PECO Procurement For Default Supply

FAQs

Contract

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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
FAQ-50:
Is there a redline of the Uniform SMA for DSP VI to the version for DSP V?

A redline of the Uniform SMA posted to the RFP website to the DSP V version was filed with the petition for DSP VI as PECO Exhibit SD-3 beginning on page 204 and is available on the PUC’s website here: https://www.puc.pa.gov/pcdocs/1815136.pdf.

07/29/2025 in Contract
FAQ-49:
Is PECO an adhering party to the International Swaps and Derivatives Association (“ISDA”) 2018 U.S. Resolution Stay Protocol (“ISDA U.S. Stay Protocol”)?

Yes, PECO Energy Company is an adhering party to the ISDA U.S. Stay Protocol. The list of adhering parties is available on the ISDA website: https://www.isda.org/protocol/isda-2018-us-resolution-stay-protocol/adhering-parties.

07/29/2025 in Contract
FAQ-47:
Is there an overview of the timeline for the execution of the Uniform SMA and Transaction Confirmation(s) after the bid date?

The Post-Bid Process is described in VII.3. of the RFP Rules. As stated in paragraphs VII.3.7 - VII.3.8, “The winning RFP Bidders and PECO must execute the Transaction Confirmations and Uniform SMAs (if applicable) within five (5) business days of the Bid Date. PECO can collect on the Pre-Bid Letter of Credit if a winning RFP Bidder does not execute the Uniform SMA and all Transaction Confirmations, or if the winning RFP Bidder does not fulfill the creditworthiness requirements in the required timeframe.”

Please refer to the RFP Rules available on the RFP Website here: https://pecoprocurement.com/index.cfm?s=supplierInformation&p=documents.

07/29/2025 in Contract

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