| 1. |
Q: |
Article 7.4.8 of the RFP Process and Rules states that “…the Bid Proposal Evaluation Team will communicate with each RFP Bidder that has submitted at least one of the Bid(s) for a Group in the winning combination that will be presented to the Commission.” When is this communication expected to take place? |
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A: |
The Bid Proposal Evaluation Team expects to communicate to RFP Bidders who have bids in the winning combination this fact on the day Bid Proposals are due. Please note that the PUC decision on whether or not to accept the results is expected to occur within three business days (of when Bid Proposals are due), at which time the Transaction Confirmations would then be executed. |
| 2. |
Q: |
Can a bidder override a Bid Proposal by submitting another Bid Proposal? |
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A: |
No. A bidder who wishes to revise a Bid Proposal must submit a Binding Bid Withdrawal Agreement to withdraw its first Bid Proposal. The bidder can then submit a new Bid Proposal, provided it is received within the Bid Proposal deadline and meets all of the other RFP requirements. |
| 3. |
Q: |
Are winning bidders paid the CAP for the tranches they win? |
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A: |
No, bidders are paid the price they actually bid for the load they win. |
| 4. |
Q: |
On the day bids are due, when will the bidders be notified? |
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A: |
The Bid Proposal Evaluation Team will confirm receipt of a Bid Proposal and communicate the RFP Bidder's tagging number by phone. The phone number and contact name used by the Bid Proposal Evaluation Team will be those provided on the Bid Proposal Spreadsheet. The Bid Proposal Evaluation Team expects this notification to occur within 30 minutes of the Bid Proposal Spreadsheet being sent by the RFP Bidder, if sent during business hours. If an RFP Bidder has submitted a Bid Proposal and has not received a call from the Bid Proposal Evaluation Team within that timeframe, the RFP Bidder should phone the PPL POLR Manager Team at 215-568-0200. Please note that if a Bid Proposal is received shortly before the deadline, confirmation may not take place until after the deadline, and if there was an error in transmission it may be too late to resolve it. Bidders are encouraged to submit Bid Proposals in as timely a fashion as possible.
The Bid Proposal Evaluation Team expects to communicate to RFP Bidders who have bids in the winning combination this fact the day Bid Proposals are Due. Please note that the PUC decision on whether or not to accept the results is expected within three business days, at which time the Transaction Confirmations would then be executed. |
| 5. |
Q: |
When will PPL Electric Utilities release the Bid Assurance Letter of Credit? |
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A: |
Please see Article 5.4.2 of the POLR RFP Rules.
PPL Electric Utilities will release the Bid Assurance Letter of Credit for an RFP Bidder within two business days of the following occurring:
-- the RFP Bidder is notified that it is not awarded any tranches;
-- the RFP Bidder is notified that it is awarded tranches and executes the transaction confirmations for the awarded tranches |
| 6. |
Q: |
The POLR Supply Master Agreement contains a number of Exhibits. When must these Exhibits be submitted to PPL Electric Utilities and in what form (i.e. executed, filled out, etc.)? |
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A: |
Before or on the Bid Proposal Due Date, the RFP Bidder must submit Exhibit G filled in with the appropriate contact information for the RFP Bidder, and Exhibit H duly executed. Other exhibits of the POLR SMA either are samples or are documents that do not need to be completed until execution of the Transaction Confirmation form. Please see Article 5.5.1 of the POLR RFP Rules. |
| 7. |
Q: |
Is it possible that the Commission will only approve part of the RFP results? |
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A: |
The Commission approved PPL's POLR RFP Rules. Those rules provide in Article 1.1.15 that "The PUC may either accept or reject all of the Bid Proposals presented for a Group in their entirety." In Article 7.5.1, the RFP Rules state that if the results are approved by the PUC, the winning RFP Bidders will receive a transaction confirmation from PPL Electric on the date of the Commission's approval. Hence, pursuant to the POLR RFP Rules, Transaction Confirmations will only be sent and the results will only be binding on PPL Electric and winning Bidders if the PUC accepts all the results from a particular Group. |
| 8. |
Q: |
If you wish to make a price offer for 4 Total Tranches Supplied, must you enter price offers for all smaller numbers of tranches (1, 2 and 3) that are lower price offers than that for 4 Total Tranches? |
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A: |
If you wish to enter a price offer for 4 Total Tranches Supplied, you must also enter bids for 1, 2, and 3 Total Tranches Supplied. However, there are no restrictions on the dollar amounts of the prices that you enter into the cells of the Bid Proposal Spreadsheet. If you bid on 4 Total Tranches Supplied, your bids for one, two or three tranches could be more or less than your bid for four tranches. Please keep in mind that there are strict rules governing the cells that must be filled out in order for your Bid Proposal Spreadsheet to be accepted. |
| 9. |
Q: |
In the event the Seller under the SMA is not a rated entity, is the Seller required to post a guaranty from a rated entity during the bidding period or the transaction term or, is a guaranty one form of alternate Performance Assurance that could be acceptable to PPL? |
