Source: https://www.duke-energyohiocbp.com/FAQ.aspx
Timestamp: 2018-12-19 13:23:55
Document Index: 139679896

Matched Legal Cases: ['art 2', 'art 2', 'art 2', 'art 1', 'art 2', 'art 1', 'art 2']

Duke Energy Ohio Inc. CBP SSO Auctions > FAQ
GEN 00007 (revised 07/26/2018)
Question: Does the capacity obligation included in the Bidder Information Session Presentation reflect UCAP or PLC?
GEN 00024 (revised 07/26/2018)
Answer: On March 2, 2016 the PUCO issued an Order on PIPP Aggregation Information on any upcoming PIPP RFP’s will be posted on Duke Energy Ohio, Inc.’s PIPP RFP information website, which can be found here: www.duke-energyohiopipp-rfp.com
GEN 00028 (revised 07/26/2018)
Question: Could you clarify what would happen if a PIPP supplier defaults?
Answer: In the event the PIPP supplier selected from the RFP defaults prior to or during the delivery of PIPP Load requirements, Duke Energy Ohio will implement a contingency plan for PIPP Load. Under that plan, PIPP Load supply requirements will be met either by current SSO Suppliers or through PJM-administered markets. Additional costs incurred by Duke Energy Ohio in implementing the contingency plan will be assessed first against the defaulting supplier’s credit security, to the extent available. PIPP load will not revert back to the Standard Service Offer.
Question: When will winning suppliers be notified if any Reservation Prices have been met for products offered in the auction?
Answer: As stated in Section 5.1.3 of the Bidding Rules, following the auction, the Auction Manager will inform bidders via the Bidding Website if the Reservation Price for each product has been met.
Question: Does CRA or Duke Energy Ohio, Inc. plan on releasing a formula for calculating the number of excess tranches for each round of the auction? This would be something similar to what is done in other descending clock auctions for utilities in Pennsylvania and New Jersey.
Answer: An indication of the level of overall and excess demand will be provided to bidders through the Bidding Website following each round of the auction. Please refer to the Bidding Rules for additional information.
RUL 00003 (revised 02/06/2015)
Question: Is there any way to increase the # of tranches, or blocks of energy, that we can offer after the close of the Part 2 Application process?
Answer: No. Eligibility to bid in the auction is set based on the indicative offer submitted as part of the Part 2 Application and cannot be changed after Part 2 closes.
Answer: PIPP load is included in the RS rate class in the standard offer usage of the "Historical Hourly Loads by Class" document.
Question: Should PIPP load should be subtracted from the total unswitched RS load to calculate the proper tranche size?
Answer: Yes, PIPP load should be subtracted from the total unswitched RS load to calculate tranche size.
DAT 00045
Answer: Yes, the PIPP load is included in the most recent standard service offer RS load. The hourly PIPP load data have been posted.
DAT 00046
DAT 00047
Question: Does the SSO PLC you provided include PIPP customers?
Answer: Yes. The SSO PLC includes PIPP customers.
DAT 00049
Question: Please provide PLC data on the PIPP customers since they will no longer be part of the SSO load for the March 2016 auction as a result of the recent order by the PUCO. The SOS PLC data we currently have includes the PIPP customers, or you can update the SOS PLC data without PIPP PLC.
Answer: Duke Energy Ohio does not calculate NSPLs or PLCs for PIPP.
DAT 00050
Answer: Yes. The historical hourly SSO load data does include PIPP Load.
Question: Is an enforceability opinion required for a parent guaranty? If yes, is in-house counsel acceptable?
Question: SSO Suppliers have one day to meet margin calls with cash and an additional day to respond with Letters of Credit (depending on notification time). There does not appear to be a cure period for posting collateral. Is this understanding correct? Do Suppliers have the ability to work around potential operational delays?
Answer: The referenced requirement applies to calls received prior to 1:00 p.m., prevailing Eastern Time. For calls received after 1:00 p.m., prevailing Eastern Time, an additional day is provided. Section 5.7 of the Master SSO Supply Agreement states further that the period to provide collateral may be extended (in writing) by Duke Energy Ohio, Inc. and that the period for return of collateral may be extended (in writing) by the SSO supplier, and, in each case, a one-day extension will not be unreasonably denied.
