PECO Procurement For Default Supply

FAQ Archives - DSP II – September 2014 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-60:
Does the Commission require that all tranches for a product are filled in order to approve the results? Can the Commission approve some and not all of the winning Bids received?

Not necessarily. As stated in Paragraph I.3.5 of the RFP Rules, the Commission must to approve or reject each of the winning Bids identified by the Independent Evaluator. Please note that under DSP I, the Commission rejected five (5) of the twenty-six (26) winning Bids received for the 17-month spot-priced product for the LC&I Class solicited in the January 2010 Solicitation. The remaining 12 tranches were not procured. For more information please see the Fall 2010 Solicitation Results available on the RFP Web site here.

08/28/2014 in Rules
FAQ-59:
PJM posted a proposal for a new Capacity Performance product to be implemented starting in the 2015/16 planning year. If this product is approved, are suppliers responsible for the costs related to this new product?

On August 20, 2014, PJM posted a proposal on its website for a new Capacity Performance product. This product is still in the preparation stages and is subject to a stakeholder comment process that will start in September 2014. For more information on the schedule for development of this product, please see the presentation available here: http://www.pjm.com/~/media/committees-groups/committees/mrc/20140822/20140822-item-03-capacity-performance-presentation.ashx

Neither the Independent Evaluator nor PECO can comment on this product or on whether it will be implemented for the 2015/16 planning year. Bidders and Default Suppliers are entirely responsible for investigating potential market changes in PJM and for any other circumstances or factors that may affect their evaluation of providing full requirements to PECO’s Default Service customers. As stated in the Default Service SMA, Default Suppliers are Load Serving Entities in PJM responsible for full requirements service including, without limitation, energy, capacity, transmission (excluding Network Integration Transmission Service ("NITS")), ancillary services, applicable losses, congestion management costs and other services or products as may be required to serve the Default Load for a Class. In particular, please see Paragraph 2.5 of the Default Service SMA, which states that “Except as provided in Section 2.4 (Network Integration Transmission Service and Distribution Service), Seller bears the risk of any other changes in PJM products and pricing under the PJM Agreements during the term of this Agreement.” Thus, to the extent that PJM introduces a change to its capacity market structure in the form of a Capacity Performance product or in some other manner, Default Suppliers as Load Serving Entities are responsible for any increase or decrease in capacity costs that would result.

08/28/2014 in General
FAQ-58:
Where can I find information regarding generation retirements, deactivation dates and generation deactivation charges? Also, can you please update the link to future deactivations on PJM’s web site?

The bidder webcast presentation notes that on October 31st, 2012, PJM announced generation retirements (Schuylkill) that could result in Generation Deactivation Charges to Load Serving Entities in the PECO Zone. As shown in Exhibit D (Sample PJM Invoice) Generation Deactivation charges are the responsibility of the Seller.

The link in the presentation to future deactivations (as of July 18, 2014) with PJM has been fixed. Thank you for bringing this issue to our attention. The link is the following: http://www.pjm.com/planning/generation-deactivation/gd-summaries.aspx

For additional information, please contact PJM directly.

08/28/2014 in General
FAQ-57:
In the Part 2 Proposal, can one (1) of the required two (2) executed original guarantees be stamped as “Duplicate”?

Yes, it is acceptable to stamp one (1) of the two (2) executed, originals of the guaranty as duplicate.

08/28/2014 in Credit , Qualification
FAQ-56:
Where can I find information regarding the Community Smart Ideas solicitations?

The Independent Evaluator for PECO's Default Service Program RFP only provides information concerning such RFP. Please contact PECO directly for other information. PECO's 'Contact Us' page can be found here:

https://www.peco.com/Pages/ContactUs.aspx

08/28/2014 in General
FAQ-55:
In their response to FAQ-38, PECO responded that "the energy block represents a fixed percentage of the load across hours" but the RFP rules talk about flat 50 MW block. If it is a fixed percentage rather than flat block, what is the percentage? Additionally, PECO responded that "A bidder participating in DSP II does not need to subtract block energy purchases from the historical hourly Default Service Load data in order to assess the expected hourly load pattern". What about in order to determine a correct volume? Has the historical hourly Default Service Load data been adjusted by the block size already?

Under PECO’s first Default Service Program (“DSP I”), PECO served 25% of the Default Load for the Residential Class, referred to as the “PECO Share”. PECO purchased Block Energy Supply to meet 20% of the expected seasonal energy requirements of the Default Load for the Residential Class (80% of the PECO Share). PECO balanced the blocks of energy and load of the PECO share on an hourly basis. As the purchased Block Energy Supply expires, these blocks have been replaced by full requirements tranches. Block Energy Supply that has not expired consists of 50 MW of baseload due to expire on December 31, 2015 and 100 MW of baseload due to expire December 31, 2014.

