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Archived Frequently Asked Questions

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FAQ-1. Could you post redline documents for the RFP Rules and Default Service SMA so that the potential Suppliers can compare these documents between the current Default Service Program (DSP IV) and the prior Default Service Program (DSP III)?

Redline documents for the RFP Rules and Default Service SMA has been posted to the Documents section under RFP Information.

FAQ-2. Is PPL Electric’s RFP considered a wholesale transaction or a retail transaction? Would the supplier need to be a retail electric provider? Or is it sufficient if the supplier holds a wholesale power license?

This is considered a wholesale transaction where the default service supplier would be responsible to provide full requirements service to serve a portion of the load of PPL Electric’s default service customers under the terms of the Default Service SMA. Please refer to the Default Service SMA for the detailed obligations and requirements associated with the default service supplier.  These requirements include being a PJM member in good standing, being qualified as a PJM “Market Buyer” and “Market Seller” pursuant to PJM Agreements and being qualified as a PJM “Load Serving Entity.”

FAQ-3. Can PPL Electric share the Stage 1A ARR paths and associated MWs that winning suppliers will be allocated?

PPL Electric does not get involved in the supplier ARR nomination process. As such, PPL Electric does not have any information on the paths that are chosen by each supplier during the ARR nomination process. The entities that have the opportunity to nominate paths in this process are those that are supplying default service when the ARR nomination process occurs. ARRs have been allocated to each default service supplier based on the tranches associated with such supplier pursuant to those previously executed default service SMAs. PJM provides and implements the rules associated with ARRs and FTRs, as found on their website.

FAQ-4. Could you please post the previous RFP results on the RFP website?

Previous RFP results can be found on the Archive page under Background Information section (http://www.ppldsp.com/background/archives/).

FAQ-5. When is the next RFP scheduled?

Please see the Calendar page of the RFP website for the schedule of the current solicitation as well as the tentative schedule for future solicitations.

FAQ-6. Where can I find a list of winners in previous PPL Electric’s RFP solicitations?

The list of winning bidders in prior RFPs is not publicly available.

FAQ-7. Between November 2016 and December 2016 the “Reactive Supply and Voltage Control from Generation or Other Sources Service Revenue Requirements” charge for PPL Talen Energy Marketing, LLC increased from $8,695,867.64 to $19,724,107.32, a 127% increase equal to approximately $11 million. Could you confirm that default service suppliers are responsible for these charges and any associated increases? Also, do you expect increases of similar magnitude in these charges between now and May 2018? (Source: http://www.pjm.com/markets-and-operations/billing-settlements-and-credit.aspx)

Wholesale energy suppliers are responsible for Reactive Supply and Voltage Control costs/credits imposed by PJM. PJM billing line items pulled back by PPL Electric are detailed in Appendix C of the Supplier Master Agreement. Any costs or credits not outlined in Appendix C are the right and responsibility of winning wholesale suppliers.  PPL Electric does not have information on the evolution or fluctuation of costs from Reactive Supply and Voltage Control. As such, the Company is not able to forecast or predict what future costs may look like for wholesale suppliers.

FAQ-8. If the PPL Electric’s TOU program is implemented by June 2018, will fixed-price wholesale suppliers who are awarded load in the October 2017 solicitation be at risk for losing customers to the PPL Electric’s TOU default service program?

The TOU program is not expected to be implemented by June 2018 and  the suppliers who will be awarded tranches in the October 2017 solicitation are not expected to be affected by the TOU Program.

FAQ-9. Can suppliers expect any changes to the default service contract to alleviate the significant migration risk between the competing products offered by PPL Electric, such as linked bids or switching restrictions?

Suppliers who will be awarded tranches in the October 2017 solicitation are not expected to be affected by the TOU Program.  The current form of the Default Service SMA states that the Default Service Load excludes the TOU Load and PPL Electric does not expect to make any changes to this current form of the Default Service SMA.

FAQ-10. PPL Electric stated in its TOU proposal that a minimum of nine months is required to fully implement the TOU program, implying that approval was required by the end of August 2017 for a successful June 2018 launch. Does the fact that the proposal is still under review guarantee that the implementation of the program will be postponed?

Suppliers who will be awarded tranches in the October 2017 solicitation are not expected to be affected by the TOU Program.  It is the understanding of PPL Electric that the TOU Program cannot be implemented by June 2018; however this is subject to the Commission's decision.

