GEN 00001

Question: If a CRES provider is licensed and operating in OH, but not with FirstEnergy, can they be eligible to supply under the RFP?

Answer: No, a CRES provider would need to register with the FirstEnergy Ohio Utilities to be able to participate in the RFP. Please see the below language from the PUCO order in Case No. 16-247-EL-UNC.

"Further, we find that the RFP auctions should procure supply for PIPP load for a period of 12 months, and that every registered CRES provider in the electric utility's service territory shall be provided the opportunity to participate, pursuant to R.C. 4929.54 and subject to any credit requirements the utility may have that would be necessary to ensure supplier performance."

GEN 00002

Question: Can you please post the W-9 and articles of incorporation for all 3 utilities?

Answer: The W-9 will be provided to winning bidders upon request. The articles of incorporation for each of the Ohio Utilities are posted on the Documents page.

GEN 00003

Question: What does market based transmission mean? Please provide a list of all market-based transmission costs. Which specific sections or costs are included?

Answer: In this context, market-based transmission generally means transmission and ancillary charges whose rates/costs are set in total or in part by the PJM energy market. Congestion and incremental losses would be two examples. Section 2.3 of the Master PIPP Supply Agreement lists all current transmission costs that will not be the responsibility of PIPP Suppliers. All other transmission costs that are incurred by suppliers as the Load Serving Entity (LSE) will be the responsibility of the Supplier.

GEN 00005

Question: How are ARR revenue allocations handled?

Answer: PJM Auction Revenue Rights (ARR) allocations are performed by PJM per Section 17: Auction Revenue Rights Settlements contained in PJM's Manual 28: Operating Agreement Accounting found at http://www.pjm.com/~/media/documents/manuals/m28.ashx. If the RFP has not taken place, or suppliers have not been identified prior to the start of the ARR nomination process, the FirstEnergy Ohio Utilities will make the ARR nominations for the open PIPP load and the resulting allocations will be posted on the Load and Other Data Documents page of the Information Website. Once the suppliers for the PIPP load have been identified, PJM will allocate the PIPP supplier its proportional share of ARRs for the load being served in accordance with the PJM manual.

GEN 00007

Question: Does the Legal Representative listed on the Account Request Form need to be our Legal Representative in Ohio? If so, can we also list an internal Legal Representative that does not have an address in Ohio?

Answer: Indicating the Legal Representative in the Account Request Form is optional. However, you must identify the Legal Representative in the Application. The Legal Representative is legal counsel that is authorized and agrees to accept service of process on the applicant’s behalf and the Legal Representative must have an address in Ohio.

GEN 00008

Question: If I fill out an application and upload all the financial data (10K, 10Q, etc.) and also the PJM documentation, do I also have to send hardcopies of the financial data and other supporting documentation?

Answer: The Application can be submitted electronically; no hardcopies are required.

GEN 00009

Question: Are applicants allowed to submit proposed changes to the Master PIPP Supply Agreement with the Application?

Answer: No changes to the Master PIPP Supply Agreement will be accepted.

GEN 00010

Question: Can you please provide an electronic Word doc version of the post-bid LOC format for us to make changes to?

Answer: A Word version of the Form of PIPP Supplier Letter of Credit is available on the Supplier Documents Web page on the Information Website.

GEN 00011

Question: Can you please confirm when the RFP results will be made available to the public?

Answer: This is determined by the Public Utilities Commission of Ohio’s post-RFP review process. In the Bidding Rules document, please see the sections on "Notification of Results" and "Certifications and Disclosures to Be Made."

GEN 00012

Question: Can you please clarify the options open to bidders in regards to complying with the certification to be registered and authorized to do business in the State of Ohio. Do bidders either need to be organized in the State of Ohio or have an agent there?

Answer: As part of the Application process, applicants are required to identify the applicant’s Legal Representative in Ohio, who must be a legal counsel, have an address in Ohio, and be authorized and agree to accept service of process on the applicant’s behalf.

