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.