FirstEnergy's Pennsylvania Default Service Program

Frequently Asked Questions

General

GEN 00001 (revised 03/19/2019)
Published On: 10/18/2012

Question: Is the Legal Representative (designated in Section 1.4 of the Part 1 Application) responsible only for the receipt and forwarding of legal process? Are there any other duties that must be performed? Is the Legal Representative responsible in any way for the Applicant’s activities? Can a corporation be designated as the Legal Representative, as opposed to an individual?

Answer: The responsibility of the Legal Representative from the perspective of the FEPA Companies is to accept service of process on behalf of the Applicant.  This designation is required so that the Companies may appropriately direct any legal communications.  Designation as an Applicant's Legal Representative is not intended to create a responsibility in any individual for the Applicant's activities where that responsibility would not otherwise exist.  An individual — rather than a corporation — must be designated.

GEN 00003 (revised 03/19/2019)
Published On: 11/01/2012

Question: Does MW/tranche multiplied by # of tranches represent the total MW (estimated) to be procured?

Answer: A tranche represents a fixed percentage of a company’s class load. Forecasted company peak loads are used to set the number of tranches, and the resulting tranche size percentages.  The MW/tranche size is an estimate. The number of tranches will stay constant during the delivery period regardless of the actual peak or hourly load data. Suppliers are responsible for serving the actual load, which reflects various factors including but not limited to time of year and day, weather, and customer shopping migration.

GEN 00004 (revised 03/19/2019)
Published On: 11/07/2012

Question: If applying the load cap to the total number of tranches to be procured in a given auction across all products results in a fraction, will the load cap be rounded down to the nearest integer?

Answer: If application of the load cap would result in fractional tranches, then rounding down to the nearest integer tranche is used. Note that the load cap is applied in each auction. For example, if there are 72 tranches being procured in the Residential/Commercial (Fixed-Price or FP) auction, a load cap of 75% means no bidder will be allowed to bid on more than 54 tranches in that auction. If there are 37 tranches being procured in the Industrial (Hourly-Priced or HP) auction, applying a 75% load cap results in 27.75 tranches, and rounding down to the nearest integer tranche means no bidder will be allowed to bid on more than 27 tranches in that auction.

GEN 00006 (revised 03/19/2019)
Published On: 11/07/2012

Question: Is it anticipated that the auction will start and close on the same day?

Answer: There is no set time-frame for how long any particular auction will take.  Generally, however, most FEPA auctions are concluded in a single day.

GEN 00007 (revised 11/06/2014)
Published On: 11/14/2012

Question: For the Part 1 Application, are hardcopies required for all of the supporting documents (i.e., PJM and financial documents)?

Answer: Hardcopies of Part 1 and Part 2 Application documents are not required, electronic versions are sufficient. Hardcopies are required for Letters of Credit only.

GEN 00008 (revised 11/06/2014)
Published On: 11/14/2012

Question: We do not have a legal counsel that resides in Pennsylvania, and all legal documents are handled by our headquarters in another state. Will this be acceptable?

Answer: No.  All bidders are required to provide the name of a legal contact that has an address within the Commonwealth of Pennsylvania.

GEN 00009 (revised 11/06/2014)
Published On: 11/15/2012

Question: In FAQ GEN 00001, it is stated that for the Legal Representative, "An individual — rather than a corporation — must be designated." We utilize a large Service of Process agent and they have told us that they cannot name a specific individual, and that naming an individual applies only to individuals who act as the registered agent. This would not apply to a service company which acts as a corporate registered agent. In addition, service of process is valid only if received by mail, certified mail, FedEx, or process server. We do not accept process via fax or email. To clarify that, the State statutes and administrative rules mandate how service can be accepted.

Answer: All bidders are required to provide the name of an individual to be designated as their legal contact. Please also see GEN 00008.

GEN 00010 (revised 10/10/2014)
Published On: 11/20/2012

Question: What are the consequences of any one or all of the EDCs being downgraded below investment grade or not being rated by any rating agency?

Answer: The Supplier Master Agreement (SMA) does not address the possibility of a downgrade of an EDC.  Each supplier should make its own determinations of the likelihood and effect, if any, of such an occurrence.

GEN 00012
Published On: 12/07/2012

Question: Regarding Section 1.6 of the Part 1 Application, what documents count as documentation that our company has PJM E-Accounts set up and that we are a registered PJM LSE?

Answer: As proof of having a PJM E-Account, we accept screenshots of your logged-in E-Account or a Customer Account Manager Designation Form. Proof of being a registered Load Serving Entity (LSE) in PJM can be a fully executed PJM Application for Membership, a copy of the Operating Agreement of PJM showing your company name listed in the PJM Member List in that Agreement, or a screenshot from the PJM Website listing its members and showing the name of your company.

GEN 00013 (revised 11/06/2014)
Published On: 12/07/2012

Question: Please explain the differing renewable requirements for West Penn Power versus the three other EDCs. Please explain in detail how the AECs for West Penn Power are allocated.

Answer: The obligations of Default Service Suppliers to provide Alternative Energy Credits (AECs) vary among the Companies. Each supplier to Met-Ed, Penelec and Penn Power must provide non-solar Tier I and Tier II AECs to meet the requirements of the Alternative Energy Portfolio Standards Act (AEPS) for the load it serves, but those Companies will satisfy all Tier I solar AEPS requirements associated with their Default Service load using solar AECs obtained through separate procurements. Each supplier to West Penn Power will be required to provide all Tier I (including solar) and Tier II AECs associated with AEPS requirements for the default service load served by the supplier, less a specified number of Tier I solar AECs and Tier I non-solar AECs obtained by West Penn Power under separate long-term contracts. West Penn Power will allocate a defined number of Tier I solar and Tier I non-solar AECs for each tranche of load served that will be applied to reduce each supplier’s AEPS obligations. The obligation provisions resulted from the Commission Order at Dockets No. P-2013-2391368, P-2013-2391372, P-2013-2391375, P-2013-2391378.

GEN 00016 (revised 09/21/2016)
Published On: 12/13/2012

Question: Please list the items that are excluded from the Default Service Suppliers’ full requirements obligation.

Answer: The full requirements obligations of Default Service Suppliers exclude the following items:

  • Regional Transmission Expansion Plan charges ("RTEP");
  • PJM Expansion Cost Recovery Charges ("ECRC");
  • Reliability Must Run / Generation Deactivation charges ("RMR") associated with generating plants for which specific RMR charges began after July 2014. All Suppliers will continue to be responsible for RMR charges associated with generating plants that began before July 24, 2014, as those charges may change over time.

A list of PJM billing line items, and the responsible party for each under the Default Service Supply Master Agreement, can be found in Appendix D of the Supplier Master Agreement (SMA).

GEN 00017
Published On: 12/13/2012

Question: In the Part 2 Application, the indicative offer includes the number of tranches and does not include indicative offer prices, is that correct?

Answer: Yes, that is correct.  Applicants do not specify prices in their indicative offers -- at the time indicative offers need to be provided by applicants, the prices already will have been specified as the minimum and maximum possible starting prices in the auction.  For each product, the indicative offer comprises two numbers: the first number is the maximum number of tranches the applicant is willing and able to bid on and serve at the minimum starting price for the product, and the second number is the maximum number of tranches the applicant is willing and able to bid on and serve at the maximum starting price for the product.

GEN 00018 (revised 10/10/2014)
Published On: 12/13/2012

Question: Will the pre-bid security be returned to the bidder in the event the bidder does not participate in the auction or is not awarded any tranches?

Answer: The pre-bid security will be returned to the bidder as explained in the Bidding Rules.

GEN 00019
Published On: 12/13/2012

Question: How frequently are the FAQs updated?

Answer: Some questions can be answered and posted as FAQs within 24 hours.  Other questions require more time to answer.  Questions are answered and FAQs are posted in as timely a manner as possible.

GEN 00021 (revised 09/21/2016)
Published On: 12/14/2012

Question: According to the Bidding Rules, the Residential load Default Service supplier will be paid a fixed price for 95% of the residential load and 5% of the residential load will be priced at Real Time LMP plus a $20/MWh adder. The Commercial load Default Service supplier will be paid 100% fixed price, and the Industrial load Default Service supplier will be paid the sum of 100% of the fixed price and 100% of the Real Time LMP plus a $4/MWh adder.  To confirm this, are the following calculations correct?  

Example: Assume auction price is $100/MWh for all customer classes, volume is 10 MW at a certain date/hour for all customer classes, and RT LMP for that date/hour is $50/MWh for all customer classes.

Residential DS supplier will be paid 0.95*100*10 + 0.05*(50+20)*10= $985

Commercial DS supplier will be paid 100*10=$1000

Industrial DS supplier will be paid 100*10 + (50+4)*10 = $1540.

Answer: That example is correct.

GEN 00022 (revised 09/22/2016)
Published On: 01/03/2013

Question: This inquiry is regarding smart meter installation/implementation. Did all the FirstEnergy utilities complete smart meter installation for all customers? If so, are you using smart meter information (no more profile) to allocate customer capacity/transmission peak? If not, what is the current status, and when do you expect to use smart meter information to allocate customer capacity/transmission peak?

Answer: No, the PA utilities have not completed smart meter installation for their customers. Deployment of smart meters will continue through mid-2019 for 98.5% of all customers per the Commission- approved smart meter deployment plan. The remaining 1.5% of the meters that may require alternative communication solutions or involve difficult-to-access locations are expected to be installed by December 31, 2022, pursuant to the Joint Petition of Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, and West Penn Power Company For Approval of their Smart Meter Deployment Plan, Docket Nos., M-2013-2341993, M-2013-234199, M-2013-2341990, and M-2013-2341994 (Order entered June 25, 2014).

GEN 00025 (revised 09/21/2016)
Published On: 01/08/2013

Question: If a successful Part 1 Application and Part 2 Application were submitted and approved for a prior auction under one of FirstEnergy’s Pennsylvania Default Service Programs (DSP), does a Part 1 Application need to be submitted for subsequent auctions under any DSP?

Answer: During the process leading up to an auction, we will inform Qualified Bidders from the most recent auction(s) whether a new Part 1 Application will be required for the upcoming auction.  As a general rule, prospective bidders will need to complete one new Part 1 Application per calendar year, unless the prospective bidder needs or wants to make changes to their Part 1 Application.  The Qualified Bidder still needs to complete a separate Part 2 Application for each auction.  In any case, a prospective bidder is obligated to inform the Independent Evaluator of any change in its status related to the information the prospective bidder previously provided in its Part 1 Application or its Part 2 Application. A new Part 1 Application is required of all prospective bidders for the first auction in a DSP series of auctions.

GEN 00027
Published On: 01/10/2013

Question: Do all customers in a given group (for example Met-Ed Residential Default Service customers) pay the same rate? If not, please provide the rate translation mechanism from all the auction clearing prices (inclusive of the floating LMP-based portion) to what different types of customers within a group would pay.

Answer: All customers within the Residential Class and the Commercial Class of each Company pay the same rate.  The Industrial Class customers on hourly rates pay the same rate for kWh's consumed in the same hour.

GEN 00034 (revised 09/21/2016)
Published On: 02/05/2013

Question: Can a winning bidder publicly disclose the number of tranches they won in an auction?

Answer: The Bidding Rules, Section 11.3.4, Limitations on Disclosures by Bidders, states:  "Bidders are not allowed to disclose they are participating in the Fixed-Price Auction or the Hourly-Priced Auction, and winning bidders are not allowed to disclose that they have won any tranches in the Fixed-Price Auction or the Hourly-Priced Auction until the Commission publicly reports the results of the auction. Such limitation on public disclosure by bidders is waived if disclosure is required by law."

GEN 00035
Published On: 11/26/2013

Question: Regarding section 1.4 of the Part 1 Application for Default Service products for Met-Ed, et al: does the applicant's legal representative in PA have to be an attorney or will the corporation's agent for service of process suffice?

Answer: An agent for service of process will suffice.  See also FAQ GEN 00001 and FAQ GEN 00009.

GEN 00036
Published On: 12/11/2013

Question: The Independent Evaluator and the Pennsylvania PUC publish the winning auction prices of prior auctions. Are the names of the winning suppliers made public?

Answer: The names of winning bidders are not made public.  As noted in FAQ GEN 00034, a winning supplier is free to disclose that they have won tranches in an auction but only after the Commission has publicly reported the results of the auction.

GEN 00040 (revised 01/18/2017)
Published On: 01/10/2014

Question: What is the exact tranche size per EDC per customer class? For example, if for a particular Default Service auction there were 12 tranches of Met-Ed Residential load that totaled 43%. Would the calculation be 0.43/12 so that each tranche = 3.583% or would this 43% be a rounded number reflecting a total number of 28 tranches, so that the actual tranche size was 1/28, or 3.5714%? Please clarify.

Answer: The 12 tranches would represent approximately 43% rounded.  The actual size of each tranche would be 1/28, or 3.5714% (using four decimal places of precision here).

GEN 00042 (revised 09/21/2016)
Published On: 07/28/2014

Question: Have the documents changed at all for the upcoming Auction other than as referenced per the date noted at http://www.fepaauction.com/Documents/SupplierDocuments.aspx?

Answer: The documents on that Web page have been updated as of the date shown under "Updated On".  The Part 1 Application and Part 2 Application on that Web page are updated as necessary to reflect the products that are being offered in the upcoming auction.

GEN 00048 (revised 09/21/2016)
Published On: 10/03/2014

Question: Is a Letter of Intent to Provide a Guaranty required for participation in DSP-V Default Service Auctions?

Answer: For the DSP-V Default Service Auctions there is no Additional Pre-Bid Security required, and therefore no need for a Letter of Intent to Provide a Guaranty.

GEN 00050 (revised 09/21/2016)
Published On: 10/23/2014

Question: Would you please make available a Word document version of the Form of Guaranty?

Answer: Rather than a Word version, a PDF version of the Form of Guaranty is available on the "Supplier Documents" page of the Information Website.  This version contains form fields that can be filled in electronically.

GEN 00052
Published On: 10/30/2014

Question: Could you provide the methodology for how the total APS zone capacity obligation is allocated between Allegheny Maryland (Potomac Edison) and West Penn Power?

