Through this auction process, Metropolitan Edison Company (“Met-Ed”), Pennsylvania Electric Company (“Penelec”), Pennsylvania Power Company (“Penn Power”), and West Penn Power Company (“West Penn Power”) (each of which may be referred to as a “Company”, and/or in combinations as “Companies”) are seeking to procure full requirements Default Supply generation service for their Default Service Customers.
As Default Service Suppliers, winning bidders must: (a) assume all responsibilities of a PJM Load Serving Entity ("LSE"), (b) provide for energy, (c) provide for capacity, (d) provide for ancillary services, (d) provide for transmission service, including Network Integration Transmission Service (“NITS”), and (e) provide certain Alternative Energy Credits (“AECs”) pursuant to the Alternative Energy Portfolio Standards Act (“AEPS”).
Default Service Suppliers for Met-Ed, Penelec, and Penn Power must provide AECs needed to meet the non-solar requirements of the Companies’ Default Service Load as more specifically described in the SMAs. The solar AEPS requirements will be provided by the Companies.
Default Service Suppliers for West Penn Power are responsible for all solar and non-solar AECs. However, West Penn Power will allocate to Default Service Suppliers on an annual basis and an AEC per tranche basis, a portion of the 1,000 solar and 75,000 Tier I AECs received by West Penn Power under their current long term contracts.
Obligations of Default Service Suppliers for the Companies exclude the following: (a) Regional Transmission Expansion Plan charges (“RTEPs”), (b) PJM Expansion Cost Recovery charges (“ECRC”), (c) PJM charges associated with reliability must run (“RMR”) unit declarations and deactivation of plants for which charges are set after the approval of the DSPs by the Commission, (d) unaccounted for energy ("UFE"), and (e) historical out of market tie line, generation and retail customer meter adjustments. These charges will be collected by the Companies directly from shopping and non-shopping customers through competitively neutral non-bypassable charges as applicable.
Default Service fixed priced products for residential and commercial customers will be procured in a separate auction ("Fixed Price (FP) Auction") from the hourly priced auction for industrial customers ("Hourly Priced (HP) Auction"). The fixed priced and hourly priced auctions will be conducted simultaneously.
As Independent Evaluator (also referred to as the Auction Manager), CRA International will manage each auction process. A simultaneous, multiple-round, descending-price clock auction format will be used. For additional information regarding the auction process and to receive updates please register on this Information Website. Click here to register.