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 and 24 month term?

Answer: Tranches are being procured for each product in the auction.  Each product in the auction has its own tranche target and delivery period.  For example, there is a tranche target for the 12-month product and a tranche target for the 24-month product. However, all products may or may not be offered in any individual auction.

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 two products (12 and 24 month terms), will both products be procured simultaneously during the auction? Will two different prices be associated with the products?

Answer: 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 Load Serving Entity (LSE) will be the responsibility of the Supplier.

GEN 00007

Question: How are ARR revenue allocations handled?

Answer: PJM Auction Revenue Rights (ARR) allocations are performed by PJM per Section 17: Auction Revenue Rights Settlements contained in PJM's Manual 28: Operating Agreement Accounting found at http://www.pjm.com/~/media/documents/manuals/m28.ashx.  If auctions have not taken place, or suppliers have not been identified prior to the start of the ARR nomination process, the FirstEnergy Ohio Utilities will make the ARR nominations for the open SSO load and the resulting allocations will be posted on the Load and Other Data Documents page of the Information Website.  Once the suppliers for the SSO load have been identified, PJM will allocate each SSO supplier its proportional share of ARRs for the load being served in accordance with the PJM manual.

GEN 00008

Question: Where are the tranche targets/size for each auction posted?

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

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 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 the Bidder Information Session presentation available on the Information Website, 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: The Part 1 and Part 2 Applications can be submitted electronically; no hardcopies are required.

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: 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?

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), (e), and (f). 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 Information Website.

GEN 00018

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

Answer: This is determined by the Public Utilities Commission of Ohio’s post-auction review process. Please see Section 7.1, "Notification of Results," and Section 12.2, "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, 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 creditworthiness by either adding a guarantor, changing its guarantor, dropping a 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 creditworthiness 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 creditworthiness 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 creditworthiness of the Qualified Bidder is changed, a new set of information in the relevant Part 1 Application forms must be submitted to the Auction 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 Auction Manager.

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

GEN 00025

Question: How are the auction prices converted into rates for the individual classes?

Answer: Retail rates reflecting the results of the auctions continue to be calculated consistent with Case No. 14-1297-EL-SSO. For an example, please refer to Case No. 22-0340-EL-RDR.

GEN 00027

Question: Are there any auction administration tranche fees?

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

GEN 00028

Question: Are all of the FirstEnergy Ohio Utilities' customers eligible for default service? Stated another way is the sum of the "total shopped" and "non-shopped" load equal to the total load published for the FE Ohio load zone?

Answer: The sum of the ‘Shop’ and ‘NonShop’ load is equal to the ‘Total’ load published for the FE Ohio load zone in the Ohio hourly data files. To determine the aggregated total FE Ohio load, Percentage of Income Payment Plan (PIPP) load must also be added.

GEN 00029

Question: For a previously Qualified Bidder that submitted a successful Part 1 Application for the October auction, if their only change to their Part 1 Application for the following January auction 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 for the January auction?

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 have changes, and send those by email to FEOUAuctionManager@crai.com.

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. Unless noted otherwise for a particular auction, it will remain in full force, at a minimum, until the fifth calendar day for winning bidders. Prebid security for non-winning bidders may be returned sooner. 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: Different companies within the same corporation can submit their own Part 1 Applications as long as they disclose they are doing this. The same Authorized Representative (AR) and the same Authorized Delegate (AD) can be used across the different companies for the Part 1 Application. However, the same AR and the same AD cannot be used across the different companies if and when they submit their Part 2 Applications. Bidders that are associated with one another may or may not be allowed to participate in the Part 2 Application process and beyond, or they may be subject to certain restrictions.

GEN 00034

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

Answer: A winning Supplier will only need to execute one Master SSO Supply Agreement. After that, all successful supply opportunities will be under the transaction confirmation.

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 Auction 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 Auction Manager will send a deficiency notice to the applicant’s 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 Competitive Bidding Process.

GEN 00038

Question: Following the Part 2 Application process, (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 Auction 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 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 excerpted 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.

GEN 00041

Question: My company currently is a CRES in Ohio but has not signed agreements with any utilities as of yet. Can a CRES bid in the CBP SSO auction and be awarded the SSO load won without first having agreements in place with the utilities, and then upon award sign the normal agreements and perform the proper EDI testing?

