FAQ Archives - DSP II – November 2012 Solicitation
The FAQs on this page are no longer relevant, as they are from past solicitations. These FAQs are posted here only for reference purposes. Do not rely on the information provided on this page for the current solicitation.
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FAQ-1026:
Section 2.6 of the SMA (Alternative Energy Portfolio Standards Obligations) states: "...Seller's AEPS Obligation may be reduced by any AECs obtained separately by PECO and allocated to Seller's AEPS Obligation as shown on a transaction confirmation." How does PECO determine what sellers/tranches, if any, to allocate the AECs to?
Under the Default Service SMA (Section 2.6) each Supplier’s Alternative Energy Portfolio Standard (AEPS) obligations will be reduced by the number of AECs that PECO has allocated to the Supplier in the Transaction Confirmation. PECO will allocate Alternative Energy Credits (AECs) to winners of tranches in the November 2012 Solicitation according to the number of tranches of each product that the Bidder gets awarded in that solicitation. The allocated Tier I solar, Tier I non solar and Tier II AEC amounts per tranche and by type of product were provided in the Bidder Information Session Presentation on November 29, 2012 (see slide 22). The presentation is available on the PECO web page, Supplier Information – Documents page. Note that any AECs that PECO allocates to a Supplier’s AEPS Obligation remain the property of PECO and are not transferred to the Supplier.
12/18/2012 in Contract
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FAQ-1025:
How is PECO’s Time-of-Use Pilot Program expected to affect Default Service Suppliers?
It is the responsibility of each bidder to analyze upcoming retail market programs and policies and reach its own conclusions regarding potential impact on Default Service loads. For more information, please refer to PECO’s DSP II Compliance Filing on December 11, 2012, which has been posted to the Regulatory Process page of the PECO Procurement website.
12/14/2012 in General
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FAQ-1024:
How is PECO’s Customer Referral Program expected to affect Default Service Suppliers?
It is the responsibility of each bidder to analyze upcoming retail market programs and policies and reach its own conclusions regarding potential impact on Default Service loads. For more information, please refer to PECO’s DSP II Compliance Filing on December 11, 2012, which has been posted to the Regulatory Process page of the PECO Procurement website.
12/14/2012 in General
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FAQ-1023:
What Generation Deactivation charges are currently allocated to PECO customers? What units contribute to these charges?
Generation Deactivation Charges are the responsibility of the Seller. Please see Exhibit D (Sample PJM Invoice) of the Full Requirements SMA for a further explanation of cost responsibility. There is a discussion of generation deactivation charges on the Bidder Information Webcast Presentation as well. You may email questions concerning generation deactivation charges directly to PJM at the following email address: GoTo@pjm.com.
12/14/2012 in General , Rates
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FAQ-1022:
Please confirm that Default Service Suppliers are paid according to the formula: hourly default service load * (1- deration factor) * load share (# of tranche * tranche size)
As described in the Data Description Document currently posted on the PECO Web site, PECO hourly Default Service (DS) loads are derated by PJM for marginal transmission losses prior to energy settlement, following PJM’s marginal loss methodology. In addition, PJM's settlement methodology includes billing adjustments for the corresponding Unaccounted For Energy (UFE), which can be positive or negative. Each supplier is paid on the basis of its share of total hourly DS load for the class. The bidder share is calculated as the number of tranches times the percent size of the tranche. The price paid to the supplier is the average of the supplier’s winning bid prices.
12/14/2012 in Data
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FAQ-1021:
We are a current Default Supplier under two Supplier Master Agreements (SMAs) for DSP I, and have an existing guaranty with PECO that reference these SMAs. The new Guaranty provided to us as part of the DSP II Part 1 Notification for the November 2012 solicitation only references the new DSP II SMA. Since this Guaranty will superseded the existing Guaranty, should it also reference the DSP I SMA as well? Our existing guaranty is set at our Unsecured Credit Limit, is the correct value for the new guaranty amount the Unsecured Credit Limit? Will the old guaranty be returned to us?
All bidders that rely on the financial standing of a Guarantor must submit a new Guaranty in the first solicitation of DSP II. This new Guaranty will replace the existing guaranty should the bidder have winning bids approved by the Commission in this first solicitation of DSP II. PECO will return the existing Guaranty upon acknowledgment of the new Guaranty.
