|
Frequently Asked Questions - Rules
General, Block, Load Following Full Requirements, AEC
Return to Main FAQ Page
| General |
| 1. |
Q. |
When will bidders be notified if they have winning bids? |
|
A. |
Bidders will be notified by the close of business on the Bid Proposal Due Date if they have winning bids. |
|
|
|
| 2. |
Q. |
Will PPL Electric return partly executed SMAs to unsuccessful bidders? |
|
A. |
No, SMAs will not be returned to unsuccessful bidders in a solicitation. As stated in section 6.1.5 of the RFP Rules, if the RFP Bidder is not awarded quantities or tranches in the solicitation for which SMAs were provided, PPL Electric will retain the SMAs for any future solicitation in which the RFP Bidder may again submit a Bid Proposal. |
|
|
|
| 3. |
Q. |
Would the discussion between two Sellers regarding Assignment of one Seller's SMA load obligation to another violate any of the certifications or representation contained in the RFP Rules? |
|
A. |
Any discussion between two Sellers may violate terms of the RFP Rules, such as the Binding Bid Agreement. You should consult your attorney on this issue. |
|
|
|
| 4. |
Q. |
Where can I find the detailed bid schedule for the PPL Electric Default Service Procurement Plan? |
| |
A. |
The detailed bid schedules for each RFP is posted on the RFP Schedule page of the Web site approximately six weeks prior to the Bid Proposal Due Date of each solicitation. An announcement will be sent to all Web site registrants regarding the posting at the beginning of each solicitation. |
|
|
|
|
|
|
| Block |
| 1. |
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? |
|
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 4 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. |
| |
|
|
| Load Following Full Requirements |
| 1. |
Q. |
For each category of AECs (i.e., Tier I (non-Solar), Tier I (Solar) and Tier II), is there a requirement to name only one price for all quantities of the same category of AECs bid? |
|
A. |
Yes. For each solicitation and each product, the bidder must name the quantity of AECs the bidder is willing to supply and must name only one price for all such AECs. |
| |
|
|
| 2. |
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? |
|
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 4 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. |
|
|
|
| AEC |
| 1. |
Q. |
What is the amount and type of AECs that PPL Electric seeks to procure through the AEC RFP? What vintage of AECs are eligible? |
|
A. |
Through the Alternate Energy Credits (“AEC”) RFP, PPL Electric purchases AECs necessary to meet the AEPS Obligation associated with its purchases of Block Energy Supply under its Default Service Procurement Plan (“DSPP”). In the AEC RFP, AECs will be procured through multiple solicitations that mirror the purchases of Block Energy Supply under the DSPP. In each solicitation, the vintage of the AECs must enable PPL Electric to comply with the Pennsylvania Alternative Energy Portfolio Standards for retail sales of energy during the supply period covered by the Block Energy Supply. In each solicitation, PPL Electric seeks to procure the following categories of AECs: Tier 1, Tier 2, and Photo-voltaic (a subset of the Tier 1 AECs). Before each solicitation, PPL Electric will announce the amount that it seeks to purchase in each category.
For example, in the first solicitation, PPL electric is purchasing 50 MW of Block Supply for a delivery period beginning January 1, 2011 through May 31, 2011. Correspondingly, PPL Electric seeks to purchase 4,965 Tier I (Non-Solar) AECs, 34 Tier I (Solar) AECs, and 10,331 Tier II AECs. The AEPS Act permits EDCs and EGSs to bank AECs created in one reporting year for use in either or both of the two subsequent reporting periods. See 73 P.S. § 1648.3(e)(6). As such, any AECs procured pursuant to the AEC RFP in the first solicitation must be based on renewable energy generated between June 1, 2008 through May 31, 2011. |
|
|
|
| 2. |
Q. |
Can you confirm that the delivery period and target quantities for solicitations 5 and 6 of the AEC RFP are the same? |
|
A. |
This is correct. In each of the solicitation 5 and solicitation 6, PPL Electric will seek to procure a total of 84,613 Tier I (non-solar AECs), 1,880 Tier I (Solar AECs), and 129,645 Tier II AECs for a delivery period of 5 years beginning in January 1, 2011. The AECs will be delivered throughout the 5 year period to meet the prescribed requirements within the Pennsylvania Alternative Energy Portfolio Standards Act (“AEPS Act”) at 73 P.S. §§ 1648.1-1648.8. The quantities of AECs required to comply with AEPS requirements for a compliance year gradually increases during the 5 year delivery period.