Answer: No existing agreements with the FirstEnergy Ohio Utilities need to be in place prior to bidding in FEOU's CBP SSO auctions.  In order to be allowed to bid in one of the auctions, a bidder must successfully complete the Part 1 Application and Part 2 Application process for that auction.  In that application process, a bidder will agree to satisfy certain requirements should it become a winning SSO Supplier, such as committing to executing the Master SSO Supply Agreement following the auction, be a PJM member in good standing, be a PJM Load Serving Entity (LSE), and so forth.

GEN 00043

Question: Our financial statements are not public information. Can you please identify the documents that state that the FirstEnergy Ohio Utilities and the Auction Manager (CRA International) will keep these confidential?

Answer: As stated in the Part 1 Application and reproduced below, materials submitted in association with the Part 1 Application will be shared on a confidential basis with the FirstEnergy Ohio Utilities, CRA International, and the Public Utilities Commission of Ohio.

CONFIDENTIALITY OF CREDIT INFORMATION Any information and materials that you submit in this Part 1 Application may be provided on a confidential basis to the Auction Manager Team and the Public Utilities Commission of Ohio (“PUCO” or “Commission”) and their representatives. Information that you provide in this Part 1 Application, except for information regarding bidding agreements provided in Section 1.11, may be provided on a confidential basis to representatives of the FirstEnergy Ohio Utilities for a creditworthiness assessment.

GEN 00044

Question: Our legal representative in Ohio is a corporation and not an individual. In this case, is it acceptable to leave the Last Name, First Name, Mr/Mrs/Ms/DR(other), and Title fields blank in Section 1.4 of the Part 1 Application?

Answer: The FirstEnergy Ohio Utilities require that the Ohio Legal Representative be an individual and not a corporation.

GEN 00047

Question: Have the most recent rates for Sheet 114, Rider GEN, Generation Service Rider been calculated for any or all of the First Energy Ohio Companies?

Answer: Current tariffs are available at: https://www.firstenergycorp.com/content/customer/customer_choice/ohio_/ohio_tariffs.html.

GEN 00048

Question: Is each product in the auction for all 3 utilities combined together or is there a separate product for each of the utilities?

Answer: Each product in the auction is for the three utilities combined. There is no product specific to each utility.

GEN 00049

Question: Does the load that SSO suppliers serve include Unaccounted For Energy (UFE)?

Answer: Yes.  Please see Attachment M-1 of the PJM Open Access Transmission Tariff.

GEN 00052

Question: When is the next auction?

Answer: When the schedule for upcoming auctions has been approved by the PUCO, notice will be posted on the Calendar page of the auction Information Website (www.FirstEnergyCBP.com/Calendar.aspx), and registered users of the Information Website will be informed via email.

GEN 00056

Question: Will the Companies’ recovery of the ancillary services including Balancing Operating Reserves and Reactive Services occur through a bypassable or non-bypassable rider?

Answer: With the exception of an approved pilot that impacts certain shopping customers and their suppliers, all other customers of the Companies will be charged for non-market based transmission services as defined in the Master Supply Agreement on a non-bypassable basis.

GEN 00059

Question: If a government aggregation returns to standard offer service, is there a minimum amount of time that the government aggregation is required to remain on standard offer service?

Answer: Currently there is no minimum stay for customers electing to return to the Companies' standard-offer service. However, customers may only change who they take generation service from once a month on their regularly scheduled meter reading date. Please refer to the Companies' Electric Service Regulations, which are publicly available and can change from time to time based upon action of the Public Utilities Commission of Ohio. See the Ohio Supplier Tariff, VII CUSTOMER ENROLLMENT Section F Customer Return to Standard Service Offer Supply.

GEN 00060

Question: Where can I find information that states the specific load zone(s) the Companies are located in?

Answer: FirstEnergy's Ohio Utilities are in the ATSI load zone.

GEN 00061

Question: Could you please confirm that the legal representative in Ohio is required to be an attorney.

Answer: Yes.  The FirstEnergy Ohio Utilities require that the legal representative be an attorney.

GEN 00062

Question: The Supplier Master Agreement for FEOH doesn’t delineate clearly the customer breakdown by energy consumption, can we please have the definition of Residential, Commercial, and Industrial Customers in terms of energy demand thresholds?

Answer: SSO Suppliers are obligated to deliver full requirements service based on tranches where each tranche represents an equivalent percentage (or slice of system) of SSO Load.  The Companies classify customers between Residential, Commercial, and Industrial based on Commission-approved rate schedules which are determined by service voltage.

