PECO Procurement For Default Supply

FAQ Archives - DSP II – January 2013 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.

FAQ-1068:
Are the names of winning bidders in the PECO Default Service Program (DSP) posted to the Web site?

No, the names of winning bidders of PECO Default Supply Program (DSP) are not publicly available information. The published results for each solicitation include the type of product procured, the supply period, the winning price, the tranche size and number of tranches procured. Results of the RFPs under DSP I and DSP II thus far are available on the Previous Results page of the PECO Procurement Web site.

05/03/2013 in General
FAQ-1067:
I have a question regarding the monthly hourly load data that is available in the Data Room section of the website. The applicable file lists load (MWh) which is separated by “EGS load”, “PECO Default service load”, and “Total Energy”. Which of these three data series are used for settlement purposes by PECO for customers that are not hourly metered?

Under PECO’s Second Default Service Program (DSP II), each Default Service supplier is paid, in any given hour, on the basis of the share of the total Default Service load that the supplier is serving for each class in that hour. The bidder share is calculated based on the number of awarded DS tranches for each class times the percent size of each tranche. The hourly loads under the “EGS” category posted in the Data Room correspond to PECO’s retail customers who have elected to be supplied by an Electricity Generation Supplier, and therefore do not belong to PECO DSP II load settlements, regardless of whether they are hourly metered or not.

03/20/2013 in Data
FAQ-1066:
Is the historical hourly load data posted to the PECO Procurement Web site weather-normalized? How does PECO forecast load data? Does PECO forecast weather-normalized loads? Or is the monthly load forecast based on expected weather?

v>PECO does not make available forecasted data in the context of its Default Service Plan (DSP II) RFP. The hourly load data posted to the PECO Procurement Web site is historical and not weather-normalized. Peak load contribution (PLC) values are based on the weather-normalized five coincident summer peaks from the prior year as per PJM methodology. PJM manual 19 documents how peak load is weather-normalized. For more information on each data series posted to the PECO DSP II procurement section of the website, please refer to the Data Description document.
03/14/2013 in Data
FAQ-1065:
Where can I find the information for the solicitation of the Smart House Call Program?

The Independent Evaluator of PECO's Default Service Program RFP only provides information concerning such RFP. Please contact PECO directly for other information.

02/20/2013 in General
FAQ-1064:
When will the results to the January 2013 solicitation be announced?

Within fifteen (15) days of the close of the solicitation, the Independent Evaluator releases the weighted average price as well as the percentage of load represented by each tranche for each product procured in that solicitation. When the results become available, the Independent Evaluator will make an announcement, and you will be able to access the results here: Background/Previous Results.

02/07/2013 in General
FAQ-1063:
Please provide eligible and shopping Peak Load Contribution (PLC) data for Planning Year (PY) 2013/2014 based on shopping customers as of December 31, 2012.

The PY 2013/2014 Peak Load Contribution (PLC) data corresponding to PECO customers, both shopping and non-shopping, is not available yet.

01/25/2013 in Data
FAQ-1062:
We won tranches in the November 2012 Solicitation and executed a Default Service Supply Master Agreement (“Default Service SMA”). If we win tranches again in a future solicitation, will the new Default Service SMA replace the Default Service SMA we signed for the November 2012 Solicitation?

No. If an RFP Bidder won tranches in the November 2012 Solicitation and wins again in a future solicitation the new Default Service SMA will be in addition to, and not instead of, the Default Service SMA from the November 2012 Solicitation. The Default Service SMA from the November 2012 Solicitation will remain in place.

01/24/2013 in Contract , Procedures
FAQ-1061:
What were the major changes to the Default Service Supply Master Agreement (“Default Service SMA”) from the November 2012 Solicitation to the January 2013 Solicitation?

The January 2013 Solicitation will use the Default Service SMA filed with the Commission on December 11, 2012, which adds provisions to account for the spot-market product for the Large Commercial & Industrial Class. A redline comparison of the Default Service SMA from the November 2013 Solicitation to the Default Service SMA from the January 2013 Solicitation is available on the RFP Web site here.

01/24/2013 in Contract
FAQ-1060:
We are a previously qualified RFP Bidder and we have not named a Designee in a previous solicitation. If we decide to name a Designee for the upcoming solicitation can we use the Short Part 1 Form to do so?

Yes. Paragraph IV.1.2 of the RFP Rules states that whether or not the RFP Bidder has previously qualified under DSP II, the Officer of the RFP Bidder may name a Designee. Please note that on the Short Part 1 Form, the Officer of the RFP Bidder must represent that the Designee is an individual authorized to undertake the Default Service Supply Master Agreement and bind the RFP Bidder.

01/24/2013 in Qualification
FAQ-1059:
Can the Representative of the RFP Bidder and the Designee be the same person?

