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 00002

Question: Will Generation Deactivation charges (PJM OATT Part V) be the responsibility of the PIPP Suppliers or the Companies?

Answer: Generation Deactivation charges will be the responsibility of the Companies.

PJM 00003

Question: It is our understanding that PJM would derate the reported hourly loads for marginal losses and settle on the loss-derated loads. Does the historical load data provided include this deration? If not, can the deration factors (or estimates) be provided?

Answer: PJM does settle on a loss-derated basis. The historical load data provided are based on a loss-derated basis.

PJM 00004

Question: Will each of the Companies' load be billed and settled separately? Or will the load from the three Companies (CEI, OE, & TE) be combined and settled as one load by both PJM and the Companies?

Answer: The load will be billed and settled as the three companies combined both by PJM and the Companies.

PJM 00005

Question: Can you provide an estimate for the ancillary charges for the FirstEnergy Ohio Utilities in PJM?

Answer: FEOU cannot estimate the ancillary charges that suppliers will be responsible for. These charges are market based, and some of them are dependent on the supplier's specific source. FEOU cannot provide an estimate for the ancillary charges for the FirstEnergy Ohio Utilities.

PJM 00006

Question: In a follow-up to another PJM FAQ, are PIPP Suppliers paid on PJM FE Zonal load applicable to PIPP Supply, which reflects marginal loss deration and distribution losses (incremental load to bridge the difference between load at the wholesale level and the retail meter)? Will the Companies pay PIPP Suppliers on the same load amounts that PJM relies on for settlement?

Answer: As stated in the Master PIPP Supply Agreement, the PIPP Suppliers are responsible for the expenses related to both transmission and distribution losses. The Companies will pay PIPP Suppliers on the same load amounts that PJM relies on for settlement, which is load that does not include transmission losses (marginal loss deration). PIPP Suppliers will be delivering load to the Companies that includes distribution losses and will be settling with PJM financially for transmission losses.

PJM 00007

Question: Please confirm that, consistent with the requirement for bidders to be LSEs under all "applicable" rules, bidders do not have to be LSEs registered with NERC, as the Companies -- and not bidders -- are the entities that own and/or operate physical power system assets/wires for distribution to PIPP customers.

Answer: The Load-Serving Entity (LSE) is no longer a functional entity registration category that is covered by North American Electric Reliability Corporation (NERC) reliability standards as it was viewed to be more of a commercial market function. On October 15, 2015 FERC issued an order (RR15-4-001) accepting a proposal by NERC to eliminate the Load-Serving Entity (LSE) function from the registry criteria and to revise the NERC Rules of Procedure (ROP). NERC coordinated with the North American Energy Standards Board (NAESB) to ensure LSE market functions were covered by NAESB standards. The Companies who own and/or operate physical power system assets/wires for distribution service to SSO customers are registered as Distribution Providers (DP) and are obligated to comply with NERC reliability standards. 

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.

PJM 00009

Question: According to FERC Order 745, all RTOs allowing Demand Response in energy markets must pay Demand Response Resources full LMP at all hours. The cost of such a program is allocated to load. Is the cost associated with FERC Order 745 the responsibility of the FirstEnergy Ohio Utilities?

Answer: No, the cost associated with FERC Order 745 is not the responsibility of the FirstEnergy Ohio Utilities. Pursuant to the Master PIPP Supply Agreement, any market-based cost allocated to load is the responsibility of the Load Serving Entities, which includes the winning bidder in the PIPP RFP.

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.

Copyright © 2023 CRA International, Inc.   |  Forward-Looking Statements  |  Privacy Statement  |  Terms Of Use