GEN 00073

Question: My question is around the volume that is procured for each of the utilities. I'm looking to gauge how exposed default service customers would be to the spot market in the event there was a large migration of customers from third party contracts, back to utility default rates. Ex: Lets say OH utility loads were determined that a 1% tranche was equal to 100MW originally. If they added significant loads between delivery years, and a new calculation of 1% of load was determined to be 105MW (lets say this was revised in September), would the supplier who was awarded the 1% tranche be obligated to supply the additional 5MW at the original fixed price or would the utility be completely exposed to the spot market for the extra 5MW?

Answer: SSO Suppliers are required to provide all default service requirements at the fixed price from the auction for SSO load. For your example, the supplier would have the additional responsibility for the 5MW at the fixed price from the auction.

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 24-mo product. What does this equate to in the 24-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 24-mo product to the 12-mo product, do we need to enter that as 3 tranches in the 12-mo product since the 24-mo term is 3 times the length of time/MWh served?

Answer:

One tranche for the 12-month product covers the 12-month delivery period.  One tranche for the 24-month product covers the 24-month delivery period.  If a tranche that was bid on the 12-month product is switched to be bid on the 24-month product, it is considered a single tranche bid on the 24-month product, not three tranches bid on the 24-month product.  Similarly, if a tranche that was bid on the 24-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.

RUL 00006

Question: If a product becomes under-subscribed in a multi-product auction, will the auction pick winning tranches randomly rather than use a sealed-bid round? Will the random process try to spread tranches among participants evenly?

Answer: Yes, if a product becomes under-subscribed in a multi-product auction the Auction Manager will pick winning tranches using random numbers assigned to tranches.  Each tranche that was bid on the product in the previous round but not in the round that just ended has an equal chance of being selected as a winning tranche.

DAT 00026

Question: Does the non-shopping, hourly load data provided on the Information Website include or exclude PIPP load?

Answer: Percentage of Income Payment Plan (PIPP) data are not part of the non-shopping hourly load data posted on the Information Website. PIPP data are provided separately on the Website and can be obtained from the file, “PIPP Customer Data”.

DAT 00028

Question: Are the values posted to the Information Website in the file "Capacity and Transmission PLC.xls", equal to the Obligation Peak Load or is the Obligation Peak Load a function of the PLC values and the Daily Zonal Scaling Factor?

Answer: The Obligation Peak load is a function of the Peak Load Contribution (PLC) values and the Daily Zonal Scaling Factor.

DAT 00029

Question: Can FE provide auction winners with access to instantaneous, real-time load information? This would help winners mitigate real-time risk. Before auctions became the standard format to serve load in Ohio, utilities were able to get the hourly, real-time load information which they could use to hedge exposure in the real-time market. Is this something FE could provide to the winners, rather than having a day or two lag on load data?

Answer: No. The FirstEnergy Ohio utilities do not have access to real-time data of the Standard Service Offer (SSO) obligation.

DAT 00031

Question: Are the data included in the FirstEnergy Ohio Utilities' Historical Hourly Loads by Class files included on the Information Website presented in Eastern Standard Time?

Answer: No. The data are in Eastern Prevailing Time.

DAT 00033

Question: In the "Capacity and Transmission PLC" data file, does the "RES Shopped" column on the Capacity PLS tab include the PIPP load?

Answer: No. The Percentage of Income Payment Plan (PIPP) load is shown on its own tab.

DAT 00034

Question: In the "Capacity and Transmission PLC" data file, the Grand Total column is the Total FE Load PLC. Can you provide the corresponding UCAP for the Total FE Load?

Answer: No. The data needed to make calculations of this type are publicly available. The Final Zonal RPM Scaling Factors and the Forecast Pool Requirement can be found on the PJM Website. The Daily Zonal Scaling Factors are posted with the load and other data on this Information Website.

DAT 00035

Question: As a follow-up to DAT 00033, is the Grand Total column on the Capacity PLS tab not inclusive of PIPP?  The PLS data for the entire FE Ohio footprint would be the sum of the PIPP Capacity PLS tab and the Grand Total column of the Capacity PLS tab?

Answer: That is correct. The Grand Total column does not include Percentage of Income Payment Plan (PIPP).

