The base rates for firm transmission service are announced before each Auction. The rates announced before the past three Auctions are provided below.

Rate for Firm Transmission Service ($/MW-day)

	2010	2009	2008
PSE&G	58.14	49.47	48.30
JCP&L	41.40	41.40	41.40
ACE	68.33	57.10	54.63
RECO	87.98	87.98	87.98

Filings and Orders regarding changes in the transmission rate under Section 15.9 of the Supplier Master Agreement can be found on the BPU Links page.

Yes.

There is no breakdown available of the final auction price. The cost components depend upon a particular bidder’s situation, resources, strategy, and portfolio. The services that must be provided by the BGS Supplier (BGS-FP or BGS-CIEP) are defined in each BGS Supplier Master Agreement, and include Energy, Capacity, Ancillary Services and Network Transmission, all losses and/or congestion costs associated with the provision of such services, and any other service or product that may be required by PJM or other governmental body necessary to meet the share of BGS Load for the EDC. Please note that other services that the BGS Supplier is required to provide include satisfying to satisfy the Energy Portfolio Standards for its share of the BGS Load. The other services that the BGS Supplier is required to provide to PJM may include credit support and any other services required as a result of being a Load Serving Entity in PJM.

A guarantor that has not been incorporated or otherwise formed under the laws of a state of the United States must provide upon execution of the Supplier Master Agreement:

(i) a legal opinion of counsel qualified to practice in the foreign jurisdiction in the which the Guarantor is incorporated or otherwise formed that the Guaranty is, or upon the completion of execution formalities will become, the binding obligation of the Guarantor in the jurisdiction in which it has been incorporated or otherwise formed; and

(ii) the sworn certificate of the corporate secretary (or similar officer) of such Guarantor that the person executing the Guaranty on behalf of the Guarantor has the authority to execute the Guaranty and that the governing board of such Guarantor has approved the execution of the Guaranty; and

(iii) a sworn certificate of the corporate secretary (or similar officer) of such Guarantor that the Guarantor has been authorized by its governing board to enter into agreements of the same type as this Guaranty.

The legal opinion of counsel in part (i) can be the opinion of inside counsel. The sufficiency of the opinion provided, as well as the sufficiency of all other documents submitted, will be determined by the EDC.

Neither the application process nor the Supplier Master Agreement ("SMA") directly requires that the BGS Supplier have or maintain insurance of any kind. These documents satisfy the requirements of the EDCs and the Board with respect to the BGS Supplier. There are representations in the SMA that the Supplier makes. These include that the BGS Supplier is in good standing as a PJM LSE and is qualified to do business in New Jersey. While we are not instantly aware that any of these would require insurance, we have not specifically reviewed this issue and believe it is the bidder's sole responsibility to be aware of any and all requirements that are needed to enable the bidder to be able to make the representations in the SMA.

BGS-FP rates are seasonal. Although the BGS-CIEP rates are not seasonal, BGS-CIEP rates are partly determined by the PJM real-time price that will vary throughout the year.

BGS rates may change on a monthly basis. PSE&G, for example, does a monthly reconciliation of its BGS rates. All of the information on BGS tariffs and reconciliation procedures can be found in the EDC specific addendums and tariff sheets posted to the BGS web site under the “Regulatory Process” page.
 

BGS Suppliers will be responsible for any such charges applicable to the zone of the EDC for which they are a BGS Supplier. These charges will qualify as a transmission rate change under Section 15.9 of the SMAs. As such, should these charges arise the EDC(s) will file with the BPU to reflect the charges in BGS rates. Upon receipt of Board approval these charges will be reflected in BGS rates and will be tracked for the benefit of the BGS Suppliers who pay the charges. Once the charges are approved by FERC in a manner where they are no longer subject to refund, payments will be made to BGS suppliers of the revenues collected from BGS customers to defray such charges. Please note that these charges are zone specific. Hence, it is possible that new Generator Deactivation charges to keep generating units operating due to PJM reliability requirements may not affect some or all of the EDC zones and will affect each zone differently.

The fixed GWh statewide solar obligations in the Solar Energy Advancement Act generally replace the obligations under the existing RPS and are not added obligations. However, in the event that the fixed obligations were less than the RPS percentage then the RPS percentage would govern.

All bidders obtain the same price for the tranches of a given EDC in a given Auction. That price is the final Auction price. The final Auction price may be the exit price placed by the bidder. This would be the case if some or all of the tranches withdrawn by the bidder were required to fill the tranche target but no withdrawn tranches at a higher exit price and no switches were required to fill the tranche target.

No, that is not possible. If the final auction price is lower than the exit price, it means that there are a sufficient number of tranches bid at a lower price and the bidder’s withdrawn tranches will not be retained. In general, a bidder will not win tranches at a price lower than a price that it has freely bid.

The BGS-FP Auction has historically lasted approximately 15 rounds. The exact number of rounds for each year can be found in the files describing previous auction results posted to the “Previous Results” page of the BGS Auction web site.