Answer: Each state jurisdiction within the APS Zone is metered at the state line crossings.  This includes MonPower WVA, Potomac Edison WVA, Potomac Edison Maryland, ODEC VA, and West Penn Power PA.  The state jurisdiction loads at the time of the PJM five summer peaks are determined from the metered loads which sum to the APS Zone load at the time of the five PJM peaks.  A load ratio share is then determined based on each state jurisdiction average 5 CP compared to the total APS Zone average 5 CP.  This load ratio share is then applied to the PJM assigned capacity obligation for the APS Zone to determine each state's capacity obligation.

GEN 00055 (revised 09/21/2016)
Published On: 01/08/2015

Question: Appendix D of the Default Service Supplier Master Agreement distinguishes "Generation Deactivation and RMR Generating Unit Declarations" (billing line item 1930) before PaPUC Approval of the Company's Default Service Program as the responsibility of the DS Supplier (winning bidder) and after PaPUC Approval of the Company's Default Service Program as the responsibility of the EDC. Would you provide the date of the approval of the Company's Default Service program, as well as indicate where on PJM's Website information regarding the dates of Generation Deactivation and RMR Generating Unit Declarations can be found?

Answer: Current generation deactivation for reliability must run generating units can be found on the PJM Website at http://www.pjm.com/planning/generation-deactivation/gen-deactivation-rmr.aspx

GEN 00056
Published On: 01/08/2015

Question: For West Penn Power: (1) What is the on-going rate for the PJM charge of "Transmission Owner Scheduling, System Control and Dispatch Service"? (2) Which transmission owner is providing transmission service to West Penn Power?

Answer: (1) There is no "Transmission Owner Scheduling, System Control and Dispatch Service" charge for West Penn Power under Schedule 1A of the PJM OATT.   APS (West Penn, Monongohela Power, and Potomac Edison) waived these charges as part of their agreement to join PJM in 2002.  (2) West Penn Power Company d/b/a Allegheny Power is the transmission owner providing service to West Penn Power.

GEN 00061 (revised 12/03/2015)
Published On: 07/21/2015

Question: Is there a definitive schedule set already for future auctions?

Answer: The Calendar page of the Information Website provides the latest information on upcoming auctions.

GEN 00063 (revised 12/03/2015)
Published On: 11/10/2015

Question: How much notice must a customer who is currently taking Default Service give before they can switch to a retail provider for each rate schedule?

Answer: All Pennsylvania customers may select a supplier at any time whether currently taking Default Service or already shopping.  No notification is required for any customer rate type.  A supplier switch is made effective within three days after the utility receives notification from a customer's selected supplier.

GEN 00069
Published On: 09/14/2016

Question: If there are changes to the NITs rates after the auction has cleared, will suppliers be made whole for any changes?

Answer: No.  As per the Supplier Master Agreement definition of Default Service Supply, or "DS Supply", on page 5, the suppliers are responsible for transmission services including NITS.  Any changes to the NITS rates are the responsibility of the Default Service Supplier.

GEN 00075 (revised 10/18/2016)
Published On: 10/18/2016

Question: My counterparty Risk group is assessing credit and was wondering if you would be able to provide Met-Ed’s most recent YE audited financials, as well as their most recent quarterly financials?

Answer: The financials are available at www.firstenergycorp.com.  Once at the Website, they are available under Investors / Fixed Income Investors / Financial Information (non-SEC registrants).

GEN 00076 (revised 10/18/2016)
Published On: 10/18/2016

Question: Please provide any available details of capital expenditures for transmission projects that are expected to go into service in the next three years that are relevant to Metropolitan Edison Company and Pennsylvania Electric Company.

Answer: Transmission projects in the PJM queue can be found on the PJM’s Website:  http://www.pjm.com/planning/rtep-upgrades-status/construct-status.aspx.

GEN 00077 (revised 10/18/2016)
Published On: 10/18/2016

Question: Please provide a listing of the of the transmission projects that are expected to go into service in the next three years that are relevant to Metropolitan Edison Company and Pennsylvania Electric Company.

Answer: Transmission projects in the PJM queue can be found on the PJM’s Website:  http://www.pjm.com/planning/rtep-upgrades-status/construct-status.aspx

GEN 00081
Published On: 11/03/2016

Question: Is there a deadline to submit comments on the pre-bid letter of credit?

Answer: Any proposed changes to Credit Documents must be submitted by the Part 1 Application deadline. For more information, refer to Appendix C of the Part 1 Application.

GEN 00084
Published On: 11/30/2016

Question: Can you provide the tranche sizes for West Penn Power for Residential and Commercial and Penn Power Residential and Commercial for 1 tranche? What is the percentage of Default Service load for just 1 tranche for each of those products?

Answer: The approximate MW-per-tranche sizes and the values for the percentage of Default Service load are posted on the News page of the Information Website at www.fepaauction.com/News.aspx.

GEN 00087
Published On: 12/06/2016

Question: Is there a tranche fee for FirstEnergy tranches? If not, how does the consulting companies conducting the auctions get paid for their services?

Answer: There is no tranche fee paid by bidders in the auctions.  The Auction Manager is paid by submitting invoices to FirstEnergy for its services.

GEN 00088 (revised 01/18/2017)
Published On: 12/06/2016

Question: Can you give us all historical dates when Commercial customers were moved into Industrial depending on their demand level for Met-Ed, Penelec, Penn Power, and West Penn Power? For example, on June 1, 2015, West Penn Power Commercial was redefined to exclude interval customers with demands of 400-500 kW. What are all the historical dates when Commercial was redefined?

Answer:
Met-Ed / Penelec
January 1, 2011 to current:  HPS created to include GS-Large, GP, and LP

Penn Power
January 1, 2007:  Hourly Pricing (HPS) becomes effective, including GP and GT
June 1, 2008 to current:  Special Rule GSDS added to HPS

West Penn Power
January 1, 2011:  HPS created to include Rate Schedules 30-large, 40, 41, 44, 46, 86, and PSU
May 3, 2015 to current:  HPS changed to include RS 35, 40, 44, 46, and PSU

GEN 00090
Published On: 01/10/2017

Question: Does West Penn Power and Penn Power have Tier I, Tier I Solar, and Tier II alternative energy portfolio standard obligations? Are the percentages the same for West Penn Power and Penn Power?

Answer: Please see the response to FAQ GEN 00013, as well as Appendix E of the Supplier Master Agreement (SMA).

GEN 00091
Published On: 01/13/2017

Question: Do winning bidders have to pay Pennsylvania Gross Receipt tax?

Answer: Bidders should consult their tax advisors regarding the applicability of the Pennsylvania Gross Receipts tax.

GEN 00092
Published On: 01/18/2017

Question: Does West Penn Power and Penn Power have Tier I, Tier I Solar, and Tier II alternative energy portfolio standard obligations? Are the percentages the same for West Penn Power and Penn Power?

Answer: The Companies are not aware of any municipal aggregation activities in any of the First Energy Zones in Pennsylvania.

GEN 00096
Published On: 05/04/2017

Question: If an Applicant’s intent is to provide a Pre-Bid Letter of Credit for the Pre-Bid Security, and the Applicant (1) does not provide financial statements of its own, (2) provides financial statements for its Parent company, but (3) does not rely on the Parent company for a guarantee, will the Applicant be considered a Qualified Bidder?

Answer: If the Applicant is relying on the financial standing of a Parent company, and the Parent company is not listed as a Guarantor in the Part 1 Application, the Applicant will not be declared a Qualified Bidder for the auction.  If the Applicant is relying on the financial standing of a Parent company, and the Parent company is used as a Guarantor in the Part 1 Application, the Applicant may be declared a Qualified Bidder for the auction.  However, the Guarantor must agree to guarantee the Winning Bidder’s financial obligations under the Supplier Master Agreement if the Applicant becomes a Winning Bidder in the auction.  More information is provided in the Supplier Master Agreement posted at http://www.fepaauction.com/Documents/SupplierDocuments.aspx.

GEN 00097
Published On: 08/22/2017

Question: I am interested in finding the load auction calendars for FirstEnergy Pennsylvania.

Answer: The timeline for the next DSP-V Default Service Program auction is posted at http://www.fepaauction.com/Calendar.aspx. Under the "Here" link on the same Web page, you can also find the schedule for all auctions in FirstEnergy's Pennsylvania Default Service Program DSP-V.

GEN 00101
Published On: 10/25/2017

Question: Will the NITS rate for Penn Power in the ATSI transmission system be increasing as of 1/1/2018? If yes, by how much? What are the expected rates?

Answer: The updated NITS rates are posted at http://www.fepaauction.com/Documents/NITSRateInformation.aspx.

GEN 00107 (revised 01/08/2018)
Published On: 01/08/2018

Question: If each tranche is a % of customer class, what is the relevance of the 50MW tranche size (or 49.33MW or 49.79MW etc)?

Answer: A tranche represents a fixed percentage of a company’s class load. This percentage can be calculated from the information provided under the 'Here' link on www.fepaauction.com/Calendar.aspx or from the relevant news items on www.fepaauction.com/News.aspx. The MW-per-tranche measure is only an estimate of what the actual MW tranche size will turn out to be during the delivery period. For example, for Penn Power Commercial products in the January 2018 auction, one tranche represents 14.3% of the load and the tranche size is estimated to be 45.84 MW/tranche.

GEN 00108
Published On: 01/17/2018

Question: Based on FAQ GEN 00107, if I apply 14.3% to the historical non-shopped Commercial Penn Power load from Mar 1, 2017-May 2017, shouldn't this provide an estimate of the MW/tranche? This logic results in a tranche size of 6MW though. Am I not applying the 14.3% to the correct load parameter?

Answer: MW/tranche is calculated using the Peak Load Contribution (PLC) Daily Zonal Scaling Factor (DZSF) times the Shopped and Non-Shopped Capacity Peak Load Share (PLS) by Class and dividing that number by the relevant number of tranches.  For example, using the data from the Load and Other Data section for Met-Ed Residential on 1/1/18:

PLC DZSF = 0.99192 (Daily Zonal Scaling Factor spreadsheet)

Residential Capacity PLS = 844,325 (non-shopped) + 419,337 (shopped) = 1,263,662 KW = 1,263.662 MW (Capacity and Transmission PLC by Rate spreadsheet)

Met-Ed Residential Tranches = 24

MW/Tranche = 0.99192 * 1,263.662 / 24 = 52.2 MW/Tranche

GEN 00109
Published On: 01/23/2018

Question: Once established as a load serving entity (LSE) in PJM, are there any Pennsylvania PUC regulatory approvals required to provide Default Service Supply in these auctions?

Answer: Pennsylvania PUC regulatory approvals are not required to participate in the auctions.  Default Service suppliers must meet the requirements as stated in the Companies’ Bidding Rules, the Part I and Part II Applications, and the Supplier Master Agreement (SMA).  After each auction, the Pennsylvania PUC reviews and approves the auction results.

GEN 00110
Published On: 01/24/2018

Question: When is AEPS compliance required by? Is there a window after delivery so that actual volumes are known?

Answer: In PA, Alternative Energy Portfolio Standards (AEPS) compliance is due September 1.  The compliance reporting year runs June 1 through May 31.  Actual volumes typically are available by mid to late July.

GEN 00115 (revised 05/21/2019)
Published On: 06/21/2018

Question: The 2018 Met-Ed/Penelec (Mid-Atlantic Interstate Transmission, LLC) NITS rate of $26,069.39/MW-year was calculated using an assumption that the Federal income tax rate was 35%. Given that the Federal income tax rate was lowered to 21% starting on January 1, 2018, will Met-Ed/Penelec revise its NITS rate prior to January 1, 2019 in order to lower its revenue requirement or will Met-Ed/Penelec revise its NITS rate effective January 1, 2019 and reflect the over-collection of revenues as a credit in the true up calculation?

Answer: MAIT will follow guidance provided by FERC regarding treatment of the tax reform change in the Federal income tax rate with respect to transmission formula rates in which the Federal income tax rate is an input in the overall formula that is used to establish the NITS rate. With respect to calendar 2018, MAIT will revise the Federal income tax rate to 21% for its 2018 Actual Transmission Revenue Requirement and related true-up. The true-up for calendar 2018 will be included as an adjustment to the 2020 Projected Transmission Revenue Requirement and thus returned to customers over calendar 2020. With respect to calendar 2019, MAIT will revise the Federal income rate to 21% for its 2019 Projected Transmission Revenue Requirement for rates effective January 1, 2019.

GEN 00116
Published On: 09/26/2018

Question: What are the differences between the DSP-IV and DSP-V Default Service Programs?

Answer: Changes from DSP-IV to DSP-V are limited to appendices of the Supplier Master Agreement (SMA) and are outlined as follows:

Appendix C - DS Supply Specifications:
- Default service customer groups have been updated to reflect new commercial class rate schedules accompanying the move to hourly pricing

Appendix D – Responsibilities for PJM Billing Line Items as Defined in Applicable PJM Agreement or Manual:
- Clarifications were added to confirm that the Companies will be responsible for the following PJM Billing Statement Line Items
1115 – Transmission Enhancement Settlement
2115 – Transmission Enhancement Settlement
- The following new PJM billing statement line items were assigned to Default Service Suppliers
2211 – Day Ahead Transmission Credit (Formerly BLI2210)
2215 – Balancing Transmission Congestion Credit 
2415 – Balancing Transmission Congestion Load Reconciliation Credit

Appendix E – Default Service Suppliers Obligation for AEPS Compliance:
- Clarified to specify that the Companies are responsible for changes in law to the AEPS requirements

Appendix F – Letter of Credit Documentation:
- Removal of Annex 3:  Availability Certificate
- Removal of Annex 5:  Notice of Extension

GEN 00117 (revised 05/21/2019)
Published On: 10/17/2018

Question: Can you describe how a customer is assigned to the PTC or HP class? Is there a demand-based allocation, does a customer select the class, or is there another process?

Answer: Currently those on the GS Medium rate schedule take Default Service via the Price to Compare (PTC) Default Service Rate Rider, but have the option to take Default Service through the Hourly Pricing Default Service Rider.  Effective June 1, 2019, the same criteria will apply except that GS Medium customers (Penelec, Met-Ed, and Penn Power) and Rate 30 customers (West Penn) who have registered demand of 100 kW or greater for 12 consecutive months ending March 31 will be required to take Default Service through the Hourly Pricing Default Service Rider.