Question: Our company would like to use a BBB- rated parent company to provide security. What are the options for the use of a Parental Guaranty for the pre-bid security or other collateral requirements? Can you please point me to a description of the credit requirements and options?
Answer: Applicants can have a third party act as a guarantor. In this case, if they want to use a BBB- S&P rated company as their parental guarantor, they need to fill out Section 1.8 "Guarantor Information" to indicate that they are using a guarantor during the Part 1 Application process. During the Part 2 Application process, they can provide a "Letter of Intent to Provide a Guaranty" from the guarantor to satisfy the need for additional Pre-Bid Security.
Question: Can an SSO Supplier (winning bidder in the auction) who initially submits an SSO Supplier Letter of Credit to satisfy the creditworthiness requirements of the Master SSO Supply Agreement, later replace the SSO Supplier Letter of Credit with acceptable guarantees from a creditworthy Guarantor?
Answer: Provided a supplier meets all applicable requirements, they can subsequently replace a letter of credit with a guarantee.
PJM 00001 (revised 04/01/2015)
Question: Has the Fixed Resource Requirement (FRR) Integration Auction occurred to determine capacity prices for Duke Energy Ohio, Inc.? If not, when is this expected to occur?
Answer: There was no integration auction relative to Duke Energy Ohio, Inc.'s transition to PJM Interconnection, LLC.
PJM 00004 (revised 04/01/2015)
Question: Does Duke Energy Ohio, Inc. provide a "Supplier Operating Manual" detailing procedures for determining Peak Load Contributions for Capacity, Transmission, and Hourly Energy?
Answer: Duke Energy Ohio, Inc. does not provide a "Supplier Operating Manual" detailing procedures for determining Peak Load Contributions for Capacity, Transmission, and Hourly Energy.
Question: Based on the methodology listed in response to FAQ DAT 00003, the 5 coincident peak hours of the historical data set will be different from the PJM derived weather normalized peak. Will Duke Energy Ohio, Inc. provide the implied daily zonal scaling factor as a result of this difference?
Answer: Duke Energy Ohio, Inc. is weather normalizing.
PJM 00006 (revised 04/01/2015)
Question: Will the PJM eSchedule between Duke Energy Ohio, Inc. and the SSO Supplier be a real-time settled Retail Load Responsibility eSchedule? If not, please explain what form it will take.
Answer: Yes. The PJM eSchedule between Duke Energy Ohio, Inc. and the SSO Supplier will be a real-time settled Retail Load Responsibility eSchedule.
PJM 00007 (revised 12/15/2014)
Question: Please provide Final Zonal Capacity Prices by delivery year (in $/MW-day) for the Capacity that each Supplier shall purchase from Duke Energy Ohio, Inc. necessary to fulfill the Capacity obligation associated with Supplier’s SSO Supplier Responsibility Share.
Answer: Please see the PJM website for specific RPM and final zonal capacity price information that is available at this time.
http://www.pjm.com/markets-and-operations/rpm.aspx
PJM 00008 (revised 07/26/2018)
Question: Can Duke Energy Ohio, Inc. provide planning year PLC and NSPL values for shopping and non-shopping customers by rate class?
Answer: The requested information is not available.
PJM 00010
Question: Can you please provide the PJM load deration factor(s) for DEOK Zone?
Answer: Please see updated response to AGR 00004.
PJM 00015
Question: Will the SSO Supplier or Duke Energy participate in the ARR allocation process and get the associated ARRs for the SSO load?
Answer: See the Master SSO Supply Agreement, Section 3.1 and Attachment F thereto. The Sample PJM Invoice identifies the SSO Supplier as responsible for credits for Line Item 2510, Auction Revenue Rights.
PJM 00016 (revised 05/05/2015)
Question: Can you please confirm that, due to PJM’s implementation of residual pricing, SSO suppliers will settle “DEOK_RESID_AGG” starting June 1, 2015?
Answer: Yes; SSO/POLR suppliers will settle at the “DEOK_RESID_AGG” price starting June 1, 2015 due to PJM’s implementation of residual pricing.