The de-ration factor is used as follows to determine the energy that an LSE must supply after June 1, 2007: PJM de-rates the hourly loss-loaded data using EDC-specific hourly de-ration factors available in the BGS Data Room to arrive at the loss-less load and settlement values. Zonal Hourly Day-Ahead or Real-Time LMPs can then be applied against these settlement values to determine LSE payments and costs. This means that:

LSE payments & cost = loss-less load * zonal LMP

Where:

Loss-less load = loss-loaded load - (loss-loaded load * de-ration factor)
 

The Peak Load Contribution (“PLC”) is the aggregate zonal peak value used by PJM for purposes of determining the zonal capacity obligation and is based on coincident peak loads on the highest five days in the summer. The Peak Load Allocations (“PLA”) or peak load shares are the allocations of the PLC to individual customers performed by the EDCs. Further detail is provided below.  The Peak Load Allocations in the Data Room are based on each end-use customer’s Peak Load Contributions. Customer Allocated PLC or Peak Load Allocation (available in the BGS Data Room) is determined using specific PJM methodologies.

After the end of a summer period, PJM will identify the five highest weather normalized PJM-system coincident load hours that occurred on different days over the period from June 1 through September 30th. Each EDC-specific zone will reconcile these five different hours back to the one hour weather-normalized, system-coincident zonal peak load obligation. The consequent peak load contributions will be calculated as an average over these five hours. These zonal PLC numbers will then be allocated by each EDC to determine each customer’s PLC. This customer allocation differs across each EDC. These customer allocated PLC methodologies can be found in each of these Third Party Supplier documents:

• Zone Generation Capacity and Transmission Peak Loads and Obligations

• Determination of Supplier Total Hourly Energy Obligation
• Peak Load Share Methodology (For Capacity and Transmission Obligation Purposes)  
• Peak Load Share Sample Calculations (For Capacity and Transmission Obligation Purposes)
  
• Summary of Allocation Factors Used in Customer Capacity & Transmission Peak Load Share Allocation

• Procedures for Determining Peak Load Contribution For Capacity and
  
• Transmission Service And Hourly Energy Obligations
• Capacity and Transmission Peak Load Calculations for Year 2010

• Third Party Supplier Agreement

Please note that BGS-FP and BGS-FP Eligible customer allocated PLCs are determined as residuals. For example, the BGS-FP PLCs are the difference between BGS PLCs and BGS-CIEP PLCs. For more information, please see the BGS Data Room monthly data description document.

After these customer allocated PLCs are determined, they are aggregated by the EDC by customer types (e.g. BGS-CIEP, Retail, etc.) for posting to the BGS Data Room as the Peak Load Allocation files.

The Hourly Data by Customer Groupings -- Historical Load profiles by Rate Class / Profile Group found under the Additional Data page of the BGS web site is data for BGS-FP Eligible.

Under N.J.S.A. 48:3-87(d) and N.J.A.C. 14:8-2, BGS providers and third party suppliers are required to comply with the Renewable Energy Portfolio Standards. The Supplier Master Agreement has required each BGS-FP Supplier and each BGS-CIEP Supplier to satisfy the Renewable Energy Portfolio Standards with respect to its Supplier Responsibility Share. As part of the BGS proceeding for the period beginning June 1, 2010, Docket No. EO09050351, Staff of the New Jersey Board of Public Utilities ("Board") sought input from the New Jersey Electric Distribution Companies ("EDCs"), as well as interested stakeholders on the potential benefits and drawbacks of eliminating this requirement from the Supplier Master Agreement, either with respect to all of the Renewable Energy Portfolio Standards (Solar, Class I, and Class II) or with respect to one or two of those standards.

At its September 16, 2009 Agenda meeting In The Matter of The provision of Basic Generation Service For The Period Beginning June 1, 2010, Docket No. EO09050351, the Board directed Staff to withdraw its question to the New Jersey EDCs, as well as interested stakeholders, seeking input on the potential benefits and drawbacks of elimination of the requirement in the Supplier Master Agreement that each BGS-FP supplier and each BGS-CIEP supplier satisfy the Renewable Energy Portfolio Standards with respect to its Supplier Responsibility Share. There were no changes to the 2010 BGS Auction process on this point. A new proceeding has begun for the provision of BGS for the period beginning June 1, 2011 at which the Board will again consider the proposals filed by the EDCs and other parties.

The BGS-CIEP switching statistics as well as switching data for residential and non-residential customers are typically updated monthly, on or before the 17th of each month. These statistics are available on the Additional Data page of the BGS Data Room as well as on the Monthly Data page (under the "Aggregate" and the "BGS-CIEP" matrices). Additional data statistics will be updated no later than October 1, 2010.

We have a single distribution list. We send to all individuals on this list all announcements, information updates, and deadline reminders regarding the BGS Auctions. To be added to this distribution list, please register on our web site. If you do not wish the receive all announcements, information updates, and deadline reminders, but are only interested in the auction results, we suggest that you check the web site: in early December 2010 for an announcement on the decision of the New Jersey Board of Public Utilities ("Board") regarding the BGS Auctions; in mid-February 2011 for an announcement of whether the Board has approved the auction results (and if so the final auction prices and winning suppliers will be released at that time); and in early June 2011 on the Previous Results page for all public information regarding the then completed BGS Auctions, including the list of winning suppliers, number of tranches won, and final prices.

The auction price for the BGS-CIEP Auction is a price in $/MW for the daily capacity obligation of BGS-CIEP customers. To convert a figure in $/MW-day into a figure in $/MWh, one would divide by 24 and also divide by the load factor of the customers in question.

Please note that the auction price is neither the sole determinant of payments to BGS-CIEP Suppliers nor the sole determinant of the rates paid by BGS-CIEP customers.

The results of the 2010 BGS-FP and BGS-CIEP Auctions, with all publicly available data including the list of winning suppliers, number of tranches won, and final prices, have been posted to the Previous Results page of BGS Auction web site.

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