GEN 00118
Published On: 10/17/2018

Question: Did the tranche sizes change between DSP-IV and DSP-V? For example, it looks like Met-Ed Residential for DSP-V is 4%, while in DSP-IV it was 4.167%

Answer: Tranche sizes are intended to approximate 50 MW per tranche for fixed-price products and 100 MW per tranche for hourly-priced products.  The number of tranches needs to be an integer and that number is allocated across the scheduled auctions (and therefore the number of tranches for a product for a given delivery period may vary slightly from auction to auction).  For example, given the PLC load estimated for DSP-IV, it was determined that 24 tranches in total would be procured across auctions for Met-Ed Residential that include the delivery period of June 2017 through May 2018.  Thus, each tranche represents 1/24, or 4.167%, of the estimated load during that delivery period.  For DSP-V, given the PLC load estimated for DSP-V, it was determined that 25 tranches in total would be procured across auctions for Met-Ed Residential that include the delivery period of June 2019 through May 2020.  Thus, each tranche represents 1/25, or 4.00%, of the estimated load for that delivery period.

GEN 00119 (revised 04/12/2019)
Published On: 10/24/2018

Question: For West Penn Power, what portion of the 1,000 Solar and 75,000 Tier 1 Alternative Energy Credits (AECs) will be allocated to Default Service Suppliers for this procurement?

Answer: FAQ GEN 00013 explains the allocation of AECs for West Penn Power.

GEN 00120
Published On: 10/24/2018

Question: Please provide the number of currently deployed smart meters in the Companies' territories.

Answer: The table below shows the number of smart meters deployed as of February 1, 2019.

Feb 1, 2019  Meters (000)
Met-Ed 523
Penelec 594
Penn Power 169
West Penn Power 689
Total 1,975

GEN 00122
Published On: 01/14/2019

Question: In the answer to question GEN 00117 the term "registered demand" is used. How is registered demand of a customer defined and determined?

Answer: Registered demand is the measured demand (metered kW) for the billing month. Demand is measured over 15-minute intervals. More information on demand determination can found in the Companies’ tariffs.

GEN 00123
Published On: 01/16/2019

Question: The APS transmission rates posted are lower than what was known in the previous auctions. What changed? Can you send reference documents to understand the changes.

Answer: On March 15, 2018, the Federal Energy Regulatory Commission (FERC) issued a Stated Rate Order to Show Cause to public utilities that use a stated transmission rate under an open access transmission tariff to address the effects of the Tax Cuts and Jobs Act of 2017 reduction in the Federal corporate income tax rate from 35% to 21%. On November 15, 2018, in FERC docket number ER18-1595-000, the FERC approved the APS rate change (with effective rates retroactive to March 21, 2018) associated with the reduction in the Federal corporate income tax rate from 35% to 21%. For more information, please see the filing and additional information posted on the FERC Website pertaining to Docket No. ER18-1595-000.

GEN 00124 (revised 04/16/2019)
Published On: 04/16/2019

Question: Can you provide a table detailing how 1,000 Solar Photovoltaic Alternative Energy Credits (SPAECs) and 75,000 Tier I AECs per year are allocated to Default Service Suppliers by customer class?

Answer: See the table below showing the allocation of Solar Photovoltaic Alternative Energy Credits (SPAECs) to Default Service Suppliers under DSP-V.

Res. 12 Months  Res. 24 Months Comm. 3 Months   Comm. 12 Months Comm. 24 Months Ind. 12 Months
SPAECs/Tranche 12 24 3 12 24 36
Tier I AECs/Tranche 888 1,776 244 976 1,952 2,647

GEN 00125
Published On: 04/17/2019

Question: Can you please provide an update to question GEN 00119? For West Penn Power, what portion of the 1,000 Solar and 75,000 Tier 1 Alternative Energy Credits (AECs) will be allocated to Default Service Suppliers for this procurement? In the past you have provided a table with the allocation per tranche. Can you please provide this table again?

Answer: Please see FAQ GEN 00124 which has the allocation table for DSP-V.

GEN 00126
Published On: 04/25/2019

Question: FAQs DAT 00125 and SMA 00037 both have been revised in the past month, but they disagree. Can you please consolidate them or provide an explanation? In SMA 00037, the table “Percentage of Commercial Load served by Non-Shopping Accounts on the GSM and GP30 rate tariffs with billing demands > 100kW for 12 Consecutive Months” was not updated. Compared to updates prior to the January auction, migrating PLC from the commercial class in FAQ DAT 00125 shows lower percentages. Can you please update and extend (or confirm as is) the monthly load table of SMA 00037 for the migrating customers?

Answer: FAQ DAT 00125 and FAQ SMA 00037 have been updated now.

GEN 00127
Published On: 04/26/2019

Question: FAQs SMA 00037 and DAT 00125 have inconsistent NSPL changes (percentage rows) for the migrating commercial class. Would you please update these tables and reconcile them?

Answer: The NSPL percentage changes have been corrected in FAQ SMA 00037.

GEN 00128
Published On: 05/10/2019

Question: Could you please provide a clarification on the difference between the legal opinion required in Section 1.8 (f)(i) of the Part 1 Application and the legal opinion required after “an Applicant becomes a Default Service Supplier”? Do you require an executed copy of the legal opinion with the Part 1 Application or is it just a draft copy for review by the utilities?

Answer: The same legal opinion may be submitted as part of the Part 1 Application and if the applicant is chosen as a Default Service Supplier.  The legal opinion should be signed by counsel when submitted as part of the Part 1 Application.

Bidding Rules

RUL 00001
Published On: 11/02/2012

Question: Do all winning tranches for a product get paid the same price?

Answer: Yes, all winning tranches for a product procured in the same auction are paid the same price.

RUL 00002
Published On: 11/02/2012

Question: Must all products in the auction clear simultaneously?

Answer: Products in the auction do not close product by product. The auction will continue, and bids can be placed on any products, as long as at least one product is over-subscribed. The Bidding Rules provide the complete set of conditions that determine when the auction concludes.

RUL 00004 (revised 11/06/2014)
Published On: 12/14/2012

Question: If we bid on certain products and do not bid on certain other products, would we still be able to follow the auction for these other products. i.e., would we know the clearing prices of the products we did not bid on?

Answer: During the auction, while you have eligibility to bid in the auction, you will see the status of all products in the auction including any products that you do not bid on.  At the close of the auction, the winning bidders for any product in the auction will see the closing prices for all the products in that auction.  Bidders who do not win any tranches in the auction will not be able to see the closing prices for any product.

RUL 00005
Published On: 01/10/2013

Question: Is the price decrement formula going to be available to the bidders?

Answer: The price decrement formula is not going to be available to the bidders.

RUL 00006
Published On: 01/11/2013

Question: Referenced in 5.4 of the Bidding Rules, when will the reporting ranges be made available to bidders? Also, will the pre-determined level that determines when total supply will be reported simply as below that level be made available prior to the auction?

Answer: The ranges that will be used to report total supply bid after each round in the auction will be provided to Registered Bidders no later than one day before the start of the auction.  This information also will include the level below which total supply bid is reported simply as being below a pre-determined number of tranches.

RUL 00008
Published On: 10/29/2014

Question: In the Default Service clock auctions, if no products receive a price decrement after a round, does this mean that the auction is over?

Answer: Not necessarily.  Pursuant to the Bidding Rules, the presence of free eligibility can keep the auction open even if no product receives a price decrement.

RUL 00009
Published On: 02/10/2016

Question: What determines the reduction in price from one round to another?

Answer: Formulas based on a number of factors and pre-specified guidelines are used to determine the price decrements. Generally, the price decrement for a product will be larger for the earlier rounds in the auction and when the excess supply for the product is greater.  As noted in the Bidding Rules, the Independent Evaluator reserves the right to override the price decrement guidelines.

RUL 00010
Published On: 02/08/2017

Question: When multiple tranches are rolled back to multiple bidders, how do you determine the tranche numbers allocated to different bidders?

Answer: As explained in the Bidding Rules, a random number is assigned to each tranche that is bid. For selecting tranches to roll back, reduced tranches that reflect reduced eligibility for bidders are given priority over reduced tranches that reflect switches to another product. Within each of those two groups of reduced tranches – reduced-eligibility tranches and switched tranches – the random numbers are used to select tranches to roll back. In effect, the rolled back tranches will be proportional based on the number of tranches by which each bidder reduced its bid on the product, but with the condition that reduced-eligibility tranches first are given priority over switched tranches.

RUL 00011
Published On: 02/07/2018

Question: In the Part 2 Application, is it possible to indicate only 1 tranche in 1 zone and still be able to move within zones during the actual auction (for a max 1 tranche) or would an applicant need to submit 1 tranche per EDC in order to do this?

Answer: In the Part 2 Application, you can indicate that you wish to bid on only 1 tranche across all products in the auction by entering 1 for your Indicative Offer at the Maximum Starting Prices.  In this case, your initial eligibility for the auction will be 1 tranche and you will be able to switch your 1 tranche among EDCs and products in response to changes in announced prices (subject to any bidding restrictions).  The Bidding Rules posted at http://www.fepaauction.com/Documents/SupplierDocuments.aspx provide more details.

Load Data

DAT 00007 (revised 10/01/2018)
Published On: 12/21/2012

Question: Can you explain the jump in migration in the Penelec Commercial Customer Class in January 2011 (migration went from 10% to 35% in that one month)? Was there a PUC mandate, or expiring contracts, or some other factor that induced customers to switch during that time period?

Answer: Generation Rate Caps ended on 12/31/2010, and rates associated with the Default Service that started 1/1/2011 reflected market-based pricing.  Commercial customer shopping increased during this time period.

DAT 00009 (revised 11/06/2014)
Published On: 12/27/2012

Question: The historical load data are unadjusted for Unaccounted for Energy (UFE) and deration. Therefore, to determine the amount that a Default Service supplier must deliver and gets paid for (which are equal) in the historical data, you first add the load ratio portion of UFE to each class, and then scale that number by the deration factor. This represents a Default Service supplier's obligation and volume that will be paid on. Is this correct?

Answer: Effective June 1, 2015, in accordance with the PA PUC orders in P2013-2391368, P2013-2391372, P2013-2391375 and P2013-2391378, the PA utilities will be responsible for total UFE and no longer allocate UFE to LSE loads.  A Default Service supplier should no longer add the load ratio portion of UFE to each class’ historical load data to determine its amount of load delivered. Simply apply the deration factor to the historical hourly class loads (which include T&D losses and exclude UFE) to determine energy volumes for delivery and payment.

DAT 00010 (revised 11/06/2014)
Published On: 12/27/2012

Question: Could you confirm if the following statements regarding final settlement load are correct: "(1) Unaccounted for Energy (UFE) load needs to be allocated to historical load for each customer class before the load can be correctly de-rated. (2) The adjusted load with UFE needs to de-rated."

Answer: See FAQ DATA 00009.

DAT 00012
Published On: 01/08/2013

Question: We have adjusted the Peak Load Contribution (PLC) data provided for each Company on the Auction Information Website with the Daily Zonal Scaling Factors also provided. When we compare our adjusted PLCs to those published by PJM for each Company they do not reconcile. If 100% of the customers are on Default Service, these two numbers should be very close. Why does this occur and how can we reconcile these numbers?

Answer: The load data posted on the PJM Website include wholesale load, which is not included in the Default Service load used in this procurement.

DAT 00013
Published On: 01/10/2013

Question: In the Shopping Statistics data file, the implied number of total (shopping plus non-shopping) customers for the Commercial customers and Industrial customers increases substantially, from ~95,563 and ~129 respectively as of April 1, 2012, to ~114,986 and ~624 respectively as of July 1, 2012, using the provided %'s and number of customers served by an AS. Is this in fact correct, and if so, could you perhaps explain why this is occurring?

Answer: The July 1, 2012 statistics for West Penn Power Commercial and Industrial customers reflect the integration of West Penn Power with its sister FirstEnergy PA utilities following the Allegheny Energy/FirstEnergy merger.  The statistics now are reported from the same FirstEnergy systems and on the same basis as Met-Ed, Penn Power, and Penelec.  The Commercial statistics represent the combination of Types 20 and 30 and now include street light counts, which are reflected in increased total counts.  The Industrial statistics include Type 40, including Schedule 30 Large (greater than 500 kW), which is reflected in the increased in customer counts.

DAT 00014
Published On: 01/11/2013

Question: In the load data files provided for each zone, does the load make up the entire zone or are there additional loads within each load not included in the load data?

Answer: The load data files make up the entire retail load in each zone.  The load attributable to the wholesale munis and coops served within each zone are not included.

DAT 00015 (revised 09/21/2016)
Published On: 01/11/2013

Question: In the provided hourly load data files, the data are broken up between residential, small commercial, and large commercial. The descriptions do not directly correlate with the data definitions provided in the "Data_Description_Document.pdf". Can you provide what rate schedules make up the small commercial data as well as the large commercial data, or explicitly state what customer class the data series correlate with in the data description document?

Answer: The small commercial and large commercial nomenclature appears only in the Penn Power hourly load profile data file.  The small commercial data align with Penn Power Commercial in Section II B of the Data Description document, and large commercial data align with the Penn Power Industrial in the Data Description document.  This has been revised to alleviate any further confusion.

DAT 00018 (revised 11/06/2014)
Published On: 02/05/2013

Question: When do the Companies plan to update the Hourly Load Data, Hourly UFE Data, and Historical Daily Capacity and Transmission Obligations?

Answer: The Historical Daily Capacity and Transmission Obligations are updated the last business day of each month.  The Hourly Load Data and Hourly UFE Data are updated the first week of each calendar month.

DAT 00019 (revised 07/07/2014)
Published On: 02/05/2013

Question: Will the Companies be able to provide forecasted Capacity Obligations by customer type for the current Procurement month?

Answer: No.  The Companies do not forecast Capacity Peak Load Contributions ('PLC').  As noted in the Data Description Document (https://www.firstenergycorp.com/content/dam/upp/files/pa/load-data/Data_Description_Document.pdf), these data are provided on an historical basis.

DAT 00021 (revised 07/08/2014)
Published On: 02/15/2013

Question: Can you please provide the expected Daily Zonal Scaling Factors for the upcoming Planning Year for each zone?

Answer: The forecasted Daily Zonal Scaling Factors will not be posted as the factor is calculated based upon the Capacity Peak Load Contributions which the Companies do not forecast.

DAT 00023 (revised 02/10/2016)
Published On: 06/25/2013

Question: How often are the Daily Zonal Scaling Factors updated on the FEPA Auction Information Website?

Answer: The Daily Zonal Scaling Factors are updated on the first business day of each month on the FEPA Auction Information Website.

