer: Yes, there are loads within the ATSI Zone that are served by wholesale LSEs and therefore not included in the SSO load auction products. The historical SSO load data maintained on this Website excludes the loads served by these wholesale LSEs. The confidentiality provisions related to the ATSI Utilities FRR plan prohibits the release of the specific peak load contributions/Unforced Capacity requirements and therefore cannot be provided.

PJM 00013

Question: Please provide any filings that FE or ATSI might have made with regards to identifying Black Start Resources and related costs to PJM.

Answer: As part of ATSI's integration into PJM effective June 1, 2011, PJM and ATSI have coordinated the development of a black start plan for the ATSI footprint. Compensation for black start service is to be provided pursuant to Schedule 6A of the PJM Open Access Transmission Tariff, with generators participating in the black start plan providing information to PJM to receive compensation. Neither ATSI nor the FE Operating Companies have generation participating in the black start plan for ATSI's territory.

PJM 00014

Question: Can you provide an estimate for the ancillary charges for FirstEnergy Ohio Utilities in PJM?

Answer: FEOU can not estimate the ancillary charges that suppliers will be responsible for.  These charges are market based, and some of them are dependent on the supplier's specific source. FEOU can not provide an estimate for the ancillary charges that the Ohio Utilities will be responsible for.

PJM 00015

Question: In a follow-up to another PJM FAQ, are SSO Suppliers paid on PJM FE Zonal load applicable to SSO Supply, which reflects marginal loss deration and distribution losses (incremental load to bridge the difference between load at the wholesale level and the retail meter)? Will the Companies pay SSO Suppliers on the same load amounts that PJM relies on for settlement?

Answer: As stated in the Master SSO Supply Agreement, the SSO Suppliers are responsible for the expenses related to both transmission and distribution losses.  The Companies will pay SSO Suppliers on the same load amounts that PJM relies on for settlement, which is load that does not include transmission losses (marginal loss deration).  SSO Suppliers will be delivering load to the Companies that includes distribution losses and will be settling with PJM financially for transmission losses.

PJM 00016

Question: Please confirm that, consistent with the requirement for bidders to be LSEs under all "applicable" rules, bidders do not have to be LSEs registered with NERC, as the Companies -- and not bidders -- are the entities that own and/or operate physical power system assets/wires for distribution to SSO customers.

Answer:  A prospective SSO Supplier should contact PJM member services.

PJM 00018

Question: The FEOU Master SSO Supply Agreement lists a delivery location of ATSI Zone, and PJM will settle the load against the FE Ohio EDC Aggregate. How will the FE Ohio Utilities settle that difference in prices?

Answer: The ATSI Load Zone was nomenclature used in the Master SSO Supply Agreement before the actual name was known for the "...aggregate area of consumption for the Companies within PJM and used for the purposes of scheduling, reporting...." The FE Ohio Zone is now the official name of the load zone that replaces the ATSI Load Zone in name only -- the definition of the two are exactly the same. Therefore, there is no price difference and no compensation to suppliers is needed or required.

PJM 00019

Question: What is the current NITS rate for FEOU or where can I find the current and historical rates?

Answer: Historical MISO transmission rates for Firm Point-to-Point (Schedule 7), Non Firm Point-to-Point (Schedule 8) and Network (Schedule 9) may be found on Lines 4A and 4B in Schedules 7, 8 and 9 in the following link:

http://www.midwestiso.org/publish/Document/2b8a32_103ef711180_-75fe0a48324a/2010%20Zonal%20Pricing%20Jun%202010.pdf?action=download&_property=Attachment

PJM 00020

Question: FAQ GEN 00030 states that SSO Suppliers will receive a pro-rata share of ARR revenue per PJM's calculations. Is it the responsibility of The Companies to make the request for ARR's during the ARR allocation which will then be split amongst the SSO Suppliers? And, if this is the case, is there a transparent process in place that allows the SSO Suppliers to review/monitor the ARR's being requested by The Companies to ensure that commercially reasonable requests are being made?

