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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

Supply Agreement

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• FAQ-234:
  Can you please confirm the source of Forward Market Prices referenced in the Master SSO Supply Agreement?
  
  As defined in the Master SSO Supply Agreement, “Forward Market Prices” means forward market prices for a specific geographic Market Price Hub, as adjusted by AEP Ohio to reflect impact of load shape.  Forward Market Prices will be determined with reference to publicly available market price quotations obtained by AEP Ohio, as adjusted by AEP Ohio to more closely approximate the price impact of serving a slice-of-system product which reflects hourly variations due to customer usage patterns. Such adjustment is further described in Attachment C-2. However, if market price quotations are not publicly available, Forward Market Prices will be determined by AEP Ohio using any method which AEP Ohio deems appropriate and which reasonably reflects forward market pricing conditions in PJM.

  For more information, please see Article 5 of the Master SSO Supply Agreement and the C-2 Data Inputs are available on the Documents page of the CBP website.
  
  10/28/2020 in Supply Agreement
  
  

• FAQ-228:
  Can you please provide a redline document illustrating the changes between the March 2020 and November 2020 Master SSO Supply Agreement?
  
  The Master SSO Supply Agreement for the November 2020 Auction has not changed from the March 2020 Auction and thus a redline will not be provided.
  
  09/24/2020 in Supply Agreement
  
  
• 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-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 Supply Agreement
  
  
• 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-213:
  We are a previous SSO Supplier (our Master SSO Agreement has expired). We were previously relying on the financial standing of a guarantor. If we win at the upcoming Auction, are we able to use our existing guaranty or are we required to provide a new Guaranty?
  
  Section 5 of the form of Guaranty provides:
  • 5.Termination. This Guaranty is intended to be and shall be construed to be a continuing, absolute and unconditional guaranty, and shall remain in full force and effect until all Obligations have been fully and finally performed, at which point it will expire.

  As a result, if the SSO Supplier is currently not providing service under an earlier Master SSO Agreement, then the guaranty has expired by its own terms, and new documents would be required.
  
  10/22/2019 in Supply Agreement
  
  

• FAQ-211:
  Can you provide a redline that shows the changes in the Master SSO Supply Agreement between the version used for the March 2019 Auction and the one used for the November 2018 Auction?
  
  The Master SSO Supply Agreement for the March 2019 Auction has not changed from the November 2018 Auction and thus a redline will not be provided.
  
  02/15/2019 in Supply Agreement
  
  
• FAQ-204:
  Is there a comment process for the Form of SSO Supplier Letter Of Credit for the March 2019 Auction?
  
  There is no comment process for the Form of SSO Supplier Letter of Credit at this time. A list of acceptable modifications to the SSO Supplier Letter of Credit is posted to the CBP website and dated December 20, 2018.
  
  01/11/2019 in Supply Agreement
  
  
• FAQ-203:
  Section 8.2(a) of the Master SSO Supply Agreement requires each supplier to represent and warrant to AEP Ohio that “if organized outside the State of Ohio, [it] is qualified to conduct its business and is in good standing in Ohio”. Section 1.4 of the Part 1 Form requires each bidder to retain a Legal Representative in Ohio that is authorized and agrees to receive service of process on behalf of the bidder.

  For an Applicant organized outside the State of Ohio, is fulfilling the provisions from Section 1.4 of the Part 1 Form sufficient to meet the requirements in Section 8.2(a) of the Master SSO Supplier Agreement?
  
  The provisions from Part 1.4 of the Part 1 Form regarding a bidder/supplier having a Legal Representative in Ohio that is authorized and agrees to receive service of process on behalf of the bidder are separate from and not related to whether a foreign corporation (organized outside of Ohio) has qualified itself to conduct business in Ohio and is in Good Standing. The Ohio Secretary of State can issue Certificates of Good Standing for foreign corporations after a license has been obtained. You should discuss and review these requirements with your legal counsel.

  You and your counsel can find more details about the requirements for foreign corporations in the Ohio Revised Code at the following link: http://codes.ohio.gov/orc/1703.
  
  01/11/2019 in Supply Agreement
  
  

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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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