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RFP Questions and Answers – UGI will post questions asked about the RPF and the associated answers to those questions.
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Q. Once the EEI agreement has been signed, is it good for future RFPs?
A. Yes
Q. Please clarify the following: No supplier can supply more than 33% of supplies during a supply period. How is a supply period defined? Is the supply period the months outlined, the 7x24 & 5x16 products or based on the grouping of products under each RFP number?
A. The first supply period covers Jan. 2010 - May 2011. The succeeding periods cover the 12 months ending May 31. Our filing also laid out the estimated requirements for each supply period. RFP G1-001 only seeks to purchase 33% of the estimated requirements for the first supply period. So, theoretically a supplier could win everything in this RFP. However, assuming there are other bidders in the next RFPs, the supplier would not be able to win anything for the first supply period. The anticipated quantities to be requested in each RFP scheduled under UGI approved supply plan is posted on the website.
Q. What is the difference between RFP G1-001 and G1-001A?
A. RFP G1-001 is UGI’s scheduled RFP under the approved supply plan. As long as the Pennsylvania Public Utility Commission approves the bids, UGI will purchase the supplies in the RFP. RFP G1-001A is an optional RFP. UGI’s Default Service plan includes a provision that allows it to purchase additional quantities of energy farther out in the future if the prices of the energy would translate into rates for residential customers that are no greater than 10% above 2009 residential rates. Based on the forward prices at the time of the RFP release, UGI thinks it is possible this threshold could be reached. Therefore, UGI issued the second RFP and if the threshold is reached and the PUC approves the bids, UGI will purchase these additional blocks of energy.
Q. The RFP says notice of intent to bid is due by 4:00 pm E.T. What type of notice is required?
A. Suppliers just need to tell UGI they are planning on submitting a bid. The notice should be made via e-mail to ugirfp@ugi.com.
Q. Is there a limit on how much energy a supplier can provide?
A. No supplier can provide more than 33% of the energy required for each supply period. The supply periods are shown separately on this website.
Q. Do suppliers have to submit a bid on each block of energy listed in the RFPs?
A. No.
Q. Will the firm physical energy be Day-Ahead E-Scheduled?
A. Supplies can be scheduled either Day Ahead or Real Time, at the supplier’s discretion. The determination has to be made prior to the beginning of the month and can’t be changed once a month has started.
PEAK
Q. Is it correct to assume the peaking service is a physical settlement that is escheduled in PJM as a $140.00/MWhr sale to UGI? If so, what market is the sale into, day-ahead or real time?
A. Per the revised RFP this will be a financial settlement so there will be no PJM eSchedule transactions. All calculations will be based on the UGI DA LMP.
Q. I’m having trouble interpreting the word ‘annually’ in numeral 8. Does that mean that you get the right but not obligation to purchase 20 MW at $140.00 / MWh for up to 200 hrs per annum? The tenor of the peaking service time frame (1/1/2010 to 5/31/2011), which is more than 1 year, so does the 200 hrs reset to some percentage of 200 hrs when 2011 starts. If so, what are the hours for 2011.
A. The 200 hours refers to the entire supply period of January 1, 2010 to May 31, 2011. The word annually has been removed from the revised RFP to avoid any confusion.
Q. Just to clarify- UGI calls before 10 AM business day prior and can choose any non-contiguous hours for a $140 purchase for the next day (RT or day ahead markets TBD). Thus UGI could choose to purchase $140.00 energy for HE 11-13, HE16, HE18-20 (7 hours total). Does this include off-peak hrs as well?
A. This no longer applies per the revised RFP. For the first 200 hours during the supply period where the UGI DA LMP is above $140.00, UGI will utilize the full 20 MW of supply to offset the cost of PJM spot market purchases.
Q. Is the due date still November 17th for the peaking service RFP?
A. Yes
AEPS
Q. Is it acceptable to submit a bid for solar AECs with a provision stating that the bidder will only enter into an agreement with UGI if a minimum number of AECs from the bid are accepted? For example, if 130 solar AECs of a 2010 vintage are offered, could the bidder stipulate that they would enter into an agreement with UGI to sell the AECs if and only if 100 or more of the AECs were selected via the RFP?
A. Yes, that is fine just be sure to include that stipulation on your bid sheet.
Q. The bid sheet has monthly entries. Does a bidder need to offer monthly quantities or can annual numbers be provide? If monthly are required, can the parties settle on an annual basis? If on an annual basis, can full settlement be made at the start or the end of that year?
A. An annual quantity is certainly fine. Settlement can be on an annual basis but no payment(s) will be processed until the credits are in our account.
Q. There is no area for volume or quantity and also no vintage. Is this all going to be filled in under “Transaction Type?”
A. Yes, volume and vintage will be listed under Transaction Type.
Q. Also, how many Business Days after delivery occurs will you make payment? That is unclear.
A. Although payment currently occurs within a few days, UGI anticipates payment within 10 business days.
SWING
Q. What is a "Load Research" meter?
A. A Load Research meter is a meter that was deployed to collect hourly load data from a statistically significant sample of UGI customers.
Q. What "PJM accounts" would be necessary to provide this service? How will you invoice through PJM? (Is this a standard internal bilateral eschedule, if so PJM does not typically invoice charges and it does not require any special PJM account).