Consistent with the practice in DSP I, the new Guaranty under DSP II could but need not reference all the Default Service Supply Master Agreements (SMAs) between the bidder and PECO. The collateral requirements under each such Agreement (including this first Agreement for DSP II) refer to transactions under all SMAs executed between the Parties pursuant to the PUC Orders.
The new guaranty will need to meet or exceed the lesser of: (a) the Unsecured Credit Limit corresponding to the RFP Guarantor’s lowest Credit Rating most recently published by S&P, Fitch and/or Moody’s and the RFP Guarantor TNW Amount; (b) the sum of any current guaranty held by PECO under the SMA with the RFP Bidder and $600,000 per tranche bid. In your particular case, since your existing guaranty is at the unsecured credit limit for commitments under DSP I, the new guaranty for this solicitation should also be at the unsecured credit limit.
12/11/2012 in Contract , Credit , Qualification
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FAQ-1020:
Migration data (EGS/Eligible load) from 2006-2010 is relatively flat. Please explain the sudden increase in migration starting in January 2011.
It is the responsibility of each bidder to analyze historical data and reach its own conclusions regarding observable patterns. The data series provided have been reviewed and are accurate.
12/11/2012 in Data
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FAQ-1019:
What is the process for submitting the executed guaranty with the Part 2 Proposal?
For submission of your Guaranty with the Part 2 Proposal, please use the Guaranty provided to you on December 7, 2012 with your Part 1 Notification. As in solicitations under PECO’s first Default Service Program, the Guaranty provided to you by the Independent Evaluator is in a locked PDF format that cannot be edited. It is customized with your specific information. For the Part 2 Proposal, you must submit two (2) signed originals of the Guaranty (with original signatures).
12/11/2012 in Credit , Qualification
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FAQ-1018:
When will the RFP be issued for the Retail Opt-in Aggregation Program under PECO’s DSP II? Will customers who decide to opt-in be enrolled individually or as an aggregation?
The Pennsylvania Public Utility Commission (“the Commission”) affirmed that its October 12 Order regarding PECO’s Default Service Program (DSP II) was final with respect to the proposed competitive procurement program, and authorized PECO to proceed with the November 2012 solicitation. However, in its October 12 Order the Commission also required PECO to make a complete compliance filing with a proposal on several issues which were referred to a collaborative process and pertained to the Retail Market Enhancement Programs. This filing was made on December 11, 2012 and has been posted to the Regulatory Process page of the PECO Procurement website.
12/06/2012 in General
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FAQ-1017:
Can you please provide the information for the beneficiary of the Pre-Bid Letter of Credit as well as the information needed to complete Paragraph 7?
This information is available upon request. Please email the Independent Evaluator at pecoprocurement@nera.com.
12/06/2012 in Credit , Qualification
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FAQ-1016:
When will smart meter load data, instead of profiled load, be used to determine customer class’ capacity and transmission peak load contributions?
The use of smart meter load data for Daily Capacity Peak Load Contributions (PLCs) and Daily Network Transmission Service Peak Loads (NSPLs) is undergoing analysis. However, at this time, the determination of PLC and NSPL based on profiled load will continue until further notice.
12/05/2012 in Data
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FAQ-1015:
Where can historical Auction Revenue Rights (“ARR”)/Firm Transmission Rights (FTR) path information be found?
Default Service Suppliers can directly participate in PJM’s annual Auction Revenue Rights (ARR) path nomination and allocation process. This first solicitation under DSP II is being held early enough for winning bidders to have sufficient time to nominate ARRs with PJM. PECO is committed to working with suppliers and PJM to ensure a smooth process. Note that information on current and historical ARR allocations is available on PJM's web site.
12/05/2012 in Contract , General , Data
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FAQ-1014:
According to the calendar for the November 2012 PECO RFP, PECO will send transaction confirmations to winning suppliers by 12PM (noon) on Friday, December 21, 2012. Will the suppliers receive the confirmation on December 21st or will PECO ship them on December 21st, i.e. the supplier will receive the confirmation on December 24th?
PECO fully intends to sign all transaction confirmations on Thursday December 20, 2012 and to send these documents, along with the Supplier Master Agreement (SMA) to suppliers by overnight delivery on that same day.
12/05/2012 in Contract , General
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FAQ-1013:
The Part 1 Form states that either the Officer or the Designee must sign the Default Service SMA. It does not mention that these individuals must also sign the Transaction Confirmation. Can someone that is not the Officer or the Designee sign the Transaction Confirmation?