GEN 00013

Question: Under the Master PIPP Supply Agreement, winning bidders organized outside of Ohio must be registered and authorized to do business and in good standing in Ohio. By registering to do business in Ohio, will we be exposed to Ohio's gross receipts tax across all of our business units? Are there any options or strategies to minimize exposure to the Ohio gross receipts tax?

Answer: FEOU is an Ohio company and this transaction is taking place in Ohio and is therefore subject to Ohio laws and taxes. FEOU cannot provide tax advice to any bidders -- bidders will need to do their own due diligence related to tax obligations.

GEN 00014

Question: Can a successful Applicant add a parental guarantee during the Application process? More generally, can a successful Applicant alter its creditworthiness by either adding a guarantor, changing its guarantor, dropping a member of its bidding consortium, or changing out a member of its bidding consortium with a more credit-worthy entity?

Answer: Prior to the Application Due Date, a successful Applicant may alter its creditworthiness as follows:
(1) Add a guarantor, in the case where a guarantor was not named in the original Application.
(2) Change its guarantor from the one named in the original Application to a new one.
(3) Modify the composition of its bidding consortium so as to drop the member with the lowest creditworthiness, thereby raising the creditworthiness to the next highest credit status (to the extent there is no guarantor).
A successful Applicant may not add a new member to its bidding consortium from what was disclosed in the finalized and approved Application.
In all cases where the creditworthiness of the successful Applicant is changed, a new set of information in the relevant Application forms must be submitted to the RFP Manager prior to the Application deadline. To the extent the financial status of a successful Applicant changes, either through Application modifications or external factors, the successful Applicant must inform the RFP Manager.
A Registered Bidder also is required to report any change in financial status before the RFP.

GEN 00015

Question: Have there been any PJM studies to estimate specific ancillary charges for the FirstEnergy Ohio Utilities, like the RTO Start-up Recovery Charge, Synchronized Reserve, Expansion Cost Recovery, and Blackstart Charges? In addition, are there any SECA filings that could result in future SECA charges for the FirstEnergy Ohio Utilities?

Answer: FEOU does not know of any studies done by PJM on ancillary charges for the ATSI footprint. Most ancillary charges are market-based and are determined by the PJM market for ancillary services. Suppliers should contact PJM with specific questions regarding ancillary services. FEOU does not know of any potential SECA filings that would affect suppliers participating in this RFP.

GEN 00016

Question: When is the pre-bid collateral due and when will it be returned? Can cash be posted instead of a letter of credit?

Answer: Pre-Bid Security has the same due date as the Part 2 Application. Unless noted otherwise for a particular auction, it will remain in full force, at a minimum, until the fifth calendar day for winning bidders. Prebid security for non-winning bidders may be returned sooner. Subsequently, a bidder’s Pre-Bid Security will be cancelled and returned. Yes, cash can be posted (via wire transfer) instead of a letter of credit.

GEN 00017

Question: Can a bidder submit multiple Applications for different companies within the corporation as long as they disclose this? If so, does each company being submitted need different Authorized Representatives and Authorized Delegates?

Answer: Different companies within the same corporation can submit their own Applications as long as they disclose they are doing this. The same Authorized Representative and the same Authorized Delegate cannot be used across the different companies in their Applications.

GEN 00018

Question: Is there a cure deficiency period for the Application? Will you notify participants if we need to make any updates to the application?

Answer: As is outlined in the instructions for the Application, the RFP Manager will notify applicants of any deficiency in their Application and the applicant will be allowed time to remedy any such deficiencies.
The RFP Manager will send a deficiency notice to the applicant’s Authorized Representative by email. You will have until 12:00 p.m. noon prevailing Eastern Time on the Application Due Date, or until 5:00 p.m. prevailing Eastern Time on the Business Day following the Business Day during which a deficiency notice is sent, whichever comes later, to respond. If you do not correct or adequately explain the deficiency within the time allowed, your Application may be rejected and you may be unable to participate in the RFP process.

GEN 00019

Question: Our financial statements are not public information. Can you please identify the documents that state that the FirstEnergy Ohio Utilities and the RFP Manager (CRA International) will keep these confidential?