PJM 00017
Question: Since the new SSO load going forward will not contain PIPP load, and load from previous auctions did include PIPP, will the new load without PIPP be assigned a separate subaccount in PJM for those suppliers that serve load in both?
Answer: Duke Energy Ohio does not presently know how that portion of the PIPP load to be segregated for auction purposes will be identified in PJM accounts. As final determinations are made and should such determinations require a change in subaccounts, Duke Energy Ohio will inform affected suppliers.
PJM 00018
Question: Will Duke be participating in the PJM ARR auction for PY 18/19 load being awarded in the upcoming CBP Auctions in February 2018? If not, will winners have enough time/details to participate on their own behalf?
Answer: Duke Energy Ohio will not be participating in the ARR process on behalf of SSO Suppliers. The intent of completing both of 2018's auctions in February was to allow suppliers to participate on their own.
PJM 00019
Question: Are SSO suppliers or is Duke Energy Ohio responsible for new PJM line items 1108A and 1115?
Answer: Duke Energy Ohio is responsible for the line items.
Question: Does the person who executes the Master Supply Agreement need to be the Officer who signs, or the Authorized Representative or Delegate indicated in, the Part 1 and Part 2 Applications?
Answer: The person who signs the Master SSO Agreement does not need to be the same person who has been designated as the Authorized Representative during the auction process. The signatory needs to be someone how has the authority to legally bind the Supplier so that the Supplier complies with the Representations and Warranties in Section 8.2 of the Master SSO Supply Agreement.
Question: Are SSO suppliers responsible for Network Integration Transmission Service (NITS) charges?
Answer: As outlined in Section 3.2 of the Master SSO Supply Agreement, Duke Energy Ohio, Inc. is responsible for NITS charges effective January 1, 2012.
AGR 00003 (revised 12/15/2014)
Question: Please explain the relationship between Default Damages and Settlement Amount in the context of the last sentence of the definition of "Settlement Amount" in the Master SSO Supply Agreement. That sentence states: "The calculation of Settlement Amount with respect to an Early Termination shall exclude Default Damages calculated pursuant to Section 7.3(a)."
Answer: Default Damages and Settlement Amount are two separate calculations that take different factors into account (see definition of both in the Master SSO Supply Agreement). In the event of a termination, both would be included in the calculation of a Termination Payment.
AGR 00004 (revised 04/01/2015)
Question: On what volume of load will the SSO Supplier be paid as described in 6.1 (a) of the Master SSO Supply Agreement? It is clear that the SSO Supplier will be responsible for serving the SSO Supply which includes transmission and distribution losses; however it is not clear if the SSO Supplier will be paid on this same volume or the smaller metered value.
Answer: SSO suppliers are required to deliver sufficient energy to the DEOK delivery point to meet all SSO load requirements. Suppliers will be paid for all MWh delivered to the DEOK delivery point. The load at the DEOK delivery point represents customer metered load plus distribution losses ( or "SSO Load") and will be the basis for financial settlements to SSO suppliers.
AGR 00005 (revised 12/15/2014)
Question: Attachment F of the Master SSO Supply Agreement shows ID#1371 and 1376 as the responsibility of the SSO Supplier. On the PJM website, under the 'DEOK LSE Billing Line Item Transfer Inventory', these items are documented as a Duke Energy Ohio, Inc. responsibility. Which is correct? Will the SSO Supplier be responsible for these two items?
Answer: Wholesale suppliers will be responsible for the Line Item Nos. 1371 (Day-ahead Operating Reserve for Load Response) and 1376 (Balancing Operating Reserve for Load Response). Duke Energy Ohio, Inc. will be responsible for charges that result from PJM’s implementation of its revised Economic Load Response program, in compliance with FERC Order No. 745.
Question: Section 7.1(i) of the Master SSO Supply Agreement states: An “Event of Default” shall mean with respect to a Party (the “Defaulting Party”) the occurrence of any of the following: (i) PJM holds Duke Energy Ohio, Inc. responsible for the provision of SSO Supply, including Energy, Capacity and Ancillary Services, to meet the Defaulting Party’s SSO Supplier Responsibility Share under this Agreement. Under what scenario might this occur?
