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GEN 00001

Question: When will the auction take place?

Answer: The SO2 auction and the NOx auction are tentatively scheduled to take place on November 17, 2011.

GEN 00002

Question: Is there an application process to participate in the auction?

Answer: Yes, prospective bidders must complete and submit the Bidder Application which is available for downloading from the Documents page of this Website.

GEN 00003

Question: Who is eligible to participate in the auction?

Answer: Any party who successfully submits a Bidder Application and is deemed a Qualified Bidder can participate in the auction.

GEN 00004

Question: What time will the auction begin?

Answer: The starting time for the auction -- likely to be in the morning -- will be announced to the bidders closer to the auction date.

GEN 00005

Question: Are there any IT requirements to participate in the auction?

Answer: The Bidding Website is designed to be a simple Web browser-based experience for bidders. The basic requirements for the Bidding Website are an Internet connection, a computer, and a popular Web browser such as Microsoft Internet Explorer, Chrome, Opera, Firefox or Safari. We recommend using a browser version no more than two years older than the browser vendor's most recent release. JavaScript must be enabled on the browser. Bidders accessing the Internet through a proxy server may require the assistance of their company's IT department to ensure a continuous connection during the event.

GEN 00006

Question: What happens if I can't connect to the Bidding Website or if I have computer problems during the time of the auction?

Answer: There will be a Help Desk that you can call with any technical problems.

GEN 00007

Question: Will the Bidder Information Session Webcast be posted as a document?

Answer: Yes, the presentation used for the October 28, 2011 Bidder Information Session is posted in the Documents section of the Auction Information Website here:  http://www.fescsaprauction.info/Documents/InformationSessions.aspx.  Note that only Registered Users of the Information Website have access to the Documents section of the Information Website.  If you are not a Registered User, go to this page to register to become a Registered User:  http://www.fescsaprauction.info/Registration.aspx.

GEN 00008

Question: When will the applicable bidder documents (Bidder Application, LOC, etc.) be available in a Word format?

Answer: Word versions of some of the documents now have been posted to the Documents section of the Auction Information Website here:  http://www.fescsaprauction.info/Documents/BidderDocuments.aspx.  Note that only Registered Users of the Information Website have access to the Documents section of the Information Website.

GEN 00009

Question: What happens to the number of emission allowances awarded to winning bidders if FirstEnergy Solutions receives fewer emission allowances than its current target allocation?

Answer: The emission allowances would be pro-rated across the winning bidders. A related FAQ is GEN 00011.

GEN 00010

Question: (1) What are the commodities being auctioned? (2) What are the minimum size requirements for each commodity? (3) What are the minimum price requirements for each commodity? (4) If minimums are not met, how will you handle price and/or size?

Answer: (1) Six products grouped into two product groups (SO2 and NOx) will be offered for sale in the FirstEnergy Solutions CSAPR Emission Allowance Auction: CSAPR Group-1 SO2 Allowances (2012 and 2013), CSAPR Annual NOx Allowances (2012 and 2013), CSAPR Seasonal NOx Allowances (2012 and 2013).

(2) There are two types of minimum quantities. First, there is a minimum supply quantity or minimum number of allowances that FirstEnergy Solutions is offering for sale. Second, bidders are subject to minimum bid quantities; that is, in submitting a bid on one or more products in a product group, a bidder must bid a minimum bid quantity across the products in the product group. The minimum bid quantity for the SO2 product group is 500 allowances. The minimum bid quantity for the NOx product group is 200 allowances.

(3) Each product in a product group will have a starting price and a reserve price. The starting prices will be disclosed to Qualified Bidders prior to the Auction. The reserve prices will not be disclosed. The starting price for a product will be no higher than the reserve price for the product.

(4) In the context of minimum supply quantities, if FirstEnergy Solutions accepts the results of the Auction, allowances bid at or above a product’s reserve price will be awarded to the winning bidders even if the total number of allowances bid is below the minimum supply quantity. More information can be found on this Website including in the presentation made at the October 28, 2100 Bidder Information Session found on the Documents page of this Website (accessible by Registered Users of this Website).

