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.