FirstEnergy's Pennsylvania Default Service Program

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.

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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