| General |
| 1. |
Q. |
Will customer rates for the RTS and RS classes be adjusted from the RFP clearing prices to account for the differential between the two classes for 2011? |
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A. |
The difference being credited to the RTS customers will be spread out (charged) among all the RS customers; however, please note that the number of customers in the RTS class is considerably small (approximately 14,000) as compared to the number of customers in the RS class (approximately 1,200,000). As a result, there will be no discernable difference in the rate customers will be paying versus the clearing prices. |
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| 2. |
Q. |
Will the winning bidders and prices be disclosed eventually? |
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A. |
As stated in the Confidentiality Agreement appended 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." It is not expected that the identity of winning bidders would be disclosed before that time.
Individual bid prices awarded to suppliers are not disclosed. However, following each solicitation, PPL Electric provides a news release that provides the average generation supply prices for each customer group. The news release can be found here: http://www.pplelectric.com/Business+Partners/polr-dspp/RFP+Results.htm |
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| 3. |
Q. |
The PPL Electrics News Release on August 13, 2009 regarding the August 2009 solicitation results (available here) states the "purchase of five-month full-requirements contracts resulted in a price of $88.60 per megawatt-hour for residential customers and $90.31 per megawatt-hour for small- and mid-sized business customers." Please (a) provide a detailed explanation as to how the winning combination average price is transformed into the single published price for each of the Residential and Small C&I customer groups, and (b) also indicate whether the awarded price for the block supply plays a role in the calculation of the published price for the Residential Group. |
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A. |
The approach PPL Electric followed to calculate the average generation supply price for each customer group (residential, and small commercial and industrial) resulting from a given solicitation uses only the Full Requirements winning bids and proceeds as follows: |
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1. |
The starting point is the Combination Average Price ("CAP") of the winning bidders for the group. |
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2. |
The CAP is multiplied by 1.0568 to reflect adjusted total line losses of 5.68%, which is calculated using the formula:
Adjusted Total Line Losses = Total Loss Factor * (1 - Average PJM Loss Deration Factor)
where Total Loss Factor = 1.0885
Average PJM Loss Deration Factor = 0.0291 Adjusted Total Line Losses = 1.0885 * (1 - 0.0291) = 1.0568 |
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3. |
The amount from step 2 is divided by (1 - .059) to reflect the current Gross Receipts Tax rate. |
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4. |
The resulting amount is the average generation supply price for the group. |
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The awarded price for the Block Supply RFP does not enter into the calculation of the Residential Full Requirements price published in the news release. |
| 4. |
Q. |
Please provide the administrative costs of the RFPs that will be included in customer rates or an estimate of what this cost will be. |
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A. |
The costs incurred by PPL Electric to administer the solicitations will be incorporated into customer retail rates. While it is difficult to predict exactly what this charge will be, PPL Electric expects that it will be minimal. |
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| 5. |
Q. |
With reference to the PPL Electric news release regarding the bid results of the first and second solicitations, are the prices disclosed for the full requirements load following bids already adjusted for losses and GRT, or are these prices the winning combination average prices of load following bids on October 20th? Please also clarify how network transmission costs and ARR credits are accounted for in terms of the announced prices in both news releases. |
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A. |
The prices disclosed for the full requirements load following bids are adjusted for losses and gross receipt taxes. Please refer to Customer and Rates/General FAQ-3 for the specific approach PPL Electric followed to calculate the average generation supply price for each customer group. The announced prices do not account for network transmission costs or ARR credits. |
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| 6. |
Q. |
Could you please confirm that the purchase prices for the block products reported in the August 2009 and October 2009 press releases ($57.15/MWH and $57.70/MWH) are unadjusted? In other words, could you please confirm that they are not grossed up for line losses or GRT? |
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A. |
You are correct. The reported prices for the Block Supply RFP are unadjusted for line losses or GRT. |
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| 7. |
Q. |
I am trying to find out if Transmission charges will still be bypassable (pass thru) charges after 1/1/10 when the fixed energy charges take effect. |
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A. |
Transmission charges after 1/1/10 will be charged to customers through the transmission service charge (TSC), which does include Network Integration Transmission Service (NITS) as well as over/under collections; thus, all transmission charges are bypassable. |
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| 8. |
Q. |
