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.