Answer: It is the SSO Suppliers responsibility to request ARRs from PJM for the upcoming 2011/2012 planning year. PJM has posted a Guide for SSO Suppliers to follow in order to participate in the 2011/2012 Annual ARR Allocation and FTR Auction. This document may be found at the following address:

www.pjm.com/markets-and-operations/market-integration/atsi.aspx

Further, The Companies will be communicating to all suppliers of the FE Ohio Zone, including SSO Suppliers, the MW level of ARRs for each supplier that are to be used in the PJM allocation process. Once SSO Suppliers have reviewed these numbers and concur with them, the Companies will submit the values to PJM.

PJM 00021

Question: Will the SSO Supplier deliver energy to the ATSI zone or the FE Ohio Aggregate?

Answer: SSO suppliers will deliver energy to the FE Ohio Zone and will deliver capacity to the ATSI Zone LDA (Locational Deliverability Area).

PJM 00022

Question: FERC Order 745 proposes that all RTO’s allowing Demand Response in energy markets must pay Demand Response Resources full LMP at all hours. The cost of such a program would be allocated to load. Will the cost associated with FERC Order 745 be the responsibility of the FirstEnergy Ohio Utilities?

Answer: The following answer is based to some degree on current PJM rules which may be subject to change: 

No, the cost associated with FERC Order 745 will not be the responsibility of the FirstEnergy Ohio Utilities.  Pursuant to the Master SSO Supply Agreement, any market-based cost allocated to load is the responsibility of the Load Serving Entity, which will be the winning bidders in the SSO competitive bidding process as well as Competitive Retail Electric Service (CRES) suppliers.

AGR 00001

Question: Can you please provide a Word version of the Guaranty so that we can provide a red-lined copy?

Answer: The Word version of the Form of Guaranty has been posted on the Supplier Documents page of the Information Website. 

AGR 00002

Question: Are suppliers responsible for ancillaries 1, 1a, and 2? The Master SSO Supply Agreement says "no" in Section 2.3 but Appendix G seems to contradict that and say the suppliers are responsible.

Answer: Responsibilities for various costs and expenses are listed in Section 2.3 of the Master SSO Supply Agreement.  Appendix G is simply a sample PJM bill that provides and lists the various RTO charges but is not meant to assign responsibility for those charges in the same way as Section 2.3.

AGR 00003

Question: There appear to be inconsistencies between section 2.3 of the Master SSO Supply Agreement and Appendix G of that document, the Sample PJM Invoice. Section 2.3 of the Master SSO Supply Agreement states that the Companies will be responsible for "Scheduling Control and Dispatch Services," "Reactive Supply and Voltage Control," and "Transmission Enhancement Charge." In the Appendix G, those are identified as "supplier" items. Can you clarify which items the Companies will be responsible for and the items the Suppliers will be responsible for?

Answer: Expenses (and any credits) related to Scheduling Control and Dispatch Services, Reactive Supply and Voltage Control, and Transmission Enhancement Charges are the responsibility of the Companies as stated in Section 2.3 of the Master SSO Supply Agreement.  As noted in FAQ AGR00002, Appendix G is simply a sample PJM bill that provides and lists the various RTO charges but is not meant to assign responsibility for those charges in the same way as Section 2.3.

AGR 00004

Question: Have the seasonal factors been set and if so what are they? The Appendix B to the Master SSO Supply Agreement on the Information Website has "[Seasonal Billing Factor]" for placeholders.

Answer: The seasonal factors have been determined in Case No. 10-0388-EL-SSO (stipulation section A.5.iii).  The summer factor is 1.1151 and the winter factor is 0.9613.

AGR 00005

Question: According to the Master SSO Supply Agreement, the SSO load excludes "PIPP" customers. Can you provide details of the PIPP program and the rules for customers switching from SSO to PIPP and back?

