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.