GEN 00011

Question: If the EPA reduces the allowances allocated to FE, how will this trickle down to the auction winner participants?

Answer: Pursuant to the Sales Agreement under Article 2.6, if the allowances allocated are reduced by Government Action prior to the date that the allowances have been delivered, the amount of allowances may be reduced by FES by up to the total reduction on a pro rata basis to all buyers of like allowances.  A related FAQ is GEN 00009.

GEN 00012

Question: When are the Bidder Applications actually due? The Calendar has Wednesday, November 10th, but next Wednesday is the 9th and Thursday is the 10th.

Answer: There was a typo on the Home page of the Infomation Website that was corrected earlier today. The Bidder Application is due on Thursday, November 10.

GEN 00013

Question: Can a bidder participate in only one of the auctions, SO2 or NOx?

Answer: Yes, a bidder can participate in the SO2 auction only, the NOx auction only, or both auctions.

GEN 00014

Question: Will the auction results be made public?

Answer: No, the auction results will not be made public.

GEN 00015

Question: Does registering on the Information Website commit the registrant to anything (e.g. auction participation)?

Answer: No, registering on the Information Website does not require participation by the Registered User.

GEN 00016

Question: Can FirstEnergy Solutions accept the results of the auction for one product, but not for other products?

Answer: Yes, the decision whether to accept the results of the auction will be made on a product by product basis, so results for one product may be accepted while results for others may not.

GEN 00017

Question: Are electronic versions of the application documents sufficient to meet the November 10 deadline for Bidder Applications, with hardcopies to follow?

Answer: Just electronic versions are suficient, except that hardcopies will be needed for signature pages in the application. The hardcopies of signature pages may be forwarded after submission of the electronic versions of the Bidder Application documents.

GEN 00018

Question: How many CSAPR allowances is FirstEnergy Solutions going to offer at the auction?

Answer: If the reserve price is met, FirstEnergy Solutions expects to sell at least 50,000 Group 1 SO2 allowances for each of the vintage years 2012 and 2013. If the reserve price is met, FirstEnergy Solutions expects to sell at least 4,000 NOx annual and seasonal allowances combined for each of the vintage years 2012 and 2013.

GEN 00019

Question: What happens if the CSAPR is stayed beyond 2012 and FirstEnergy does not have the allowances to deliver?

Answer: Pursuant to Article 2.6 of the Sales Agreement, if the allowances are affected by Government Action prior to the date that the allowances have been delivered such that Seller can not deliver or the EPA can not record the allowance transfer, the obligation will be terminated.

GEN 00020

Question: Can companies combine together to form one larger purchaser?

Answer: FirstEnergy Solutions seeks to offer an auction that is fair and competitive; therefore companies may not combine in ways that are likely to negatively impact the competitiveness of the Auction. FirstEnergy Solutions reserves the discretion to allow parties to combine and register under one bidder account to qualify in the Auction, and the Bidder Application allows prospective combinations of bidders to make this disclosure.

FAQs Disclaimer

The information presented and distributed in the Frequently Asked Questions (FAQs) may be subject to modifications and/or amendments and is provided for informational purposes only. The information provided in the course of the Auction, or on the Auction Information Website, has been prepared to assist bidders in evaluating the Auction. It does not purport to contain all the information that may be relevant to a bidder in satisfying its due diligence efforts. Neither FirstEnergy Solutions nor the Auction Manager make any representation or warranty, expressed or implied, as to the accuracy or completeness of the information, and shall not, either individually or as a corporation, be liable for any representation expressed or implied in the Auction or any omissions from the Auction, or any information provided to a bidder by any other source. A bidder should check the Auction Information Website frequently to ensure it has the latest documentation and information. Neither FirstEnergy Solutions, nor the Auction Manager, nor any of their representatives, shall be liable to a bidder or any of its representatives for any consequences relating to or arising from the bidder’s use of outdated information. The information is not intended to form any part of the basis of any investment decision, valuation or any bid that may be submitted during the Auction process. Each recipient should not rely solely on this information and should make its own independent assessment of the potential value of the CSAPR emission allowances in the Auction after making all investigations it deems necessary.

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