FAQs
Credit
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FAQ-61:
Have there been any changes to the Pre-Bid Letter of Credit since the September 2023 Solicitation?
The Pre-Bid Letter of Credit for the March 2024 Solicitation is available on the Supplier Information page of the RFP website and is dated December 21, 2023. Three administrative changes have been made to the Pre-Bid Letter of Credit since the September 2023 Solicitation:1) The expiry date in Paragraph 1 was updated to no earlier than March 27, 2024;
2) The field for PECO’s telephone number was replaced with a field for their email address in Paragraph 7; and
3) The list of titles in the definition of “Authorized Officer” was updated in Paragraph 12.
The Pre-Bid Letter of Credit is provided in word format and RFP Bidders may use this document to make a redline to a prior version posted. The Pre-Bid Letter of Credit is due with the Part 2 Proposal by Thursday, March 7, 2024.
02/15/2024 in Credit
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FAQ-53:
Can you please provide a physical address for PECO for the purposes of issuing the Pre-Bid Letter of Credit?
Please see the modification on page 5 of the list of acceptable modifications to the Pre-Bid Letter of Credit posted on the Supplier Documents page. If a physical address is required strictly for purposes of identifying the Beneficiary, it is acceptable to use PECO’s address below the beneficiary name. The pre-bid letter of credit must be submitted as an electronic PDF file via electronic means only to the Independent Evaluator. A hardcopy version should not be delivered to this address.
12/21/2023 in Credit
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FAQ-43:
Can I submit more than one Draft Pre-Bid Letter of Credit for review in a solicitation?
An RFP Bidder can only submit one (1) Draft Pre-Bid Letter of Credit in a solicitation. For more information, please refer to Section VII.1.8. of the RFP Rules.
12/21/2023 in Credit
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FAQ-36:
Will the Independent Evaluator retain a Pre-Bid Letter of Credit between solicitations if requested by an RFP Bidder?
The Independent Evaluator will retain a Pre-Bid Letter of Credit between solicitations if requested by an RFP Bidder.
12/21/2023 in Credit
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FAQ-18:
Is it acceptable to rely on the financial standing of a Foreign Guarantor?
Yes, RFP Bidders may rely on the financial standing of a Foreign Guarantor. Please see Paragraphs IV.5. and V.5. of the RFP Rules for additional requirements applicable to RFP Bidders with Foreign Guarantors. The RFP Rules are available on the Supplier Documents page of the RFP website.
12/21/2023 in Credit
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FAQ-15:
Is there a credit-based tranche cap in the PECO RFP?
No, there is no cap on the number of tranches for which an RFP Bidder can bid on based on the credit assessment for the entity on which that RFP Bidder is relying. There are, however, load caps for a Class that are set so that the Default Service customers of that Class have no more than a 50% exposure to any one Default Supplier at any given time.
12/21/2023 in Credit
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FAQ-10:
We do not have an RFP Guarantor that meets the creditworthiness requirements under the Uniform SMA. Does this mean that we cannot participate in the RFP?
An unrated entity or an entity with a credit rating below BBB- for S&P and/or Fitch or below Baa3 from Moody’s would not be granted any Unsecured Credit and cannot serve as an RFP Guarantor under the terms of the Uniform SMA (see Appendix A). It is not a requirement for an RFP Bidder to be rated or to rely on the financial standing of a Guarantor that meets the creditworthiness requirements in order to participate in the PECO RFP. In this case, the RFP Bidder would not be granted any Unsecured Credit and must post any required performance assurance collateral in the form of cash or a letter of credit.
12/21/2023 in Credit
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FAQ-6:
An RFP Bidder that is relying on the financial standing of an RFP Guarantor and is not a Default Supplier must provide a complete Guaranty Intent Insert (#P2-2) with the Part 2 Proposal. How do I calculate the Indicative Amount?
The Indicative Amount must meet or exceed the sum of: (i) $600,000 times the number of tranches bid on products for the RES and SC Classes for full requirements on a fixed-price basis; and (ii) $300,000 times the number of tranches bid for the CCI Class for full requirements service on a spot-price basis (if applicable).
12/21/2023 in Credit
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FAQ-3:
Does a Bidder submit a single Pre-Bid Letter of Credit for all products on which it plans to bid?
An RFP Bidder must, in its Part 2 Proposal, submit a single Pre-Bid Letter of Credit in an amount of at least: (i) $250,000 per tranche bid on products for the Residential and Small Commercial Classes; and (ii) $125,000 per tranche bid on a CCI product (if applicable). This Pre-Bid Letter of Credit must be in the form of the Standard Pre-Bid Letter of Credit or must incorporate only modifications that have been approved by PECO and posted to the RFP website.
12/21/2023 in Credit