DAT 00037

Question: The hourly load on the Auction Information Website states that Economic Load Response (ELR) load has been removed from the non-shopping load as of 1/1/2015. Has the Percentage of Income Payment Plan (PIPP) load also been removed from the non-shopping load?

Answer: The PIPP load is not included in the non-shopping load data.  See FAQs DAT 00026, DAT 00033, and DAT 00035.

DAT 00041

Question: Is the ELR customer data based on customers currently participating in the ELR Program or customers that are eligible to participate in the ELR Program? If not all the ELR eligible customers are participating in the ELR Program, can you please provide a breakdown of a) customers eligible to participate in ELR but choosing to switch to a CRES supplier, b) customers eligible to participate in ELR but choosing to stay on SSO service without participating in the ELR program, and c) customers eligible to participate in ELR and choosing to do so (and by definition remaining on SSO service)?

Answer: The requested ELR breakdown is not available. ELR customers can choose to shop or not. Therefore, ELR customer data is reflected in both the shop/non-shop categories in their respective class in the posted Hourly Load files.

DAT 00042

Question: This question uses historical data from January 1, 2014 hour ending 1. Total MW = 5,331 Shopping MW = 4,342 Non-Shopping MW = 988 UFE MW = 570 PIPP MW = 227 Derate factor = 0.0209 Tranche Size = 1% A) Does the percentage of Unaccounted for Energy (UFE) that SSO Suppliers are responsible for include PIPP Load? In other words, is it equal to 18.5% (988 divided by 5,331) or 17.8% (988 divided by the sum of 5,331 and 227)? Or is it some other number? B) If a SSO Supplier was supplying load for this hour would it be responsible for 10.71 MW [(988 + 0.185 * 570) * (1 - 0.0209)] * 0.01 or 10.67MW [(988 + 0.178 * 570) * (1 - 0.0209)] * 0.01? Or is it some other number?

Answer: A) The percentage used to calculate what UFE that SSO Suppliers are responsible for is the same percentage used to calculate what UFE PIPP suppliers are responsible for. The latter formula would apply, which equals 17.8% when using your rounded numbers.

B) 10.67MW. In addition to providing the UFE for an hour, we also provide the UFE factor, which for January 1, 2014 HE 1 is 1.1025 [(5,331+570+227)/(5,331+227)]. Another way to write the expression using the UFE factor would be [(988*1.1025)*(1-0.0209)]*0.01 when using your rounded numbers.

DAT 00044

Question: Can you provide information on government/municipal aggregations in the FirstEnergy Ohio Utilities’ service territories?

Answer: The Public Utilities Commission of Ohio post information regarding governmental aggregation at the following link: https://puco.ohio.gov/utilities/electricity/resources/government-aggregation

DAT 00050

Question: Can the FEOU provide details regarding when the customer counts are taken? For example, is it a snapshot taken at the beginning of the month, end of the month, or is an average across all days in the month used?

Answer: The customer counts within the Historical Customer Switching report, are obtained at the end of the most recent month.

DAT 00054

Question: Regarding DAT00053, I would like to confirm that 'several Toledo Edison customers switched from shopping to non-shopping in Jan '22, and those switches from shopping to non-shopping explain the increase in PLCs and load for shopping industrial customers.

Answer: This statement is correct.

DAT 00055

Question: Can FirstEnergy Ohio Utilities please provide load and PLC data for the NOPEC aggregation and expected date for the NOPEC aggregation to return to Standard Offer Service? In addition, can the Company please provide a full dataset for government aggregations?

Answer: The FirstEnergy Ohio Utilities (“FEOU”) have requested this data from NOPEC, but at the time of this FAQ we do not have the data yet. Once the data is available we will post it to our load data area on this site. Additionally, FEOU does not have load information segregated by government aggregation thus this dataset is not available.

DAT 00056

Question: Does the decline in CEI non-shopped industrial load from 6/30/22 HE 24 to 7/1 HE 1 indicate customers returning to shopped status? What limits exist for industrial customer switching? For example, when could the Toledo Edison customers referenced in DAT 00053 switch back?

Answer: The decline in CEI non-shopped industrial load from 6/30/2022 to 7/1/2022 is due to a large industrial customer significantly dropping load during the month of July. Within Ohio, a customer can choose to change suppliers anytime, but the timing of the switch must be consistent with the terms of the utility’s approved tariffs.