Through the Alternative Energy Credits (“AEC”) RFP, PPL Electric purchases AECs necessary to meet the AEPS Obligation associated with its purchases of Block Energy Supply under its Default Service Procurement Plan (“DSPP”). In the AEC RFP, AECs will be procured through multiple solicitations that mirror the purchases of Block Energy Supply under the DSPP. In the fifth solicitation and the sixth solicitation, PPL Electric is soliciting bids to block energy supply for the period January 1, 2011 through December 31, 2015. As such, PPL Electric will also solicit bids to supply Tier I (solar), Tier I (non-solar) and Tier II AECs that comply with the Pennsylvania Alternative Energy Portfolio Standards for retail sales of energy during the supply period covered by the Block Energy Supply of January 1 through December 31, 2015. |
|
|
|
| 3. |
Q. |
In RFP, PLC(MW) for residential class are 3765 (01/01/11~05/31/11) and 3585 (06/01/11~12/31/11). Are these excluding 300 MW block supply contracts and up to an additional 50 MW a long-term unit entitlement supply contract or including both of them? For Jan ~may/11, is the obligation 3765 or 3765-300 = 3465? |
|
A. |
The PLC (MW) for the Residential Customer Group as provided in the Full Requirements RFP Rules is for the entire Residential Customer Group.
Please note that these numbers are 'forecasts' or projections of PLCs, and will change to match actual peak load contributions once actual supply begins at the commencement of the supply period. For historical PLC data please see the Rate Category & Load Data from 2001 to present found here.
Please also see Data/General FAQ-4 and FAQ-10 for additional information. |
|
|
|
| 4. |
Q. |
For each solicitation, please specify the compliance year applicable to the target quantities. Also, from which period of generation can the RECs come from for each solicitation? |
|
A. |
Through the Alternative Energy Credits (“AEC”) RFP, PPL Electric purchases AECs necessary to meet the AEPS Obligation associated with its purchases of Block Energy Supply under its Default Service Procurement Plan (“DSPP”). In the AEC RFP, AECs will be procured through multiple solicitations that mirror the purchases of Block Energy Supply under the DSPP.
For example, in the second solicitation, PPL Electric solicited bids to supply Tier I (solar), Tier I (non-solar) and Tier II AECs for the period January 1 through August 31, 2011. These AECs must comply with the Pennsylvania Alternative Energy Portfolio Standards for retail sales of energy during the supply period covered by the Block Energy Supply of January 1 through August 31, 2011. In particular, 5/8 of the target AEC quantities of each AEC category will be used for the compliance period June 1, 2010 through May 31, 2011, and 3/8 of the target AEC quantities of each AEC category will be used for the compliance period June 1, 2010 through May 31, 2011.
The AEPS Act permits EDCs and EGSs to bank AECs created in one reporting year for use in either or both of the two subsequent reporting periods. See 73 P.S. § 1648.3(e)(6). As such, in this October 2009 solicitation, 5/8 of the AECs procured must be based on renewable energy generated between June 1, 2008 through May 31, 2011 and the remaining 3/8 of the AECs procured must be based on renewable energy generated between June 1, 2009 through May 31, 2012. |
| 5. |
Q. |
My understanding is that the second solicitation of the AEC RFP is for eight months only. How will subsequent auctions work? Also, can you recommend what is a reasonable price to assume? |
|
|
|
|
A. |
The first solicitation and second solicitation of the AEC RFP is for 5-month and 8-month contracts, respectively. Please see Rules/AEC FAQ-1 and Rules/AEC FAQ-4 for more information as to the duration of contracts in subsequent solicitations. We are unable to recommend what price to "assume" for AECs as this is a component of the RFP process and is subject to the results of the bid. |
| |
|
|
| 6. |
Q. |
Are there any supplier caps on the AEPS bids, either within a single solicitation or among all the solicitations? For example, can one supplier provide all of the AEPS requirements for PPL? Is there a minimum number of required bids within a solicitation for each product in order for the solicitation to be considered competitive? Is there a maximum allowable price for any of the products above which bids will be automatically rejected? |
|
A. |
There are no supplier caps established for the AEC RFP and one supplier may provide all of the AECs for a given product or in a given solicitation. There is no maximum allowable price for any of the products. The Commission makes the decision whether or not to accept the results of the RFP. |
Return to top
|