FirstEnergy's Pennsylvania Default Service Program

Credit Requirements

CRE 00003
Published On: 11/08/2012

Question: What is the timeline for the return of the pre-bid security?

Answer: Once the auction results are approved by the Commission, a Pre-Bid Letter of Credit will be marked as canceled and returned, and any pre-bid cash deposit will be transferred to the account designated on the bidder's Part 1 Application. This will occur as soon as possible if the bidder has won no tranches, or after the winning bidder has signed the Supplier Master Agreement (SMA) and has complied with all creditworthiness requirements of the SMA for the tranches that it has won.

CRE 00011
Published On: 10/14/2014

Question: What is the amount per tranche required for the "maximum Pre-Bid Security" discussed in the Part 1 Application, necessary for applicants with foreign guarantors?

Answer: The pre-bid security amount is $250,000 per tranche of desired initial eligibility, regardless of whether there is a foreign guarantor.

CRE 00020
Published On: 10/03/2023

Question: We don't have financials for the entity participating in the auction but there is a consolidated financial for the parent company. We are also not seeking any unsecured credit as we will post collateral to support our bids. Would we still be required to post a financial report or can we submit something else in lieu of it?

Answer: You should use the parent company as a guarantor and submit their financial information with your Part 1 Application.

FAQs Disclaimer

The information provided in the Frequently Asked Questions (“FAQs”) section of the Site has been prepared by the Companies and its advisors for the purposes of facilitating the auction process. The information presented and distributed here is subject to update, modification and/or amendment. The information is current as of the posting date. The material presented and distributed here is for informational purposes only and is made available with the understanding that any individual accessing it will use it for the sole purpose of participating in the aforementioned auction process. The information is not intended to form any part of the basis of any investment decision, valuation, or any bid that may be submitted during the auction process. This information should not be relied upon, and each recipient should make its own independent assessment of the subject opportunity after making all investigations it deems necessary.

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