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PIPP RFP

Important Dates:

• Tue 1/7/2025 - Bidder Information Session
• Tue 1/7/2025 - Auction Manager announces tranche targets, tranche size, MW-measure
• Thu 1/9/2025 - Part 1 Window opens
• Mon 1/13/2025 - Auction Manager announces minimum and maximum starting prices
• Fri 1/24/2025 - Part 1 Applications are due

Recent Announcements:

• 12/10/2024 - ANNOUNCEMENT: March 2025 Auction Documents Posted to the CBP Website; RSVP for Webcast on January 7, 2025

FAQs

Credit

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• FAQ-197:
  How do I calculate the amount of pre-bid security required with the Part 2 Application? Can I use the amount of the Independent Credit Threshold to reduce the amount of pre-bid security I am required to post with the Part 2 Application?
  
  The Independent Credit Threshold (“ICT”) was provided to you so that you would be aware of the ICT that could be granted to you under the terms of the Master SSO Supply Agreement. There is no unsecured credit granted for pre-bid security purposes.

  For pre-bid security, the amount you have to provide with the Part 2 Application in the November 2018 Auction is $500,000 times the number of tranches in your indicative offer at the maximum starting price. You may submit cash or a letter of credit as pre-bid security. If using a pre-bid letter of credit, you must use the standard “Pre-Bid Letter of Credit” posted to the CBP website dated August 14, 2018 or include only those modifications listed in the Acceptable Modifications to Pre-Bid Security Documents dated October 9, 2018.
  
  10/15/2018 in Credit
  
  

• FAQ-196:
  For the November 2018 Auction, if a bidder is relying on its own financial standing but does not have sufficient unsecured credit, can the bidder submit a “letter of reference” to meet the additional pre-bid security requirement?
  
  For the November 2018 Auction, the amount of pre-bid security required is $500,000 per tranche. No additional pre-bid security is required for any bidder. As stated in Paragraph IV.2.9. of the CBP Rules, a bidder that relies on its own financial standing and that does not have sufficient unsecured credit may submit a “letter of reference” to meet the additional pre-bid security requirement when the maximum amount of pre-bid security required per tranche exceeds $500,000. This is not applicable to the November 2018 Auction.
  
  10/02/2018 in Credit
  
  
• FAQ-182:
  Does Paragraph 14 of the Pre-Bid Letter of Credit mean that the Auction Manager is authorized to sign on behalf of AEP Ohio?
  
  While AEP Ohio is solely responsible for determining whether a particular executed Pre-Bid Letter of Credit is acceptable, if an amendment is required, an Authorized Officer of the Auction Manager is authorized to accept or reject the amendment on behalf of AEP Ohio.
  
  02/14/2018 in Credit
  
  
• FAQ-181:
  Where is the post-bid letter of credit posted to the CBP website and can we still submit comments?
  
  The SSO Supplier Letter of Credit is posted to the Documents page of the CBP website. The deadline for submitting comments or proposed modifications has been extended to 12PM (noon) EST on February 26, 2018. Please see our announcement here.
  
  02/14/2018 in Credit
  
  
• FAQ-173:
  Must all SSO Suppliers post the independent credit requirement amount (regardless of the financial position of the SSO Supplier)?
  
  No. An SSO Supplier may qualify for an unsecured credit line for purposes of the Independent Credit Requirement. The Independent Credit Threshold (“ICT”) is the amount of credit, based on the creditworthiness of an SSO Supplier or its Guarantor, if applicable, which AEP Ohio grants to such SSO Supplier to satisfy the SSO Supplier's Independent Credit Requirement (“ICR”). The ICT is determined on the basis of the entity’s credit rating and tangible net worth (“TNW”) in accordance with the matrix on page 19 of the AEP Ohio Master SSO Supply Agreement.
  
  12/07/2017 in Credit
  
  
• FAQ-163:
  Do we need to provide a letter of reference if we are submitting a Letter of Credit for the full amount of pre-bid security required?
  
  If you provide pre-bid security in the form of cash or a letter of credit in an amount of $800,000 per tranche of the indicative offer at the maximum starting price, you are not required to provide a letter of reference.
  