Answer: As stated in the Application and reproduced below, materials submitted in association with the Application will be shared on a confidential basis with the FirstEnergy Ohio Utilities, CRA International, and the Public Utilities Commission of Ohio.

GEN 00020

Question: Is the product in the RFP for all 3 utilities combined together or is there a separate product for each of the utilities?

Answer: The product in the RFP is for the three utilities combined. There is no product specific to each utility.

GEN 00021

Question: Does the load that PIPP Suppliers serve include Unaccounted For Energy (UFE)?

Answer: Yes. Please see Attachment M-1 of the PJM Open Access Transmission Tariff.

DAT 00003

Question: Can you please provide the distribution and transmission loses post transition from MISO to PJM?

Answer: Please see the Supplier Tariff and PJM OATT for these values.

DAT 00006

Question: Does the non-shopping, hourly load data provided on the Information Website include or exclude PIPP load?

Answer: Percentage of Income Payment Plan (PIPP) data are not part of the non-shopping hourly load data posted on the Information Website. PIPP data are provided separately on the Website and can be obtained from the file, “PIPP Customer Data”.

DAT 00007

Question: Are the values posted to the Information Website in the file "Capacity and Transmission PLC.xls", equal to the Obligation Peak Load or is the Obligation Peak Load a function of the PLC values and the Daily Zonal Scaling Factor?

Answer: The Obligation Peak load is a function of the Peak Load Contribution (PLC) values and the Daily Zonal Scaling Factor.

DAT 00008

Question: Can FE provide the RFP winner with access to instantaneous, real-time load information? This would help the winner mitigate real-time risk.

Answer: No. The FirstEnergy Ohio utilities do not have access to real-time data of the Percentage of Income Payment Plan (PIPP) obligation.

DAT 00010

Question: Are the data included in the FirstEnergy Ohio Utilities' Historical Hourly Loads by Class files included on the Information Website presented in Eastern Standard Time?

Answer: No. The data are in Eastern Prevailing Time.

DAT 00011

Question: In the "Capacity and Transmission PLC" data file, does the "RES Shopped" column on the Capacity PLS tab include the PIPP load?

Answer: No. The Percentage of Income Payment Plan (PIPP) load is shown on its own tab.

DAT 00012

Question: In the "Capacity and Transmission PLC" data file, the Grand Total column is the Total FE Load PLC. Can you provide the corresponding UCAP for the Total FE Load?

Answer: No. The data needed to make calculations of this type are publicly available. The Final Zonal RPM Scaling Factors and the Forecast Pool Requirement can be found on the PJM Website. The Daily Zonal Scaling Factors are posted with the load and other data on this Information Website.

DAT 00013

Question: As a follow-up to DAT 00012, is the Grand Total column on the Capacity PLS tab not inclusive of PIPP? The PLS data for the entire FE Ohio footprint would be the sum of the PIPP Capacity PLS tab and the Grand Total column of the Capacity PLS tab?

Answer: That is correct. The Grand Total column does not include Percentage of Income Payment Plan (PIPP).

DAT 00014

Question: Do the non-shopping residential customer counts in the file “Historic Customer Switching.pdf” include both PIPP load as well as the remaining non-shopping residential SSO load, or does it only represent the latter?

Answer: The non-shopping residential customer counts in the file “Historic Customer Switching.pdf” include both PIPP load as well as the remaining non-shopping residential SSO load.

DAT 00019

Question: Are the posted customer counts for Feb and Dec 2021 correct? They seem to be outliers given the surrounding months. Any 2022 count data available?

Answer: The historical PIPP customer counts posted have been confirmed to be correct.  An updated report reflecting 2022 data will be posted today April 4, 2022.

DAT 00020

Question: Do you know what caused the sharp decline in the number of PIPP customers and capacity PLS values starting around beginning in late November 2021?

Answer: The historical PIPP customer count and associated capacity and transmission values are confirmed to be correct.  The Company is unable to determine a specific reason for the decline in PIPP customer counts and is unaware of any changes in program rules and regulations that may have impacted enrollments.

CRE 00001

Question: Could you please provide bank name and information for the $1.5M cash deposit required to participate?

Answer: This information will be provided to the Registered Bidders only. To become a Registered Bidder, you need to submit the PIPP Supplier Application and be informed by the PIPP RFP Manager that your application has been reviewed and accepted.

CRE 00002

Question: Please advise when the Word documents for the Pre-Bid letter of credit and for the Supplier letter of credit will be added to your Website, so we may contact our banks.

Answer: The Word documents for the Pre-Bid Letter of Credit and the post-RFP Supplier Letter of Credit have been posted to the Supplier Documents page of the Information Website.

CRE 00003

Question: Where can Appendix B with the alternate guaranty rules be found?

Answer: "Appendix B - Alternate Guaranty Forms" is on page 47 of the Application posted on www.firstenergypipprfp.com/Documents/SupplierDocuments.aspx.

CRE 00004

Question: If a foreign guarantee is rated by one or more rating agencies do you still need a legal opinion with respect to a foreign guarantee?

Answer: Yes. Pursuant to the Application language, even if a Guarantor that is incorporated in a foreign jurisdiction is rated by one or more rating agencies, a legal opinion still is needed with respect to the Guaranty.

CRE 00005

Question: May we place an evergreen clause in the Pre-Bid Letter of Credit (LC) so we can issue the LC for future procurements and adjust the amounts between RFPs?

Answer: An evergreen clause can be applied to a Pre-Bid Letter of Credit (LC). The bidder will need to work with the Auction Manager during the application process to amend the LC to the appropriate amount and at the appropriate time for each auction.

CRE 00006

Question: If I am the winning bidder, will I be required to post any collateral against my supply obligation?

Answer: The winning bidders will be subjected to the credit requirements as set forth in Article 6 - Creditworthiness; Performance Assurance in the Master PIPP Supply Agreement. Depending on the creditworthiness of the bidder, the winning bidder may be required to post collateral in the form acceptable to the Companies.

CRE 00007

Question: Assuming the Applicant is not rated by a rating agency and did identify a Guarantor, please confirm that the following options are available to this Applicant: (1) Guarantor may provide the required bid security on behalf of the Applicant in the form of cash or a letter of credit. (2) Guarantor will provide the required Master PIPP Supply Agreement security in the form of cash or a letter of credit at or before the time of execution of the Master PIPP Supply Agreement.

Answer: Both options are available.

CRE 00008

Question: When will my pre-bid security be returned to me?

Answer: Considerations related to pre-bid security are outlined in Section 4.2 of the Bidding Rules for the FirstEnergy Ohio Utilities' PIPP RFPs: Pre-bid security will remain in full force, at a minimum, until five (5) calendar days after the conclusion of the RFP. Subsequently, a bidder’s pre-bid security will be cancelled and returned as follows: (a) as soon as practicable once it has been determined that the bidder will not be declared the RFP winner or (b) after the bidder has signed the Master PIPP Supply Agreement and has complied with all creditworthiness requirements of the Master PIPP Supply Agreement. The FirstEnergy Ohio Utilities can collect on the financial guarantees of a winning bidder that fails to sign the Master PIPP Supply Agreement or fails to comply with the creditworthiness requirements immediately following the close of the RFP.

CRE 00009

Question: In the definition of Total Exposure Amount in the Master PIPP Supply Agreement, is the intent that each of clauses (ii) and (iii) be without duplication to each other (e.g., that a “credit exposure” not include any “mark-to-market exposure amount”)?

Answer: Yes, clauses (ii) and (iii) in the definition of Total Exposure Amount do not duplicate each other. Clause (ii) includes only the mark-to-market exposure amount under any Other PIPP Supply Agreement. Clause (iii) includes the payable from the Companies to the PIPP Supplier under any Other PIPP Supply Agreement.

CRE 00010

Question: Can we keep our Pre-bid Letter of Credit in force (at some nominal amount) between RFPs so the language does not need to be reviewed and approved for each RFP?

Answer: See the related question above (CRE 00005).

CRE 00011

Question: In the Application, Section 1.7, Financial and Credit Information for the Applicant, if the Applicant is relying on a Guarantor, is it okay to simply skip (a)-(f)?

Answer: Applicants relying on a Guarantor do not need to complete Section 1.7 (a) to (f) of the Application. Applicants relying on a Guarantor will need to complete everything in Section 1.8 of the Application.

PJM 00001

Question: Which party receives the marginal loss surplus allocation from PJM?

Answer: The PIPP Supplier who is also the Load Serving Entity (LSE) receives the marginal loss surplus allocation from PJM.

PJM 00002

Question: Will Generation Deactivation charges (PJM OATT Part V) be the responsibility of the PIPP Suppliers or the Companies?

Answer: Generation Deactivation charges will be the responsibility of the Companies.

PJM 00003

Question: It is our understanding that PJM would derate the reported hourly loads for marginal losses and settle on the loss-derated loads. Does the historical load data provided include this deration? If not, can the deration factors (or estimates) be provided?

Answer: PJM does settle on a loss-derated basis. The historical load data provided are based on a loss-derated basis.

PJM 00004

Question: Will each of the Companies' load be billed and settled separately? Or will the load from the three Companies (CEI, OE, & TE) be combined and settled as one load by both PJM and the Companies?

Answer: The load will be billed and settled as the three companies combined both by PJM and the Companies.

PJM 00005

Question: Can you provide an estimate for the ancillary charges for the FirstEnergy Ohio Utilities in PJM?

Answer: FEOU cannot estimate the ancillary charges that suppliers will be responsible for. These charges are market based, and some of them are dependent on the supplier's specific source. FEOU cannot provide an estimate for the ancillary charges for the FirstEnergy Ohio Utilities.

PJM 00006

Question: In a follow-up to another PJM FAQ, are PIPP Suppliers paid on PJM FE Zonal load applicable to PIPP Supply, which reflects marginal loss deration and distribution losses (incremental load to bridge the difference between load at the wholesale level and the retail meter)? Will the Companies pay PIPP Suppliers on the same load amounts that PJM relies on for settlement?

Answer: As stated in the Master PIPP Supply Agreement, the PIPP Suppliers are responsible for the expenses related to both transmission and distribution losses. The Companies will pay PIPP Suppliers on the same load amounts that PJM relies on for settlement, which is load that does not include transmission losses (marginal loss deration). PIPP Suppliers will be delivering load to the Companies that includes distribution losses and will be settling with PJM financially for transmission losses.

PJM 00007

Question: Please confirm that, consistent with the requirement for bidders to be LSEs under all "applicable" rules, bidders do not have to be LSEs registered with NERC, as the Companies -- and not bidders -- are the entities that own and/or operate physical power system assets/wires for distribution to PIPP customers.

Answer: The Load-Serving Entity (LSE) is no longer a functional entity registration category that is covered by North American Electric Reliability Corporation (NERC) reliability standards as it was viewed to be more of a commercial market function. On October 15, 2015 FERC issued an order (RR15-4-001) accepting a proposal by NERC to eliminate the Load-Serving Entity (LSE) function from the registry criteria and to revise the NERC Rules of Procedure (ROP). NERC coordinated with the North American Energy Standards Board (NAESB) to ensure LSE market functions were covered by NAESB standards. The Companies who own and/or operate physical power system assets/wires for distribution service to SSO customers are registered as Distribution Providers (DP) and are obligated to comply with NERC reliability standards. 

PJM 00008

Question: Does the PIPP Supplier deliver energy to the ATSI Zone or the FEOHIO_RESID_AGG?

Answer: In accordance with the Master Percentage of Income Payment Plan Supply Agreement, suppliers deliver energy to the FE Ohio Aggregate who’s current name in PJM is FEOHIO_RESID_AGG and is subject to change from time to time.

