PECO Procurement For Default Supply

FAQs

Contract

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FAQ-52:
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.

12/15/2025 in Contract
FAQ-50:
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.

12/15/2025 in Contract
FAQ-49:
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.

12/15/2025 in Contract
FAQ-48:
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.

12/15/2025 in Contract
FAQ-47:
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.

12/15/2025 in Contract
FAQ-45:
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.

12/15/2025 in Contract
FAQ-19:
Is Buyer or Seller the responsible party for Network Integration Transmission Service (ID #1100)?

PECO is the responsible party for Network Integration Transmission Service charges (ID #1100). Appendix D to the Uniform SMA provides the PJM Billing Statement line items, including transmission charges, and the responsible party (Buyer or Seller) for each item.

12/15/2025 in Contract
FAQ-18:
What is the settlement volume for which Default Suppliers are paid?

Default Suppliers are responsible for and are paid based on a percentage of the Default Load for a Class. The applicable settlement volume includes distribution losses, transmission losses, unaccounted for energy (as reflected in PJM settlement volumes), and adjustments required by PJM for PJM’s derating in conjunction with implementation of marginal losses as appropriate per PJM Agreements. The hourly load data provided in the Data Room includes both applicable distribution and transmission losses, and has not been de-rated. PJM hourly de-ration factors and the hourly UFE values are available separately on the Data Room page on the RFP website. Please also see the Data Description Document, for information regarding how PECO allocates Unaccounted For Energy (“UFE”) to all Load Serving Entities (“LSEs”) in PECO’s zone.

12/15/2025 in Contract
FAQ-16:
Are Default Suppliers responsible for the Pennsylvania electric gross receipts tax (EGRT)?

Section 16.9 of the Uniform SMA states “the DS Supplier is responsible for the payment of all taxes imposed by all present and future federal, state, municipal or other taxes imposed by any taxing authority on the wholesale sales of DS Supply under this Agreement”.

The Pennsylvania electric gross receipts tax (EGRT) is imposed upon receipts from sales of electric energy. The EGRT provides an exemption from taxable gross receipts for sales for resale to persons, partnerships, associations, corporations and political subdivisions subject to the EGRT upon gross receipts derived from such resale of electric energy services. The Pennsylvania Department of Revenue will issue annual Gross Receipts Tax Electric Reseller Acknowledgment forms to resellers that report taxable sales and valid sales for resale to confirm they are subject to gross receipts tax (GRT) and reporting GRT as required by law. Suppliers that want to claim a GRT sale for resale exemption must obtain a copy of this form from the reseller. The resale exemption claimed is subject to review and verification by the Pennsylvania Department of Revenue.

Default Suppliers that wish to claim a GRT sale for resale exemption may request a copy of the annual Gross Receipts Tax Electric Reseller Acknowledgment form from PECO directly.

Additional terms related to taxes are provided in Section 16.9 of the Uniform SMA. It is the responsibility of each bidder to review the terms. Each bidder accepts these terms as a condition of its participation in the PECO RFP.

12/15/2025 in Contract
FAQ-15:
Are Default Suppliers responsible for providing any of the services or products included in full requirements service for the fractional percentage of committed energy and capacity obtained under contract with Allegheny Electric Cooperative, Inc. for supply from the New York Power Authority (“NYPA”)?

No. Default Load for the Residential Class is reduced by a fractional percentage of committed energy and capacity obtained under contract with Allegheny Electric Cooperative, Inc. for supply from the New York Power Authority (“NYPA”). Default Suppliers are not responsible for providing any of the services or products included in full requirements service for NYPA supply.

12/15/2025 in Contract

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