| 1. |
Q: |
Where can I find the RFP for the power that was bid on for supply in 2009? |
| |
A: |
PPL Electric Utilities currently buys power for customers under a long-term contract with PPL EnergyPlus. This contract is the result of solicitation in 2001 and it expires at the end of 2009. PPL Electric Utilities is not soliciting further proposals for supply in 2009. PPL Electric Utilities is seeking proposals from competitive electricity suppliers to provide a portion of the electricity the company will need in 2010 to fulfill its obligation as provider of last resort. For PPL Electric Utilities POLR RFP Process and Rules as well as qualification requirements, please see the "Supplier Documents" section of the website. |
| 2. |
Q: |
Where can I find the text of the RFP? |
| |
A: |
The RFP Process and Rules document, including all appendices, is available on the RFP Web site. The Commission Order is available here. |
| 3. |
Q: |
Could you please identify the Capacity LDA in which POLR Load is located in for Planning Years 9/10 & 10/11? |
| |
A: |
For the current Planning Year, the Capacity Locational Deliverability Area (LDA) defined by PJM for PPL is the "RTO". For the Planning Year 9/10 the PPL LDA will be defined for PPL by PJM as "MAAC+APS." For the Planning Year 10/11 the LDA will be defined by PJM as "PPL." |
| 4. |
Q: |
Will the PUC decision be made by noon on or by the close of business on the day tranches are awarded? |
| |
A: |
We expect that the decision would be made by the close of business. |
| 5. |
Q: |
This RFP will procure supply for 2010. What type of procurement process will be used to procure supply for 2011 and beyond? |
| |
A: |
This RFP is designed to be a bridge plan, and does not include a plan for procurement in the post-bridge period. The procurement process for 2011 and beyond currently is being developed by PPL Electric Utilities. |
| 6. |
Q: |
Will the results of this RFP be compared to any particular benchmark to determine acceptability to the Commission? |
| |
A: |
No benchmark will be provided by PPL Electric Utilities or by NERA to the Commission and the Commission's Order does not discuss the use of a benchmark. NERA will provide a confidential report to the Commission which will contain a review of the conduct of RFP process, a summary of submitted bids, and the evaluation results. The report may also discuss the market context in which the bids were made, including data from wholesale markets and comparable solicitations in other jurisdictions, keeping in mind that the relevant supply period is not until 2010. |
| 7. |
Q: |
You have stated that "the costs incurred by PPL Electric to administer the solicitations will be incorporated into customer retail rates." How much will this charge be? |
| |
A: |
While it is difficult to predict exactly what this charge will be, PPL Electric expects that it will be very small. |
| 8. |
Q: |
Does PPL Electric Utilities have a form W-9 available? |
| |
A: |
Yes. Please send an email to pplpolr@pplweb.com to request a form W-9 for PPL Electric Utilities. |
| 9. |
Q: |
Does House Bill 1530 force utilities to take "high-volume electricity users" off of POLR service and to offer them "cheaper long-term contracts" or otherwise affect any of the customers in the RFP? |
| |
A: |
PPL Electric Utilities is not aware of any provisions in House Bill 1530 forcing utilities to take users off of POLR Service. It is the responsibility of bidders to monitor and analyze legislation. |
| 10. |
Q: |
Will PPL Electric Utilities be providing exemption certificates for the PA Sales Tax? |
| |
A: |
PPL Electric Utilities will provide winning suppliers with a resale exemption for the PA Sales tax. |
| 11. |
Q: |
Do you need a retail license to serve PPL Load pursuant to this RFP? |
| |
A: |
There is no state licensing requirement. |
| 12. |
Q: |
Have the identities of the winning bidders from the previous solicitations been released? |
| |
A: |
At this time, the identities of the winning bidders from the previous solicitations have not been released by PPL Electric Utilities or by the Pennsylvania Public Utility Commission ("Commission"). The Commission may release this information in the future. |
| 13. |
Q: |
Will PPL Electric consider changing the schedule of this solicitation? |
| |
A: |