Please refer to PECO's DSP II RFP ("PECO Energy Company Default Service Program Request For Proposals", 26 November 2012). Section VII.3.9 of this document states that the Officer of the Default Supplier named in the Part 1 Proposal or the Designee is expected to sign the Transaction Confirmation(s). However if both of these individuals are unavailable to sign the Transaction Confirmation(s), the Default Supplier may name another individual to sign the Transaction Confirmation(s), and confirm that this individual is an officer, a director, or an individual otherwise authorized to undertake contracts (including the Default Service SMA) and bind the Default Supplier.
12/05/2012 in Contract , Procedures , Qualification
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FAQ-1012:
The table on slide 22 of the bidder information webcast presentation lists erroneous time periods for the products listed. Please provide the corrected dates.
Thank you for bringing this to our attention. The dates on slide 22 of the bidder information webcast presentation have been revised and posted to the Supplier Information / Documents page.
12/04/2012 in General
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FAQ-1011:
If a Default Service Supplier has an existing guaranty for Supplier Master Agreements (SMAs) under DSP I, will the Supplier be able to amend that guaranty to include the SMA for DSP II, or will a new guaranty be need?
All Bidders must provide a guaranty if relying on a Guarantor. Bidders who already are a Default Service Supplier will need to establish a new guaranty so that a single guaranty is used for Default Service supply commitments acquired under DSP I and for new commitments under DSP II. The new guaranty will need to meet or exceed the lesser of: (a) the Unsecured Credit Limit corresponding to the RFP Guarantor’s lowest Credit Rating most recently published by S&P, Fitch and/or Moody’s and the RFP Guarantor TNW Amount; (b) the sum of any current guaranty held by PECO under the SMA with the RFP Bidder and $600,000 per tranche bid. Note that the Guaranty for DSP II solicitations is $600,000 per tranche bid.
12/03/2012 in Contract , Credit
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FAQ-1010:
Will the acceptable modifications to the pre-bid and post-bid letters of credit be posted to the PECO Procurement Web site?
The acceptable modifications to the pre-bid and post-bid letters of credit have been posted to the Supplier Information / Documents page. A comprehensive list of all acceptable modifications to the pre-bid and post-bid letters of credit will be posted on the Part 1 Notification Date.
12/03/2012 in Credit , Procedures
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FAQ-1009:
Will the presentation from the bidder information webcast be posted to the PECO Procurement Web site?
v>The bidder information webcast presentation has been posted to the Supplier Information / Documents page.
12/03/2012 in General
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FAQ-1008:
We can propose modifications to the standard post-bid letter of credit, but an MS Word version of this document is not posted. Please provide this document.
v>Thank you for bringing this to our attention. The standard post-bid letter of credit has been posted to the Supplier Information / Documents page.
12/03/2012 in Credit , Procedures , Qualification
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FAQ-1007:
Regarding final load settlement, historical Default Service Supplier's responsibility is:
hourly default service load * (1- deration factor) * load share (# of tranche * tranche size)
How is UFE allocated to each customer class (Res/SC/MC/LC)? Does the UFE need to be derated?
As described in the Data Description Document currently posted on the PECO Web site, PECO allocates Unaccounted For Energy (UFE) to all Load Serving Entities (LSEs) in PECO’s zone (i.e., to EGSs and Default Service LSEs) by Customer Class every month, based on each Class’ load-ratio share. As a result, the UFE attributable to a particular Customer Class in this DSP II solicitation (Residential and Small Commercial) is different in every hour and is based on the Class' hourly load share of PECO’s total hourly load across all Classes. Note that PECO only allocates UFE to monthly-metered customers and does not allocate UFE to hourly-metered customers.
Default Service Suppliers are responsible for a percentage of the hourly energy requirements for a Class, which include distribution losses, transmission losses, and UFE. PJM's settlement methodology includes billing adjustments for UFE, which can be positive or negative. The energy volumes, including UFE, will be de-rated for transmission losses in accordance with PJM’s settlement methodology and implementation of marginal transmission losses. The PJM hourly de-ration factors and the hourly UFE values are available separately on the Data Room page on the PECO Web site.