DAT 00024
Published On: 07/15/2013

Question: It is my understanding that the PLCs that FirstEnergy submits to PJM have already been scaled by the Daily Zonal Scaling Factors provided in the Data Room (i.e., the "Load and Other Data" page under Documents on the FEPA Auction Information Website). Therefore, PJM’s Zonal Scaling Factors as posted in PJM’s eRPM eSuite are equal to one. However, when I take the 5/31/2013 PENELEC Commercial Capacity PLS value posted on the FEPA Auction Load and Other Data page (http://www.fepaauction.com/Documents/LoadandOtherData.aspx) of 275.093 MW and multiply that value by the 5/31/2013 PENELEC Daily Zonal Scaling Factor of 89.781%, I get a value of 247.708 MW. Using our share of the PENELEC commercial load on 5/31/2013, the computed PLC is not equal to the value posted in eRPM for 5/31/2013. Is there another daily factor that is applied to the PLC outside of the Daily Zonal Scaling Factor prior to uploading the values to PJM?

Answer: The PLCs submitted to PJM already have been scaled by the Daily Zonal Scaling Factors as provided on the "Load and Other Data" page. Please note that the raw PLC values when scaled may not match those posted to PJM eRPM because they are created on a monthly basis after the fact.  The data on the "Load and Other Data" page are not intended, nor should they be used, to verify or validate the values posted to PJM.

DAT 00025
Published On: 07/29/2013

Question: How are the daily zonal scaling factors that are provided on the "Load and Other Data page" under Documents on the Information Website calculated?

Answer: The DZSF (Daily Zonal Scaling Factor) is calculated by dividing the retail zonal load by the sum of the LSEs PLC values on a daily basis.

DAT 00026 (revised 01/18/2017)
Published On: 12/11/2013

Question: The Met-Ed file containing Daily Zonal Scaling Factors for Network Transmission Service Peak Loads ("NSPLs") begins with data from 12/1/2012. Are there historical data available prior to this date? Also, can you explain the significant difference between the factor on 12/31/2012 and on 1/1/2013?

Answer: We added the NSPL daily zonal scaling factors to the load data postings starting December 2012.  We are unable to create these data historically.  The significant difference in NSPL Daily Zonal Scaling factors between December 31 and January 1 is due to newly assigned NSPL tickets , as well as a new PJM zonal NSPL target, that are effective each January 1.

DAT 00027 (revised 09/21/2016)
Published On: 12/27/2013

Question: Within the Unaccounted for Energy (UFE) data file, the UFE Factor starts to be published 06/01/2011. Please explain how those factors are calculated.

Answer: Unaccounted for Energy (UFE) represents the hourly Mega-Watt ("MW") variance between the Companies’ total retail hourly energy (system load) and the sum of (i) the estimated hourly customer loads (both interval metered and profiled) and (ii) associated electrical losses.  The hourly UFE values are in Eastern Prevailing Time (EPT).  See section E of the Data Description Document,  https://www.firstenergycorp.com/content/dam/upp/files/pa/load-data/Data_Description_Document.pdf.  Also see FAQ DATA 00009.

DAT 00031
Published On: 01/11/2014

Question: Can the Company share any background information as to the reason for the substantial increase in Reactive Services in the Penelec Zone in 2013 and whether that is expected to continue in the future?

Answer: Explanation of changes in Reactive Services charges should be obtained from PJM.

DAT 00032
Published On: 01/11/2014

Question: Does the non-shopped residential data provided on the Website as "Capacity and Transmission PLC by Rate" include the Default Service peak load contribution (PLC) associated with load served by the 48-month round-the-clock fixed 50-MW energy-only block procured in January 2010?

Answer: Yes, the posted Capacity and Transmission data include the fixed block Default Service.

DAT 00033
Published On: 01/11/2014

Question: Does the non-shopped residential data provided on the Website as "Hourly Load by Class" include the Default Service load served by the 48-month round-the-clock fixed 50-MW energy-only block procured in January 2010?

Answer: Yes, the posted Hourly Load by Class data include the fixed block Default Service.

DAT 00036 (revised 09/21/2016)
Published On: 01/11/2014

Question: For each EDC how many Default Service customers have enrolled in the Standard Offer Referral Program since its inception?

Answer: This information is posted at http://www.fepaauction.com/Documents/LoadandOtherData.aspx under Shopping Statistics.

DAT 00043 (revised 01/18/2017)
Published On: 12/11/2014

Question: We looked at the historical load data on the "Load and Other Data" page under documents on the Information Website. For Penelec and Met-Ed, sometimes hourly load is significantly higher than for the previous hour and following hour. For example, in the Penelec hourly load data file, on 12/22/2013, hour 10, both shopped and non-shopped residential load is almost 3 times higher than the load in hour 9. The same load jump also is found for 9/5/2014-Hr12 and for some days in Sept 2010. The issue also exists in the Met-Ed load data (9/11/2013-Hr10). Is this a data error?

Answer: Residential loads, more so than commercial and industrial loads, are weather-sensitive and respond to temperature fluctuations.  9/5/2014 was one of PJM's five critical peak days in both Penelec and Met-Ed as energy demands were at their highest.  Temperatures were above normal this day, especially compared to other days during the summer, and residential loads responded in kind.  The data have been reviewed and are accurate.  Additionally, extreme weather conditions on 12/22/13 also would explain the residential load jump at hour 10.  When weather conditions are extreme, the customer class load diversity decreases significantly as many residential customers turn on their A/C or heat simultaneously, depending on the season.

DAT 00048
Published On: 03/25/2015

Question: In reference to FAQ DAT 00009, can you confirm that the energy volumes that Default Service Suppliers are required to deliver and on which they will be paid effective June 1, 2015, are equal to the provided Hourly Load by Class data multiplied by [1 - (Hourly Deration Factor)]?

Answer: Yes, that is correct as described.

DAT 00054
Published On: 06/19/2015

Question: The loss factors are provided by schedules, and without class information that gives us the make-up of each class, we cannot develop a properly weighted loss factor. Can you provide us with either the load data applicable by schedule or the applicable weighted loss factors for the different classes?

Answer: The load data posted on the Information Website are by class type with losses.  The purpose of the data specifically is to provide potential Default Service Suppliers with the information needed to competitively bid to serve non-shopped load available for Met-Ed, Penelec, Penn Power, and West Penn.  These are the data posted to PJM used for billing Default Service Providers and also used to create the EDC invoice to pay Suppliers for purchased power.  While we agree the class type load data do not provide the granularity needed to determine a weighted loss factor, we do not agree that there is a need to determine a weighted loss factor for each class type in order for Default Service Suppliers to competitively price this product since the aggregated load by class with losses is provided.

DAT 00055 (revised 07/24/2015)
Published On: 07/24/2015

Question: Where can I find the actual electrical load numbers (in megawatt-hours) for the previous auctions and future auctions?

Answer: All actual MWh information used for previous auctions and to be used for future auctions can be found here:  https://www.firstenergycorp.com/upp/pa/load_data.html.  Under Hourly Load you will find the MWh data for each operating company by class type.

DAT 00056 (revised 09/21/2016)
Published On: 09/22/2015

Question: Where can information related to demand response add-back during the high 5 peak hours for the PJM Region be found?

Answer: Information on PJM add-backs (also referred to as Load Drop Estimates) can be found in the PJM's Website Manual 19, Load Forecasting and Analysis, in Section 4 and Attachment A: http://www.pjm.com/~/media/documents/manuals/m19.ashx.

DAT 00057 (revised 12/03/2015)
Published On: 09/29/2015

Question: For West Penn Power load data, I noticed an increase in both shopping and non-shopping commercial load starting around 6/1/2015 (what looks like around 30 MW for non-shopping and 50 MW for shopping). Is there a reason for this, or is this an error in the data?

Answer: We verified the accuracy of the data.  When compared to June 2014 average loads, there was very little change in the commercial class year-over-year; less than a 1% decrease in commercial non-shopping load and about a 2% increase in commercial shopping load.  Seasonal changes may influence increased load patterns from month to month; May is generally considered a shoulder month with moderate swings in temperature and load usage versus June which is a warmer weather month with higher consumption.

DAT 00059
Published On: 10/09/2015

Question: For Penn Power small commercial/industrial (SCI) Default Service, PLC dropped about 10MW (~10%) in June 2015. What is the reason behind the drop in PLC during June 2015?

Answer: The posted peak load contribution (PLC) values are unscaled values.  Penn Power's actual load contribution to the 2014/2015 five coincident peak periods (5 CPs) was above target and the zone's actual load contributions to the 2015/2016 5 CPs were below target due to mild summer weather.  If the daily zonal scaling factor is applied to the posted PLC values for May 31 and June 1 (0.98 and 1.02, respectively), you will find that the scaled PLC values are in line.

DAT 00062 (revised 11/30/2015)
Published On: 11/30/2015

Question: In order for a Default Service Supplier to estimate their capacity obligation, do they need to scale the hourly load data found on the "Load and Other Data" page under Documents on the Information Website by the reconciliation factors for the applicable delivery year? Or have the hourly load data on the "Load and Other Data" page already been scaled by these factors?

Answer: The reconciliation factors referred to are applied to a customer's metered load with losses to determine a customer's peak load contribution (PLC) value.  Applying these factors to the hourly data posted on the "Load and Other Data" page would estimate a PLC value not capacity obligation.  To determine capacity obligation, apply PJM's UCAP conversion factor and the daily zonal scaling factor to the class type PLC values.  Both the daily zonal scaling factor and the class type PLC values can be found on the "Load and Other Data" page at https://www.firstenergycorp.com/upp/pa/load_data.html.  The PJM's UCAP conversion factor is the ratio of the respective zone's Final Zonal UCAP to the Base Zone WN Summer Peak.  These values can be found in PJM"s eRPM.  The UCAP conversion factor typically is around 15%.

DAT 00066 (revised 09/21/2016)
Published On: 02/10/2016

Question: What is the size of the total load in the auction?

Answer: For the upcoming auctions, the tranche targets and approximate tranche sizes will be announced on the Information Website.  Additionally, load data can be found on the Information Website at http://www.fepaauction.com/Documents/LoadandOtherData.aspx

DAT 00070 (revised 01/18/2017)
Published On: 04/21/2016

Question: Are transmission loss factors the same as the average duration factors for the zones? If so, over what period are they the average? If not, what is the source of the loss factor? Can they be found in published tariffs?

Answer: These transmission loss factors are from company loss studies.  These loss factors are provided in the PJM OATT Attachments M-1 and M-2.  They also can be found in the Company retail tariffs.  They do not reflect the PJM company zone deration factors, however the hourly deration factors are posted to this portal monthly.

DAT 00075
Published On: 09/26/2016

Question: Can FEPA please provide some background on how the capacity file takes into account the customer redefinition? Based on the “WPP_Cap_Trans” file customers in question appear to be included in the Commercial class, please confirm that is the case.

Answer: Starting 6/1/2015, interval metered customers with demands between 400-500 kW and qualifying loads are reported in the industrial class as a result of new rate design; previously, they were classified as commercial.  As such, PLC and NSPL values associated with these customers are reflected in the industrial class starting 6/1/2015.

DAT 00078
Published On: 12/01/2016

Question: For the Penn Power Cap_Trans_PLS, are the units KW or MW?

Answer: The units are kW.

DAT 00080
Published On: 01/17/2017

Question: Can you please explain why in the Capacity and Transmission PLC by Rate (PP_Cap_Trans_PLS) file, PennPwr Non-Shopped NSPL increased 6 times from 12/31/2016 to 1/1/2017?

Answer: The large increase in the Penn Power Industrial customer class NSPL is due to a 15 MW Industrial customer that became active last year and was assigned a default Transmission PLC value less than 1 MW at that time.  The 2017 Transmission PLC calculation used this customer's actual load data, increasing its Transmission PLC from less than 1 MW in 2016 to 14.6 MW effective Jan 1, 2017.  A similar change occurred with the Capacity PLC value assigned to this customer effective June 1, 2017.

DAT 00084
Published On: 03/27/2017

Question: From May 3, 2015, West Penn Power Commercial was redefined to exclude interval customers with demands of 400-500kW. Is the West Penn Power load data prior to this date provided adjusted accordingly to the new class definition?

Answer: No, historical Commercial data prior to May 1, 2015 are not recast according to the new class definition, but instead represent Commercial load respective to the class definition effective during that time.

DAT 00093
Published On: 10/16/2017

Question: We noticed a significant change in the shape of the load for the shopping and default service Penn Power commercial load starting in mid-February 2017. Do you have any explanation for this change?

Answer: All Penn Power consumption customers became smart meter enabled in February 2017, and FirstEnergy started to report their actual interval data as of February 20, changing the load shape from profiled to actual.

DAT 00094
Published On: 10/25/2017

Question: In general across the four zones, we noticed that the residential load coincident peaks for 2017 were on the high end based on the historical data posted to the Website. Can you confirm whether or not all consumption customers in all FEPA zones experienced a change to smart meters this year, similar to the shift in Penn Power zone?

Answer: The conversion of consumption meters to smart meters is ongoing for Met-Ed, Penelec, and West Penn Power.  As smart meters are installed and the meter testing is completed, the hourly data from smart meters have been incorporated into the Residential historical hourly data starting in March 2017.  The percentage of Residential customers with smart meters for these three operating companies will continue to increase through 2019.

DAT 00100
Published On: 10/30/2017

Question: Will Default Service Suppliers be allocated any UFE to smooth the transition from profiled to smart-metered load?

Answer: There are no current plans to allocate any UFE to the Pennsylvania Default Service loads.

DAT 00102
Published On: 12/08/2017

Question: After June 1, 2017, PJM started reporting scaling factors other than 1 for Met-Ed and Penelec. Before June 1, all scaling factors reported for both Met-Ed and Penelec were 1. Because of the change in scaling factors since June 1, we would like to know if Met-Ed and Penelec have changed how they treat or report the capacity tags provided in the data files on the FEPA Information Website.

Answer: We have not changed how we treat or report capacity tags in the data files found on the FEPA Information Website.  The unscaled tags continue to be provided as well as the respective scaling factors.

DAT 00106
Published On: 01/09/2018

Question: I understand that the hourly load profile of a tranche is an estimate based on historical loads. Will the companies or PJM provide their own forecasts closer to delivery to be scheduled using InSchedule? Who does this scheduling - the companies or the Default Service provider?

