FAQs
Credit
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FAQ-132:
Paragraph 4 of the Pre-Bid Letter of Credit requires the issuing bank to make payments into your account within a very short period of time should you draw on the Pre-Bid Letter of Credit. To facilitate the payment process should you need to draw on our Pre-Bid Letter of Credit, will you be able to provide wiring instructions to us in advance?
Instructions are available upon request by Bidders.
09/29/2016 in Credit
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FAQ-38:
Is there an assigned expiry date for the Pre-Bid Letter of Credit? If we win tranches in the Auction, can we use the Pre-Bid Letter of Credit to post performance assurance?
The Pre-Bid Letter of Credit must have an expiry date no earlier than 60 calendar days after the date it is issued. The Pre-Bid Letter of Credit cannot be used to post the performance assurance required of Bidders who win supply in the Auction. If the Bidder is using a letter of credit to post performance assurance, the form of SSO Supplier Letter of Credit, which is provided as Attachment E to the Master Standard Service Offer (“SSO”) Supply Agreement, must be used. Please refer to Section 5.9 of the SSO Supply Agreement for more information regarding acceptable forms of performance assurance security.
04/17/2015 in Credit
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FAQ-33:
Is there an assigned expiry date for the Pre-Bid Letter of Credit? If we win tranches in the Auction, can we use the Pre-Bid Letter of Credit to post performance assurance?
The Pre-Bid Letter of Credit must have an expiry date no earlier than 60 calendar days after the date it is issued. The Pre-Bid Letter of Credit cannot be used to post the performance assurance required of Bidders who win supply in the Auction. If the Bidder is using a letter of credit to post performance assurance, the form of SSO Supplier Letter of Credit, which is provided as Attachment E to the Master Standard Service Offer (“SSO”) Supply Agreement, must be used. Please refer to Section 5.9 of the SSO Supply Agreement for more information regarding acceptable forms of performance assurance security.
04/16/2015 in Credit
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FAQ-29:
We are planning to participate in the next AEP Ohio CBP auction. Would you have a form for a pre-bid letter of credit? Most agencies supply their own. Could you forward to us as soon as possible?
The Pre-Bid Letter of Credit for the 1st and 2nd ESPIII Auctions can be found on the AEP-Ohio CBP web site (aepohiocbp.com) by selecting “Information” from the right-hand side navigation bar and then “Documents”.
04/15/2015 in Credit
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FAQ-26:
Can you please explain the difference between the Independent Credit Threshold Guaranty and the Total Exposures Amount Guaranty? Are both Guaranties required of an SSO Supplier who intends to use guaranty for performance assurance, and for how much should each Guaranty be issued?
The SSO may qualify for two separate unsecured credit lines. 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 ICR is calculated on a per-tranche basis, according to Attachment C-1 of the AEP Ohio Master SSO Supply Agreement. The second credit line, the “Credit Limit” will be used to cover the Total Exposure Amount, which includes the Mark-to-Market Exposure Amount under the Master SSO Supply Agreement and is calculated daily for each SSO Supplier, reflecting the total credit exposure to AEP Ohio. Please see the definition for "Total Exposure Amount" in the AEP Ohio Master SSO Supply Agreement for more details on how this amount is determined. Thus the ICR nets against the ICT while the Mark-to-Market exposure calculation nets against the Credit Limit. The ICT granted to the SSO Supplier cannot exceed the amount of the ICT Guaranty, provided that the amount of the Guaranty is below the maximum ICT shown in in section 5.4.(a) of the AEP Ohio Master SSO Supply Agreement. The ICT Guaranty tendered by the SSO Supplier to satisfy the ICT requirement arising under this Section 5.4(a) is a separate guaranty from the Total Exposure Amount Guaranty, if any, tendered by the SSO Supplier to satisfy any requirement for a Credit Limit to cover the Total Exposure Amount. The maximum level of the Credit Limit is determined based on the table in Section 5.6.i. of the Supply Agreement. A single Guaranty may be provided by the SSO Supplier if the Guaranty is for an unlimited amount.
04/13/2015 in Credit
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FAQ-1:
Can you please provide a schedule for the upcoming AEP Ohio Auction?
On February 25, 2015, the Public Utilities Commission of Ohio (“PUCO” or “Commission”) modified and approved AEP Ohio’s electric security plan (“ESP III”) including its Competitive Bidding Process (“CBP”) for procuring supply to AEP Ohio’s standard service offer (“SSO”) customers.The first two (2) auctions will be held April 28, 2015 and May 12, 2015. These two (2) auctions will procure a mix of one, two and three-year products. A single application process will be held for participation in the first two auctions. The timeline for the auctions will be provided to potential participants as soon as practicable. When this timeline is released, it will be announced to the list of registrants to the website. If you have not done so already so, you may register by selecting “Register” under the “Contact Us” tab on the left navigation bar of the web site to receive all such announcements from the Auction Manager via email.
03/03/2015 in Credit
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