PECO Procurement For Default Supply

FAQs

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FAQ-65:
Who is the responsible party, PECO or the Default Supplier, for the new PJM billing line item for DOE 202C charges (ID # 1935) and credits (ID # 2935)?

Default Suppliers are the responsible party for DOE 202C charges (ID # 1935) and credits (ID # 2935). In accordance with paragraph I.1.12 of the RFP Rules, the Uniform SMA prepared for execution in this September 2025 Solicitation will include this new billing line item in the table in Appendix D and will indicate the responsible party for the charges and credits is the Default Supplier. The Unform SMA posted to the RFP website will be updated and reposted today to reflect this addition in Appendix D.

09/22/2025 in Contract
FAQ-64:
Please confirm that in each month for a Product a Default Supplier is paid based on the average of their approved Bids for the Product in the RFP ($/MWh) times the DS Supply volumes (MWh) including distribution and transmission losses times the DS Fixed percentage and that there are no other charges or credits except for PMEA/FMEA adjustments.

The settlement volumes on which a Default Supplier is paid includes distribution losses and transmission losses. Please see the definition of DS Supply in the Uniform SMA for additional details on the products and services required by the Default Supplier to serve their DS Supplier Responsibility Share (%), which is the fixed percentage share of DS Load for which the Default Supplier is responsible. Notably, the definition of DS Supply includes all distribution and transmission losses. The DS Supplier Responsibility Share (%) will be populated in the product specific Transaction Confirmation (see Exhibit 1) based on the number of tranches won by the Default Supplier in the solicitation and the size of the tranche (%).

We understand your question to be related to the basis of the monthly payment for DS Supply. Please see Article 9 of the Uniform SMA for the complete description of billing and payment, which is discussed below. Capitalized terms are defined in the Uniform SMA.

For the relevant supply period, the Default Supplier is paid for each hour based on the DS Fixed Price multiplied by the hourly Energy requirements of DS Supply (related to the Default Supplier’s DS Supplier Responsibility Share). The DS Fixed Price ($/MWh) is the average of approved Bids for the Default Supplier and for that product in the solicitation rounded to four decimals.For purposes of the calculation described in 9.1(a), the DS Fixed Percentage is 100% and the Seasonal Billing Factors are 1 for the residential and small commercial fixed-price products. As managed through invoicing, if there is a difference in the PMEA and FMEA related to the hourly Energy requirements of DS Supply the PMEA/FMEA Adjustment Amount will be included to reconcile such differences.

Additionally, as described in 9.1(e) and 9.1(f) there may be additional charges or credits on the invoice such as interest; or other payments or credits to satisfy respective obligations, such as those related to damages; or to correct arithmetic errors, computation errors, meter reading errors, or other errors, provided that the errors become known within one (1) year of the termination of all Transactions of this Agreement. An exhaustive list of plausible charges and credits based on all scenarios related to performing under the Uniform SMA is not available. It is the responsibility of each bidder to review the terms of the Uniform SMA. Each bidder accepts these terms as a condition of its participation in the PECO RFP.

Additionally, please note that, since the results for the Base Residual Auction (“BRA”) under PJM’s RPM for the 2027/28 delivery year will not be announced by PJM at least five (5) business days prior to the Bid Date, a capacity proxy price (“CPP”) has been established for this delivery year. If a CPP is established for a delivery year that overlaps with part or all of the delivery period for a product in a solicitation, a true-up mechanism, described in the Capacity Supplement in Exhibit 1 to Appendix C of the Uniform SMA, will apply to the Transaction Confirmation for the product. Please see slides 24 and 25 of the Bidder Information Session for additional information including the value of the CPP for the RES-24-Dec25 and SC-24-Dec25 products.

09/22/2025 in Contract
FAQ-62:
What is the timing for when the true-up related to the Capacity Proxy Price is made on the Default Supplier’s invoice for the 24-month products in this solicitation?

Under the Capacity Supplement in the Transaction Confirmation, a true-up will take place in each Billing Month of the Delivery Year for which a Capacity Proxy Price is used that overlaps with the Delivery Period for the product. The “Delivery Year” relevant to the Capacity Proxy Price in this solicitation is June 2027 through May 2028. The “Delivery Period” for each of the 24-month products in this solicitation is December 2025 through November 2027. Thus, for a 24-month product in this solicitation, in each Billing Month from June 2027 to November 2027, the Statement of amounts due to the Default Supplier will include an additional line item for the true-up related to the Capacity Proxy Price.

This timing and the calculation of the true-up is confirmed in the Capacity Supplement, which states “For each month of the Delivery Year that is also a Billing Month of the Delivery Period, this Statement will include an additional line item that will show the sum, over all days of the Billing Month, of the difference between the Capacity Price actually charged for load served for the Delivery Point and the Capacity Proxy Price, multiplied by the amount of Capacity for the day reported as the DS Supplier’s Capacity obligation by Buyer to PJM for the Transaction.”