Answer: Under the referenced provision of the Master SSO Supply Agreement, if an SSO supplier fails to deliver and PJM holds Duke Energy Ohio, Inc. responsible for delivering energy, capacity, and ancillary services, the SSO supplier is in default.
AGR 00007 (revised 04/01/2015)
Question: Section 3.7 of the Master SSO Supply Agreement states that each SSO Supplier shall be deemed a Load Serving Entity for the duration of the Delivery Period pursuant to the PJM Agreements and Legal Authorities. Legal Authorities is defined as "generally, those federal and Ohio statutes and administrative rules and regulations that govern the electric utility industry in Ohio." Do SSO Suppliers need to take any action to be qualified by the state of Ohio? Does this language require any specific approvals?
Answer: Duke Energy Ohio, Inc. requires that suppliers be qualified to do business in Ohio and defers to suppliers to ascertain what steps they may need to complete to obtain such status.
Question: In reference to response GEN 00010, if a customer returns to Duke Energy Ohio, Inc., will the Supplier be made whole in instances when the LMP is greater than the Supplier Fixed Price as it relates to that returned customer load?
Answer: No. SSO suppliers are responsible for supplying all SSO load associated with existing and returning SSO customers. Suppliers will be paid a price based on the auction regardless of the prevailing LMP.
Question: Please identify the Section in the SSO Supply Agreement that agrees with the AGR00004 response that the SSO Supplier will be compensated for all MWh delivered (which includes transmission and distribution losses) to the DEOK delivery point.
Answer: Section 3.1(f) of the Master SSO Supply Agreement states that the SSO Supplier shall be responsible for all transmission and distribution losses. Reference is also made to Section 3.2(a) of the Master SSO Supply Agreement.
Question: Is it expected that the Declaration of Authority form is to be executed with the Master SSO Supply agreement?
Answer: Yes. The Declaration of Authority is to be executed by SSO Suppliers along with the Master SSO Supply Agreement.
Question: Suppose 105 MW must be generated for a customer to receive 100 MW and PJM would derate the 105 MW to 103 MW. The supplier will be responsible for costs covering 105 MW. On which amount will a supplier be paid?
Question: In the definition of "Settlement Amount", the Master SSO Supply Agreement makes reference to an "estimated SSO Load" based on the "most recent load switching report filed by Duke Energy Ohio, Inc. with the PUCO." Could you point to or provide the current most recent load switching report as an example? Also, what is the frequency (monthly, quarterly, annual) that this report will be published?
Answer: The Public Utilities Commission of Ohio (PUCO) publishes switching reports on a quarterly basis. The reports can be accessed via the PUCO's website, www.puco.ohio.gov, under the tabs for Electricity, Industry, Electric Technical Reports, Electric Customer Choice Switch Rates.
Question: Are there any fees associated with the administration of the auction (tranche fees)?
Answer: Costs associated with conducting the auctions for SSO service will be recovered through Duke Energy Ohio, Inc.'s Rider SCR. Reference is made to the Stipulation and Recommendation filed on October 24, 2011, in PUCO Case No. 11-3549-EL-SSO.
Question: From the PJM Sample bill, the SSO Suppliers will be responsible for Black Start services. Will the Black Start revenue requirements for the DEOK Zone be published before the auction? If not, are there any preliminary numbers or estimates available?
Answer: Black Start revenue requirements for the DEOK zone will not be published prior to the auction. No preliminary numbers or estimates are available.
Question: Section 6.1 suggests that all payments will be made on the first business day after the 19th day of each calendar month. This appears to be in conflict with Section 3.6 where payments must be made within 3 days of the allocation invoice. How do the two sections resolve with each other?
Answer: The provisions are not in conflict. Section 3.6 of the Master SSO Supply Agreement references a Default Allocation Assessment imposed upon Duke Energy Ohio, Inc. by PJM and Duke Energy Ohio, Inc.'s right, in its discretion, to invoice suppliers for their responsible share. Section 6.1 of the Master SSO Supply Agreement concerns invoices that will be submitted for each Billing Period.
