FAQs
Applications
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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 Applications
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FAQ-178:
We are a business that is authorized to receive and forward service of process on behalf of the bidder, how should we complete section 1.4 of the Part 1 Application?
For purposes of completing section 1.4 of the Part 1 Application, a representative agent is a business or individual with an address in Ohio that is authorized and agrees to receive service of process on behalf of the bidder. If a company agrees to accept service of process on behalf of the Applicant, the name and the contact information of an individual from that company must be provided in Section 1.4 of the Part 1 Form and that individual must sign the certification.In your case, you would check the box “no” when asked “Is the Applicant’s Representative also the Applicant’s legal counsel or a representative agent?” You would then proceed to fill in the information where it asks you to “Provide the contact information for the Applicant’s Legal Counsel or Representative Agent.” Lastly, you would complete Insert #P1-4 by checking “yes” to indicate a company has been retained to accept service of process and complete Part A of the insert.
01/23/2018 in Applications
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FAQ-175:
Do we need to complete the PJM Requirements Insert (Insert P1-5) for the Part 1 Application? Where can I find this insert?
To become a Qualified Bidder, an interested party must be qualified by PJM as a Market Buyer and Market Seller, and a PJM Load Serving Entity (“LSE”). If the Applicant is not currently qualified by PJM as a Market Buyer and Market Seller and is not a PJM LSE, then the Applicant must include the completed PJM Requirements Insert (#P1-5) with its Part 1 Application to certify that it has no impediments to become a Market Buyer, a Market Seller, and a PJM LSE by the start of the delivery period and that it undertakes to do so if it becomes an SSO Supplier.The PJM Requirements Insert (Insert P1-5) can be found in the zip file containing the Part 1 Inserts available on the Application Website: https://aepohiocbp-application.com/part-1-inserts/. Please submit this Insert by upload to the space reserved for this purpose in the first item of Section 1.5 of the online Part 1 Form.
01/23/2018 in Applications
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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 Applications
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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 Applications
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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 Applications
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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 Applications
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FAQ-146:
Who should make the certification in the Legal Representative Insert form provided for the March 2017 Auction?
The individual serving as Legal Representative, or an individual on behalf of the company serving as Legal Representative, is required to sign the Legal Representative Insert (#P1-4).
03/01/2017 in Applications
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FAQ-130:
Is the Bidding Agreement Insert (P1-9) required for an applicant that is not part of a bidding agreement, bidding consortium or joint venture?
No, if the Applicant is bidding independently and not as a party to any bidding agreement with another party or through any other arrangement involving joint or coordinated bidding with any other party, the Bidding Agreement Insert (P1-9) is not required.
09/20/2016 in Applications
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FAQ-129:
In the Part 1 Application, who is to sign the certification in the Legal Representative Insert (P1-4)?
The certification is to be signed by legal counsel or a representative agent. A representative agent is a business or individual with an address in Ohio that is authorized and agrees to receive service of process on behalf of the bidder. If a company agrees to accept service of process on behalf of the Applicant, the name and the contact information of an individual from that company must be provided in the Part 1 Form and that individual must sign the certification.
09/20/2016 in Applications
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