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PIPP RFP

Important Dates:

• Tue 1/7/2025 - Bidder Information Session
• Tue 1/7/2025 - Auction Manager announces tranche targets, tranche size, MW-measure
• Thu 1/9/2025 - Part 1 Window opens
• Mon 1/13/2025 - Auction Manager announces minimum and maximum starting prices
• Fri 1/24/2025 - Part 1 Applications are due

Recent Announcements:

• 04/09/2025 - ANNOUNCEMENT: Government Aggregation Data Posted
• 03/05/2025 - ANNOUNCEMENT: PUCO Accepts Results of the March 2025 Auction under AEP Ohio’s CBP
• 03/04/2025 - REMINDER: Auction is TODAY, March 4, 2025; Log in now

FAQs

All FAQs

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• FAQ-224:
  Is a delay expected in regards to the PUCO decision on the auction results for the March 2020 Auction? In terms of timing for the execution of Master SSO Supply Agreement, will there be any flexibility regarding when the documents must be signed? Are electronic signatures accepted for the contract documents?
  
  The Commission meeting on March 25, 2020 remains scheduled. Additional information on the Commission’s operations during the declared state of emergency is available under Case number 20-591-AU-UNC here.

  The post-auction timeline is provided in Section 4 of the Bidder User Manual. Each winning bidder and AEP Ohio must execute the Master Standard Service Offer (“SSO”) Supply Agreement within three (3) days of acceptance of the results by the Commission and each winning bidder must demonstrate compliance with the creditworthiness requirements of the Master SSO Supply Agreement.

  As provided in Section 4, three days after Commission accepts results, each winning supplier should be prepared to do the following:

  • print and execute both the signature page (p. 52) of the Master SSO Supply Agreement and Attachment A.
  • send electronically scanned executed documents to AEP Ohio.
  • deliver credit instrument (guaranty, letter of credit, or cash) to fulfill the creditworthiness requirements of the Master SSO Supply Agreement.

  AEP Ohio and winning bidders will exchange hardcopy originals of the signature pages as soon as practicable.
  
  03/23/2020 in Supply Agreement
  
  

• FAQ-223:
  Did AEP Ohio participate in the ARR allocation process for delivery year 2020/21? If so, could you please provide bidders the results?
  
  Yes, AEP Ohio participated in the ARR allocation process on behalf of SSO Suppliers for the SSO Load procured in the March 2020 Auction for delivery year 2020/21. SSO Suppliers will get the ARR credit for this delivery year. AEP Ohio will transfer the nomination right to SSO Suppliers that win tranches of the 24-month product so they can participate in the ARR allocation process for delivery year 2021/22. The results of the ARR allocation process will not be provided prior to the Auction on March 24, 2020.
  
  03/23/2020 in Other/General
  
  
• FAQ-222:
  Can AEP please provide NSPL values for dates into 2020?
  
  Please find below NSPL values for a day in January 2020

  As of January 1, 2020:

  • AEP Ohio NSPL – 7422.11
  • SSO NSPL – 2326.46
  • CRES NSPL – 4742.82
  • PIPP NSPL – 352.84

  The files available on the Data Room page are typically updated monthly, on or before the 20th of each month. Data for the entire month of January 2020 is expected to be posted by the 20th of April 2020.
  
  03/05/2020 in Data
  
  

• FAQ-221:
  Paragraph 1 of the Form of Guaranty, appended as Attachment D to the Master SSO Supply Agreement, has a blank to fill in a “not to exceed” amount. How is this amount calculated when the Master SSO Supply Agreement is first signed?
  
  A guarantor would be expected to execute two guarantys, one (the “ICT Guaranty”) to cover the Independent Credit Requirement and another (the “Total Exposure Amount Guaranty”) to cover the Total Exposure Amount, as these terms are defined in the Master SSO Supply Agreement.

  Attachment C-1 to the Master SSO Supply Agreement provides, in every month of the delivery period, the Independent Credit Requirement per tranche for a 12-month, a 24-month, and a 36-month tranche. The amount of the ICT Guaranty would not be expected to exceed the Independent Credit Requirement across all tranches won for Month 1 of the delivery period (calculated on the basis of the number of tranches of each duration won and the Independent Credit Requirement per tranche of each duration provided in Attachment C-1).

  The Total Exposure Amount is calculated daily and may be zero when the Master SSO Supply Agreement is first signed. As such, there is no standard amount that would be used when the Master SSO Supply Agreement is first signed.
  
  02/19/2020 in Supply Agreement
  
  

• FAQ-220:
  Is the pre-bid security that we provide with the Part 2 Application returned after the auction or is the pre-bid security used as performance assurance under the terms of the Master SSO Supply Agreement?
  
  Any pre-bid letter of credit submitted with the Part 2 Application will be cancelled and cannot be used as performance assurance under the terms of the Master SSO Supply Agreement. If a supplier submits cash as pre-bid security and the supplier wins tranches at the auction, the supplier may make a request to AEP Ohio to use a portion or the entirety of the cash deposit as performance assurance under the terms of the Master SSO Supply Agreement.
  
  02/19/2020 in Credit , Supply Agreement
  
  
• FAQ-219:
  Can you explain the pre-bid security requirements for the March 2020 Auction?
  
