FirstEnergy's Pennsylvania Default Service Program

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
Published On: 06/21/2018

Question: The 2018 MetEd/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 MetEd/Penelec revise its NITS rate prior to January 1, 2019 in order to lower its revenue requirement or will MetEd/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
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, MetEd, 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.

FAQs Disclaimer

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

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