Can you tell us what the average generation price is for 2010? In the PPL news release on October 8, 2009, it states that the price will be 29.7% higher. |
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A. |
The average generation price for 2010 for Residential customers is 9.948¢/kWh.The 29.7% increase referenced in the press release calculates the overall bill increase for the average Residential customer (1,000 kWh monthly) from 2009 to 2010. |
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| 9. |
Q. |
In the July 22, 2010 press release on the July 2010 procurement, it gives a combined price of $77.25 for the 17 and 20-month residential product. Is it possible to get the clearing price broken out separately for each of the 17 and 20-month products? |
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A. |
There is no additional information regarding the results of the 17-month and 20-month Residential and Small C&I products publicly available at this time. |
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| 10. |
Q. |
Can you please provide the rate translation mechanism used to calculate rates for Residential and SCI customers for the period June 1, 2011 - August 31, 2011? Can you provide an explanation as to the difference between the published numbers of $87.74/MWh for Residential customers and $130.28/MWh for SCI customers? |
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A. |
The attached links details how the rates are calculated: click here. Please review and ask any additional questions as needed. |
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| 11. |
Q. |
It appears that June - August 2011 SCI rate includes an under collection charge of $37.32 (plus losses and taxes). Please provide further detail on how this charge is calculated and please explain if the under collection adjustment include bad debt due to customers defaulting on their bills? |
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A. |
There are two major components that can impact the status of over or under collection – specifically the under collection is calculated by comparing revenues collected and procurement expense incurred.
The first is a function of timing between when revenues are collected from customers, which are based upon the monthly billing cycles throughout the month, and when expenses are incurred, which is a calendar month. This difference between revenue month and calendar month creates a discrepancy, resulting in either an over or under collection. Additionally an over or under collection could be a result of the difference between the kWh that is forecast for a period and the actual kWh used. For the SCI rate group an under collection occurred at the end of 2010 and the rate of $0.00981 per kWh was factored into the PTC for the period January 1, 2011 to May 31, 2011. During this period more customers in the SCI rate group shopped than forecasted, as a result the under collection from the beginning of January was not recovered, which increased the under collection to be recovered during June 1 to August 31. The under collection does not include bad debt from customers. |
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| 12. |
Q. |
Can you also provide an explanation for the difference between the residential under collection adder of $1.21 and the SCI under collection adder $37.32? |
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A. |
Please refer to FAQ-11 for an overview of how under or over collection expenses are calculated. Additionally, the difference between Residential and SCI under collections is due to different procurement expenses for the two classes of customers, differing revenues collected from two independent customer classes, and a larger than expected migration in customers under the Small C&I class than originally forecasted in the previous period. |
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| 13. |
Q. |
Following FAQ General #2, would you please point us to the disclosure of the identity of the winning bidders who were awarded load for this service year and previous service years? http://www.pplelectric.com/Business+Partners/polr-dspp/faq_customer_and_rates.htm |
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A. |
PPL Electric is not required and has not committed to releasing the identity of winning bidders. At this time, this information is not available for the DSPP. |
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| 14. |
Q. |
On the page entitled "RFP Results," the two most recent procurements have detailed results postings under a link entitled "Procurement Results." However, the 5 procurements prior to October 21, 2010 do not feature the same detail. Would you please point us to the location of this information, or if it is not currently posted, would you please post this information? If this information is not allowed to be posted, would you please tell us why? |
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A. |
The detailed results posting you referred to were provided pursuant to PUC Order dated October 12, 2010 under Docket No M-2009-2082042, which requires for the release the weighted average winning prices by procurement class for the products in each solicitation. PPL Electric is not required to produce these results on a retroactive basis, but notes that information related to each solicitation can be found in the news releases issued by the company for each solicitation: click here. |
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| 15. |
Q. |
Can PPL provide an updated response on the Settlement Process as described in FAQ Contract/Block FAQ-3 & FAQ-4. |
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A. |
The descriptions in Contract/Block FAQ-3 and Contract/Block FAQ-4 remain accurate descriptions of the PPL settlement process. As noted therein, most all PPL customers are metered on at least an hourly basis. Load profiles play a very limited role in the development of settlement data as they are only used for unmetered accounts and to fill in data that is missing due to sporadic technical issues. |