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A: |
The RFP Rules require that either the Seller or Guarantor be rated in order to qualify. If during the transaction term a Seller that qualifies based on its Guarantor being a rated entity, elects to provide liquid security in lieu of the Guaranty, that is permissible under the POLR SMA. |
| 10. |
Q: |
In Article 1.1.8 of the POLR Rules, the MW-Measure is determined for the Residential and Small Commercial Groups by the current 2010 Projected PLC for this group. Would migration to EGSs reduce the projected 2010 peak PLC for each group over time? Is it the case that the MW-Measure for each tranche for the Residential and Small Commercial Group will change, while the number of blocks will remain at 102 over the course of the auctions and the delivery period, irrespective of any changes in the Projected 2010 Projected PLC for these two groups? |
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A: |
As stated in Article 1 of the POLR SMA, the PLC for a Group includes all customers in that Group, customers that take POLR service AND customers that take service from an EGS. The number of tranches for a Group is fixed and the number of tranches is determined so that each tranche is approximately 50 MW of PLC for that Group. The MW-Measure of a tranche will not change solely on the basis of customer migration. Each tranche in a Group represents a fixed percentage of the POLR Load for that Group. The POLR Load (but not the PLC) would fall - and the load for which a supplier is responsible would fall - if customers leave POLR Service to take service from an EGS, but this migration would not affect the PLC. |
| 11. |
Q. |
When is Bid Assurance Collateral in the form of cash due? Do we receive interest on Bid Assurance Collateral submitted in the form of cash? |
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A: |
Bid Assurance Collateral, whether in the form of cash or a Letter of Credit, is due by noon EPT on the Bid Proposal Due Date, which is October 5, 2009 for this sixth solicitation. The RFP Bidder will not receive interest on cash submitted as Bid Assurance Collateral. |
| 12. |
Q: |
What has changed in the Supplier Documents for this sixth solicitation from the fifth solicitation? Is there a redline? |
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A: |
There are no redlines of documents from the previous solicitation. The documents for this sixth solicitation have not been materially changed; the rules have been updated to reflect the due dates and other terminology specific to the sixth solicitation, as well as the actual number of tranches for the Large Commercial and Industrial Group as determined by the number of customers that have opted-in to the solicitation. The SMA contains no changes. |
| 13. |
Q: |
Rules FAQ #1 states that "The Bid Proposal Evaluation Team expects to communicate to RFP Bidders who have bids in the winning combination this fact the day Bid Proposals are Due." What time of day do you expect to notify the bidders in the winning combination? |
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A: |
The Bid Proposal Evaluation Team expects to communicate to RFP Bidders who have bids in the winning combination this fact before the close of business (5:00 PM EST) on the day Bid Proposals are due. |
| 14. |
Q: |
When will bidders be notified whether or not the Bid Evaluation Team is including their bids in the report to the PAPUC? |
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A: |
The Bid Proposal Evaluation Team expects to communicate to RFP Bidders who have bids in the winning combination this fact before the close of business (5:00 PM EST) on the day Bid Proposals are due. The Bid Proposal Evaluation Team also expects to communicate to RFP Bidders who do not have bids in the winning combination this fact before the close of business (5:00 PM EST) on the day Bid Proposals are due, however such calls to non-winners are made on a best-efforts basis. |
| 15. |
Q. |
Slide 43 of the Web cast presentation states that within each Group, the RFP Manager will consider all combinations of Bids across Bidders whose sum of Total Tranches Supplied fills the needed tranches, calculate a Combination Average Price (“CAP”) for each such combination, and the winning Bids will be those in the combination with the lowest CAP. The CAP is equal to the average price of the Bids in the combination weighted by their corresponding Total Tranches Supplied. How is this different from simply ordering the bids from lowest to highest and taking the lowest-priced bids? |
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A. |
Your question assumes incorrectly that bids are submitted on a price-per-tranche basis. In the PPL POLR RFP, bids are submitted on a $/MWh basis for multiple tranches at a time; e.g., if an RFP Bidder bids on three tranches, that bidder names a $/MWh price at which it is willing to serve the load associated with all three tranches, and also a separate price at which it is willing to serve the load associated with two tranches, and a third price at which it is willing to serve one tranche. This is different from other RFP structures where a bidder who wishes to bid on three tranches may name a $/MWh price for each tranche individually. Because of the manner in which bidders submit bids in the PPL POLR RFP, bids cannot simply be ordered from lowest to highest in order to determine the lowest-cost combination of bids; the RFP Manager must evaluate every possible combination of bids from all bidders in order to determine the lowest combination average price. |