Answer: Please see section 7.3 (Energy Scheduling) of the Supplier Master Agreement.  The Companies are not obligated to provide any day ahead scheduling services.  Also, the Companies do not provide forecasts.

DAT 00123
Published On: 01/11/2019

Question: Similar to the Penn Power load data, can FE provide hourly load for ME, PN, and WP small commercial customers that will be migrating to the large commercial class?

Answer: Unlike Penn Power, Met-Ed, Penelec, and West Penn Power have not been fully converted to AMI (advanced metering infrastructure) and we are unable to provide hourly load respective to the customers that will migrate among the classes at this time.

DAT 00124
Published On: 01/15/2019

Question: Can you please provide the NSPL tags for all the zones with the class breakouts for the new transmission year 2019?

Answer: The 2019 NSPL data for 1/1/2019 by class have been posted to this Information Website along with the daily zonal scaling factor for 1/1/2019 for each zone.

DAT 00125 (revised 04/23/2019)
Published On: 01/16/2019

Question: Can we please ask the four utilities to provide an update on the "Percentage of Commercial Load served by Non-Shopping Accounts on the GSM and GP30 rate tariffs with billing demands > 100kW for 12 Consecutive Months" through December 2018 (Penn Power was not provided back then)? Also, we would like an update to the January 2018 proxy provided with a January 2019 proxy "12 consecutive months for the 12-month period ending January 2018 as a proxy for the population of customers that will migrate from the Commercial to Industrial customer class in June 2019". Lastly, please post an update (if any) to the "Percentage of PLS ICAP kW Aggregates of Non-Shopping Commercial Accounts on GSM and GP30 rate tariffs metered over 100 kW".

Answer: Historical commercial load has been posted for Penn Power by hour respective to the customers migrating from the commercial to the industrial class on June 1, 2019; please note the additional column labeled "Commercial Migration". Unlike Met-Ed, Penelec, and West Penn Power, Penn Power is fully converted to advanced metering, and as such, it has been possible to provide the hourly breakout. 

Accounts Metered over 100 kW 12 Consecutive Months
02/2017 - 01/2018


The following data use the number of customers currently served on rate tariffs GSM in Penelec, Met-Ed, and Penn Power, and GP30 in West Penn with billing demands greater than 100 kW for 12 consecutive months for the 12-month period ending January 2018 as a proxy for the population of customers that will migrate from the Commercial to Industrial customer class in June 2019.

Number of Non-Shopping Commercial Accounts on GSM and GP30 rate tariffs metered over 100 kW Met-Ed Penelec West Penn Penn Power Total
# of Accounts from 02/2016 - 01/2018 983 1,149 1,539 274 3,945
Shopping Accounts as of 01/2018 912 1,059 1,357 245 3,573
Non-Shopping Accounts as of 01/2018 71 90 182 29 372
Total # of Accounts as of 01/2018 983 1,149 1,539 274 3,945

2019 (2019/2020 for PLC) Delivery Year ICAP kW Aggregates of Non-Shopping Commercial Accounts on the GSM and GP30 tariffs metered over 100 kW Met-Ed Penelec West Penn Penn Power
PLC* 8,958 10,060 26,120 4,816
NSPL* 10,335 18,415 27,522 6,846

Non-Shopping Commercial kW Aggregate on 1/1/2019 and 6/1/2019 (Projected) for Transmission and Capacity Met-Ed Penelec West Penn Penn Power
PLC 167,951 198,850 283,500 75,083
NSPL 169,094 229,556 276,100 83,248

Percentage of PLS ICAP kW Aggregates of Non-Shopping Commercial Accounts on GSM and GP30 rate tariffs metered over 100 kW Met-Ed Penelec West Penn Penn Power
PLC* 5.3% 5.1% 9.2% 6.4%
NSPL* 6.1% 8.0% 10.0% 8.2%

*Based on 2019 (2019/2020 for PLC) Delivery Year ICAP values on 1/1/2019 (NSPL) and 6/1/2019 (PLC)

DAT 00126 (revised 04/16/2019)
Published On: 01/16/2019

Question: Can you please provide PLC data for PJM Planning Year 2019/2020 for each utility, by customer class?

Answer: Please refer to DAT 00125 for information regarding the number of customers currently served on rate tariffs GSM in Penelec, Met-Ed, and Penn Power, and GP30 in West Penn Power with billing demands greater than 100 kW for 12 consecutive months for the 12-month period ending January 2018. These data will be used as a proxy for the population of customers that will migrate from the Commercial to Industrial customer class in June 2019. The tables below depict the 2019 PLC values and Daily Zonal Scaling Factors that will become effective on June 1, 2019 for the current customer classes for each PA utility. The stated values do not take into account customer migration taking place between April 1, 2019 and June 1, 2019.

2019 Unscaled PLC kW - Snapshot of 6/1/2019

  Non-Shopped Commercial  Non-Shopped Industrial Non-Shopped Residential Non-Shopped Total
Met-Ed 167, 951 26,297 903, 258 1,097,506
Penelec 198,850 10,182 648,556 857,588
Penn Power 75,083 1,493 303,576 380,152
West Penn 283,500 70,900 1,169,600 1,524,000

  Shopped Commercial Shopped Industrial Shopped Residential Shopped Total
Met-Ed 454,245 801,346 377,803 1,633,394
Penelec 472,477 781,341 226,453 1,480,271
Penn Power 186,022 189,646 96,208 471,876
West Penn 586,100 1,057,700 384,700 2,028,500

  PLC Scaling Factor
Met-Ed 1.005
Penelec 1.013
Penn Power 0.997
West Penn 1.005

DAT 00129
Published On: 01/21/2019

Question: FAQ GEN 00060 refers to Rider H and the transmission loss component. It implies that the transmission loss component should be added to Rider H. Using West Penn Power as an example, FAQ GEN 00060 gives the transmission loss component as 0.02184. When I look at the West Penn Power Supplier Tariff, I can see 2.184% as the on-peak line losses for Transmission Voltage under the Company Line Loss Factor Rider. The off-peak line losses are 1.938%. Rider H in the West Penn Power Electric Tariff states that the Loss Factor for the Commercial Customer Class is 1.0899 and for the Residential Customer Class is 1.0910. Can you please provide me with the correct calculation I need to do in order to get the correct load at the retail meter? It is my understanding that all residential load should be at a Secondary voltage, and there are different percentages for this. For example the West Penn Power Supplier Tariff states 9.434% and 8.537% for on-peak and and off-peak. What should I do about this?

Answer: A customer's service voltage level determines transmission and distribution loss factors.  Please refer to the following link for additional information: https://www.firstenergycorp.com/content/dam/supplierservices/files/eligibility/EligibilityListFileLayoutWPP.pdf.

DAT 00130
Published On: 04/23/2019

Question: Can you confirm DAT 00125 – Penelec NSPL, Non-Shopping Commercial data in the third table?

Answer: There was a typo in the table for FAQ DAT 00125.  The Penelec Non-Shopping Commercial aggregate NSPL should be 229,556 not 29,556.  The table has been corrected.

DAT 00131 (revised 05/21/2019)
Published On: 04/30/2019

Question: (1) In the PLC data posted in FAQ DAT 00126, have the 100 kW+ customers been migrated to the Industrial class? (2) To confirm, the historical commercial load in West Penn, Met-Ed, and Penelec still includes customers that average over 100 kW, correct?

Answer: Yes, the historical commercial loads in West Penn, Met-Ed, and Penelec reflect customers with billing demands greater than 100 kW for twelve consecutive months ending January 2018 as a proxy for commercial customers expected to migrate from the commercial to industrial class starting June 1, 2018.  FAQ DAT 00126 initially was published in October 2018.  Since October 2018, there has been a change in shopping status for these commercial customers expected to migrate in June.  The PLC data were revised in April 2019 to reflect this change from non-shopping to shopping.

DAT 00132 (revised 05/21/2019)
Published On: 04/30/2019

Question: Monthly migrating commercial class loads are updated in FAQ SMA 00037 for Met-Ed, Penelec, and WestPenn. Hourly loads of Penn Power (that show the migrating class) are still from January. Can you please either update the migrating load table in SMA 00037 with Penn Power, or provide refreshed hourly loads of Penn Power for the migrating class?

Answer: Penn Power hourly loads have been updated through 3/31/2019 to reflect the expected commercial migration starting 6/1/2019.

DAT 00133
Published On: 05/02/2019

Question: In Hourly Load by Class for Penelec listed on the Information Site, the Excel file has a strange character in one of the cells. In the spreadsheet, go to the "Penelec old <2011" tab, and check row 691 column R (data for 2008/06/29 TOTAL PN COMPANY). The value shows up as "???/1652179". Would you be able to amend this for future revisions?

Answer: This has been corrected.

DAT 00134
Published On: 05/10/2019

Question: Regarding the Penn Power historical Commercial load, which tab and column within the load file reflects the migrated load? From what date forward are the migrated load available?

Answer: Historical loads representing the expected commercial migration starting 6/1/2019 are available from 9/1/2017 through 3/31/2019.  In the file "Penn Power Hourly Load by Class", please refer to the columns "Commercial (1)" and "Commercial Migration (2)" -- and the notes associated with those columns -- in the tabs "PP Load 010118-Current" and "PP Load 060111-123117".

DAT 00135
Published On: 05/21/2019

Question: For Penn Power, there is a considerable level (600-800 kW) change starting Sept. 2018 in migrating commercial load (customers with demands greater than 100 kW for 12 consecutive months that will transition to the Industrial class on June 1, 2019) compared to 2018 and 2017. Is there any explanation for this change?

Answer: There was an error in the hourly data posted for August 2018.  The primary data were not updated to reflect secondary data despite the label.  Also, the non-shop commercial hourly loads were overstated for all hours of August 31.  The necessary corrections have been made now, and as a result the change has been normalized to look in line with previous periods.

DAT 00136 (revised 05/21/2019)
Published On: 05/21/2019

Question: For Met-Ed, West Penn, and Penelec, do the data for the Non-Shopped Commercial customers in the Hourly Load by Class files represent (1) all non-shopping Commercial customers, or (2) non-shopping Commercial customers that have not voluntarily switched to the Hourly Pricing Default Service Rider? If the answer is option 2, then what period of historical data is impacted by the customers that have voluntarily switched to the Hourly Pricing Default Service Rider? Are the historical Capacity PLS and Transmission PLS values also reduced for customers that have voluntarily switched to the Hourly Pricing Default Service Rider?

Answer: For Met-Ed, West Penn, and Penelec, the hourly data for the non-shopped commercial load represent all non-shopping commercial customers in the Hourly Load by Class files for the posted time periods.

DAT 00137
Published On: 05/21/2019

Question: Based on the response to FAQ GEN 00120, as of February 1, 2019, all four utilities have deployed smart meters to more than 90% of their customers. For Met-Ed, Penelec, and West Penn, do the historical hourly data reported in the Hourly Load by Class reflect interval usage collected from these smart meters or is the usage for customers with smart meters still based on utility temperature based profiles scaled to monthly customer meter reads? We note that when Penn Power’s customers became smart meter enabled in February 2017, and the utility switched from profile to actual load, the shape of the load changed meaningfully. We do not see a similar change in the load data for Met-Ed, Penelec, and West Penn.

Answer: When interval data from a smart meter have been bill certified, it is reported in the Hourly Load by Class files as of that bill certification date forward.  The utility weather informed profile is no longer used to report hourly load for that account.  Please note there are time lags between deploying/installing smart meters and bill certifying their interval output.  In order to determine meaningful load shape changes, most if not all smart meters would need to be bill certified and reported in the Hourly Load by Class files for twelve months.  All customers in Penn Power were bill certified in February 2017 enabling that load change comparison.  In contrast, customers in Met-Ed, Penelec, and West Penn have been bill certified using a phased-in approach over the past couple of years.

Credit Requirements

CRE 00001
Published On: 10/26/2012

Question: Is there a credit-based tranche bid limit in the Default Service Program auctions?

Answer: No, there is no credit-based tranche bid limit.  There is a load cap that limits the number of tranches any bidder can bid across all products within an auction.

CRE 00002 (revised 05/15/2013)
Published On: 11/02/2012

Question: Bidder applicants are given an option to submit either an LOC or cash for the pre-bid security. Can we propose changes to the LOC and if so when would those be due?

Answer: Yes, during the Part 1 Application process, you can propose redlined changes to the Pre-Bid Letter of Credit. The Word version of the Pre-Bid LOC can be found here: http://www.fepaauction.com/Documents/SupplierDocuments.aspx. The deadline for all Part 1 Application documents for an upcoming auction is announced on the Calendar page of the Information Website: http://www.fepaauction.com/Calendar.aspx.

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 00004
Published On: 11/26/2012

Question: There are multiple beneficiaries on the Pre-bid Letter of Credit. Can you please confirm that if the Pre-Bid LC is drawn upon, payment will be made to only one account?

Answer: The Companies may do a partial or full drawing in accordance with the terms and conditions specified in the Pre-Bid Letter of Credit.  The Companies would use Annex 2 of the Pre-Bid Letter of Credit for that purpose.  The amount specified in Annex 2 would be directed to a single account.

CRE 00005 (revised 10/10/2014)
Published On: 11/26/2012

Question: (1) With respect to the letter of credit that must be maintained during the term of the Supplier Master Agreement, would each letter of credit have a single EDC beneficiary or would only one letter of credit with multiple EDC beneficiaries be required if the bidder were to be awarded tranches with multiple EDCs to serve full requirements Default Service for those EDCs?

(2) In the event that a bidder is awarded tranches to serve full requirements Default Service under multiple EDC auctions (e.g., for Met-Ed, Penelec, Penn Power, and West Penn Power), will margining be done on an EDC-specific basis (i.e., Total Exposure Amount calculating exposure of that particular EDC only), or would it take into account and aggregate the exposure of all of the EDCs to DS Supplier?

(3) Are the EDCs required by the SMA or any other provision of the Default Service Program to maintain a minimum standard of credit quality (e.g., Minimum Rating as defined in Section 6.4 of the SMA)?

Answer: (1) Each letter of credit that must be maintained during the term of an SMA will have a single EDC beneficiary.

(2) Margining will be done separately for each EDC.

(3) No. The SMAs do not include credit requirements for the EDCs and there is no provision of the Default Service Program requiring the EDCs to maintain a minimum standard of credit quality.

