GEN 00003

Question: What does market based transmission mean? Please provide a list of all market-based transmission costs. Which specific sections or costs are included?

Answer: In this context, market-based transmission generally means transmission and ancillary charges whose rates/costs are set in total or in part by the PJM energy market. Congestion and incremental losses would be two examples. Section 2.3 of the Master PIPP Supply Agreement lists all current transmission costs that will not be the responsibility of PIPP Suppliers. All other transmission costs that are incurred by suppliers as the Load Serving Entity (LSE) will be the responsibility of the Supplier.

GEN 00009

Question: Are applicants allowed to submit proposed changes to the Master PIPP Supply Agreement with the Application?

Answer: No changes to the Master PIPP Supply Agreement will be accepted.

GEN 00020

Question: Is the product in the RFP for all 3 utilities combined together or is there a separate product for each of the utilities?

Answer: The product in the RFP is for the three utilities combined. There is no product specific to each utility.

GEN 00021

Question: Does the load that PIPP Suppliers serve include Unaccounted For Energy (UFE)?

Answer: Yes. Please see Attachment M-1 of the PJM Open Access Transmission Tariff.

DAT 00006

Question: Does the non-shopping, hourly load data provided on the Information Website include or exclude PIPP load?

Answer: Percentage of Income Payment Plan (PIPP) data are not part of the non-shopping hourly load data posted on the Information Website. PIPP data are provided separately on the Website and can be obtained from the file, “PIPP Customer Data”.

DAT 00007

Question: Are the values posted to the Information Website in the file "Capacity and Transmission PLC.xls", equal to the Obligation Peak Load or is the Obligation Peak Load a function of the PLC values and the Daily Zonal Scaling Factor?

Answer: The Obligation Peak load is a function of the Peak Load Contribution (PLC) values and the Daily Zonal Scaling Factor.

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.

PJM 00001

Question: Which party receives the marginal loss surplus allocation from PJM?

Answer: The PIPP Supplier who is also the Load Serving Entity (LSE) receives the marginal loss surplus allocation from PJM.

PJM 00008

Question: Does the PIPP Supplier deliver energy to the ATSI Zone or the FEOHIO_RESID_AGG?

Answer: In accordance with the Master Percentage of Income Payment Plan Supply Agreement, suppliers deliver energy to the FE Ohio Aggregate who’s current name in PJM is FEOHIO_RESID_AGG and is subject to change from time to time.

AGR 00004

Question: Are each of The Cleveland Electric Illuminating Company, The Toledo Edison Company, and Ohio Edison Company jointly and severally liable or collectively liable for obligations of the “Companies” under the Master PIPP Supply Agreement? If not, please explain what their respective and collective liability is thereunder. Is a PIPP Supplier entitled to exercise rights and remedies (e.g., termination) against the Companies collectively, for example in the event that any particular Electricity Distribution Company (EDC) defaults and a consequent Event of Default occurs under the Master PIPP Supply Agreement?

Answer: It is the Companies' position that the Companies under the Master PIPP Supply Agreement are severally, but not jointly, liable. Each Company would be responsible for its proportionate share of liability.