47PA0420R0003 GSA PA Competitive Electricity 2020 Questions Answers_ Amend 1.doc

47PA0420R0003 GSA PA Competitive Electricity Questions and Answers Received as of 5:00 PM ET Thursday April 30, 2020 Q1) Please confirm the term requested?

A1) Per section C.2 of the solicitation, “The Offeror shall provide a firm-fixed-price per kWh for twenty three (23) full monthly billing cycles.”

Q2) Have there been any usage reductions due to COVID-19? If so, what percentage of load and for how long?

A2). GSA currently does not have load reduction estimates for our facilities at this time but it can be expected to see reduced demand in buildings that have closed or operating at reduced occupancy. A full list of GSA closures and operating status can be found: https://www.gsa.gov/governmentwide-initiatives/emergency-response/facilities-status-and-information-overview " Q3) Do you expect any future usage reductions due to COVID-19? If so, what percentage of load and for how long?

A3) GSA currently does not have an estimated timeline or estimates regarding load reduction for our facilities at this time but it can be expected to see reduced demand in buildings that have closed or operating at reduced occupancy. A full list of GSA closures and operating status can be found: https://www.gsa.gov/governmentwide-initiatives/emergency-response/facilities-status-and-information-overview " Q4) We interpret a twenty-three month term for a June 2020 start as ending in May 2021 prior to the start of the May meter read date - which is also one month short of a two year term. Please confirm GSA is not requesting a two year contract.

A4) As stated in Section A.1, GSA is requesting a 23 month term starting with the utility meter read on or after June 1, 2020. This term will end with the May 2022 utility meter read date.

Q5) Under Section A.13 Load Changes During The Term Of The Contract, please clarify the following: A) Does the 15% threshold for “significant change” apply to both reductions and increases in load? B) Please confirm the 15% threshold can be evaluated after the first 12 months of the contract and once again at the end of the contract. C) Does the 15% threshold only apply to changes in the annual aggregate load by pricing group or does it apply to the individual account or individual utility level?

A5) A) Under Section A.13, a significant load change is considered to be either a 15% annual increase or decrease to the aggregate Kwh consumption for each pricing group. B) The first contract year will be from June 2020 to June 2021. GSA acknowledges the 2nd contract year is only 11 months and may in good faith consider significant changes at the conclusion of the contract. C) The pricing group.

See Amendment 1, the percentage in Section A.13 has been changed from fifteen (15%) to twenty (20%) percent Q6) Is this bid still scheduled to be held on 5/19/20 10:00 AM EST?

A6) Please review the Enel X auction announcement page for auction start and end times:

https://exchange.apps.enelx.com/WebPortal/AnnouncementView.aspx?id=15596. This link is provided in Section C.3 of the solicitation Q7) Is the price hold requirement until 5/19/20 1:30 PM EST still valid?

A7) Yes.

Q8) When will the winner be notified?

A8) GSA will notify the winning supplier or suppliers by 1:30PM EST on May 19th.

Q9) How will the contract be awarded? By group or all or nothing?

A9) Awards will be made by pricing group. One or more suppliers may be awarded a contract.

Q10) Can suppliers pass through transmission rate or capacity rate changes under A.14 Electricity Regulatory Changes?

A10) No, see Attachment 2 in the solicitation. The product as described in the solicitation is for a fully fixed product that includes the expected costs and supply risk associated with managing transmission and capacity for the duration of the contract term. Unforeseen costs as a result of any new or modified Federal, State, and/or local regulations including ISO/RTO charges pertaining to these components may be considered under Section A.14. Note that per Section A.14, a bilateral modification will be required prior to any increase in pricing associated with regulatory changes being billed to the government.

Q11) is the Federal government exempt from PA GRT? If not, is it a billing requirement under Section A.7 that Pennsylvania GRT be billed on a separate line item on the LDU invoice?

A11). The Federal government is not exempt from PA GRT.

The Government recognizes suppliers do not have direct control on how LDC’s bill for supplier charges. As the Government is only allowing for consolidated billing through the utility, GRT costs will either be included in a single line item on consolidated bill or included in a separate line item depending on the billing practices and preferences of each included utility.

Q12) Would the government allow for dual billing?

A12) No, the billing requirement will remain as consolidated. As all billing under this contract will be done through the local utility and not through suppliers submitting their own invoices, payment will be regulated by utility billing requirements. Section (g) (2) of GSAM 552.212-4 would not apply for billing with the local utility.

Q13) For PECO account # 2563000309, there seems to be a large dip in Oct through November, did they shut down for maintenance?

A13) GSA is unaware of any issues for this account. The historical billed volumes for this account do show any significant changes for the period in question.

Q14) Usage for account Penelec Account 0800298665001456831 ramps up April-October and includes a drastic drop in the summer, did something to this account?

A14) This is the Allegheny Fish Hatchery account and this facility uses less water in the summer as they don’t run as many wells.

Q15) Given that we currently supply the existing GSA contract which would qualify for the peak load of 15,000 kW would it be acceptable to use our current contact as the reference?

A15) Yes.

Q16) – Do both financials AND a Letter of Credit need to be immediately provided with the Technical Response if a score cannot be obtained by Moody’s or Standard & Poor’s?

A16) No. For Section C.1 item #5 Offerors should provide information on their risk management and supply plans that clearly demonstrates their ability to meet the Governments requirements if they were awarded a contract. In addition, Offerors should provide their current Moody’s or Standards and Poor’s credit rating and their most recently audited financial statements. Based on GSA’s review of the above information and the potential value of a contract award for one or more pricing groups, GSA may require a letter of credit or proof the offeror can obtain a letter of credit (performance bonds, etc) which provides the government with assurance the Offeror’s firm has sufficient financial credit to hedge the volumes of electricity supply they plan to bid on for a 23 month term.

Q17) How does the GSA expect suppliers to handle Network Integrated Transmission (NITS) charges, which typically adjust once a year, and Transmission Enhancement Charges (TEC) in PJM? Industry standard is to include these cost as fixed but adjust (either charge/credit) as these rates are set.

A17) GSA requires suppliers to fully fix all price components as shown in Attachment 2, including NITS and TEC for the full 23 month contract term.

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