There are many events with a timing that is outside the control of PPL Electric Utilities and the RFP Manager but that one could speculate may influence the participation of suppliers in the RFP or their level of participation. These could include not only the timing of procurement of capacity by PJM and the release of such results, but also the timing of other procurements for full-requirements supply by other utilities, the timing of certain decisions by PJM regarding other aspects of the market, the timing of certain decisions by FERC regarding transmission and other tariffs that may affect POLR suppliers, the timing of proposals by other utilities to bid out their POLR service, state policy decisions regarding renewable standards or emissions standards such as the Regional Greenhouse Gas Initiative, the setting up of new demand response programs, the announcement of new transmission/generation projects, the implementation of federally-mandated efficiency standards, etc. It would be at best difficult and at worst futile for PPL Electric to take into account the timing of all possible events and attempt to adapt and update the RFP schedule every time the timing of such an event becomes known. In addition, if PPL Electric had proposed in its POLR filing to retain discretion to change the bid dates, potential bidders may have been discouraged from incurring costs to prepare for a solicitation that PPL Electric could postpone. PPL Electric believes that there is value to adhering to the published schedule so as to give suppliers certainty on the timing of the various solicitations. Thus, PPL Electric Utilities has set a schedule that allows the procurement of POLR supply over several solicitations so as to mitigate volatility in short term markets. This schedule was approved by the Commission in Docket No. P-00062227. Prospective suppliers have known about this schedule and its approval by the Commission and can confidently make future plans on the basis of this schedule. |
| 14. |
Q: |
Are winners of past solicitations of the RFP publicly disclosed by PPL Electric or the PaPUC? |
| |
A: |
The names of the winners in individual solicitations will not be released during the RFP Process. As stated in the Confidentiality Agreement that appears as Appendix 3 to the RFP Rules, "the identity of all (but no fewer than all) bidders who were awarded any load in the state may be released on a statewide basis on or after the first day of the service year." |
| 15. |
Q: |
Do the prices entered by RFP Bidders on their Bid Proposal Spreadsheets include Gross Receipts Tax, or is the GRT added later? |
| |
A: |
The prices entered on your Bid Proposal Spreadsheet do not include Gross Receipts Tax. For an explanation of how bid prices are converted to generation prices incorporating GRT, please see Customer and Rates FAQs #15 and #18. |
| 16. |
Q. |
Can PPL Electric provide a copy of the Confidentiality Agreement where changes can be tracked? |
|
A. |
PPL Electric's Web site has Word versions of supplier documents available for download. These documents are formatted to facilitate submission of bidder information, but the documents cannot be changed. The Confidentiality Agreement, which is Appendix 3 to the PPL POLR RFP Process and Rules document, was approved by the PaPUC in Docket No. P-00062227 and is not subject to change or comment. |
| 17. |
Q. |
In the case of severe weather at our main office, is it possible to get an extension on the bid submission date? |
|
A. |
In general, PPL Electric does not change the RFP Schedule, which was approved by the Commission. Please be aware that a Qualified Bidder may submit its Bid Proposal Spreadsheet(s) from any computer with Internet access, regardless of geographical location, as long as the individual submitting the spreadsheet(s) has the correct download password as specified in the bidder's Notification of Qualification. If, due to an emergency, a Qualified Bidder cannot submit its bid using the electronic file transfer system, the bidder should call the RFP Manager, who will arrange an alternative method of bid submission to ensure that all bidders who wish to submit bids may do so. |
| 18. |
Q. |
We understand that rate caps might be extended to PPL through calendar year 2010. We have the following questions:
1) Will payments to Suppliers be affected by such a rate cap? If not, how does PPL intend to raise the capital to cover the difference between the Supplier payments and the rate cap? Will PPL be able to collect this cost of borrowing?
2) How will the rate caps be implemented? Will this impact the generation component of the bill? In other words, will a customer be able to compare the entire supplier generation price when deciding whether to go to an alternative supplier?
