18R0404_Offeror_Questions_&_Responses_Part_II.pdf

SPE604-18-R-0404 Prospective Offeror Solicitation Questions –

DLA Energy Contracting Responses Part II

1. Please confirm that any charges as a result of EL05-121 settlement should be handled as a pass through.

DLA ENERGY CONTRACTING RESPONSE:

Any incremental charges assessed by PJM on suppliers as a result of the EL05-121 settlement shall be handled as a pass-through consistent with the treatment of Transmission Enhancement Charge (TEC) costs and credits.

2. Reference: Section B802, paragraph (c) (viii) Background: Auction Revenue Rights (ARR) are awarded to load serving entities per subaccount based on their participation in annual auctions and will vary from the zonal average as published. Further, ARRs will change throughout a delivery term based on retail customer migration Question: Will it be acceptable to credit accounts based on the Contractor’s actual monthly ARR credits received by subaccount?

DLA ENERGY CONTRACTING RESPONSE:

The calculation of ARR credits shall be calculated each billing period as set forth in Solicitation Attachment IV – Other Market Charges Appendix.

3. Reference: Section B802, paragraph (c) (iv) Background: Under the Reliability Must Run (RMR) Charges section, there are references to deration credits but nothing specifically about RMR.

Question: Is RMR meant to be a fixed price component within the TRANSACTION FEE? If not, is RMR meant to be another passed-through component?

DLA ENERGY CONTRACTING RESPONSE:

Refer to Solicitation, Paragraph B802(c)(iv), as updated in Solicitation Amendment II.

4. Reference: Section B802 Question: Are the components of RMR, Deration, Marginal Loss Overcollection, and ARR passed-through separate from the Transaction Fee? Are they or are they NOT included within the cost of ancillary service?

DLA ENERGY CONTRACTING RESPONSE:

All items not included in the Transaction Fee, and to be therefore treated as a pass-through, are specifically listed in Solicitation, Paragraph B802(c).

5. Reference: Attachment I (Installation Data Sheet) Background: ComEd Account# 0222574003, for the Naval Station Great Lakes installation, shows (4) total Meters, (2) of which appear to be new as of 3/7/2018. This has contributed to a ~75% increase in average hourly usage since 3/7/18.

Question: Is the new, higher estimated hourly usage for this account to be expected for every hour over the 3-year period of Dec-2018 to Dec-2021?

DLA ENERGY CONTRACTING RESPONSE:

The estimated hourly usage is not higher - there are duplicate meters. The meters should not be added together. The quantities listed in Solicitation Attachment I Installation Data Sheet are accurate.