For more information related to the Capacity Proxy Price Mechanism, please refer to slides 24 and 25 of the Bidder Information Webcast, and the Capacity Supplement in the Transaction Confirmation in the Uniform SMA. The Bidder Information Webcast and the Uniform SMA are posted to the documents page of the RFP website.

09/17/2025 in Contract
FAQ-61:
Is the failure to deliver AECs considered an Event of Default under the Uniform SMA?

Under the SMA, a supplier has an express duty to satisfy AEPS requirements associated with the percentage of default service load served by that supplier. See, e.g., Sections 2.2(ix); 5.3(d), Appendix C, Appendix E, and Appendix I; see also Article I, definition of “Default Service Supply.” Failure to fulfill this duty can constitute an Event of Default under Section 5.1(xiv). Damages may include, but are explicitly not limited to, any AEPS charges which the Company must pay due to the supplier’s conduct or inaction. See Section 5.3(d).

09/12/2025 in Contract
FAQ-60:
Where can I find the number of AECs to be allocated by PECO to each tranche?

Under the Uniform SMA, a Default Supplier’s AEPS obligation may be reduced by a number of AECs allocated to the Default Supplier in the Transaction Confirmation. Any PECO AECs allocated to Default Supplier’s AEPS Obligation remain the property of PECO and are not transferred to the Supplier. The number of AECs to be allocated to each tranche in the Transaction Confirmation are provided within the Bidder Information Session.

09/11/2025 in Contract
FAQ-59:
Can you please clarify the timing of the delivery of AECs by a Default Supplier?

Please see paragraph I.4.4 of the RFP Rules, which states “The Company will provide an estimate of the Default Supplier’s AEPS obligation following the second quarter of the AEPS Reporting Period and the Default Supplier will be required to transfer AECs to PECO in the amount of the estimate within forty-five (45) calendar days of the date of that estimate. The Company will provide a final statement to the Default Supplier within thirty (30) calendar days of the end of AEPS Reporting Period and the Default Supplier will be required to transfer AECs in the amount of the final statement within forty-five (45) calendar days after the date of the final statement.”

09/11/2025 in Contract
FAQ-58:
Can a Default Supplier that has winning Bids that are approved by the Commission in a subsequent solicitation amend the guaranty in place with PECO or do we have to issue a new guaranty?

PECO and each RFP Bidder with Bids that are approved by the Commission execute a single Uniform SMA and guaranty (if applicable) during the course of DSP VI. A Default Supplier under DSP VI that has winning Bids that are approved by the Commission in a subsequent solicitation under DSP VI will execute one Transaction Confirmation for each product for which it has winning Bids and will not execute a new Uniform SMA or guaranty (if applicable). If the guaranty requires amending this process may be handled directly with PECO during the contract execution process.

09/11/2025 in Contract
FAQ-57:
Is a redline of the Uniform SMA posted on July 29, 2025 for the September 2025 Solicitation to the version posted for the March 2025 Solicitation available?

A redline of the Uniform SMA posted on July 39, 2025 for the September 2025 Solicitation to the version posted for the March 2025 Solicitation is not available. The Uniform SMA posted on July 29, 2025 for the September 2025 Solicitation is unchanged from the previous version posted for the March 2025 Solicitation.

09/05/2025 in Contract
FAQ-55:
Is a Default Supplier’s load obligation netted against generation from qualifying behind-the-meter renewable energy installations under PECO’s net metering program?

Yes, Default Load served by a Default Supplier would be net of generation from qualifying renewable energy installations under PECO’s net metering program. For more information on PECO’s net metering program please see the following webpage: https://www.peco.com/smart-energy/my-green-power-connection/developers-contractors/net-metering.

The hourly load data available in the Data Room on the RFP website is reduced for generation from qualifying renewable energy installations.

08/19/2025 in Contract
FAQ-51:
Can an alternate guaranty form approved through the Alternate Guaranty Process in a solicitation under DSP VI be used through the end of DSP VI?

An alternate guaranty form approved through the Alternate Guaranty Process in a solicitation under DSP VI may be used by the prospective supplier through the end of DSP VI barring changes in the applicable law or changes to the RFP as may be ordered by the Pennsylvania Public Utility Commission.

PECO and each RFP Bidder with Bids that are approved by the Commission execute a single Uniform SMA and guaranty (if applicable) during the course of DSP VI. A Default Supplier under DSP VI that has winning Bids that are approved by the Commission in a subsequent solicitation under DSP VI will execute one Transaction Confirmation for each product for which it has winning Bids and will not execute a new Uniform SMA or guaranty (if applicable).

08/05/2025 in Contract

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