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.