3) How will the extension of the rate caps impact PPL's rate stabilization plan? |
|
A. |
PPL Electric cannot speculate on the possible effects of potential legislation that may or may not become law. It is PPL Electric's intention to honor the obligations under the POLR Supply Master Agreements that it signs in the RFP, to the extent possible under the law. Should legislation extending rate caps be enacted, PPL Electric will promptly ascertain its effects on the POLR SMA and its rate stabilization plan, if any, and notify POLR suppliers and bidders of its assessment. It is PPL Electric's understanding that the current proposed legislation to extended the rate caps would be implemented by simply extending the current cap on the generation component of rates. |
| 19. |
Q. |
In reference to Other/General FAQ #18, are you able to offer any direction or further clarification as to which provision(s) of the SMA might be impacted by the extension of rate caps should such an extension occur? |
|
A. |
PPL Electric cannot provide any additional information beyond the information provided in Other/General FAQ #18. PPL Electric reaffirms its statement therein that it cannot speculate on the possible effects of potential legislation that may or may not become law. It is PPL Electric's intention to honor the obligations under the POLR Supply Master Agreements that it signs in the RFP, to the extent possible under the law. |
| 20. |
Q. |
Where can I find the Master SMA document for the RFP? |
| |
A. |
The POLR Supply Master Agreement is provided as Appendix 1 to the RFP Process and Rules and can be found here: http://www.pplelectric.com/Business+Partners/polr-cbp/Supplier+Documents.htm |
| 21. |
Q. |
For purposes of the POLR RFP under PPL Electric’s Competitive Bridge Plan, how is the Small C&I customer group defined? Will Rate Schedule LP-4 customers with less than 500 kW peak demand be included in the Small C&I Customer Group and Rate Schedule GS-3 customers with 500 kW or greater peak demand be included in the Large C&I Customer Group? |
|
A. |
No, that breakdown is used for the Full Requirements RFP under PPL Electric’s Default Service Procurement Plan (DSPP), which is for default service supply beginning 2011. For this POLR RFP, which covers the supply period from January 1, 2010 to December 31, 2010, please refer to the POLR RFP Process and Rules, which will identify the rate schedule for each of the customer groups. |
| 22. |
Q. |
Regarding the proposed consumption reduction in PPL Electric’s Energy Efficiency plan, is that a reduction from 2009 consumption level or projected consumption level in 2011? |
|
A. |
The PUC directed each Electric Distribution Company (“EDC”) subject to Act 129 to submit a consumption forecast for the period June 1, 2009 through May 31, 2010, and peak demand data for the period June 1, 2007 through May 31, 2008. The reduction is based on the peak demand data from the June 1, 2007 through May 31, 2008 period. |
| 23. |
Q. |
Regarding the proposed consumption reductions under Act 129, do you anticipate PPL Electric taking any actions in 2010 to initiate some of the reductions that you expect to see longer term? |
|
A. |
Once the Energy Efficiency plan is approved, there will be a series of solicitations to solicit conservation service providers to implement the plan that is addressed in the filing. At that point, it is a matter of how fast the conservation service providers can implement the plan. Implementation of the plan is expected in 2010, but it is unclear what type of progress or impact this will have on consumption in 2010. |
| 24. |
Q. |
I understand some smart meters have been installed throughout your system. Have they all been converted to smart meters? |
|
A. |
Yes. All 1.4 million meters on our territory are interrogated several times a day, and we have a database of at least hourly data for all customers. A smart meter implies hourly load data available for all customers. |
| 25. |
Q. |
Economic load response program – Customers who will opt for the program, will the POLR supplier be responsible for the cost of the PJM economic load programs? |
|
A. |
For day-ahead and real-time economic load response, the LSE is charged the difference between LMP and the retail rate, as applicable, times the MWh reduction. For more information see Exhibit D (Sample PJM Invoice) that shows that the PJM Demand Response program is the responsibility of the Seller.( here ) |
| 26. |
Q. |
If we sign up for the RFP, but then decide not to participate, can we still back other counterparties into the RFP? For instance, if we choose not to participate, can we still assist other counterparties in their hedging needs if they win something in the RFP? |
|
A. |
Should you be a qualified bidder for this solicitation, you are not committed to submit bids for this solicitation. However, you will have submitted an executed Confidentiality Agreement. PPL Electric recommends that you seek legal advice pertaining to your obligations under the agreement, including any agreement that may affect your ability to assist other counterparties in their hedging needs. |
| 27. |
Q. |
It seems as if the Small Commercial customers are less than 100 kW of demand (is that correct?) How big are the large customers? Between 100 kW and 500 kW? Greater then 100 kW with no max? Is there a larger customer class or are these the only three customer classes in the PPL service territory? |
|
A. |
First, we assume that your question is asked in the context of PPL Electric’s Competitive Bridge Plan. The three customer groups under the Competitive Bridge Plan are the Residential Group, the Small Commercial and Industrial (“Small C&I”) Group, and the Large Commercial and Industrial (“Large C&I”) Group. Each Group is defined on the basis of the Company’s existing specific rate schedules. Section 1.1.3 of the POLR RFP Rules provides a full description of rate schedules within each customer group. |