11/30/2012 in Data
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FAQ-1006:
In the Section 2.4 of the SMA, it is stated that "Buyer is responsible, at its sole cost and expense, for FUTURE PJM charges... for PJM-required transmission system enhancements". Does this mean that the Seller will be responsible for existing PJM Transmission Enhancements Charges and Buyer will be responsible for only new charges?
Please refer to the definition of "Full Requirements Service" in the Default Service Supplier Master Agreement (SMA). “Full Requirements Service” means all necessary Energy, Capacity, Transmission (other than Network Integration Transmission Service), Ancillary Services, Alternative Energy Credits (AECs) for compliance with the AEPS Act, transmission and distribution losses, congestion management costs, and such other services or products that are required to supply the Specified Percentage except for distribution service. I addition, Exhibit D included in each Default Service SMA provides a sample PJM invoice with all charges for which the Buyer is responsible. Transmission Enhancements Charges is shown in line ID #1108 in that Exhibit, as being the responsibility of the Buyer under the SMA.
11/30/2012 in Contract
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FAQ-1005:
Can you please explain the large, sudden jump in customer counts for both the TL traffic light counts and usage that begins in 2011?
All strata were changed to a new model on January 1, 2011. Some customers were reassigned to new strata at this time. A new tariff rate was effective 1/1/11, traffic lighting constant load (TLCL). Customers were migrated from small GS to TLCL in January 2011 (they were temporarily moved to GS 100 on exactly 1/1/11).
11/12/2012 in Data
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FAQ-1004:
Why is there no more data for the SLP street light class after April 2011?
SLP 172 is a retired rate as of January 2011. Some data that was lagging in the billing system for January through March of 2011 appears in the posted dataset as accounts were billed and then converted to rate class SLE.
11/12/2012 in Data
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FAQ-1003:
Why does the hourly load data for some Residential class strata appear unusually low in November and December 2010?
During the period 11/1/2010-12/31/2010, there were customers in the new strata system and customers in the old strata system. Usage for the Residential procurement class in the aggregate during this timeframe is reported correctly in both the historical and current load files on the website. Because both strata systems existed during this timeframe, the Residential procurement class usage in any given hour would be calculated as the sum of the reported usages of both the old strata and the new strata. For example, prior to 11/1/2010, Residential procurement class usage is the sum of strata 10, 11, 12, 13, 14, 15, 16, and 41. Between 11/1/2010 and 12/31/2010, Residential procurement class usage is the sum of strata 10, 11, 12, 13, 14, 15, 16, 41, 110, 111, 112, 113, 121, 122, and 123. From 1/1/2011 forward, Residential procurement class usage is the sum of strata 110, 111, 112, 113, 121, 122, and 123. To calculate the usage of the customers currently in strata 111 during the period 11/1/2010 – 12/31/2010, you would add the reported usages for strata 11 and 12 to the reported usage for strata 111 during that time.
11/12/2012 in Data
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FAQ-1002:
Where can I find historical load data for customers that take Default Service from PECO?
The historical load data files that are currently posted to the Data Room are broken down into EGS Energy, Default Energy, and Total Energy. The load labeled "Default Energy" is the load of PECO customers who have not migrated to Electric Generation Suppliers (“EGSs”).
11/12/2012 in Data
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FAQ-1001:
Do the historical data series provided in the Monthly Data page of the Data Room include transmission and distribution losses? Are the data provided before or after the application of PJM de-ration factors?
Historical hourly data series available in the Monthly Data page of the Data Room include distribution and transmission losses both before and after the June 1st, 2007 implementation of PJM's marginal loss methodology, but do not include de-ration factors.
11/12/2012 in Data
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FAQ-1000:
What does EGS stand for in the Customer Count data file?
"EGS" stands for "Electric Generation Supplier".
11/12/2012 in Data
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FAQ-999:
On what volumes are the percentages listed for Alternative Energy Portfolio Standards compliance based?
AEPS quantities are based on electric energy sold by an electric distribution company or electric generation supplier to retail electric customers. AEPS obligations are calculated on the retail load which is delivered energy at the retail meter and do not include marginal losses.
11/12/2012 in General , Data
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FAQ-998:
When will the RFP Documents for the December 2012 solicitation be posted to the Web site?
The documents corresponding to the first solicitation under PECO’s second Default Service Program (DSP II) will be posted in advance of the webcast on Friday November 16, 2012. The Independent Evaluator will send an announcement as soon as the documents are available on the web site.
11/12/2012 in General