DAT 00060

Question: When you next update your data to include October, would you please let us know what % of the NOPEC adds are in the data?

Answer: FEOU does not track returning customers separately from existing SSO load and is accordingly not able to report the % of load that results from NOPEC adds or drops.

DAT 00065

Question: Can FEOH provide a list of municipal/government aggregation customer counts with usage broken out by customer class, year and month?

Answer: FEOU is able to provide the following: For January 2023 there were 448,505 residential customers and 40,595 non-residential customers served through municipal/government aggregation. Total MWh served in both classes were 420,544.57 and 91,034.88 respectively.

DAT 00066

Question: We noticed a considerable drop in Default Service PLC starting from March 1st, 2023 as we are serving the load. We are wondering if this migration is happening as a result of customers are returning to NOPEC or any other retailer. We appreciate your comments and explanation regarding this recent significant migration.

Answer: The change in PLC on 3/1/2023 is associated with several large customers moving from SSO service to competitive retail electric suppliers.

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 F, 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 33 of the Part 1 Application posted on www.firstenergycbp.com/Documents/SupplierDocuments.aspx.

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: An evergreen clause can be applied to a Pre-Bid Letter of Credit (LC). The bidder will need to work with the Auction Manager during the application process to amend the LC to the appropriate amount and at the appropriate time for each auction.

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 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 Agreement.  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 provide 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: Pre-bid security will remain in full force, at a minimum, until five (5) calendar days after the conclusion of the auction. Subsequently, a bidder’s pre-bid security will be cancelled and returned as follows: (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 00011

Question: In the definition of Total Exposure Amount in the Master SSO Supply Agreement, is the intent 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 definition 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 approved for each CBP Auction?

Answer: See the related question above (CRE 00004).

CRE 00015

Question: In the Part 1 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 00020

Question: Please confirm that the Credit-Based Tranche Cap applies to the auction only. Specifically, please confirm that if a bidder is awarded six (6) tranches in the auction, the same bidder can be awarded another six (6) tranches in the next auction which is for the same 12-month term.

Answer: There is a credit-based tranche cap for every auction. The credit-based tranche cap is applied on an auction specific basis and it is not adjusted for tranches currently supplied by the bidder.

In addition, a Qualified Bidder will be subject to a load cap that limits the number of tranches the bidder can bid on and win. The load cap will be 80 percent on an aggregated load basis across all auction products for each auction date such that no bidder may bid on and win more tranches than the load cap. The load cap will be implemented by ensuring that each bidder’s initial eligibility does not exceed the load cap in an auction.

Also, please refer to the Master SSO Supply Agreement Section 6.3 to see more about the Independent Credit Requirement per Tranche that will also be applied.

CRE 00021

Question: Will Credit and Parent Guaranties need to be posted on an EDC by EDC basis? Will the bidder be required to post their MCL for each of the 3 companies in the FEOH Auction for a total of three times the MCL? Or does the MCL cover all tranches and companies?

Answer: Credit is managed in aggregate across all three FirstEnergy Ohio utilities.  Suppliers need to post a single guaranty and the MCL covers all tranches and companies.

PJM 00001

Question: In PUCO Case No. 10-0388-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 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 FEOU transitional auctions. Also, when the PJM BRA results for future planning years 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 currently is part of the Companies' retail tariffs filed in compliance with Case No. 14-1297-EL-SSO. For an example, please refer to Case No. 22-0340-EL-RDR.

PJM 00002

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

Answer: The Load Serving Entity (LSE) 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 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, except for suppliers serving customers in the Companies' transmission pilot program.

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 be billed and settled as the three companies combined both by PJM and the Companies.

PJM 00011

Question: Section 4.2 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 i.e., using 1 CP? The ATSI manual for calculating PLC 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?

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 Zone 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 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?

Answer: Yes, there are loads within the ATSI Zone that are served by wholesale Load Serving Entities (LSEs) and therefore not included in the SSO load auction products. The historical SSO load data maintained on this Information Website exclude the loads served by these wholesale LSEs.

PJM 00014

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

Answer: FEOU cannot 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 cannot provide an estimate for the ancillary charges for the FirstEnergy Ohio Utilities.