Question: Section 9 and 10 of the Master SSO Supply Agreement could be read in conjunction to require the SSO Supplier to indemnify other SSO Suppliers against third-party liability for Duke Energy Ohio, Inc.’s actions. Is this the intent of the section?
Answer: No, the intent is that a party will provide indemnification for its own actions, as more fully described in Section 10.
AGR 00018
Question: Will the winning SSO suppliers be subject to the Ohio Commercial Activity Tax (or “CAT")?
Answer: Duke Energy Ohio, Inc. cannot provide tax advice to auction participants.
AGR 00019
Question: Is the potential load requirement bound by +/- 10% of historical load? If so, is that +/- 10% of the monthly aggregate, or annual total, or hourly peaks?
Answer: No. The load obligation associated with each tranche is 1% of the SSO load.
AGR 00021 (revised 04/29/2015)
Published On: 04/29/2015
Question: Suppliers will deliver sufficient energy to meet all SSO requirements to the DEOK Load Zone, designated by PJM as Pnode ID number 124076095, determined pursuant to the applicable PJM Tariff, rules, agreements and procedures. We understand that PJM, as of June 1, 2015, will be charging all LSEs or agents of LSEs the Residual Aggregate Zone of corresponding Physical Load Zone. Since there will be a difference between the DEOK Load Zone (Pnode ID 124076095) and DEOK Residual Aggregate Zone (Pnode 1069452904), how will you true-up the suppliers for this difference?
PJM currently handles the true-up and/or differences for all suppliers between the DEOK Load Zone “Nodal” Pricing and the DEOK “Aggregate” Zone Pricing. For the period beginning June 1, 2015, PJM will continue to handle the true-up and/or differences between “Nodal” and “Residual” Pricing. Additional information is available through the PJM website (http://www.pjm.com/markets-and-operations/energy/residual-metered-load-pricing.aspx).
AGR 00022
Question: What are the seasonal billing factors for SSO Load awarded in the May 14, 2015 auction?
Answer: The seasonal factors for the May 2015 auction are as follows:
AGR 00023
Question: Attachment F (Sample PJM Invoice) of the Master Agreement lists capacity related items #1600-1688 as "N/A" for the responsible party -- can you please clarify what the treatment of capacity is under this RFP? The Bidder Info Session PPT lists Capacity as a responsibility of the SSO Supplier.
Answer: As indicated in the Master SSO Supply Agreement (MSA), Duke Energy Ohio is procuring full requirements service, which includes capacity. (See Article III, Section 3.1, Obligations of Supplier, and Article I, Definition of SSO Supply.) The charges reflected on the PJM Sample Invoice having an “N/A” designation are not applicable to the transactions contemplated under the MSA. This is not to say that a supplier would not be assessed these charges by PJM in certain circumstances. But such charges are not anticipated here.
AGR 00024
Question: How does the Master SSO Supply Agreement address the possibility of PIPP load being aggregated by the Ohio Development Services Agency pursuant to the enactment of Ohio HB 64?
Answer: There are two provisions of the Master SSO Supply Agreement that would address PIPP aggregation under Ohio HB 64:
4.6 Compliance with Governmental Directives
Each SSO Supplier acknowledges and agrees that Duke Energy Ohio may need to act in response to directives by a Governmental Authority that may affect SSO Supply or SSO Load. Each SSO Supplier agrees to cooperate fully with Duke Energy Ohio in order to comply with such directives.
This Agreement constitutes the entire agreement between the Parties relating to the subject matter contemplated by this Agreement and supersedes all prior communications and proposals (oral or written). This Agreement shall be considered for all purposes as prepared through the joint efforts of the Parties and shall not be construed against one Party or the other as a result of the preparation, substitution, submission or other event of negotiation, drafting or execution hereof. This Agreement shall not impart any rights enforceable by any third party (other than a permitted successor or assignee bound to this Agreement). No waiver by a Party of any default by the other Party shall be construed as a waiver of any other default. Any provision declared or rendered unlawful by any applicable Governmental Authority or deemed unlawful because of a statutory change will not otherwise affect the remaining lawful obligations that arise under this Agreement.The headings used herein are for convenience and reference purposes only.