Yes, the Officer of the RFP Bidder can name the same person as the Representative of the RFP Bidder and the Designee. On the Part 1 Form, the Officer of the Bidder must designate an individual to serve as Representative of the RFP Bidder who will be the point of contact for the RFP Bidder. The Officer of the Bidder may also name a Designee and that individual must be authorized to undertake contracts, including the Default Service Supply Master Agreement, and bind the RFP Bidder.

01/24/2013 in Qualification
FAQ-1058:
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.

01/24/2013 in Data
FAQ-1057:
What does EGS stand for in the Customer Count data file?

"EGS" stands for "Electric Generation Supplier".

01/24/2013 in Data
FAQ-1056:
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”).

01/24/2013 in Data
FAQ-1055:
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.

01/24/2013 in Data
FAQ-1054:
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.

01/24/2013 in Data
FAQ-1053:
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).

01/24/2013 in Data
FAQ-1052:
In the Section 2.4 of the Default Service 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 Supply Master Agreement (“Default Service 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 Default Service SMA.

01/24/2013 in Contract
FAQ-1051:
Regarding final load settlement, historical Default 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 Classis 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 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.

01/24/2013 in Data
FAQ-1050:
Will the presentation from the bidder information webcast be posted to the RFP Web site?

The bidder information webcast presentation has been posted to the Supplier Information / Documents page.

01/24/2013 in General
FAQ-1049:
Will the acceptable modifications to the pre-bid and post-bid letters of credit be posted to the RFP Web site?

The acceptable modifications to the pre-bid and post-bid letters of credit have been posted to the Supplier Information / Documents page. The document containing acceptable modifications to the pre-Bid letter of credit is updated daily during the Part 1 Window. A comprehensive list of all acceptable modifications to the pre-bid letter of credit is posted by 12 PM (noon) on the day the Part 2 Window opens. A comprehensive list of all acceptable modifications to the post-bid letter of credit is posted by 6 PM on the Part 2 Date.

01/24/2013 in Credit , Procedures
FAQ-1048:
The Part 1 Form states that either the Officer of the RFP Bidder 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 of the RFP Bidder or the Designee sign the Transaction Confirmation?

Please refer to PECO's DSP II RFP ("PECO Energy Company Default Service Program Request For Proposals"). Section VII.3.9 of this document states that the Officer of the RFP Bidder 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), you 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 RFP Bidder.

01/24/2013 in General , Procedures , Qualification
FAQ-1047:
Where can historical Auction Revenue Rights (“ARR”)/Firm Transmission Rights (FTR) path information be found?

Information on current and historical ARR allocations is available on PJM's web site.

01/24/2013 in Contract , General , Data
FAQ-1046:
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.

01/24/2013 in Credit
FAQ-1045:
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 PUC in its October 12 Order 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 is available on the Regulatory Process page of the RFP Web site.

01/24/2013 in General
FAQ-1044:
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 with your Part 1 Notification. 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).

01/24/2013 in Credit , Qualification
FAQ-1043:
Please confirm that Default 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.

01/24/2013 in Data
FAQ-1042:
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 Default Service SMA for a further explanation of cost responsibility. There is a discussion of generation deactivation charges in the Bidder Information Webcast Presentation as well. The presentation is available on the PECO web page, Supplier Information – Documents page. You may email questions concerning generation deactivation charges directly to PJM at the following email address: GoTo@pjm.com.

01/24/2013 in General , Rates
FAQ-1041:
How is PECO’s Customer Referral Program expected to affect Default 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 Loads. For more information, please refer to PECO’s DSP II Compliance Filing on December 11, 2012, which is available on the Regulatory Process page of the PECO Procurement website.

01/24/2013 in General
FAQ-1040:
How is PECO’s Time-of-Use Pilot Program expected to affect Default 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 Loads. For more information, please refer to PECO’s DSP II Compliance Filing on December 11, 2012, which is available on the Regulatory Process page of the PECO Procurement website.

01/24/2013 in General
FAQ-1039:
Section 2.6 of the Default Service 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 a 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 for each Solicitation are provided in the Bidder Information Session Presentation. 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.

01/24/2013 in Contract
FAQ-1038:
In FAQ-1036, it is stated that a 90 MW customer has returned to Default Service. Do you know whether this customer has subsequently left or in the process of leaving Default Service?

PECO is only able to provide Default Service customer and load data as it becomes available. In particular, historical data on Customer Counts by Rate Class is updated monthly. Please visit the Data Room to access the data currently available.

01/24/2013 in Data
FAQ-1037:
For the Medium Commercial GS rate class, there is about a 2% decrease in the percentage of hourly load from October 20, 2012 to October 21, 2012 (from 20% to 18%). However, there is no corresponding drop in the on-service PLC value for the same time period. Please explain this decrease.