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| 16. |
Q. |
When does PPL plan to disclose the procurement results of the Default Service Procurement Plan? |
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A. |
The results of the past solicitations are posted on the RFP Web site: click here. |
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| Block |
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No questions submitted for this category at this time. |
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| Load Following Full Requirements |
| 1. |
Q. |
Is there a deadline prior to which an LCI customer must opt into OMPS for the 5 month term starting January 2011? Are there any switching restrictions that prevent an LC&I customer from electing OMPS at any point during the 5 month delivery term? |
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A. |
Customers currently on PPL Electric service may elect to receive OMPS for the 5-month supply period beginning January 1, 2011 by making an affirmative election by December 15, 2010. Customers taking service from an EGS during the supply period may switch to OMPS on any meter reading date in accordance with the Company's standard switching requirements. |
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| 2. |
Q. |
If a customer on EGS service or PPL Electric hourly default service does not elect for OMPS by December 15, 2010, are they allowed to switch to OMPS prior to June 1, 2011? Please describe the process through which a customer can elect OMPS. Will PPL send all LCI customers an opt-in notice for OMPS and if so, what will be the timing of the notices? |
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A. |
PPL Electric is in the process of sending to all LC&I customers, which includes both default service customers and customers taking service from an EGS, notices related to the affirmative election of OMPS. The deadline for customers on default service to affirmatively elect OMPS is on December 15, 2010. Customers taking service from an EGS may also elect OMPS by December 15, 2010 to start on this service by January 1, 2011 or such customers may switch to OMPS on any meter reading date in accordance with the Company's standard switching requirements. |
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| 3. |
Q. |
If a customer has remained on Large C&I fixed price service through 2010 and they do not affirmatively elect the OMPS, will PPL Electric transition them to the hourly service served by DSSM Suppliers? |
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A. |
A Large C&I customer on fixed price service in 2010 who does not affirmatively elect to take OMPS by December 15, 2010 and who does not elect to take service from an EGS will be placed on PPL Electric hourly service on January 1, 2011. |
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| AEC |
| 1. |
Q. |
Please provide the average winning bid prices for the products procured in the August 2009, the October 2009 and the January 2010 solicitations of PPL Electric's AEC RFP. |
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A. |
The average winning bid prices for AEC products in $/MWh from the August 2009, the October 2009 and the January 2010 solicitations are as follows: |
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Delivery Term
Starting 1/1/2011 |
Tier I |
Tier I (PV) |
Tier II |
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5-month |
3.00 |
335 |
0.10 |
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8-month |
3.50 |
350 |
0.14 |
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11-month |
2.35 |
350 |
0.17 | |
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| 2. |
Q. |
What was the clearing price for solar AEC's in the 5-year procurement that was held on July 20, 2010? |
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A. |
Please refer to the news release dated July 22, 2010 for information related to the July 20, 2010 solicitation. |
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| OMPS RFP |
| 1. |
Q. |
What is the process by which a LC&I customer elects to receive OMPS service? Do they have to elect to receive OMPS service by a certain date? If so, what is that date? If a customer has left OMPS service at any point during the term, can they then elect to return to OMPS service? |
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A. |
Following the successful OMPS solicitation, Large C&I customers must opt-in to the OMPS, there is no affirmative election date. Switching from one rate to another is based upon the switching rules, aligning with a customer's meter reading schedule. A customer may opt-in to the product at any time during the 3-month period.
OMPS Customers may not switch to Default Service (i.e., the Company's existing hourly priced service for Large Commercial and Industrial customers) until shopping with an EGS for at least one month. An OMPS customer may leave OMPS in any calendar month after providing notice to the Company by the first day of the preceding month. Customers taking service from an EGS during the supply period may switch to OMPS on any meter reading date in accordance with the Company's standard switching requirements. |
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| SREC |
| 1. |
Q. |
Where can I find the result of the SREC RFP per the Secretarial Letter dated May 17, 2011. |
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A. |
The results of the May 2011 Solicitation of the SREC RFP was released in the PPL news release dated June 2, 2011: click here. |
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| 2. |
Q. |
When will results of the July 2011 Long-Term SREC RFP be announced? |
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A. |
The results of the July 2011 Solicitation of the SREC RFP were released in the PPL news release dated August 11, 2011: click here. |