NAEMA is posting this RFP on behalf of our member AEP Service Corporation.
American Electric Power Service Corporation (AEPSC) as agent for its operating companies is seeking pricing for PJM Capacity Planning Year 2025/2026 and Planning Year 2026/2027. Counterparties are welcome to bid on one or both Planning Years.
Specifically, AEPSC is seeking the following requirements for PJM Capacity:
- Volume: Planning Year (PY) 2025/2026 up to 500MWs and/or PY 2026/2027 up to 1,000 MWs (the full amount or blocks of 10 MWs or greater will be considered)
- Term: 25/26 PY and/or 26/27 PY
- Price: Pricing will be based on the greater of a submitted offer price and the Base Residual Auction Price plus 10%
- Type: Unit-specific only
- Location: RTO LDA
- Security Considerations: To address potential PAI events, Payment and Collateral requirements to be negotiated by the parties.
- Potential Forms of Security:
- Parent Guarantee from an Investment Grade Guarantor (BBB- and Baa3) and in a form acceptable to AEP Credit Risk Management
- Letter of Credit issued by a U.S. bank or the U.S. Branch of a foreign bank, who is not affiliated with the Bidder or its Guarantor with a Credit Rating of at least “A-” in the case of S&P and “A3” in the case of Moody’s, and in a form acceptable to AEP Credit Risk Management
- Cash (U.S. Dollars)
- Transaction to be completed in Capacity Exchange prior to June 7th, 2023
- Pricing sent to hsturner@aep.com and abmichael@aep.com by noon on April 7th, 2023
The solicitation has also been posted on the following websites: Energy Provider RFPs (appalachianpower.com) or Energy Provider RFPs (indianamichiganpower.com).