FAQ  >  Credit

Credit

CRE 00001

Question: Could you please provide bank name and information for the $1.5M cash deposit required to participate?

Answer: This information will be provided to the Registered Bidders only. To become a Registered Bidder, you need to submit the PIPP Supplier Application and be informed by the PIPP RFP Manager that your application has been reviewed and accepted.

CRE 00002

Question: Please advise when the Word documents for the Pre-Bid letter of credit and for the Supplier letter of credit will be added to your Website, so we may contact our banks.

Answer: The Word documents for the Pre-Bid Letter of Credit and the post-RFP Supplier Letter of Credit have been posted to the Supplier Documents page of the Information Website.

CRE 00003

Question: Where can Appendix B with the alternate guaranty rules be found?

Answer: "Appendix B - Alternate Guaranty Forms" is on page 47 of the Application posted on www.firstenergypipprfp.com/Documents/SupplierDocuments.aspx.

CRE 00004

Question: If a foreign guarantee is rated by one or more rating agencies do you still need a legal opinion with respect to a foreign guarantee?

Answer: Yes. Pursuant to the Application language, even if a Guarantor that is incorporated in a foreign jurisdiction is rated by one or more rating agencies, a legal opinion still is needed with respect to the Guaranty.

CRE 00005

Question: May we place an evergreen clause in the Pre-Bid Letter of Credit (LC) so we can issue the LC for future procurements and adjust the amounts between RFPs?

Answer: The evergreen clause is not applicable for the Pre-Bid Letter of Credit due to the limited timeframe that the LOC is in place.

CRE 00006

Question: If I am the winning bidder, will I be required to post any collateral against my supply obligation?

Answer: The winning bidders will be subjected to the credit requirements as set forth in Article 6 - Creditworthiness; Performance Assurance in the Master PIPP Supply Agreement. Depending on the creditworthiness of the bidder, the winning bidder may be required to post collateral in the form acceptable to the Companies.

CRE 00007

Question: Assuming the Applicant is not rated by a rating agency and did identify a Guarantor, please confirm that the following options are available to this Applicant: (1) Guarantor may provide the required bid security on behalf of the Applicant in the form of cash or a letter of credit. (2) Guarantor will provide the required Master PIPP Supply Agreement security in the form of cash or a letter of credit at or before the time of execution of the Master PIPP Supply Agreement.

Answer: Both options are available.

CRE 00008

Question: When will my pre-bid security be returned to me?

Answer: As discussed in the Bidding Rules, Pre-Bid Security will be returned five business days after the conclusion of the RFP.

CRE 00009

Question: In the definition of Total Exposure Amount in the Master PIPP Supply Agreement, is the intent that each of clauses (ii) and (iii) be without duplication to each other (e.g., that a “credit exposure” not include any “mark-to-market exposure amount”)?

Answer: Yes, clauses (ii) and (iii) in the definition of Total Exposure Amount do not duplicate each other. Clause (ii) includes only the mark-to-market exposure amount under any Other PIPP Supply Agreement. Clause (iii) includes the payable from the Companies to the PIPP Supplier under any Other PIPP Supply Agreement.

CRE 00010

Question: Can we keep our Pre-bid Letter of Credit in force (at some nominal amount) between RFPs so the language does not need to be reviewed and approved for each RFP?

Answer: FEOU can accept a Pre-bid Letter of Credit that would remain in force (at some nominal amount) between RFPs as long as the expiration date is updated for the next RFP.

CRE 00011

Question: In the Application, Section 1.7, Financial and Credit Information for the Applicant, if the Applicant is relying on a Guarantor, is it okay to simply skip (a)-(f)?

Answer: Applicants relying on a Guarantor do not need to complete Section 1.7 (a) to (f) of the Application. Applicants relying on a Guarantor will need to complete everything in Section 1.8 of the Application.

FAQs Disclaimer

The information presented and distributed in the Frequently Asked Questions (FAQs) may be subject to modifications and/or amendments and is provided for informational purposes only. The information provided in the CBP, or on the CBP Information Website, has been prepared to assist bidders in evaluating the CBP. It does not purport to contain all the information that may be relevant to a bidder in satisfying its due diligence efforts. Neither FirstEnergy Corp., the FirstEnergy Ohio Utilities nor the CBP Manager make any representation or warranty, expressed or implied, as to the accuracy or completeness of the information, and shall not, either individually or as a corporation, be liable for any representation expressed or implied in the CBP or any omissions from the CBP, or any information provided to a bidder by any other source. A bidder should check the CBP Information Website frequently to ensure it has the latest documentation and information. Neither the FirstEnergy Ohio Utilities, nor the CBP Manager, nor any of their representatives, shall be liable to a bidder or any of its representatives for any consequences relating to or arising from the bidder’s use of outdated information. The information is not intended to form any part of the basis of any investment decision, valuation or any bid that may be submitted during the CBP process. Each recipient should not rely solely on this information and should make its own independent assessment of the potential value to supply the FirstEnergy Ohio Utilities' load after making all investigations it deems necessary.

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