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: The Load-Serving Entity (LSE) is no longer a functional entity registration category that is covered by North American Electric Reliability Corporation (NERC) reliability standards as it was viewed to be more of a commercial market function. On October 15, 2015 FERC issued an order (RR15-4-001) accepting a proposal by NERC to eliminate the Load-Serving Entity (LSE) function from the registry criteria and to revise the NERC Rules of Procedure (ROP). NERC coordinated with the North American Energy Standards Board (NAESB) to ensure LSE market functions were covered by NAESB standards. The Companies who own and/or operate physical power system assets/wires for distribution service to SSO customers are registered as Distribution Providers (DP) and are obligated to comply with NERC reliability standards. 

PJM 00020

Question: FAQ GEN 00007 states that SSO Suppliers receive a pro-rata share of ARR revenue per PJM's calculations. Is it the responsibility of the Companies to make the request for ARRs during the ARR allocation which is then 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 ARRs being requested by the Companies to ensure that commercially reasonable requests are being made?

Answer: Under normal circumstances it is the SSO Suppliers' responsibility to request Auction Revenue Rights (ARRs) from PJM for the upcoming planning year. However, if auctions have not taken place, or suppliers have not been identified prior to the start of the ARR nomination process, the FirstEnergy Ohio Utilities will make the ARR nominations for the open SSO load and the resulting allocations will be posted on the Load and Other Data Documents page on the auction Information Website.

PJM 00021

Question: Do the SSO Supplier deliver energy to the ATSI Zone or the FEOHIO_RESID_AGG?

Answer: In accordance with the Master Standard Service Offer Supply Agreement, suppliers deliver energy to the FEOHIO_RESID_AGG.

PJM 00022

Question: According to FERC Order 745, all RTOs allowing Demand Response in energy markets must pay Demand Response Resources full LMP at all hours. The cost of such a program is allocated to load. Is the cost associated with FERC Order 745 the responsibility of the FirstEnergy Ohio Utilities?

Answer: No, the cost associated with FERC Order 745 is not 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 Entities, which are the winning bidders in the SSO Competitive Bidding Process as well as Competitive Retail Electric Service (CRES) suppliers.

PJM 00024

Question: Please confirm that if successful, only one PJM subaccount must be set-up for FEOU.

Answer: Three PJM subaccounts, one for each FE Ohio operating company, are required to service the load of the three FirstEnergy Ohio Utilities.

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 00004

Question: Have the seasonal billing factors been set for ESP-V, and if so what are they? 

Answer: The seasonal billing factors have been determined as 1 for ESP-V.

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: Percentage of Income Payment Plan (PIPP) is an extended payment arrangement that requires 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 Deparment of Ohio Development will administer the PIPP for electricity customers. Please see the following link for further details: http://development.ohio.gov/is/is_pipp.htm

If/when a customer would leave the PIPP program, they would be able to become an SSO customer or shop with a Competitive Retail Electric Service (CRES) supplier.

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 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 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: It would not be expected that the electric distribution utilities under the Master SSO Supply Agreement would render conflicting decisions.  Also note that another FAQ states that, "The SSO Supplier's counterparty to the Master SSO Supply Agreement is the FirstEnergy Ohio Utilities. There is one contract." 

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: It is the Companies' position that the Companies under the Master SSO Supply Agreement are severally, but not jointly, liable.  Each Company would be responsible for its proportionate share of liability.

AGR 00019

Question: Please confirm that a specified single point of contact will speak for the Companies collectively with respect to notices (other than those required under Article 6) and that a 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 00024

Question: Do the FirstEnergy Ohio Utilities have an overarching parent guaranty from FirstEnergy Corp.?

Answer: No, the FirstEnergy Ohio Utilities do not have an overarching parent guaranty from FirstEnergy Corp.

AGR 00027

Question: As this is a sale for resale, is there a risk that the FirstEnergy Ohio Utilities withhold payment to the SSO supplier in the event of SSO customer non-payment or dispute?

Answer: No.  There is no risk that payments to SSO suppliers are withheld in the event of SSO customer non-payment.

AGR 00029

Question: The Master SSO Supply Agreement states that the Delivery Point is the “FE Ohio Aggregate”. Can you please confirm that this is the FE Ohio Residual Aggregate and the corresponding Pnode ID is 1258625176?

Answer: As defined in the Master SSO Supply Agreement: FE Ohio Aggregate means that set of electrical locations determined pursuant to the applicable PJM Tariff, rules, agreements and procedures, representing the aggregate area of consumption for the Companies within PJM and used for the purposes of scheduling, reporting withdrawal volumes, and settling Energy transactions at aggregated load levels, to facilitate Energy market transactions.

