FAQs
Contract
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FAQ-63:
Can an RFP Bidder that does not have winning Bids approved by the Commission in a solicitation under DSP V execute the Uniform SMA in order to have an abbreviated contract execution process in subsequent solicitations?
As stated in Paragraph VII.3.1 of the RFP Rules, “the winning RFP Bidders and PECO must execute the Uniform SMAs and Transaction Confirmations within three (3) days of acceptance of the results by the Commission.” There is no process for an RFP Bidder that does not have winning Bids approved by the Commission to execute the Uniform SMA.Previously eligible RFP Bidders, which are RFP Bidders that become eligible to bid for a solicitation under DSP V, participate in an abbreviated Part 1 and Part 2 proposal process in subsequent solicitations by using the Short Part 1 Form and Short Part 2 Form to respond to the qualification requirements.
03/07/2024 in Contract
- FAQ-60:
Have there been any changes to the Uniform SMA since the September 2023 Solicitation?
Yes, on December 22, 2023, PECO petitioned to modify its Uniform SMA for its Default Service Program V (“DSP V”) to add a new, optional Appendix I, which incorporates the International Swaps and Derivatives Association 2018 U.S. Resolution Stay Protocol (“ISDA U.S. Stay Protocol”). The Commission approved PECO’s petition on February 1, 2024 in Docket No. P-2023-3045119. RFP Bidders that adhere to the ISDA U.S. Stay Protocol may elect for both the RFP Bidder and PECO to execute Appendix I at the point of contract execution to incorporate necessary terms of the ISDA U.S. Stay Protocol. RFP Bidders that intend to execute Appendix I at the point of contract execution will indicate this election to the Independent Evaluator in the Part 1 Proposal. Please see Appendix I of the Uniform SMA, dated February 1, 2024, posted to the RFP website for additional information.The modification to add this new, entirely optional Appendix I to the Uniform SMA beginning with this March 2024 Solicitation is the only modification made since the Uniform SMA was approved for PECO’s DSP V by the Commission on December 3, 2020.
02/15/2024 in Contract
- FAQ-59:
Has PECO petitioned the Pennsylvania Public Utility Commission (“Commission”) for approval to modify its fifth default service program (“DSP V”) Default Service Supplier Master Agreement (“SMA”) to incorporate the 2018 International Swaps and Derivatives Association, Inc. (“ISDA”) U.S. Resolution Stay Protocol?
On December 22, 2023, PECO petitioned to modify its DSP V SMA to add a new Appendix I which incorporates the 2018 ISDA U.S. Resolution Stay Protocol (Docket No. P-2023-3045119). This addition would enable market participants subject to the regulations issued by the Board of Governors of the Federal Reserve System (12 C.F.R. §§ 252.2, 252.81-88), the Federal Deposit Insurance Corporation (12 C.F.R. §§ 382.1-7) and the Office of the Comptroller of the Currency (12 C.F.R. §§ 47.1-8) to participate in the PECO’s default service solicitations.PECO is seeking expedited approval of the addition of Appendix I to the DSP V SMA on or before the Commission’s public meeting scheduled for February 1, 2024 to be used in the upcoming March 2024 solicitation.
01/08/2024 in Contract
- FAQ-54:
Is a Default Supplier under DSP V that has winning Bids that are approved by the Commission in a subsequent solicitation under DSP V required to execute a new Uniform SMA and guaranty (if applicable)?
No. 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 V. A Default Supplier under DSP V that has winning Bids that are approved by the Commission in a subsequent solicitation under DSP V 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).
12/21/2023 in Contract
- FAQ-31:
What is the AEC Solar Penalty in the transaction confirmation and do Default Suppliers complete that information during the confirmation process?
The AEC Solar Penalty is the alternative compliance payment as defined in the Alternative Energy Portfolio Standards Act (“AEPS”).On the day the Commission approves some or all of the winning Bids, the Independent Evaluator sends to PECO the Uniform SMA, including all Exhibits, for each New Default Supplier. The Independent Evaluator will update the blank provided for the AEC Solar Penalty at that time.
Please note that Default Suppliers are responsible for providing the AECs necessary for PECO to meet its obligations under the AEPS Act during the term of the Uniform SMA. The obligations of Default Suppliers in this regard are reduced by the AECs procured separately by PECO. In the Transaction Confirmation RFP Bidders must specify a price for each type of AECs (Tier I, Tier I Solar, and Tier II) that is included in the RFP Bidder’s winning Bids. As specified in the RFP Rules (see Paragraph V.1.2), each such price must be greater than $0/AEC. The RFP Bidder will be required to certify in its Part 2 Proposal that it will comply with this obligation.
For more information on a DS Supplier’s obligations related to AEPS compliance, please see Appendix E of the Uniform SMA.
12/21/2023 in Contract
- FAQ-25:
For the remaining Residential Default Load served by PECO, will PECO pay for all of the cost of full requirements service or only the cost of energy and AECs?
In regards to the remaining Default Load, PECO will be a Load Serving Entity in PJM and will acquire all necessary supply through PJM-administered markets and will obtain sufficient Alternative Energy Credits (“AECs”) at market prices to satisfy any near-term obligations under the AEPS Act. Default Suppliers are not responsible for any of the costs related to the portion of the Default Load of the Residential Class served by PECO.
12/21/2023 in Contract
- FAQ-20:
In Exhibit 1, Transaction Confirmation, included in Appendix C of the Uniform SMA, there are blanks to provide the average costs for the Alternative Energy Credits (AECs). Will PECO provide these numbers to a winning bidder or are these numbers to be provided by the Seller?
Default Suppliers are responsible for providing the AECs necessary for PECO to meet its obligations under the Alternative Energy Portfolio Standard (“AEPS”) Act during the term of the Uniform SMA. The obligations of Default Suppliers in this regard are reduced by the AECs procured separately by PECO. The blanks in the Transaction Confirmation are for the Default Supplier to provide a price for each type of AEC (Tier I, Tier I Solar, and Tier II) that is included in the RFP Bidder’s winning Bids. As specified in the RFP Rules (see Paragraph V.1.2), each such price must be greater than $0/AEC. The RFP Bidder will be required to certify in its Part 2 Proposal that it will comply with this obligation.
12/21/2023 in Contract
- FAQ-17:
If the State of Pennsylvania increases the AEPS obligation, is the Default Supplier responsible for the incremental cost?
Yes. Please see Appendix E of the Pennsylvania Default Service Supplier Master Agreement (“Uniform SMA”) which states, “If AEPS requirements change by law or any other reason, DS Supplier shall be responsible for providing the credits at its expense in order to comply with its obligations under Full Requirements Service.”
12/21/2023 in Contract
- FAQ-16:
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.
12/21/2023 in Contract
- FAQ-14:
Is it required for the RFP Bidder to be registered to do business in the state of Pennsylvania?
No, it is not a requirement under the Uniform SMA for suppliers to be registered to do business in the state of Pennsylvania. Please see Section 3.1 of the Pennsylvania Default Service Supplier Master Agreement (“Uniform SMA”) which states, the DS Supplier “is a corporation, partnership, limited liability company or other legal entity, duly organized, validly existing and in good standing under the laws of the Commonwealth of Pennsylvania or, if another jurisdiction, under the laws of such jurisdiction and, in such case, is duly registered and authorized to do business in such other jurisdiction.”
12/21/2023 in Contract
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- FAQ-60: