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.