  For the March 2020 Auction, the amount of pre-bid security required is $800,000 per tranche. As stated in Paragraph IV.2.9. of the CBP Rules:
  • Each bidder must post a pre-bid letter of credit or cash in an amount of $500,000 per tranche of the bidder’s indicative offer at the maximum starting price;
  • A bidder that relies on the financial standing of a guarantor must, in addition to a pre-bid letter of credit or cash, provide a “letter of intent to provide a guaranty” in an amount of an additional $300,000 per tranche of the bidder’s indicative offer at the maximum starting price; and
  • A bidder that relies on its own financial standing and that does not have sufficient unsecured credit must submit a letter of reference in an amount of an additional $300,000 per tranche of the bidder’s indicative offer at the maximum starting price.

  The form of pre-bid security required is provided to each bidder in Attachment 2 of the bidder’s Part 1 Notification. A bidder always has the option of increasing the amount of the pre-bid letter of credit or cash to $800,000 per tranche rather than providing a letter of intent to provide a guaranty or a letter of reference.
  
  02/19/2020 in Credit , Applications
  
  

• FAQ-218:
  Why are there two letters of credit?
  
  There is a single pre-bid letter of credit, posted under the “Pre-Bid Credit Document” section on the Information – Documents page. In the Part 2 Application, each Qualified Bidder is required to post pre-bid security in an amount of $500,000 per tranche of the indicative offer at the maximum starting price using this pre-bid letter of credit or in the form of cash. Bidders may be required to provide additional pre-bid security. Please refer to Section IV.2.9 of the CPB Rules for more information regarding the pre-bid security requirement.

  Additionally, there is a letter of credit that can be used to post collateral under the terms of the Master SSO Supply Agreement Documents . This letter of credit, the SSO Supplier Letter of Credit, is posted under the “Master SSO Supply Agreement Documents” section on the Information – Documents page. Please refer to Article 5 of the Master SSO Supply Agreement for details.
  
  02/10/2020 in Credit , Applications
  
  

• FAQ-217:
  We do not qualify for an unsecured credit line. If we win at the auction, what financial guarantees are required upon signing the Master SSO Supply Agreement?
  
  The Independent Credit Requirement (ICR) per tranche is provided in Attachment C-1 of the Master SSO Supply Agreement and is $800,000 per tranche of the two-year product and $400,000 per tranche of the one-year product. A “market value” for each tranche will be determined at the close of the Auction based on the prevailing market prices, as described further in Attachment C-2 of the Master SSO Supply Agreement. The mark-to-market exposure is zero at the close of the Auction but this exposure may lead to a margin call during the term of the Master SSO Supply Agreement.

  Please see Article V of the Master SSO Supply Agreement for details.
  
  10/31/2019 in Credit , Applications
  
  

• FAQ-216:
  Can you please explain Section 2.4 of the Master SSO Supply Agreement? What does “ESP” stand for in this clause?
  
  Each bidder and the bidder’s counsel are obligated to review the Master SSO Supply Agreement. “ESP” is a common term used by Public Utilities Commission and references “Electric Security Plan”. Section 2.4 provides for a termination right on the part of AEP Ohio. AEP Ohio’s current ESP is currently set to expire as of May 31, 2024, subject to change. Information on the AEP Ohio ESP is available from the PUCO website.
  
  10/31/2019 in Supply Agreement
  
  
• FAQ-215:
  We are a bidder relying on the financial standing of a guarantor. When we participated in both the November 2018 and the March 2019 Auctions, the pre-bid security requirement for us was always $500,000/tranche. For the November 2019 Auction, we were required to provide an additional $300,000/tranche in the form of letter of intent to provide a guaranty , or in addition to a pre-bid letter of credit or cash. Can you explain the pre-bid security requirement for the November 2019 Auction?
  
  For both the November 2018 and the March 2019 Auctions, the amount of pre-bid security required was $500,000 per tranche because there was a single product with a 12-month supply period. No additional pre-bid security was required for any bidder. For the November 2019 Auction, the amount of pre-bid security required is $800,000 per tranche because the auction includes multiple products including a product with a 24-month supply period. As stated in Paragraph IV.2.9. of the CBP Rules:
  • Each bidder must post a pre-bid letter of credit or cash in an amount of $500,000 per tranche of the bidder’s indicative offer at the maximum starting price;
  • A bidder that relies on the financial standing of a guarantor must, in addition to a pre-bid letter of credit or cash, provide a “letter of intent to provide a guaranty” in an amount of an additional $300,000 per tranche of the bidder’s indicative offer at the maximum starting price; and
  • A bidder that relies on its own financial standing and that does not have sufficient unsecured credit must submit a letter of reference in an amount of an additional $300,000 per tranche of the bidder’s indicative offer at the maximum starting price.

  The form of pre-bid security required is provided to each bidder in Attachment 2 of the bidder’s Part 1 Notification. A bidder always has the option of increasing the amount of the pre-bid letter of credit or cash to $800,000 per tranche rather than providing a letter of intent to provide a guaranty or a letter of reference.
  
  10/22/2019 in Credit , Applications
  
  

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This website contains information related to the procurement of electric energy supply for AEP Ohio and is intended as a general reference source for all prospective energy supply participants. The site contains descriptions and summaries of documents and information for general background and convenience only. Prospective participants and other interested parties should review complete copies of the relevant documents (also found on this website) and should obtain independent advice before making decisions concerning any CBP.

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