A. The swing supply will be scheduled using PJM eSchedules with service type RLR (Retail Load Responsibility). UGI is working with PJM market settlement personnel to ensure that line items can be charged per the Line Item Distribution.
Q. Your RFP states "However, the Swing Supplier will be responsible for transmission and associated congestion and loss charges." Can you clarify what transmission and associated congestion and loss charges you are referring to?
A. Please refer to the Line Item Distribution.
Q. The tenor of the swing service is not specifically listed on the Swing Service RFP. Numeral 1 says UGI is seeking 25% of Group One but does not explicitly say a tenor. Numeral 9 infers a start date of 1/1/2010 but does not infer an end date. In contrast, the Peak service RFP does list a tenor in its numeral 1 of 1/1/2010 to 5/31/2011.
A. The swing service is for the same supply period of January 1, 2010 through May 31, 2011.
Q. Numeral 13 says that hourly system load data is from June 1st, 2006 to May 31, 2009, but the Excel file only has historic hourly load from 6/1/2008 to 5/31/2009. It would be helpful if the full historic data range could be published referred to in the RFP document (June 1 2006 – May 31 2009).
A. This has been posted.
Q. In numeral 7, the RFP says that the excel file Appendix A is Group 1. When opening the excel file Appendix A, there is no label that says it is Group 1. I just wanted to confirm that data is in fact only group 1 hourly load and not the hourly load for the whole aggregate zone.
A. That is correct. The file has been updated to explicitly note that also.
Q. Does the swing service winner get any ARRs associated with that load?
A. No, UGI will retain all ARRs.
Q. What is the PNode for the UGI Aggregate?
A. 51279
Q. There are two tables in the RFP packet ... summarizing UGI's AEPS obligations and bid limits. The table in the October 9, 2009 letter indicates UGI's obligation in Compliance Year 2010 is as follows:
Tier I |
Tier II |
Solar |
9,143 |
15,434 |
44 |
While the table in the AEPS RFP Number S1-001 indicates the following Credits Requested, in the Year Generated 2010:
Tier I |
Tier II |
Solar |
21,834 |
41,840 |
130 |
The latter may be in error given it is the same set of number as entered for the 2009 "Year Generated". Please confirm the # RECs we can bid for CY10 and CY11.
A. The volumes in the letter are the total number of credits we are looking to purchase. The volumes in the numbered rules indicate the maximum number of credits by vintage year. For example, we are seeking 9,143 total Tier I non-solar credits for 2010 compliance. Included in that total will be a maximum of 4,572 credits generated in 2008 if bids are submitted. If no 2008 credits are included in any bids, we will accept up to 21,834 credits from 2009.
Q. Under the credits requested section below, is this in Calendar Year or Reporting Year?
A. The year refers to reporting year.
Q. The data file posted as the Group I customer hourly load - I assume that is 100% of the class, for which you are only buying 25% of the supply - is that correct? (The first cell of the spreadsheet is 1/1/09 26 MW.)
A. No, the value of 26 MW is the volume the supplier will provide. The 25% has already been taken. So, for example in that first hour the total Group 1 load is 105. (26 = 105 * 0.25)
Q. For the Contract Term, will UGI Group1, Group 2, and Group 3 include only customers taking service from UGI or also include customers subject to competitive supply?
A. The volume supplied by the winning bidder will be calculated as follows. We will begin with the total UGI system load. We will subtract the actual Group 3 load and an estimate for any Group 3 customers for whom no actual data is available. The same applies for Group 2 customers. The remaining load is all Group 1 customers. If there are any Group 1 customers that have elected a choice supplier, their usage will then be subtracted so that we can calculate the 25% based on the Group 1 customers that UGI is supplying
Q. Is the contract paid on PJM de-rated load, which includes distribution losses and not transmission losses?
A. The load that the 25% will be based on will include UGI’s distribution losses but will not include PJM transmission losses.
Q. Please confirm that the load in Appendix A is calculated multiplying (a) 25% and (b) UGI system load minus Group 2 minus Group 3.
A. That is correct.
Q. Could you confirm that the load data in Appendix A is already scaled to be 25% of Group 1?
A. That is correct.
Q. Can we get additional load data?
A. No, it was UGI’s intent to reissue the RFP with no changes including data elements used by potential suppliers to prepare quotations.
Q. Load data in Appendix A is rounded to the whole MW. Could you confirm if the actual load during the transaction will be rounded to the whole MW as well?
A. No, the load which will be supplied under this service like other PJM loads will be calculated to three decimal places. The values in Appendix A were rounded for ease of use in posting.
Q. Could you tell me what is the bid assurance collateral for the upcoming block auction?
A. UGI does not require bidders to post any collateral prior to submitting bids.
Q. Since bids have been rejected in the past for insufficient competitiveness, will UGI inform the lowest bidder whose offer is being submitted to the commission how many bids there were in each month that is being submitted?
A. It is not company policy to provide the number of bidders during a particular solicitation. Over the last year there has been an average of about 5 bidders for each block RFP.
Q. Will UGI inform a bidder that its bid has been accepted by the Commission before trading ends on Friday June 23rd, in order to avoid a weekend hold?
A. Once final approval is received from the Commission, UGI will notify the winning bidders before the close of business on Friday, July 23, 2010.