  11/08/2017 in Credit
  
  
• FAQ-162:
  For purpose of part 2 application, can you evaluate our draft Pre-Bid Letter of Credit before the bank issues an executed Pre-Bid Letter of Credit? Where can I find a list of acceptable modifications to the standard pre-bid letter of credit?
  
  While comments to the Pre-Bid Letter of Credit are considered during the Part 1 Application process, AEP Ohio and the CBP Auction Manager only review executed Pre-Bid Letters of Credit during the Part 2 Window and do not review drafts. Please kindly refer to the final list of acceptable modifications to the Pre-Bid Security Documents for the November 2017 Auction posted to the CBP website under the Information – Document page on October 25, 2017 to check that the modifications to the standard format made by your bank are all on the list of modifications that are acceptable to AEP Ohio.
  
  10/31/2017 in Credit
  
  
• FAQ-161:
  What is the amount of pre-bid security required for each tranche for the November 2017 Auction?
  
  For the November 2017 Auction, the amount of pre-bid security required is $800,000 per tranche. As stated in Paragraph IV.2.9. of the CBP Rules:
  • Each bidder must post a pre-bid letter of credit or cash in an amount of $500,000 per tranche of the bidder’s indicative offer at the maximum starting price;
  • A bidder that relies on the financial standing of a guarantor must, in addition to a pre-bid letter of credit or cash, provide a “letter of intent to provide a guaranty” in an amount of an additional $300,000 per tranche of the bidder’s indicative offer at the maximum starting price; and
  • A bidder that relies on its own financial standing and that does not have sufficient unsecured credit must submit a letter of reference in an amount of an additional $300,000 per tranche of the bidder’s indicative offer at the maximum starting price.

  The form of pre-bid security required is provided to each bidder in Attachment 2 of the bidder’s Part 1 Notification. A bidder always has the option of increasing the amount of the pre-bid letter of credit or cash to $800,000 per tranche rather than providing a letter of intent to provide a guaranty or a letter of reference.
  
  10/27/2017 in Credit
  
  

• FAQ-154:
  How do you determine the amount a bidder should provide as its pre-bid security? What is the amount required for a bidder or a bidder’s guarantor who does not qualify for unsecured credit?
  
  All bidders will be provided with instructions for the pre-bid security and the results of its credit assessment in the Part 1 Notification. Based on the credit assessment, if you or your guarantor do not qualify for unsecured credit, then you are required to provide with your Part 2 Application:

  (1) pre-bid letter of credit or cash in an amount of $500,000 per tranche of the indicative offer at the maximum starting price; and either:

  (2a) a letter of reference in an amount of at least $300,000 per tranche of the indicative offer; or:

  (2b) add the $300,000 per tranche to the pre-bid letter of credit or cash. In this case you would provide a pre-bid letter of credit or cash for $800,000 per tranche (instead of $500,000 per tranche).
  
  10/04/2017 in Credit
  
  

• FAQ-143:
  Can we rely on our guarantor’s financial standing if the guarantor is foreign, but is unable to provide the legal opinion and sworn certificates required under the Master SSO Supply Agreement? Assuming that we cannot rely on a guarantor, what are our options to meet the credit requirements under the Master SSO Supply Agreement if the bidder is not rated and does not have standalone financials? What should the bidder do in its Part 1 Application?
  
  First, you may not rely on a foreign guarantor if you are not able to provide the necessary documents required under the Master SSO Supply Agreement related to foreign guarantors. If the bidder does not meet the Minimum Rating requirement or have financial statements, the bidder has to provide cash or a performance assurance letter of credit to meet the credit requirements under the Master SSO Supply Agreement. For purposes of the Part 1 Application, you may indicate that the bidder is relying on its own financial standing and indicate in the space provided that the bidder intends to meet the credit requirements under the Master SSO Supply Agreement using cash or a performance assurance letter of credit.

  Please also see FAQ-36 for information.
  
  02/16/2017 in Credit
  
  

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This website contains information related to the procurement of electric energy supply for AEP Ohio and is intended as a general reference source for all prospective energy supply participants. The site contains descriptions and summaries of documents and information for general background and convenience only. Prospective participants and other interested parties should review complete copies of the relevant documents (also found on this website) and should obtain independent advice before making decisions concerning any CBP.

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