Answer: PIPP is an extended payment arrangement that requires regulated gas and electric companies to accept payments based on a percentage of the household income. As a part of the Universal Service Fund program enabled by Ohio Substitute Senate Bill 3, the Ohio Office of Community Services will administer the PIPP for electricity customers.  Please see the following link for further details:

http://www.development.ohio.gov/community/ocs/pip.htm

Customers who remain eligible for PIPP based on their income verification generally will not leave the PIPP program.  If/when a customer would leave the PIPP program, they would be able to become an SSO customer or shop with a CRES supplier.

AGR 00006

Question: In Appendix G of the Master SSO Supply Agreement, charge 1320 (Transmission owner Scheduling, System Control and Dispatch Service) is listed as the responsibility of the EDC but the reconciliation charge associated with this charge, 1450, is listed as the responsibility of the SSO Supplier. Is this a mistake?

Answer: Yes, this is an error. The reconciliation charge -- ID # 1450 -- associated with Transmission owner Scheduling, System control and Dispatch Service is the responsibility of the EDC not the supplier. A new appendix G showing the correct information has been posted.

AGR 00008

Question: The definition of SSO Supply in the Master SSO Supply Agreement does not explicitly exclude renewable requirements from the supplier obligations and we are unable to locate any other language in the agreement that clarifies who is responsible for renewable requirements. Please clarify that Suppliers are not responsible for meeting current and future renewable requirements. Can the Master SSO Supply Agreement be amended to state the same?

Answer: Suppliers are not responsible for renewable requirements during the term of the Master SSO Supply Agreement.  The Companies are responsible, which can be seen in the PUCO's Order in Case No. 10-388-EL-SSO on page 8, which can be found at this link: 

http://dis.puc.state.oh.us/TiffToPDf/A1001001A10H25B50720F69823.pdf
 
The order reads in part, "(5) Renewable energy resource requirements for the period of  June 1, 2011, through May 31, 2014, will be met by using a separate request for proposal (RFP) process to obtain renewable energy credits (RECs). "

AGR 00009

Question: Our understanding from the Master SSO Supply Agreement is that the Companies are responsible for charges that include Schedule 1, Schedule 1A, and Schedule 2. However the Appendix G PJM Sample Invoice has the SSO Supplier responsiblities including PJM Billing Line items: 1450- (Load Reconciliation for Transmission Owner Scheduling, System Control and Dispatch service), and Line Item 1490 (Load Reconciliation for Reactive Services). Is the Appendix G PJM Sample invoice incorrect in assigning the responsibility for Line Items 1450 and 1490 to the SSO Supliers?

Answer: The Appendix G PJM Sample Invoice incorrectly assigns both ID # 1450 (Load Reconciliation for Transmission Owner Scheduling, System Control and Dispatch service) and ID # 1490 (Load Reconciliation for Reactive Services) to SSO Suppliers.  Both these charges should instead be borne by the EDC.  Appendix G has been revised and corrected.

AGR 00010

Question: Is the Master SSO Supply Agreement for the CBP auction scheduled for October 2010 aggregated with prior Supply Agreements with the Ohio Utilities?

Answer: Any prior supply agreements with the FirstEnergy Ohio Utilities are separate agreements from the Master SSO Supply Agreement in the CBP auctions starting in October 2010 and the subsequent CBP auctions going forward.

AGR 00011

Question: Who is the SSO Supplier's counterparty to the Master SSO Supply Agreement and is there a single contract or three?

Answer: The SSO Supplier's counterparty to the Master SSO Supply Agreement is the FirstEnergy Ohio Utilities. There is one contract.

AGR 00012

Question: Can a bidder participate and win tranches in an auction and then assign the tranches to another affiliate of the same company?

Answer: A bidder may participate and win tranches in the CBP auction and assign those tranches to a company subject to the terms and conditions of the Master SSO Supply Agreement and FEOU consent to the assignment. Please also note, pursuant to the Commission's Opinion and Order in Case No. 10-388-EL-SSO, no bidder may obtain tranches through a post-auction assignment if such assignment, when added to the tranches won during the auction, would cause the bidder to exceed the load cap.