PJM 00009

Question: According to FERC Order 745, all RTOs allowing Demand Response in energy markets must pay Demand Response Resources full LMP at all hours. The cost of such a program is allocated to load. Is the cost associated with FERC Order 745 the responsibility of the FirstEnergy Ohio Utilities?

Answer: No, the cost associated with FERC Order 745 is not the responsibility of the FirstEnergy Ohio Utilities. Pursuant to the Master PIPP Supply Agreement, any market-based cost allocated to load is the responsibility of the Load Serving Entities, which includes the winning bidder in the PIPP RFP.

AGR 00001

Question: Can you provide details of the PIPP program and the rules for customers switching from SSO to PIPP and back?

Answer: Percentage of Income Payment Plan (PIPP) is an extended payment arrangement that requires electric companies to accept payments based on a percentage of the household income. As a part of the Universal Service Fund program enabled by Ohio Substitute Senate Bill 3, the Deparment of Ohio Development will administer the PIPP for electricity customers. Please see the following link for further details: http://development.ohio.gov/is/is_pipp.htm

If/when a customer would leave the PIPP program, they would be able to become an SSO customer or shop with a Competitive Retail Electric Service (CRES) supplier.

AGR 00002

Question: Who is the PIPP Supplier's counterparty to the Master PIPP Supply Agreement and is there a single contract or three?

Answer: The PIPP Supplier's counterparty to the Master PIPP Supply Agreement is the FirstEnergy Ohio Utilities. There is one contract.

AGR 00003

Question: Are each of The Cleveland Electric Illuminating Company, The Toledo Edison Company, and Ohio Edison Company (hereafter each referred to as an “EDC”) able to separately exercise rights and remedies under the Master PIPP Supply Agreement or are they able to exercise rights and remedies only collectively as the Companies? For example, is there any danger to a PIPP Supplier that a particular EDC will issue an instruction (e.g., regarding margin calls) or make a declaration (e.g., regarding an Event of Default) that is contrary to another EDC under the Master PIPP Supply Agreement or make contrary determinations regarding an SSO Supplier’s creditworthiness for purposes of Article 6 of the Master PIPP Supply Agreement?

Answer: It would not be expected that the electric distribution utilities under the Master PIPP Supply Agreement would render conflicting decisions. Also note that another FAQ states that, "The PIPP Supplier's counterparty to the Master PIPP Supply Agreement is the FirstEnergy Ohio Utilities. There is one contract."

AGR 00004

Question: Are each of The Cleveland Electric Illuminating Company, The Toledo Edison Company, and Ohio Edison Company jointly and severally liable or collectively liable for obligations of the “Companies” under the Master PIPP Supply Agreement? If not, please explain what their respective and collective liability is thereunder. Is a PIPP Supplier entitled to exercise rights and remedies (e.g., termination) against the Companies collectively, for example in the event that any particular Electricity Distribution Company (EDC) defaults and a consequent Event of Default occurs under the Master PIPP Supply Agreement?

Answer: It is the Companies' position that the Companies under the Master PIPP Supply Agreement are severally, but not jointly, liable. Each Company would be responsible for its proportionate share of liability.

AGR 00005

Question: Please confirm that a specified single point of contact will speak for the Companies collectively with respect to notices (other than those required under Article 6) and that a single point of contact will speak for the Companies collectively with respect to notices required under Article 6

Answer: Please see Article 13.1 of the Master PIPP Supply Agreement which provides for notifications to the Company.

AGR 00006

Question: Do the FirstEnergy Ohio Utilities have an overarching parent guaranty from FirstEnergy Corp.?

Answer: No, the FirstEnergy Ohio Utilities do not have an overarching parent guaranty from FirstEnergy Corp.

AGR 00007

Question: As this is a sale for resale, is there a risk that the FirstEnergy Ohio Utilities withhold payment to the PIPP Supplier in the event of PIPP customer non-payment or dispute?

Answer: No. There is no risk that payments to PIPP Suppliers are withheld in the event of PIPP customer non-payment.