CRE 00006 (revised 07/08/2014)
Published On: 12/03/2012

Question: Can a Pre-Bid LOC be used for consecutive auction events? Our intent would be to instruct the Independent Evaluator in our Part 2 Application for the first event to retain the LOC for the second event if it is allowed.

Answer: Yes, the Pre-Bid Letter of Credit can be kept open for subsequent auctions.  The Expiration Date must be at least thirty days following the date of the last auction for which the LOC will be used.

CRE 00007 (revised 10/10/2014)
Published On: 12/03/2012

Question: How do we deposit cash as pre-bid security?

Answer: Per page 15 of the Part 2 Application, "If you are submitting a cash deposit, you must attach a copy of your W9 (for tax ID) and a copy of your banking information on your company's letterhead, signed and dated."  To make a cash deposit, request the wiring instructions from the Independent Evaluator.  Also on page 15 of the Part 2 Application, you must provide wiring instructions that will be used to return your cash deposit.  This information is needed so that the cash can be returned promptly to the bidder.

CRE 00008 (revised 10/10/2014)
Published On: 07/29/2013

Question: Sections 6.1 of the Supplier Master Agreement (SMA) requires the Default Service Supplier to "inform the Company immediately of any changes in its credit rating or financial condition," and Section 6.8(a) of the SMA requires the DS Supplier to "inform the Company immediately of any changes in its credit rating or financial condition or that of its Guarantor." Can you provide examples of when the Companies want to be notified?

Answer: A couple of examples:  (1) If a Supplier's (or its Guarantor's) credit rating from any of the three SMA-referenced rating agencies changes, notification to the Companies is required.  (2) If a material event occurs that detrimentally impacts a Supplier's (or its Guarantor's) financial condition, such as what would be reported in an 8-K filing, then the Companies require notification.

CRE 00009 (revised 02/23/2015)
Published On: 12/09/2013

Question: In a follow-up to FAQ CREDIT 00006, may a Supplier request that the Pre-Bid Letter of Credit posted for the upcoming auction be held by CRA for future auctions? The Supplier would instruct the bank to amend the letter of credit to $1.00 in between auctions, amending it by increasing to the proper dollar amount at the time of the next auction. The pre-bid letter of credit would not expire for one calendar year hence.

Answer: Yes, CRA can hold the Pre-Bid Letter of Credit on file.

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 00012
Published On: 10/14/2014

Question: Can you confirm the limit amounts necessary for inclusion in Section 1 of the Guaranty (Appendix G of the Default Service Supplier Master Agreement) for "Option 1" and "Option 2" in that paragraph? Additionally, if we are currently a Default Service supplier and we win any products in the October 2014 DS auction, is it possible to extend the guaranty already in place to cover any new products won, or is a new guaranty required?

Answer: The amounts for Option 1 or Option 2 are at the discretion of the Guarantor.  The Guarantor can issue a guaranty amount up to the Maximum Credit Limit based on the Guarantor's Credit Rating per Appendix A of the Supplier Master Agreement.  If the Total Exposure Amount exceeds the Guaranty amount, then a Margin call may be required per Section 6.5 of the Supplier Master Agreement.  Since this is a new delivery period, the Companies prefer that a new guaranty be issued, which is Appendix G of the Supplier Master Agreement.

CRE 00015
Published On: 03/11/2015

Question: If a Default Service Supplier is not granted an unsecured line of credit based on its creditworthiness, and is also not granted an unsecured line of credit based on the creditworthiness of a guarantor, is there a minimum security deposit that must be provided when the SMA is executed if the DS Supplier is a winning bidder? Or may such DS Supplier provide no security deposit upon execution of the SMA and instead provide cash or a letter of credit only if and when, during the term of the SMA, the Total Exposure Amount exceeds the Minimum Transfer Amount (assuming that such DS Supplier’s credit limit would be $0), pursuant to a request to post Margin?

Answer: If a bidder wins Industrial tranches and has no unsecured credit, then security of $140,000 per Industrial tranche would be required per Section 6.3 of the Supplier Master Agreement (SMA).  If a bidder wins Residential and/or Commercial tranches, the MTM credit exposure methodology in Appendix B of the SMA is used.  If the Total Exposure Amount exceeds the Minimum Transfer Amount (the bidder has zero unsecured credit), then security would be required at the time the SMA is signed.

CRE 00016 (revised 12/03/2015)
Published On: 09/10/2015

Question: The applicant is not rated. Can we still get some unsecured credit by submitting financials? The financials are not audited.

Answer: Per Section 6.4 of the Supplier Master Agreement, in order to be granted an unsecured line of credit, the Default Supply Supplier or its Guarantor (if the DS Supplier is providing a Guaranty) must be rated by at least two of the following rating agencies: S&P, Moody's, or Fitch.

CRE 00017
Published On: 09/30/2015

Question: If an applicant submits cash as their form of pre-bid security, are they bound to that form of security throughout the entire supply period should they win tranches in the auction? Or is an applicant allowed to use cash for pre-bid security and then execute an approved letter of credit after the auction results are known?

Answer: The pre-bid security is returned to bidders once the auction results are reviewed by the Commission. The form of security chosen if the bidder becomes a Default Service Supplier can differ from the form of pre-bid security.  Section 6.7 of the Supplier Master Agreement lists the acceptable methods for posting security as a Default Service Supplier.

CRE 00018 (revised 03/13/2017)
Published On: 03/13/2017

Question: The Part 1 Application indicates the following:

A potential bidder that had secured approval for an alternate form of guaranty from any previous Default Service procurement auction held by one or more of the Companies and wishes to use the same alternate form of guaranty can renew this by submitting the following:
1. The alternate form of guaranty from any previous Default Service procurement auction by the Companies;
2. The enforceability opinion from any previous Default Service procurement auction by the Companies;
3. A certification that the text of the alternate form of guaranty is exactly the same as the alternate form of guaranty that had been previously approved from any previous Default Service procurement auction by the Companies;
4. A certification that the text of the enforceability opinion is exactly the same as the enforceability opinion that had been previously approved from any previous Default Service procurement auction by the Companies.

Are the Companies requesting that these certifications be provided by in-house legal counsel?

Answer: The only certification from outside counsel is the enforceability opinion. The applicant must provide an enforceability opinion with respect to the alternate form of guaranty from its  counsel. The accompanying enforceability opinion must be from a law firm of national (i.e., United States) standing, must not be weaker than would be industry norm, and must contain only those qualifications that would be typical. The opinion shall name the Companies and explicitly state that the Companies are entitled to rely on the opinion for purposes of the transaction at issue.

PJM

PJM 00012
Published On: 02/18/2015

Question: Do the Companies schedule 2 separate load contracts in the InSight Scheduling System, one for the 95% and the second for the 5%, or do they include all the load in one single contract.

Answer: The Companies include the entire amount of load in one PJM InSchedule. The breakdown of the 95% and 5% volume pricing is performed in each Company's monthly Settlement process.

PJM 00015 (revised 01/18/2017)
Published On: 04/28/2015

Question: Could you disclose the charge (monthly cost per MWh or other format) for PJM meter error corrections (billing item 1250) in Met-Ed and Penelec zones? Are the utilities currently allocated this charge?

Answer: Appendix D to the Companies' Supplier Master Agreement lists which PJM billing statement line item charges are allocated to and are the responsibility of Met-Ed and Penelec, and which are the responsibility of the Default Service Supplier.  As shown in Appendix D, line item 1250 (meter error correction) is the responsibility of utility.  It is possible Default Service Suppliers may be allocated and responsible for 1250 meter error correction charges related to EDCs other than Met-Ed and Penelec, however, meter error corrections that are related to Met-Ed and Penelec are not allocated to and are not the responsibility of their Default Service Suppliers.  The PJM billing line item may be a charge or credit each month.  The rate and volume used to determine the charge/credit vary month to month (and therefore so does the charge/credit), but the amounts typically are considered small.

PJM 00016 (revised 09/21/2016)
Published On: 10/13/2015

Question: If PJM begins including additional line items on their bill, will those new line items be the responsibility of the Default Supplier or the Company?

Answer: For the delivery period of June 1, 2015 through May 31, 2021, any new line items that PJM may begin billing will remain the responsibility of the Default Service Supplier under the Companies' Commission-approved plans.

PJM 00017
Published On: 10/15/2015

Question: Can you confirm that the volume of MWh's a Default Service Supplier will be paid on will equal the volume of MWh's a Default Service Supplier will be charged for by PJM? For example if a Default Service Supplier delivers and is paid for 100 MWh, will the PJM bill reflect a 100 MWh charge for the same time period?

Answer: A Default Service Supplier will be paid for the de-rated MWh volumes from PJM's InSchedules, which also are the basis for PJM's energy charges to the Supplier.

PJM 00018 (revised 11/04/2015)
Published On: 10/15/2015

Question: What PJM line items are covered on the Delegation of Authority that the winning bidder must sign as part of the confirmation process?

Answer: Please refer to Appendix D of the Default Service Supplier Master Agreement for a list of PJM line items the winning bidder is responsible for. Due to the implementation of PJM’s Billing Line Item Tool, the Delegation of Authority no longer is completed as part of the confirmation process. Billing line item transfers will be created by FirstEnergy’s Regulated Settlements Group and then approved by the winning bidders using the Billing Line Item Tool.

PJM 00023
Published On: 12/05/2016

Question: What PJM Zone is the historical generation for West Penn Power and Penn Power located in for auction revenue rights (ARR) purposes?

Answer: West Penn Power is part of the APS Zone.  Penn Power is part of the ATSI Zone.  Historical generation resources for ARR purposes are associated with those respective zones.

PJM 00024
Published On: 01/10/2017

Question: Can you provide the historical generation for ARR auction purposes for West Penn Power and Penn Power?

Answer: The Default Service Suppliers independently participate in the PJM ARR/FTR auctions and are awarded ARRs and FTRs from the PJM auction into their individual PJM account. The FEPA Utilities do not have access to the awarded ARR paths or nominated FTR paths for any Default Service Supplier.

PJM 00025
Published On: 01/13/2017

Question: Is the sink for the Auction Revenue Rights (ARR) auctions for Penn Power ATSI_RESID_AGG or Penn_Power_Resid_Agg?

Answer: PENNPOWER_RESID_AGG - Please refer to FAQ SMA 00011.

PJM 00029 (revised 01/20/2017)
Published On: 01/20/2017

Question: What is the difference between NITS charges and Transmission Enhancement Charges (TEC)? What is the function of each?

Answer: See PJM's Guide to Billing, which includes definitions for Network Integration Transmission Service (NITS) and Transmission Enhancement Charge (TEC):   http://pjm.com/markets-and-operations/billing-settlements-and-credit/guide-to-billing.aspx

PJM 00030
Published On: 02/12/2018

Question: Are PJM sub-accounts required for each EDC? If so, how and when are those set up?

Answer: For PJM Pennsylvania Default Service (DS) load reporting, a unique PJM sub-account is required for each EDC/product.  For example, if a DS supplier is serving Penelec commercial, Penelec residential, and Met-Ed residential DS load, three PJM sub-accounts would be required.  These PJM sub-accounts must be unique to the given load (EDC/product).  PJM sub-accounts are established by submitting a PJM Customer Account Manager Designation Form B to PJM which can be found at the following location:  http://www.pjm.com/~/media/about-pjm/member-services/membership-assistant/customer-account-manager-designation-form.ashx.  Questions relating to creating PJM sub-accounts can be directed to:  AccountManager@pjm.com.

PJM 00031
Published On: 03/07/2018

Question: The Part 1 Application requests the applicant to provide documentation from PJM that the Applicant has a PJM E-Account. What documentation satisfies this requirement and what are these e-accounts?

Answer: A screenshot of the applicant's PJM E-Account will be sufficient proof that the applicant is a PJM Market Participant and Load Serving Entity in PJM.  If the applicant does not currently have an E-Account, they may certify in the Part 1 Application that "there exist no known impediments for the Applicant to establish the PJM E-Accounts necessary to provide Default Service Supply and execute the PJM E-Account contract(s) for the supply period prior to the beginning of the supply period."

PJM 00032
Published On: 03/12/2018

Question: We understand PJM is moving to 5 minute settlement for real-time trading. Could you tell us if/how this would affect the settlement for Default Supply?

Answer: PJM’s transition to 5-minute settlements will have no impact on the pricing of the Default Service products.  As per the Supplier Master Agreement, the LMP used for variable pricing is the real-time hourly LMP for the given delivery point.

PJM 00033
Published On: 06/25/2018

Question: There has been discussion at PJM regarding the introduction of a new PJM Billing Line Item #1115, which is for a "Black Box" settlement related to a FERC Order in regards to reallocation of historical Transmission Enhancement Charges. This line item will allocate charges based on FERC EL05-121 TEC Settlement Agreement beginning in July 2018. Will the charges/credits for this line item be the responsibility of the FEPA EDCs or of the Default Service Supplier?

Answer: The Companies’ interpretation of their Default Service auction documents, including the Supplier Master Agreement (SMA), is that the EDCs will bear responsibility for new line item 1115 charges/credits. 

PJM 00034
Published On: 10/29/2018

Question: Given that the three out of the four zones in the FirstEnergy Pennsylvania auction use a formula-based NITS cost, are there any plans for West Penn Power to move to a formula? Are there any known plans to increase the West Penn Power NITS rate?

Answer: There has been nothing filed to convert to a formula-based NITS rate for West Penn Power and there are currently no known plans to increase the West Penn Power NITS rate.

PJM 00036 (revised 01/16/2019)
Published On: 01/16/2019

Question: Do you know if Allegheny Power Zone (West Penn Power) has any plans to update its current NITS rate some time between now and 2021? Its NITS rate has not changed since 2002. Has it filed any changes to FERC that bidders should be aware of regarding its NITS rate?

Answer: On March 15, 2018, the Federal Energy Regulatory Commission (FERC) issued a Stated Rate Order to Show Cause to public utilities that use a stated transmission rate under an open access transmission tariff to address the effects of the Tax Cuts and Jobs Act of 2017 reduction in the Federal corporate income tax rate from 35% to 21%.  On November 15, 2018, in FERC docket number ER18-1595-000, the FERC approved the APS rate change (with effective rates retroactive to March 21, 2018) associated with the reduction in the Federal corporate income tax rate from 35% to 21%.  West Penn Power is not able to speculate on future APS NITS rate updates. The NITS rate for Allegheny (West Penn Power) can be found at https://www.fepaauction.com/Documents/NITSRateInformation.aspx.

