Orders approving the BGS Auction process are posted to the "bpu docs" tab of the "auction" page and these include the 2006 BGS Auctions.

The results of previous auctions are posted to the "previous results" tab of the "auction" page and these include the 2006 BGS Auctions.

Orders approving the results of the auctions are not posted to the BGS Auction web site.  We cannot respond to questions regarding postings to the BPU's web site.  If you have a specific question about the 2006 BGS Auctions results, please let us know and we will attempt to be of further assistance.

The calendar notes that September 30, 2011 was the deadline for final comments.  These are comments submitted to the Board in the context of the Docket for the procurement of supply for Basic Generation Service customers (EO11040250).  Any comments are filed with the Board's Secretary at the address below.

Kristi Izzo, Secretary

New Jersey Board of Public Utilities

Two Gateway Center Newark, NJ 07102

If you submitted your comments to the Board, then they will be considered within the Docket.

We note that there is a process for comments to the Pre-Auction Letter of Credit.  These are comments submitted to the Auction Manager (rather than the Board) and reviewed by the EDCs.  The deadline for potential bidders to provide comments is TODAY October 25, 2011.  The BGS Auction Manager will provide individual responses to proposed modifications on November 1, 2011.  The BGS Auction Manager will post all modifications that are acceptable on an optional basis and will post the final Pre-Auction Letter of Credit on Wednesday, November 2, 2011.  However, there is no parallel process for comments to the Post-Auction Letter of Credit.

The BGS Auction web site does not keep an archive of documents from previous auctions.  The current auction rate spreadsheets are provided here.

Please note that ACE is seeking approval for changes to its retail rate design structure this year, as described in Section D of its Company Specific Addendum.  The other EDCs did not request approval for changes in their rate design structures this year.

The EDCs have proposed that the CIEP Standby Fee be set at 0.015¢/kWh.

To participate in the BGS Auction and to become a BGS Supplier, a non-rated entity is not required to provide a parent guaranty and is not required to rely on the creditworthiness of a rated Guarantor.  A non-rated entity is able, under the terms of the BGS-FP Supplier Master Agreement ("SMA"), to use a letter of credit or cash to fulfill the creditworthiness requirements.   

A bidder that wins tranches and that executes an SMA without a Guarantor and where the bidder is not granted an unsecured line of credit under the terms of the SMA would be required to post the amount of the Independent Credit Requirement ("ICR") upon execution of the SMA in the form of cash or a letter of credit.  The ICR is $2.4M per tranche.  Further, the bidder may be required to post additional security to cover any calls for margin under the Mark-to-Market ("MtM") calculation.  For a BGS-FP Supplier that has no unsecured credit under the SMA, the margin is the Total Exposure Amount ("TEA").  The TEA reflects the total credit exposure of the BGS-FP Supplier to the EDC arising under all contracts with the BGS-FP Supplier.  To determine the TEA, the MtM Exposure Amount (calculated by deducting the Accounts Payable from the total MtM credit exposure) for all BGS-FP Agreements that a BGS-FP Supplier holds with a given EDC are summed and added to the credit exposures under any BGS-CIEP Agreement that the Supplier holds with the same EDC.  Whenever the sum of the MtM Exposure Amounts over all agreements yields a negative number the TEA is deemed to be zero. For more information please see the BGS-FP SMA, which is posted to the 'Contract and Credit' page.

You are not too late. 

Potential bidders for the 2012 BGS Auctions are invited to propose modifications to the standard form of the Pre-Auction Letter of Credit. For each proposed modification, the electric distribution companies (“EDCs”) will (i) revise the standard form; or (ii) approve the use of the modification on an optional basis; or (iii) reject the proposed modification. The BGS Auction Manager will respond to each potential bidder individually. Further, at the conclusion of the Comment Process, the BGS Auction Manager will post to the BGS Auction web site the revised standard form for the Pre-Auction Letter of Credit and will also post a single document listing all modifications to the standard form that are approved on an optional basis.

The deadline for submission of potential modifications is noon on October 25, 2011.  Please submit your proposed modifications to BGS-Auction@nera.com in accordance with the process described in the document "Pre-Auction Letter of Credit Comment Process (September 15, 2011)", which is posted here.

A list of modifications that have already been approved is also posted on the page above.

The alternate guaranty process is designed for bidders that have corporate policies that prevent them from using the Standard Guaranty appended to the BGS Supplier Master Agreement.  The alternative guaranty process is NOT a process by which potential bidders can comment on the Standard Guaranty.  Rather, it is a process by which potential bidders can apply to use an alternate form of guaranty.  This alternate form must satisfy a number of requirements, including the requirement that it be for unlimited liability. 

The deadline for submission of an alternate guaranty form is also noon on October 25, 2011.  The minimum requirements as well as the process for submission are described in the document entitled "Alternate Guaranty Process (September 14, 2011)", which is posted here.

Please note that participation in the comment process for the Pre-Auction Letter of credit and the Alternate Guaranty Process is entirely optional.  Bidders that do not participate in these processes may still present their qualifications for participation in the BGS Auctions. 

Please see the BGS-FP Auction Rules and the BGS-CIEP Auction Rules proposed by the EDCs in their July 1 2011 filing to the Board and posted on the Auction Rules web site:

Table 2 of each of the Auction Rules contains the number of tranches, the size, and the MW-measure of the tranches proposed to be included in each Auction (the BGS-FP Auction and the BGS-CIEP Auction).  Table 1 of each of the Auction Rules provides the rate classes of customers for which supply is procured through the BGS-CIEP Auction (supply for the remainder of customers is procured through the BGS-FP Auction).  Supply is not procured separately for classes such as residential or small commercial and industrial. 

The BGS Data Room, on the monthly data page, includes hourly load data that is consistent with those procurement categories (BGS-FP, BGS-CIEP).  Further, on the additional data page, there are some data by rate class that will be updated later this fall. 

The tranche fee for the BGS-FP Auction was $26,000 per tranche.  The tranche fee for the BGS-CIEP Auction was $18,600 per tranche.  The tranche fees are only collected from winning bidders and are applied on the first invoice of the supply period.

This is correct.

The system used to develop this file was updated in November 2010 and reported erroneous results for

November 2010. It has been fixed and a revised file has been posted to the data room that contains a December 2010 update and a corrected November 2010 tab.

The Additional Data page of the BGS Data Room will be updated prior to the BGS Bidder Information Session on September 30, 2011.