FAQ-11. What is the expected start date of the TOU program? What is the term of the TOU program? What is the expected number of customers in each class that will enroll in the TOU program? Will there be a cap on how many customers can enroll in the TOU program by customer class? What is the seasonal multiplier for the on-peak price in the TOU program?

The proposal is currently pending PUC decision.  The TOU program is not expected to be implemented by June 2018 and the suppliers who will be awarded tranches in the October 2017 solicitation are not expected to be affected by the TOU program.

FAQ-12. Do you anticipate any future changes to the Tier I requirement?

PPL Electric is not aware of further changes to the Tier I AEPS requirement, and cannot speculate on future changes that may occur. For avoidance of doubt, the AEPS requirement applicable to winning bidders in a given solicitation is provided in Exhibit 2 to the Default Service SMA prepared for such solicitation, which is included with the bidder’s Notification of Qualification.

FAQ-13. Will suppliers be responsible for any potential costs stemming from the Grid Resiliency Price Rule that the Department of Energy directed the US Federal Energy Regulatory Commission to consider?

PPL Electric cannot comment on proposals before FERC. Default Service Suppliers shall be responsible for supplying Full Requirements Service and will be compensated pursuant to the terms of the Default Service Supplier Master Agreement.

FAQ-14. What is the expected start date of the TOU program? The bidder information webcast states that this is not expected to affect the products of this April 2018 solicitation. Does that mean TOU will not start before June 2019?

The proposal is currently pending PUC decision.  The TOU program is not expected to be implemented before June 2019 and the suppliers who will be awarded tranches in the April 2018 solicitation are not expected to be affected by the TOU program.

FAQ-15. The AEPS requirement on Pennsylvania AEPS website states that the Tier 1 obligation for PY 2018/2019 is 7% plus additional quarterly adjustments. Could you please confirm that the Tier 1 obligation of 7.4% for PY 2018/2019 in Exhibit 2 to the Default Service SMA includes quarterly is correct? Would suppliers be responsible for quarterly adjustment in addition to the 7.4% obligation?

The quantity outlined in Exhibit 2 is correct. While the State issued AEPS requirement for the 2018/2019 compliance period is 7.0%, this does not include prospective quarterly adjustments in the Tier I non-solar AEPS obligation. The Default Service SMA does not allow for after-transaction changes to the Tier I requirement for the Tier I adjustment. As such, PPL Electric has adjusted the obligation up to cover the prospective quarterly adjustments to AEPS obligations. This is a firm obligation.

FAQ-16. I am interested in selling the energy from a solar PV system to PPL. Where can I find more information on how to make this happen?

While the PPL RFP website contains some general information of interest to all stakeholders, this website is established for the procurement of Default Service supply. The Default Service contract process is not built to directly procure power from any individual builders of any generation facilities, solar or otherwise.  Please contact PPL Electric Utilities directly if you are interested in net metering. If you are interested in becoming a wholesale energy supplier, please contact the PJM interconnection directly for guidance.

FAQ-17. Where can I find a copy of the Bidder Information Webcast presentation and audio recording?

The presentation and audio recording from the Bidder Information Webcast have been posted to the Bidder Information Materials section in the Default Service RFP Documents page of ppldsp.com.

FAQ-18. Please confirm if the first two TOU RFP solicitations have been successful or not. If the TOU RFP solicitation is unsuccessful who is serving the load of TOU customers?

First, the TOU RFP failed to procure tranches for each of the Residential and the Small Commercial & Industrial Customer Groups in the May 2019 and October 2019 solicitations. As such, under the TOU Contingency Plan, the TOU Load for the applicable supply period (June 1, 2019 through May 31, 2020) has been included in the Default Service Load for the applicable period and served by the Default Service Suppliers providing Default Service Supply.  You can find the results of each TOU RFP solicitation on the TOU-RFP. Should a future TOU RFP solicitation for a Customer Group be successful in the future, then the load of TOU Customers for such Customer Group will be served by the TOU Supplier and will be excluded from the load of Default Service Suppliers.

FAQ-19. Why is there no slide about residual load in the latest bidder webcast presentation? Is the residential load still a residual load with portions served by NYPA and a long-term block supply of 50 MW?

The slide about the load being a residual load for Residential Customer Group is part of the “Default Service RFP Process and Requirements” slide that is posted as part of Bidder Information Materials. For Residential only, full requirements load is reduced by NYPA supply and long-term block supply.