Since June 1st, 2015, the Delivery Point PJM name for FE Ohio Aggregate has been FEOHIO_RESID_AGG, PNODE ID 1258625176. PJM at any time can change that specific PJM name creating a successor, superseding or amended name or location.

AGR 00031

Question: The Information Session stated that SSO Customers excludes PIPP Customers; however the Master SSO Supply Agreement does not reflect this. The redline to the Master SSO Supply Agreement shows that the carve of PIPP customers from SSO Service was removed in the current version of the Supply Agreement. Can you please confirm that PIPP customers are excluded from this procurement and will the Supply Agreement be updated to reflect this?

Answer: PIPP customers will be excluded from the procurements in April 2016 and forward per Public Utilities Commission of Ohio order in Case No. 16-247-EL-UNC. This order states that "each electric utility shall notify SSO auction participants for its next SSO auction that the PIPP load will be removed from the auction product and will be procured pursuant to this competitive RFP auction process." Further, the order states that the RFP process to serve the PIPP customers load is only open to CRES suppliers. Therefore, the Master SSO Supply Agreement will not be updated as it states that "SSO Service means Standard Service Offer service that is not provided by a CRES Supplier" and, in accordance with the aforementioned PUCO Order, PIPP load must be served by a CRES supplier.

AGR 00032

Question: Since an SSO Supplier is only getting one payment each month. What is the name of the company whose bank account makes payments each month to an SSO Supplier?

Answer: All payments to SSO Suppliers are made from the FirstEnergy Service Company bank account.

AGR 00033

Question: The SMA has no reference to PJM BLI 2215 (Balancing Transmission Congestion Credits), which started in June 2017. Will this line item be the responsibility of the supplier or the EDC?

Answer:  PJM billing line item (BLI) 2215 (Balancing Transmission Congestion) is the responsibility of the supplier.

AGR 00034

Question: For an Applicant that has Guarantor that has not been incorporated under the laws of the United States, could you please clarify the timing of the submission of the required legal opinion?

Answer: The legal opinion is submitted with the Part 1 application for review and determination of acceptance by FEOU.  After review and acceptance by FEOU, execution is only required if that supplier is a winning bidder.

AGR 00035

Question: Please confirm that the load we will be responsible for is based on the Non Shop load, instead of the Total or Shop load. Based on the documents and the FAQ page, this is our understanding but we want to confirm our thinking. Additionally, can you confirm that the Total SSO Load for any specific hour is calculated as the (NonShop Load * UFE Factor) * (1-Derate Factor)?

Answer: Please refer to Article 2 of the Master SSO Supply Agreement for the details of the supplier obligations. SSO Suppliers are obligated to provide supply in support of the Non-shopping customer needs. Non-shopping customers include those not taking supply from Competitive Retail Electric Suppliers and that are not Percentage of Income Payment Plan (PIPP) customers. The count and load requirements of non-shopping customers is subject to change during the supply period due to many factors including customer migration into and out of the Standard Service Offer. Suppliers are required to provide and are paid for all MWh provided at the delivery point which includes UFE and distribution losses.

AGR 00036

Question: I know that capacity is not a part of the product we are bidding for. However, what is the capacity price that we are charged for serving load on a per MWh base? Do we automatically get charged the capacity price for the ATSI load zone coming from the PJM Capacity Market for the Delivery Year of 2020/2021? Or do we have to go out and procure capacity on the secondary market some way for our estimated load that we will be serving?

Answer: Currently, suppliers are responsible for providing energy, capacity, market-based transmission service and any other service that may be required by PJM to serve the SSO needs of FirstEnergy's Ohio Utilities' customers.  Potential suppliers should review the Master Supply Agreement posted to the Information Website.

Suppliers will be paid by FEOU consistent with the auction results.  Suppliers will be charged by PJM for their reliability share.  For capacity, FEOU is in the ATSI zone. 

AGR 00037

Question: Per Section 12.3 of the Reliability Assurance Agreement (RAA) with PJM, we are required to obtain and maintain insurance as is required of LSE by the states in which it is doing business within the PJM Region. Is this provision applicable to Ohio?

