FAQs
Applications
< Previous | Showing 11 to 20 | Next > | << Back to FAQ Categories
-
FAQ-254:
Is it a requirement that the title of the individual signing the Representative Designation Insert (#P1-1) include the word "officer" or "director"?
An officer or director of the Applicant designates an individual (called the “Representative”) to represent the Applicant in the auction. The Representative is the only person authorized to designate a person other than himself or herself to submit bids in the auction. The officer or director of the Applicant must designate the Applicant’s Representative by completing the Representative Designation Insert (#P1-1). The certification must be signed by the officer or director. The person making this certification cannot be the Representative or any of the Nominees. It is not a requirement that the individual making this certification have the word “officer” or “director” in their title; however, the individual must certify that they are an officer or director of the Applicant, empowered to undertake contracts and bind the Applicant.The Representative Designation Insert (#P1-1) is available on the application website.
09/30/2021 in Applications
-
FAQ-240:
Can bidders propose modifications to the Pre-Bid Letter of Credit for the upcoming March 2021 Auction?
For the March 2021 Auction, bidders have the opportunity to propose modifications to the Pre-Bid Letter of Credit with their Part 1 Application. The deadline to propose modifications to the Pre-Bid Letter of Credit has passed. The list of Final Acceptable Modifications to the Pre-Bid Security Documents is available on the Documents page of the CBP website.
02/08/2021 in Applications
-
FAQ-232:
Does AEP Ohio accept cash as a form of pre-bid security?
Yes. 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 in the form of a pre-bid letter of credit or in the form of cash. Please refer to Section IV.2.9 of the CPB Rules available on the Documents page of the CBP website for more information regarding the pre-bid security requirement.
10/09/2020 in Applications
-
FAQ-230:
May we submit proposed modifications to the Form of SSO Supplier Letter of Credit for the November 2020 Auction?
There is no comment process for the Form of SSO Supplier Letter of Credit at this time. The list of acceptable modifications to the SSO Supplier Letter of Credit is available on the Documents page of the CBP website and contains a list of modifications to the SSO Supplier Letter of Credit that are acceptable to AEP Ohio on an optional basis.
09/30/2020 in Applications
-
FAQ-229:
Will bidders be required to submit additional pre-bid security in the November 2020 Auction?
For the November 2020 Auction, the amount of pre-bid security required is $500,000 per tranche. No additional pre-bid security is required for any bidder. As stated in Paragraph IV.2.9. of the CBP Rules, a bidder that relies on the financial standing of a guarantor may submit a “letter of intent to provide a guaranty” to meet the additional pre-bid security requirement when the maximum amount of pre-bid security required per tranche exceeds $500,000. This is not applicable to the November 2020 Auction.
09/24/2020 in Applications
-
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 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 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 Applications
-
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 Applications
-
FAQ-214:
Who can participate in a Trial Auction? When is the Trial Auction scheduled for the November 2019 Auction?
Qualified Bidders that successfully complete the Part 2 Application become Registered Bidders and receive a Part 2 Notification. With the Part 2 Notification, Registered Bidders receive an invitation to participate in a Trial Auction as well as login credentials for the Trial Auction. For the November 2019 Auction, as indicated in the Auction Timeline, bidders can expect to receive the Part 2 Notification no later than October 29. The Trial Auction is scheduled for October 30, from 11 AM to 1:30 PM.
10/22/2019 in Applications
< Previous | Showing 11 to 20 | Next > | << Back to FAQ Categories