The Peak Load Contribution (PLC) data for PY 2012/2013 for a given customer is based on the customer's contribution to PJM's system coincident peak during the five highest hours of load in the summer of 2011. Therefore, it is possible to see a decrease in actual energy usage at a given time while the PLC for that customer remains unchanged.

01/23/2013 in Data
FAQ-1036:
Please explain the significant increase in PLC and NSPL for rate class Large Commercial HT on December 31, 2012.

The large increase in Default Service PLC and NSPL for the Large Commercial HT rate class in December 2012 was driven by a group of customers coming back to be supplied under PECO’s Default Service rate in that month. The largest of these customers has a PLC of 90 MW.

01/23/2013 in Data
FAQ-1035:
In PECO Data Room, in the Customer Counts file for the Residential rate class, the amount of customers for the Residential OP rate decreases from 77,043 to 4,376 between November 2012 and December 2012. Please confirm that this data is accurate and explain the reason for this decrease.

The customer account information for the Residential Off-Peak service (OP) rate is accurate. This rate was gradually phased out in 2012 and will be completely retired in January 2013. The same residential customer may have one or multiple “rate counts”, each representing the rate the customer is being billed under. While the total customer accounts do not change upon expiration of Residential Rate OP, the number of rate combinations for any given customer account will decrease. Going forward, the energy usage that was previously recorded and billed under the Residential OP rate will now be combined with usage under the accompanying rate for the same customer account.

01/23/2013 in Data
FAQ-1034:
Will Planning Year (PY) 2013/2014 Peak Load Contribution (PLC) data be provided prior to the Bid Date?

PECO does not produce forecasted data. The Peak Load Contribution (PLC) data that PECO will make available prior to the January 2013 DSP II Solicitation corresponds to Planning Year (PY) 2012/2013.

01/23/2013 in Data
FAQ-1033:
Where can we find more information about programs related to Act 129 Phase II Energy Efficiency and Conservation Plan?

PECO Energy Company posted to its web site the relevant filings with the Pennsylvania Public Utility Commission regarding Act 129 Phase II Energy Efficiency and Conservation Plan (Docket M-2009-2093215). Please visit this link for that information. NERA Economic Consulting, as the Independent Evaluator of PECO's Default Service Program RFP, only provides information concerning such RFP.

01/23/2013 in General
FAQ-1032:
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.

01/16/2013 in Data
FAQ-1031:
Does a Bidder need to provide an updated rating report for the Bidder’s Guarantor with the Part 1 Proposal if there are no changes to the credit ratings since the last solicitation in which the Bidder was qualified?

If the credit ratings for the entity on whose financial standing the RFP Bidder relies have not changed, the Bidder does not need to provide the most recent rating report under the Part 1 Proposal requirements. If the credit ratings have changed since the last solicitation in which the Bidder was qualified, the Bidder must provide the updated rating and supporting documentation as part of Section 2 of the Short Part 1 Form in this solicitation.

01/09/2013 in Credit , Qualification
FAQ-1030:
What customers classes are included under PECO’s Second Default Service Program (DSP II)?

PECO’s Request for Proposals (“RFP”) process under its current Default Service Program (“DSP II”) includes five solicitations in total. Default Supply is procured for each of four classes of customers (residential, small commercial, medium commercial, and large commercial and industrial), for various supply periods. PECO will be procuring full requirements electricity service for a supply period starting in June 1, 2013 through May 31, 2015, and for a portion of the requirements for the period June 1, 2015 through November 30, 2016. This second solicitation under DSP II will request bids from qualified bidders on January 29, 2013. Suppliers that are awarded tranches for PECO’s residential, small commercial, or medium commercial classes in this solicitation will be committed to provide full requirements electricity service on a fixed-price basis. If the awarded tranches are for PECO’s large commercial and industrial class, suppliers will be committed to provide full requirements electricity service on a spot-price basis.

01/07/2013 in General
FAQ-1029:
When will the RFP documents for the January 2013 solicitation under DSP II be posted?

RFP documents for the January 2013 solicitation under DSP II will be posted on January 7, 2013. Once the documents are posted, an announcement will be sent to all registrants. Documents will be posted to the Supplier Information / Documents page.

01/07/2013 in General
FAQ-1028:
How do I become a vendor for PECO?

This web site (www.pecoprocurement.com) is only for PECO's Default Service Program RFP. To register to do other business with PECO, please refer to: http://www.exeloncorp.com/suppliers/register/overview.aspx.

01/03/2013 in General
FAQ-1027:
Who can I contact regarding PECO's EGS Opt-in Competitive Offer Program?

This information is available upon request. Please submit your request to the Independent Evaluator at pecoprocurement@nera.com.

01/03/2013 in General