AGR 00013

Question: In Appendix G of the Master SSO Supply Agreement, the SSO Supplier is responsible for Reactive Services but the EDC is responsible for Load Reconciliation for Reactive Services. Was the latter meant to be Load Reconciliation for Reactive Supply, if applicable?

Answer: No.  Appendix G correctly shows which line items of the current PJM billing statement that the EDU is responsible for and what line items are the responsibility of the SSO Supplier.

AGR 00014

Question: Section 4.1 of Attachment E Master Standard Service Offer ("SSO") Supply Agreement notes that the term will commence on June 1, 2011. Should the commencement date be June 1, 2012 for the October 25, 2011 and January 24, 2012 CBP Auctions?

Answer: Yes.  The term for the Supply Agreement associated with the October 25, 2011 FirstEnergy CBP Auction will commence on June 1, 2012. 

AGR 00015

Question: How is the first sentence of Section 10.3 of the Master SSO Supply Agreement reconcilable with the first two sentences of Section 13.12 of the Agreement? Do the Parties have the right to seek that FERC or the PUCO change any rates or terms in the Master SSO Supply Agreement?

Answer: There is no connection between the two sections.  Section 10.3 clarifies that Section 10.2 does not foreclose a signatory's ability to seek to have a dispute resolved before the PUCO or FERC, rather than a court. Section 13.12 clarifies that changes made by PJM will be adopted automatically for purposes of this agreement, and the parties will cooperate to reflect those changes in the agreement.

AGR 00016

Question: In the Master SSO Supply Agreement in Appendix C-1, the Schedule for ICRT appears to reflect the previous auction schedule. What should we use in calculating our ICRT Guaranty for the upcoming 24-month procurement for power flow from June 1, 2012 - May 31, 2014?

Answer: The Master SSO Supply Agreement has been updated to reflect the delivery period of June 1, 2012 through May 31, 2014.

AGR 00017

Question: Are each of The Cleveland Electric Illuminating Company, The Toledo Edison Company, and Ohio Edison Company (hereafter each referred to as an “EDC”) able to separately exercise rights and remedies under the Master SSO Supply Agreement or are they able to exercise rights and remedies only collectively as the Companies? For example, is there any danger to an SSO Supplier that a particular EDC will issue an instruction (e.g., regarding margin calls) or make a declaration (e.g., regarding an Event of Default) that is contrary to another EDC under the Master SSO Supply Agreement or make contrary determinations regarding an SSO Supplier’s creditworthiness for purposes of Article 6 of the Master SSO Supply Agreement?

Answer:

AGR 00018

Question: Are each of The Cleveland Electric Illuminating Company, The Toledo Edison Company, and Ohio Edison Company jointly and severally liable or collectively liable for obligations of the “Companies” under the Master SSO Supply Agreement? If not, please explain what their respective and collective liability is thereunder. Is an SSO Supplier entitled to exercise rights and remedies (e.g., termination) against the Companies collectively, for example in the event that any particular Electricity Distribution Company (EDC) defaults and a consequent Event of Default occurs under the Master SSO Supply Agreement?

Answer:

AGR 00019

Question: Please confirm that William R. Ridmann or another specified single point of contact will speak for the Companies collectively with respect to notices (other than those required under Article 6) and that Thomas R. Sims or another specified single point of contact will speak for the Companies collectively with respect to notices required under Article 6.

Answer: Please see Article 13.1 of the Master SSO Supply Agreement which provides for notifications to the Company.

AGR 00020

Question: What are the seasonal billing factors for the October 25, 2011 auction? The posted Bidding Rules document indicates 1.1180 for Jun-Sept and 0.9581 for remaining months, but the Master SSO Supply Agreement Appendix B is blank.

Answer: Please refer to the FAQ AGR 00004.  Also, note that the numbers in the Bidding Rules are used only to provide an example and are not intended to be the actual numbers to be used.

AGR 00021

Question: What are the seasonal billing factors that will be in effect for the January 2012 CBP auction?

Answer: The seasonal billing factors that are in effect today (January 20, 2012) will continue through May 2014.  Please see FAQ AGR 00004.