PJM 00037
Published On: 01/22/2019

Question: In the file published 1/16/2019 by PJM (located here: https://www.pjm.com/markets-and-operations/billing-settlements-and-credit.aspx) the APS NITS rate is $17,895/MW-Year. Why does the NITs rate published on 1/15/2019 on the FEPA Information Site not agree with PJM’s published rate?

Answer:

The $17,895/MW/Year NITS rate, published on PJM’s Website, does not include two applicable credits as provided within Allegheny Power’s Attachment H-11 of the PJM Open Access Transmission Tariff. The current effective tariff (as accepted in FERC Docket No. ER18-1595) states, "For Network Integration Transmission Service … customers in the AP Zone a credit of $2,499 per megawatt per year will be applied, reducing the effective rate to $15,396 per megawatt per year for such customer’s delivery points existing on, or added after, April 1, 2002…." The tariff goes on further to state, "As of March 21, 2018, the effective rate for these customers is $14,364 per megawatt per year." Consequently, per the tariff, the current effective NITS rate is $14,364/MW/Year.

Supplier Master Agreement

SMA 00002 (revised 09/21/2016)
Published On: 10/12/2012

Question: If we already have a signed Supplier Master Agreement with any of the Companies from a prior Default Service auction, will we need to submit a new signed Supplier Master Agreement for subsequent Default Service auctions?

Answer: An executed Supplier Master Agreement (SMA) from a prior Default Service Program  (e.g., DSP-I) cannot be used for a subsequent DSP (e.g., DSP-II, DSP-III, DSP-IV, DSP-V). Only SMAs that have been approved for a particular DSP can be used for that DSP. See also FAQ SMA 00012.

SMA 00004
Published On: 10/16/2012

Question: Are volumes paid based on PJM de-rated volumes or Retail meter volumes?

Answer: The payments to Default Service Suppliers are based on the PJM de-rated volumes.

SMA 00008 (revised 11/04/2015)
Published On: 11/19/2012

Question: (1) In the event that a bidder is awarded tranches to serve full requirements Default Service under multiple EDC auctions (e.g., for Met-Ed, Penelec, Penn Power, and West Penn Power) would each of the Electric Distribution Companies (EDCs) execute the same Supplier Master Agreement (SMA) or would they each sign separate SMAs with the Default Service (DS) Supplier?

(2) In the event that multiple EDCs would execute the same SMA, would such EDCs be jointly and severally liable for Company obligations thereunder and would there be a common agent for them or would each be able to issue conflicting instructions to the DS Supplier?

(3) Should references to Company in the SMA be read as references to a single EDC or to all of the EDCs with respect to which Company has been awarded full requirements/hourly service pricing load?

(4) If there is an Event of Default under the SMA with respect to one EDC, is the DS Supplier entitled to terminate the SMA or other SMAs with respect to the other non-defaulting EDCs?

(5) Conversely, if there is an Event of Default with respect to a DS Supplier relating to load supply to a particular EDC, would the other EDCs have the right to terminate the SMA or other SMAs with respect to the DS Supplier even if the DS Supplier has not defaulted in its obligations to such other EDCs?

(6) How does the second sentence of Section 11.2 in the SMA which states that nothing in the Agreement shall restrict the rights of either party to file a complaint with FERC under relevant provisions of the Federal Power Act work with the Mobile-Sierra provisions in the third paragraph of Section 11.2?

Answer: (1) A winning bidder (Default Service Supplier) will execute a separate SMA document with each EDC for which the winning bidder has been awarded tranches. 

(2) Each SMA document executed by the winning bidder will be executed by only one EDC (not multiple EDCs).

(3) References to Company in the SMA are references to a single Company (i.e., to a single EDC).

(4) No.  Each SMA is between a supplier and a single EDC.

(5) No.  Each SMA is between a supplier and a single EDC.

(6) The right to file a complaint addressed in the second sentence of Section 11.2 of the SMA is separate from standards that may be applied to such a complaint, which are addressed in part in the provision referencing the Mobile-Sierra doctrine. The Companies recommend that all bidders consult with counsel regarding the legal meaning of any provisions of the SMAs.

SMA 00011 (revised 01/18/2017)
Published On: 01/22/2013

Question: Can you supply the PNODE ID of the settlement point for Penn Power and West Penn Power?

Answer: Penn Power PNode ID is 115944307 PENN POWER AGGREGATE.  West Penn Power PNode ID is 8394954 APS ZONE.

Effective June 1, 2015, PJM will require all Zone aggregated LMP settlement points to be replaced with its respective residual aggregated LMP.

For the PA utilities, the following Residual LMPs will apply for settlements:

Company Pnode ID Description
Met-Ed 116472947 METED_RESID_AGG
Penelec 116472951 PENELEC_RESID_AGG
Penn Power 126769999 PENNPOWER_RESID_AGG
West Penn Power 116472931 APS_RESID_AGG

SMA 00012 (revised 11/06/2014)
Published On: 02/11/2013

Question: The winning bidders for the Residential/Commercial (Fixed Price) product in a particular auction have signed the SMA agreements. If they become winning bidders in a subsequent auction, would they have to sign a new SMA or an amendment to an existing SMA? Also, would an additional Guaranty be needed?

Answer: A Default Service supplier and the Company will sign the applicable base Supplier Master Agreement and Appendix E the first time the supplier is awarded Default Service load for that Company for the current Default Service Program (DSP).  For subsequent Default Service awards with that Company in the same DSP, only Exhibit 1 will need to be executed.  In the event there are changes required to the SMA itself in subsequent procurements, a separate full SMA document (including the applicable appendix) can be executed.  If the Bidder wins additional tranches in a subsequent auction, they can simply amend the existing guaranty by adding the date of the new Supplier Master Agreements to the guaranty.

SMA 00013 (revised 09/21/2016)
Published On: 08/21/2013

Question: For the both the pre-bid LOC and performance LOC, the requirements is for the bank to be rated A by S&P and A2 by Moodys. Can a Bank that meets those credit requirements be used even if they do not have a US Branch (Foreign Bank)?

Answer: As long as the issuing bank meets the minimum credit rating requirements, there is no requirement that the bank have a US branch.

SMA 00014 (revised 11/03/2016)
Published On: 08/21/2013

Question: Please advise on the process to provide comments in order to update SMA Appendix F (FORM OF SUPPLIER LETTER OF CREDIT).

Answer: The Companies generally do not modify forms of agreements during an ongoing bidding process, so as to maintain consistency in the rules and application forms across all potential bidders.  Consequently, changes to Appendix F or any other part of the Supplier Master Agreement (SMA) generally are not permitted.

Further, the rules, agreements, and standard forms and supporting documents are reviewed and modified during a public legal proceeding that is intended to provide the opportunity for changes before regulatory approval of those documents is complete.  

SMA 00015
Published On: 08/21/2013

Question: If a bidder's guarantor is formed under the laws of Canada, is an enforceability opinion with respect to the guarantee required to be provided by an outside law firm? Given the trading relationship and substantial overlap in US and Canadian law, can we instead provide an opinion from in-house counsel licensed to practice law in Canada?

Answer: The Companies' Bidding Rules and applications do not specify that the opinion letter come from either in-house or external firm counsel.  It is up to the bidder to determine which is most appropriate, to the extent that the selected counsel is fully qualified under the laws of the foreign jurisdiction to provide such an opinion. 

SMA 00017 (revised 10/10/2014)
Published On: 12/02/2013

Question: Our guarantor is based outside of the US. If we become a Default Service Supplier, will we be required to submit a legal opinion & sworn certificates from our guarantor? The process for us to obtain these documents can take in excess of ten business days. If we win tranches in an auction, when will these documents be due?

Answer: Yes, per Section 6.4 (ii) of the SMA, these documents would be required. These documents, along with the Guaranty and execution of the Supplier Master Agreement, are due within three (3) business days following the Commission’s approval of the auction results.

SMA 00018 (revised 10/10/2014)
Published On: 12/11/2013

Question: The Supplier Master Agreement references the Open Access Transmission Tariff (OATT) for defining "Ancillary Services". The OATT defines the term as: "Those services that are necessary to support the transmission of capacity and energy from resources to loads, while maintaining reliable operation of the Transmission Provider’s Transmission System in accordance with Good Utility Practice." And "The Transmission Provider is required to provide … the following Ancillary Services (i) Scheduling, System Control and Dispatch, and (ii) Reactive Supply and Voltage Control from Generation or Other Sources." For the purposes of Default Service supply, is "Ancillary Services" intended to mean ALL load-related charges or some subset of settlement charges related to ancillary services? (I.e.: Reactive Services, Black start, etc.) Are the administrative charges like "Market Monitoring Unit (MMU) Funding," "FERC Annual Recovery," and "Organization of PJM States, Inc. (OPSI) Funding" included?

Answer: Yes, per the definition of Default Service Supply in the Supplier Master Agreement (SMA), suppliers are responsible for all load-related charges except as listed in Appendix D in the SMA.

SMA 00021
Published On: 02/17/2015

Question: Per the SMA, the Company needs to be notified of any changes to the Supplier's financial stance. Would it be sufficient if we add the Company to the e-mail distribution list for shareholder notifications?

Answer: Adding the Company to the distribution list for shareholder notifications is not an appropriate means to notice the Company of change to financial condition or credit rating per Section 6.1 of the Supplier Master Agreement ("SMA").  Exhibit 2 to the SMA provides the required form of notice and recipients for any required notification under the SMA.

SMA 00022
Published On: 09/10/2015

Question: Section 1.9 Additional Certifications in Part 1 of the Application states, "if you become a winning bidder, you will execute the SMA within three (3) Business Days". Does this imply that the Authorized Representative has to have the ability to sign the SMA? Or that the Applicant (not necessarily the Authorized Rep.) must execute the SMA within the time period specified?

Answer: The SMA does not need to be signed by the Authorized Representative.  The SMA needs to be executed by the Applicant, which may or may not be the Authorized Representative. 

SMA 00023 (revised 12/03/2015)
Published On: 11/16/2015

Question: Section 6.2 of the Supplier Master Agreement (SMA) states: "The DS Supplier may submit and maintain a security deposit in accordance with Section 6.4 of this Agreement in lieu of submitting to or being qualified under a creditworthiness evaluation." However, towards the end of Section 6.2 it also states: "DS Supplier shall provide the Company and its agent’s unrestricted access to audited financial statements; provided that if audited financial statements are not available, the Company, in its sole discretion, may specify other types of financial statements that will be accepted." Does the first statement mean that providing a security deposit would exempt a DS supplier from the audited financial requirements? The entity that we will be using to participate in the auction does not have audited financials, but we can provide un-audited information.

Answer: Per Section 6.2, the Default Service Supplier may submit and maintain a security deposit in accordance with Section 6.4 of the Supplier Master Agreement in lieu of submitting to or being qualified under a creditworthiness evaluation.  Also, per Section 6.2, DS Suppliers shall provide unrestricted access to audited financial statements; provided that if audited financial statements are not available, the Company may specify other types of financial statements that will be accepted.

SMA 00024
Published On: 07/05/2016

Question: For West Penn Power, the Default Service Supplier is responsible for PJM Charge 1104 (NITS Offset). Is the same NITS Offset Charge applied for both retail suppliers (1104.12) and wholesale suppliers (1104.14)?

Answer: Yes, that is correct.

SMA 00026
Published On: 12/01/2016

Question: For Penn Power and West Penn Power, what energy forward price do you use for margin purposes? In these locations, there are no broker quotes.

Answer: Per Appendix B of the Supplier Master Agreement, the energy forward price is based on PJM Western Hub.

SMA 00027
Published On: 12/07/2017

Question: Is balancing congestion the responsibility of the supplier? Also, is it known when the SMA will be updated to reflect this charge?

Answer: Section 2.5 (PJM Agreement Modifications) of the Supplier Master Agreement (SMA) addresses this issue.  The load serving entity, or in this case, the Default Service supplier, is responsible for all balancing congestion line items.

SMA 00028
Published On: 01/17/2018

Question: It is our understanding that Default Service Suppliers independently participate in the PJM ARR/FTR auctions and are awarded ARRs and FTRs from the PJM auction into their individual PJM account. The FEPA Utilities do not have access to the awarded ARR paths or nominated FTR paths for any Default Service Supplier." However, Section 2.3 of the SMA indicates that "The Company shall transfer or assign to the DS Supplier the Company’s rights to Auction Revenue Rights (ARRs) to which the Company is entitled as an LSE pursuant to the PJM Agreements, including the rights to ARRs, provided that such rights are related to the service being provided to meet the DS Supplier Responsibility Share and such rights are for the Delivery Period." These two statements seem to contradict one another, can you please confirm whether the companies assign ARRs directly to tranche providers? If so, how are ARRs allocated?

Answer: Section 2.3 of the SMA relates to the load that has yet to be assigned to a Default Service (DS) Supplier at the time of the PJM Annual Auction Revenue Rights (ARR) Allocation process.  There may be times when not all the load is assigned to DS Suppliers in time to participate in the PJM Annual Auction Revenue Rights (ARR) Allocation process.  In this case, the FE Companies will be responsible for this load and will obtain the ARRs.  Once suppliers are secured for the unassigned load, the ARRs obtained are allocated to the DS Suppliers by PJM pursuant to the PJM Agreements.

SMA 00029
Published On: 01/29/2018

Question: Where the Supplier Master Agreement (SMA) discusses termination due to default, it states that "The Non-Defaulting Party shall calculate, in a commercially reasonable manner, a Settlement Amount with respect to the obligations under this Agreement. The DS Supplier may, in its sole discretion, select the notional quantity in the following subsection 5.4(a)(i) by checking the box below. If the DS Supplier does not select subsection 5.4(a)(i) by checking the box, it will be deemed to be excluded from this Agreement." Is there additional information available on how the "commercially reasonable manner" would be determined? Is there a calculation available for the price component?

Answer: No, there is no additional information on "commercially reasonable manner" for calculating a settlement amount.  Any such calculation would be prepared and reviewed after the default and the applicable variables would be applied.  Such settlement calculations are the exception and the pricing component calculation also would be developed after the default event.