Answer: Per Section 2.9 of the Master Standard Offer Supply Agreement, SSO Suppliers shall be at all times during the Delivery Period (i) a member in good standing of PJM; (ii) qualified by PJM as a “Market Buyer” and “Market Seller” pursuant to the PJM Agreements, and (iii) qualified as a PJM “Load Serving Entity.” Additionally, during the Delivery Period, each of the SSO Suppliers shall be a member in good standing of PJM and shall be responsible, and be liable, to PJM for the performance of its LSE obligations associated with the provision of SSO Supply. Thus, the SSO Supplier is responsible to meet all PJM requirements of an LSE associated with all PJM agreements including the Reliability Assurance Agreement.

AGR 00038

Question: In Appendix G of the Master SSO Supply Agreement, it states that the PJM Billing Line Item ID# 2106, Non-Zone Network Integration Transmission Service, is allocated to the supplier. Can you explain why this is not allocated to the buyer, as are all the other transmission related charges and credits?

Answer: Generally, the transmission and other non-market based line items that are the responsibility of the EDC are either associated with serving load in the ATSI zone directly or are the result of a specific regulatory activity.  Line item #2106 was deemed not to fit either category and was assigned to the SSO Supplier per the FirstEnergy Ohio Utilities Commission approved Electric Security Plan filing in case no. 14-1297-EL-SSO. 

AGR 00040

Question: For the payment to the Load Serving entity, should we expect 3 invoices from Cleveland Electric Illuminating Company, The Toledo Edison Company, and Ohio Edison Company respectively? Or we get one invoice only? If yes, would it be from "FirstEnergy Service Company"?

Answer: Suppliers are invoiced by PJM for their share of the load for the FirstEnergy Ohio Utilities.  There is a single invoice for the supplier obligation across the three entities.  Suppliers receive a single payment from The FirstEnergy Service Company consistent with the outcome of the SSO auctions.

AGR 00041

Question: Why are PJM Billing Line Items 1478 Load Rec. for Bal. Op Reserves, and 1490 Load Rec. for Reactive Services are billed, but the initial charges for 1378 Bal. Op Reserves, 1376 Bal Op Reserves for Load Resp, and 1378 Reactive Services are not?

Answer: At the time of the development of the current Master Standard Service Offer Supply Agreement some out of market costs such as Generation Deactivation / Reliability Must Run payments were being collected by PJM through billing line items ("BLI") 1375, 1376 and 1378. In Case No. 14-1297-EL-SSO, the Commission authorized that the applicable BLIs 1376 and 1378 remain the responsibility of the EDC. Since BLIs 1478 and 1490 were not impacted by this issue, those line items were able to remain the responsibility of the SSO suppliers.

AGR 00042

Question: The Master agreement allows the utilities to transfer the agreement without consent to any entity with a Minimum Rating (set at BB-). What is contemplated by this provision? Please explain a scenario where the utilities could transfer the obligation to procure default service load for the utility customers.

Answer: Article 13.3 defines the assignment provisions for both the Companies and Suppliers. Assignment provisions are standard within most supply contracts of this type. The Companies have not contemplated any set of scenarios for the implementation of this article. Additionally, to date, the Companies have not exercised their assignment rights under any executed Master SSO Supply Agreement.

AGR 00045

Question: Is Adobe’s Certification function acceptable for signing contracts/confirms should we win load?

Answer: Electronic (in this case Adobe) or scanned signatures from your authorized representatives are acceptable.  If electronic a “/s/” should be denoted before the signature.

AGR 00046

Question: With respect to FERC’s Electric Quarterly Reports (EQR), please elaborate how a Supplier should record sales among the FirstEnergy Ohio Utilities, and if Suppliers will receive information, and frequency, for reporting of such sales for each of the FirstEnergy Ohio Utilities. For reference: “EQRs include information about cost-based rate sales, market-based rate sales, and transmission service, as well as transaction information for short-term and long-term market-based power sales and cost-based power sales.” https://www.ferc.gov/sites/default/files/2020-05/eqr-requirements-guide_0.pdf

Answer: The FirstEnergy Ohio Utilities are unable to provide a legal opinion as to how reporting should be completed for FERC’s Electric Quarterly Reports (EQR). Such questions should be addressed to each Supplier's legal counsel. Additional resources, such as FAQs on the EQR process, can be found at FERC.gov. The FirstEnergy Ohio Utilities do provide invoices monthly, which include MWh purchased and pricing. PJM currently provides EQR data for suppliers in their MSRS report as a further resource.