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.

PJM 00038
Published On: 01/10/2020

Question: On the Information Website, the APS NITS rate is listed as $14,364/MW/Year; however, the PJM Website shows the APS NITS rate starting in January 2020 as $17,865/MW/Year. Can you please confirm the NITS rate that APS suppliers were charged in December 2019, and what that rate will be/is in January 2020?

Answer: The $17,895/MW-Year rate on PJM’s Website represents the GROSS AP Zone NITS rate. However, due to credits applied per Attachment H-11 of the PJM OATT, the NET AP Zone NITS rate billed to the applicable suppliers is $14,364/MW-Year. Since the AP Zone is under a stated transmission rate, there is no change from year to year.

PJM 00039
Published On: 04/22/2020

Question: Can FEPA provide ARR paths nominated for PY20/21?

Answer: The awarded auction revenue rights (ARRs) for the PA accounts for the unassigned load for PY 20/21 can be found on the FEPA Default Service Program Information Website's Documents page using the ARR Results link.

PJM 00040
Published On: 04/22/2020

Question: Do we have updated NITS rate for the new planning year 20/21 for the METED, PENELEC zone?

Answer: The MAIT NITS rate (applicable to the Met-Ed and Penelec Zones) is $37,083.18/MW-Year effective January 1, 2020.  The MAIT NITS rate that will be effective January 1, 2021 will be published in October.

PJM 00041
Published On: 10/12/2020

Question: NITS rate information is showing the ATSI rate to be $57,340.35/MW/Year. Will ATSI be filing its formula rate before the auction date of 2020-10-26?

Answer: Yes, ATSI is expected to file its annual formula rate update prior to October 26, 2020.

PJM 00042
Published On: 10/13/2020

Question: NITs Rate information is showing MAIT's NITs rate to increase from $27,083.18 to $50,128.46 effective 2021-01-01. Is that from the Formula Rate filing as of 2020-10-05?

Answer: Yes, the NITS rate effective January 1, 2021 for MAIT will be $50,128.46, per the annual formula rate update filed earlier this month. However, the NITS rate effective January 1, 2020 for MAIT (per the annual formula rate update filed in October 2019) was $37,083.18, not the amount provided in the question.

PJM 00043
Published On: 11/04/2020

Question: NITs Rate is showing APS zone's NITS rate to be $14,364.00/MW/Year. Does Allegheny Power Zone have a plan to change their NITS rate, or to have a FERC filing to change their NITS rate as of October 2020?

Answer: On October 29, 2020, pursuant to section 205 of the Federal Power Act, West Penn Power Company, in conjunction with affiliates Monongahela Power Company and The Potomac Edison Company, filed for a change in its Network Integration Transmission Service (NITS) rate at the Federal Energy Regulatory Commission at Docket No. ER21-253.

PJM 00044
Published On: 11/04/2020

Question: How will suppliers be billed for the APS zone applicable credit for transmission and for transmission in general? We suspect that PJM will bill suppliers according to the 17,895 number and WPP will credit us for the two credits in the Allegheny supplementary in OATT and then rebate us for the rest of the difference in some kind of transmission charge adjustment?

Answer: Please refer to the following FAQs:  PJM 00036, PJM 00037, and PJM 00038.

PJM 00045
Published On: 11/05/2020

Question: Are you able to provide us with the formula rate filing for West Penn's NITS rate for 2021, or with the corresponding FERC docket number?

Answer: On October 29, 2020, in Docket No. ER21-253-000, PJM submitted on behalf of Monongahela Power Company, The Potomac Edison Company, and West Penn Power Company (collectively, South FirstEnergy Operating Companies) revisions to PJM Tariff, Table of Contents, Schedules 1A, 7, and 8, and Attachment H-11 to change the rate used to establish the Network Integration Transmission Service (NITS) revenue requirement for the Allegheny Power Zone and the Transmission Enhancement Charge. South FirstEnergy Operating Companies request a January 1, 2021 effective date.

PJM 00046
Published On: 11/10/2020

Question: FERC recently approved PJM’s Minimum Offer Price Rule (MOPR) filing, which includes requirements for state-directed default service auctions to be exempt from the State Subsidy definition. For a default service auction to be exempt, it must be competitive, fuel-neutral, and not for the purpose of supporting the entry of preferred generation resources. While FERC approved PJM’s proposal in its current state, they did include a footnote citing NJ Basic Generation Service as a conflicting example due to language surrounding the Renewable Portfolio Requirements. What certifications will participants receive, either from the auction manager or other consultants, that can satisfy the requirement of being independent of the market participants, to ensure the FEPA procurement will not be subject to MOPR, and will be exempt due to meeting the requirements outlined in PJMs proposal?

Answer: No additional certifications will be provided.  It is each Default Service supplier's responsibility to ensure compliance with PJM rules and regulations.

PJM 00047
Published On: 11/11/2020

Question: FAQs GEN 00115, GEN 00123, and PJM 00036 discussed about the impact from Federal Income Tax Rate on NITS rate. For any future Federal Income Tax Rate changes, should we expect similar impacts on future NITS rate?

Answer: The FirstEnergy Companies will follow guidance provided by FERC in conjunction with any proposed change to the Federal income tax rate with respect to:  (1) 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, and (2) if applicable, transmission stated rates in which the Federal income tax rate is not a formulaic input that is used to establish the NITS rate.

PJM 00048
Published On: 12/14/2020

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

Answer: Refer to the South FirstEnergy Operating Companies 2021 formula rate posted by PJM at the following location: https://www.pjm.com/markets-and-operations/billing-settlements-and-credit/formula-rates.aspx.

PJM 00049
Published On: 12/14/2020

Question: Can you provide any information on the future early 2022 asset transfer in West Penn Power? When will the new WPP Transmission Company move to formula rates, similar to NITS in Met-Ed and Penn Power? Any information on rates to be used in the upcoming FEPA Auction on November 16, 2020 for delivery period 24-months?

Answer: The new transmission company, Keystone Appalachian Transmission Company (KATCo), expects to acquire certain transmission assets from its affiliates (including West Penn Power Company) on January 1, 2022, and, thereafter, provide transmission service over those facilities pursuant to the rates, terms, and conditions of the PJM Tariff. For additional details, see the October 30, 2020 filing submitted under Federal Energy Regulatory Commission ("FERC") Docket No. ER21-265-000.  In addition, on October 29, 2020, pursuant to Section 205 of the Federal Power Act, West Penn Power Company, in conjunction with affiliates Monongahela Power Company and The Potomac Edison Company, filed for a change in its Network Integration Transmission Service rate at the FERC at Docket No. ER21-253 requesting an effective date of January 1, 2021.

PJM 00051
Published On: 01/08/2021

Question: Can you please provide the 5-year history for Network Integration Transmission Service (NITS) charged to Met-Ed, Penelec, West Penn Power, and Penn Power DSP-suppliers?

Answer: NITS Rates ($/MW-Yr) are as follows:

   2016 2017  2018  2019  2020 
Met-Ed  $15,112.00  $15,112.00  $26,069.39  $28,796.22  $37,083.18 
Penelec  $15,112.00  $15,112.00  $26,069.39  $28,796.22  $37,083.18 
Penn Power  $43,391.43  $45,057.62  $54,689.39  $55,185.23  $57,482.35 
West Penn Power  $15,396.00  $15,396.00  $15,396.00  $14,364.00  $14,364.00

NITS rates shown above reflect rates that were effective on January 1 of the applicable year.

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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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