SMA 00030 (revised 05/21/2019)
Published On: 04/27/2018

Question: How do Suppliers typically fulfill the obligations described in Appendix E of the Supplier Master Agreement? Is the Supplier required to transfer AECs to the Company, or does the Supplier retire the AECs themselves? If the latter, what "proof" is used to demonstrate compliance? Also, is the Company considered the Electric Generation Supplier (EGS) for the purposes of submitting quarterly retail sales reports to PennAEPS, or is the Supplier responsible for that reporting? (See http://www.pennaeps.com/electricity-suppliers/)

Answer: Please see FAQ GEN 00013.  In addition, the Companies (Met-Ed, Penelec, Penn Power, and West Penn Power) will send each Default Supplier notification of its AEC obligation along with the due date for the AEC transfer.  Suppliers must transfer the AECs to the Company-specific PJM GATS account.  The Companies will review, accept, and retire the AECs in GATS.  The AEPS Program Administrator then determines if compliance for the energy year has been met and then issues a letter to the Companies stating that retirement requirements were met.

The Companies (Met-Ed, Penelec, Penn Power, and West Penn Power) are electric distribution companies ("EDCs").  Default Suppliers are considered Electric Generation Suppliers ("EGSs").  Both EDCs and EGSs must submit quarterly reports to the AEPS Program Administrator.

SMA 00031
Published On: 09/26/2018

Question: Why are LSE suppliers responsible for NITS and TECs?

Answer: FirstEnergy's PA Default Service Programs DSP-IV and DSP-V were approved by the PA PUC. The DSPs and supporting documents as approved by the PA PUC designate the Parties' responsibilities, including that Default Service suppliers are responsible for Network Integration Transmission Service (NITS) and the Companies are responsible for Transmission Enhancement charges (TECs), which are the same responsibilities that have been in place for several default service terms.

SMA 00032
Published On: 10/17/2018

Question: Can you please elaborate on this change between DSP-IV and DSP-V? Appendix C – DS Supply Specifications: Default Service customer groups have been updated to reflect new commercial class rate schedules accompanying the move to hourly pricing.

Answer: Due to the move to hourly pricing, the commercial Default Service customer groups were revised.

For DSP-V, the Group of Rate Schedules that comprise the Commercial Class for DS Supply and itemized in Appendix C of the Supplier Master Agreement (SMA) and are shown here:

Met-Ed - Rate GS-Small, Rate GS-Medium (PTC), Rate MS, Borderline Service, Street Lighting Service, Ornamental Street Lighting, and Outdoor Lighting Service
Penelec - Rate GS-Small, Rate GS-Medium (PTC), Rate H, Borderline Service, High Pressure Sodium Vapor Street Lighting Service, Municipal Street Lighting Service, and Outdoor Lighting Service
Penn Power - Rate Schedules GS (excluding GS Special Rule GSDS), PNP, GM (PTC), PLS, SV, SVD, and SM
West Penn - Rate Schedules 20, 30 (PTC), 51, 52, 53, 54, 55, 56, 57, 58, 71 and 72

Effective 6/1/2019, all customers who have demands of 100 kW or greater for 12 consecutive months during the period April 1 to March 31 of each 12-month period shall be moved to hourly pricing for all of the Companies. This class of customers is in addition to the current rate classes that are receiving Default Service under the Hourly Pricing Default Service Rider. In addition, for Penn Power, GS-Large customers will be moved from the Price-to-Compare Default Service Rate Rider to the Hourly Pricing Default Service Rider.

For DSP-IV, the Group of Rate Schedules that comprise the Commercial Class for DS Supply and itemized in Appendix C of the SMA are shown here:

Met-Ed - Rate GS-Small, Rate GS-Medium, Rate MS, Borderline Service, Street Lighting Service, Ornamental Street Lighting, and Outdoor Lighting Service
Penelec - Rate GS-Small, Rate GS-Medium, Rate H, Borderline Service, High Pressure Sodium Vapor Street Lighting Service, Municipal Street Lighting Service, and Outdoor Lighting Service
Penn Power - Rate Schedules GS (excluding GS Special Rule GSDS), GS Optional Controlled Service Rider, PNP, GM, GM Optional Controlled Service Rider, PLS, SV, SVD, SM, OH With Cooling Capabilities, OH Without Cooling Capabilities, and WH Non-Residential
West Penn - Rate Schedules 20, 22, 23, 24, 30 (small), 51, 52, 53, 54, 55, 56, 57, 58 and 71

SMA 00035
Published On: 10/24/2018

Question: In the DSP-V docket (P-2015-2511333), FEPA represents that the threshold for hourly pricing will be lowered from 400 kW to 100 kW as of June 1, 2019. In the current redlined DSP-V Supplier Master Agreement (SMA), FEPA shows changes to the classes that will affect the Commercial and Industrial Classes (e.g., Met-Ed GS-Medium which was part of Commercial for DSP-IV appears to become GS-Medium (PTC) in Commercial and GS-Medium (HP) in Industrial for DSP-V). Can FEPA please describe in detail the new sub-classes created for DSP-V and how existing customers will be classified? Do the changes in Commercial and Industrial sub-classes represent a lowering of the demand threshold from 400 kW to 100 kW? Are there any additional thresholds or attributes that will be used to classify customers in the new sub-classes? Will customers be able to decide or influence their sub-class or will FEPA classify customers? How often will these sub-classes be reviewed and can customers migrate between the PTC and HP subclasses? Further, Can FEPA provide historical data including usage, counts, PLC, NSPL, etc., for the customers that are being reclassified?

Answer: Each question is shown again to facilitate the response:

Q1: In the DSP-V docket (P-2015-2511333), FEPA represents that the threshold for hourly pricing will be lowered from 400 kW to 100 kW as of June 1, 2019. In the current redlined DSP-V Supplier Master Agreement (SMA), FEPA shows changes to the classes that will affect the Commercial and Industrial Classes (e.g., Met-Ed GS-Medium which was part of Commercial for DSP-IV appears to become GS-Medium (PTC) in Commercial and GS-Medium (HP) in Industrial for DSP-V). Can FEPA please describe in detail the new sub-classes created for DSP-V and how existing customers will be classified?
A1: Effective June 1, 2019, a review of the measured demand for the period April 1 of the preceding year to March 31 of the current year will be conducted. Based on that review, if the measured demand in any twelve months is greater than 100 kW, then any GS Medium (Met-Ed, Penelec), GM (Penn Power), and Schedule 20 (West Penn Power) customer that meets that criterion will be migrated to Rider I, Hourly Pricing Default Service Rider for the period June 1 of the current year to May 31 of the following year. Each year, this review will be done at the same time. In addition, at Penn Power, all GS-Large customers will be migrated to Rider I, Hourly Pricing Default Service Rider.

Q2: Do the changes in Commercial and Industrial sub-classes represent a lowering of the demand threshold from 400 kW to 100 kW?
A2: Yes, for purposes of determining placement of the customer to Rider H, Price to Compare (PTC) Default Service Rate Rider, or Rider I, Hourly Pricing Default Service Rider.

Q3: Are there any additional thresholds or attributes that will be used to classify customers in the new sub-classes? 
A3: No.

Q4: Will customers be able to decide or influence their sub-class or will FEPA classify customers? 
A4: No, GS-Large customers at Penn Power will be migrated to Rider I, Hourly Pricing Default Service Rider.

Q5: How often will these sub-classes be reviewed and can customers migrate between the PTC and HP subclasses? 
A5: The sub-classes will be reviewed each year on April 1 and will be effective June 1.

Q6: Further, can FEPA provide historical data including usage, counts, PLC, NSPL, etc., for the customers that are being reclassified? 
A6: Once the review is complete each year, the Companies will provide the customer data that will be the basis for any migration from Rider H to Rider I and vice versa. Since the review is based on measured demand for the 12-month period, that data will be provided.

SMA 00036
Published On: 10/29/2018

Question: In DSP-IV, there is a rate class for Met-Ed and Penelec called RT. There does not appear to be a rate class RT in DSP-V. Where did rate class RT go?

Answer: All of the customers in the RT rate schedule were moved to the standard residential rate schedule RS as part of the 2014 distribution rate case. While the Appendix C in the Supplier Master Agreement (SMA), "DC Supply Specifications," still had these rate schedules in the DSP-IV SMA, all of the customers on these rate schedules were now taking service under rate schedule RS.  In DSP-V, this oversight in the SMA was corrected.

SMA 00037 (revised 04/26/2019)
Published On: 10/29/2018

Question: Can you please provide us some perspective from a load and tag (Capacity and NSPL) point of view the impact of rate classes moving from the Commercial class to Industrial class for the DSP-V periods? Can you please provide us with some color on why some classes seem to disappear from Commercial under DSP-V, but were there under DSP-IV, for example rate class OH w/Cooling in Penn Power? Can you please provide us with some color on new class created in DSP-V like rate class 72 in West Penn Power?

Answer: Due to multiple inquires above, questions are repeated. Q1: Can you please provide us some perspective from a load and tag (Capacity and NSPL) point of view the impact of rate classes moving from the Commercial class to Industrial class for the DSP-V periods? A1: Based on Current Delivery Year ICAP Values

Number of Non-Shopping Commercial Accounts on GSM and GP30 rate tariffs metered over 100 kW

Met-Ed

Penelec

West Penn

Penn Power

Total

# of Accounts from 02/2016 - 01/2018

983

1,149

1,539

274

3,945

 

Shopping Accounts as of 01/2018

912

1,059

1,357

245

3,573

Non-Shopping Accounts as of 01/2018

71

90

182

29

372

Total # of Accounts as of 01/2018

983

1,149

1,539

274

3,945

Percentage of Commercial Load served by Non-Shopping Accounts on the GSM and GP30 rate tariffs with billing demands > 100kW for 12 Consecutive Months

Met-Ed

Penelec

West Penn

Sep-17

6.2%

6.8%

11.6%

Oct-17

6.5%

9.4%

13.1%

Nov-17

6.6%

9.1%

13.7%

Dec-17

6.0%

8.5%

12.9%

Jan-18

5.2%

7.9%

12.2%

Feb-18

5.9%

8.5%

13.0%

Mar-18

5.3%

8.2%

12.5%

Apr-18

6.4%

8.2%

13.1%

May-18

6.0%

8.9%

14.9%

Jun-18

6.1%

9.0%

12.8%

Jul-18

5.4%

8.2%

11.9%

Aug-18

5.3%

8.5%

11.8%

Percentage of PLS ICAP kW Aggregates of Non-Shopping Commercial Accounts on GSM and GP30 rate tariffs metered over 100 kW

Met-Ed

Penelec

West Penn

Penn Power

PLC*

5.3%

5.1%

9.2%

6.4%

NSPL*

6.1%

8.0%

10.0%

8.2%

 

  Please note for the Penn Power load, we’re posting hourly values on the supplier portal for these non-shopping Commercial customers since AMI data are available. Q2: Can you please provide us with some color on why some classes seem to disappear from Commercial under DSP-V, but were there under DSP-IV, for example rate class OH w/Cooling in Penn Power? A2: As a result of the 2014 and 2016 rate cases, the PA EDCs went through a process of eliminating certain rate schedules, and moving those customers to other rate schedules. For instance, Penn Power rate schedule OH w/cooling was eliminated and merged into either GM or GS Large rate schedule. Q3: Can you please provide us with some color on new classes created in DSP-V like rate class 72 in West Penn Power? A3: Rate Schedule 72 at West Penn Power is an LED street lighting schedule that was added in the 2014 rate case.

SMA 00038
Published On: 10/29/2018

Question: Are the Companies or are the Suppliers responsible for PJM billing line item 1999, PJM Customer Payment Default, as it is not specified in Appendix D of the SMA?

Answer: Suppliers are responsible for the PJM Billing Line Item 1999 (PJM Customer Payment Default).  The Bidding Rules section 2.2 (Full Requirements Service) defines the Suppliers obligations and exclusions.  In the Supplier Master Agreement (SMA) for DSP-V, a footnote was added to the end of the Appendix D in the SMA to clarify the issue of new Billing Line Items to the SMA. "**Any PJM fees or charges not specifically identified as being the responsibility of the EDC shall be the responsibility of the EGS…."

In section 2.6 (PJM Member Default Cost Allocation) of the SMAs for DSP-IV and DSP-V also addresses the issue of a supplier default in PJM.

SMA 00039
Published On: 10/29/2018

Question: For Penn Power Residential, what happened to the eliminated rate classes between DSP-IV and DSP-V? I am referring to RS Optional Controlled Service Rider, RH, RH Water Heating Option, and WH.

Answer: All of the customers in the affected rate schedules identified in the question were moved to the standard residential rate schedule RS as part of the 2014 distribution rate case.  While the Appendix C in the Supplier Master Agreement (SMA), "DC Supply Specifications," still had these rate schedules in the DSP-IV SMA, all of the customers on these rate schedules were now taking service under rate schedule RS.  In DSP-V, this oversight in the SMA was corrected.

SMA 00041
Published On: 04/24/2019

Question: For the AEPS obligation, can you confirm that the MWh that the percentages are applied to are based on the same load that the DS Supplier is serving and receiving payments?

Answer: Per Appendix E of the FEPA Companies' Supplier Master Agreement (SMA), AEPS obligation percentages are applied to total MWh supplied by the Default Service Supplier based on PJM Settlement amounts.

SMA 00042
Published On: 04/30/2019

Question: Did the FE Companies nominate PY 2019/2020 ARRs for the contracts starting on June 1, 2019, or was it the Default Supplier as of March 4, 2019, when the 2019/2020 ARR - Stage 1A window opened? If it was the FE Companies, could you provide the paths that were awarded?

Answer: See FAQs PJM 00024 and SMA 00028. The Default Service Suppliers independently participate in the PJM ARR/FTR auctions and are awarded ARRs and FTRs from the PJM auctions into their individual PJM accounts. The FEPA Utilities do not have access to the awarded ARR paths or nominated FTR paths for any Default Service (DS) Supplier. There may be times when not all the load is assigned to DS Suppliers in time to participate in the PJM Annual Auction Revenue Rights (ARR) Allocation process. In this case, the FE Companies will be responsible for this load and will obtain the ARRs. Once DS suppliers are secured for the unassigned load, the ARRs obtained are allocated to the DS Suppliers by PJM pursuant to the PJM Agreements.

SMA 00043
Published On: 05/02/2019

Question: Can you please replace references to "BGS Supplier" with "DS Supplier" in Sections 1 and 4 of "APPENDIX G - GUARANTY" in the SMA, or confirm that winning bidders can make the change in the Guaranty they would issue?

Answer: Going forward, "BGS Supplier" will be replaced with "DS Supplier" in Appendix G - Guaranty in all Supplier Master Agreements (SMAs) sent to winning bidders.

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