FAQs
Supply Agreement
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FAQ-62:
How will any incremental costs related to PJM’s Capacity Performance Product, if approved by the FERC, need to be incorporated into bids?
On December 12, 2014, PJM filed reforms to the Reliability Pricing Market (“RPM”) in regards to the Capacity Performance Product in Docket ER15-623. Additionally, on April 10, 2015, PJM filed a response to FERC’s letter dated March 31, 2015 that informed PJM that its initial proposal was deficient and requested additional information. In this response, PJM is requesting that the FERC accept the reforms effective April 1, 2015 as initially proposed, so that PJM can implement these changes for the 2018/2019 Base Residual Auction.
Neither the Auction Manager nor AEP Ohio can comment on this product or when it will be implemented. Bidders and SSO Suppliers are entirely responsible for investigating potential market changes in PJM and for any other circumstances or factors that may affect their evaluation of providing full requirements to AEP Ohio’s SSO customers. As stated in the Recitals of the Master Standard Service Offer (“SSO”) Supply Agreement, “each SSO Supplier will satisfy its Capacity obligations under the PJM Agreements associated with its respective SSO Supplier Responsibility Share in accordance with the PJM Agreements, including, without limitation, through participation in the base residual auction and incremental auctions administered by PJM.”
Additionally, please see Paragraph 3.1(d), which states “during the Term, each SSO Supplier is responsible, at its sole cost and expense, for any changes in PJM products and pricing required for the delivery of its SSO Supplier Responsibility Share, including all other costs and expenses related to transmission and Ancillary Services in connection with the provision of SSO Supply in proportion to its SSO Supplier Responsibility Share, except for any changes to products or the pricing of such products that are the responsibility of AEP Ohio pursuant to Section 3.2.” Thus, to the extent that PJM introduces a change to its capacity market structure in the form of a Capacity Performance Product or in some other manner, SSO Suppliers are responsible for any increase or decrease in capacity costs that would result.
05/04/2015 in Supply Agreement
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FAQ-48:
Will SSO Suppliers get paid based on energy volumes grossed up for distribution and transmission losses and derated for PJM marginal losses?
Yes that is correct. Please note that the historical de-ration factors for PJM’s transmission losses are available on PJM’s website through PJM’s InSchedule tool.
04/23/2015 in Supply Agreement
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FAQ-36:
If a bidder applied to rely on a foreign guarantor but cannot do so based on an assessment provided in the Part 1 Notification, what are the bidder's options for post-bid security if the bidder wins tranches in the Auction?
If the bidder cannot rely on its foreign guarantor, the bidder will be required to meet the creditworthiness requirements for the SSO Suppliers under section 5 of the Master SSO Supply Agreement in another way. As described in Section 5.9 of the Master Standard Service Offer (“SSO”) Supply Agreement, “Acceptable Forms of Security”, an SSO Supplier has the option to post either cash credited to a deposit account of AEP Ohio or a Letter of Credit in the form of the SSO Supplier Letter of Credit, which is provided as Attachment E to the SSO Supply Agreement, in order to satisfy post assurance collateral requirements.
04/17/2015 in Supply Agreement
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FAQ-32:
If a bidder applied to rely on a foreign guarantor but cannot do so based on an assessment provided in the Part 1 Notification, what are the bidder's options for post-bid security if the bidder wins tranches in the Auction?
If the bidder cannot rely on its foreign guarantor, the bidder will be required to meet the creditworthiness requirements for the SSO Suppliers under section 5 of the Master SSO Supply Agreement in another way. As described in Section 5.9 of the Master Standard Service Offer (“SSO”) Supply Agreement, “Acceptable Forms of Security”, an SSO Supplier has the option to post either cash credited to a deposit account of AEP Ohio or a Letter of Credit in the form of the SSO Supplier Letter of Credit, which is provided as Attachment E to the SSO Supply Agreement, in order to satisfy post assurance collateral requirements.
04/16/2015 in Supply Agreement
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FAQ-27:
Do load volumes posted to the AEP-Ohio CBP Data Room, which include distribution and transmission, represent the quantity PJM uses to establish payment to SSO Suppliers?
PJM’s settlement values will be de-rated for the marginal transmission losses that are already accounted for in PJM’s Locational Marginal Prices (LMPs). Historical deration factors are available on the PJM InSchedule in the reporting tools section.
04/13/2015 in Supply Agreement
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FAQ-21:
How is the Standard Offer Service (SSO) supplier's portion of the load transferred to the supplier's settlement account?
The Electric Distribution Company (EDC) will provide, on a daily basis, the SSO supplier’s load-share to the PJM eSuite subaccount designated by that supplier. The supplier will schedule SSO Supply pursuant to Section 4.1(a) of the Master SSO Supply Agreement using the InSchedule Contract ID as confirmed with the EDC.
04/13/2015 in Supply Agreement
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FAQ-11:
Is there a list of acceptable changes to the Form of SSO Supplier Letter of Credit? If so, can you please post it on the CBP website?
Applicants may request modifications to the standard forms of the pre-bid letter of credit, the letter of intent to provide a guaranty, or the letter of reference ("Standard Pre-Bid Security Documents") that are non-material in nature, or that are advantageous to both AEP Ohio and the Applicant. There is no list of acceptable modifications to the Form of SSO Supplier Letter of Credit (Attachment E to the Master SSO Supply Agreement) because this is a "post-bid" credit instrument that is not subject to this comment process. The standard form of the SSO Supplier Letter of Credit provided as Attachment E to the Master SSO Supply Agreement is acceptable to AEP Ohio.
03/31/2015 in Supply Agreement
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FAQ-5:
What is the name of the pricing point with the Pnode ID 1269364670?
The name of the pricing point with the Pnode ID 1269364670 is AEPOHIO_RESID_AGG. For more information, please see PJM's website:
03/27/2015 in Supply Agreement
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FAQ-3:
Are SSO Suppliers responsible for complying with Ohio's the Renewable Energy Portfolio Standard?
No. Paragraph 3.2 (f) of the Master SSO Supply Agreement states that: "AEP Ohio will be responsible, at its sole cost and expense, for the provision of any renewable energy resource requirement as set forth in Ohio Rev. Code Ann. Sections 4928.64 and 4928.65 and regulations promulgated in respect thereto." This same statement is also provided in the recitals on the first page of the Master SSO Supply Agreement.
03/27/2015 in Supply Agreement
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