The historical hourly load data series provided in the Data Room on the RFP Web site have not been adjusted by the Block Energy Supply. These data series do not need to be adjusted because Default Suppliers of the Residential Class are responsible for a percentage of the hourly energy requirements for that Class. As stated above, PECO has served a percentage of the Residential Class Default Load using in part the Block Energy Supply, it is not the case that Default Load was simply reduced by Block Energy Supply.

08/19/2014 in General , Data
FAQ-54:
Who can sign the certifications required for the Part 1 Proposal?

Please see Paragraph III.I.13 of the RFP Rules. For a given solicitation, all representations and certifications required by the RFP, including those required for the Part 1 Proposal and Part 2 Proposal, must be made by a single individual who serves as Officer of the RFP Bidder. An Officer of the RFP Bidder is an individual authorized to undertake contracts (including the Default Service SMA) and bind the RFP Bidder.

08/14/2014 in Rules
FAQ-53:
Which transmission charges are Default Suppliers responsible for?

Exhibit D to the Default Service SMA provides the PJM Billing Statement line items, including transmission charges, and the responsible party (Buyer or Seller) for each item.

08/13/2014 in Contract
FAQ-52:
What criteria are used by the Commission when determining whether to accept or reject the results of winning Bids?

In advance of the Bid Date for each solicitation, the Independent Evaluator (“IE”) provides a confidential report to the Commission with visible market prices for components of the full-requirements products available and any relevant changes in broad trends in the wholesale markets since the previous solicitation. This report can be used by the Commission to provide context when reviewing the results of the solicitation.

The results of the solicitation are provided on the first business day after the Bid Date, when the IE sends a full factual, confidential report to the Commission including the winning Bids determined during the evaluation and other appropriate data and statistics. The Commission has one (1) business day to consider this report and to approve or reject each of the winning Bids. If the Commission does not act within one (1) business day, the winning Bids are deemed to be approved.

To date, the results for all products procured in each of the nine (9) solicitations held under DSP I and each of the four (4) solicitations held under DSP II have been approved with the following exceptions:
- Under DSP II, the Commission rejected all seven (7) winning Bids for the 24-month fixed-price products for the Residential Class solicited in the January 2014 Solicitation.
- Under DSP I, the Commission rejected five (5) of the twenty-six (26) winning Bids received for the 17-month spot-priced product for the LC&I Class solicited in the January 2010 Solicitation.
08/13/2014 in General
FAQ-51:
Are contingent bids allowed?

No, contingent bids are not allowed under the RFP Rules. In the Part 2 Proposal the RFP Bidder must certify that any Bid on any product submitted in response to this RFP for this solicitation is binding until six (6) business days after the Bid Date and constitutes a binding and irrevocable offer to provide service under the terms of the Default Service SMA at the price specified in the Bid.

08/13/2014 in Rules
FAQ-50:
What is the difference between the Opt-in EGS Offer Program and Standard Offer Program?

Under the Standard Offer Program currently offered by PECO, participating EGSs submit binding, fixed-price bids each month to provide electric generation service to residential and small commercial customers for a 12-month supply period. The lowest offer is presented on PECO's website and customers can participate in the program on an opt-in basis and can switch back to default service at any time. Bids submitted by EGSs must be priced at least 7% below PECO's default service rate at the time of the offer. Since the program's initiation in 2013 more than 15,000 customers have switched to an EGS. PECO is proposing to continue this program under DSP III. PECO’s DSP III petition and testimony is available on the Company web site here.

The Opt-in EGS Offer Program, as proposed but never implemented under DSP II, was to conduct a one-time RFP to select EGSs to provide competitive retail offers to fifty percent (50%) of PECO's non-shopping residential default service customers. Participating EGSs would submit a binding, fixed-price bid to provide electric generation service for residential customers for a 12-month supply period.

08/13/2014 in General
FAQ-49:
Can a Default Supplier switch between a Letter of Credit and a guaranty to meet the creditworthiness requirements during the term of the contract?

A Default Supplier can meet the creditworthiness requirements of Article 14 of the Supply Master Agreement by posting cash, a Letter of Credit, or a guaranty. PECO does not determine for the Supplier which of the three particular instruments the Supplier posts as security. The Default Supplier can switch between a Letter of Credit and a Guaranty after review and approval by PECO.

08/11/2014 in Credit
FAQ-48:
In Exhibit A Form of Transaction Confirmation in the Default Service SMA, below the Settlement Price are blanks to provide the average costs for the AECs. Will PECO provide these numbers to a winning bidder or are these numbers to be provided by the Seller? Also, why are these prices required by PECO?

Default Suppliers are responsible for providing AECs during the term of the Default Service SMA necessary for PECO to meet its obligations under the AEPS Act. 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. PECO must collect this information with respect to its Default Supply in order to meet certain state reporting obligations with the Pennsylvania AEPS Procurement Administrator.

08/11/2014 in Contract
FAQ-47:
Section 2.6 of the Default Service SMA states that the AECs obtained separately by PECO and allocated to Seller’s AEPS Obligation will be shown in the Transaction Confirmation. How will this information be provided in the table at the end of the Transaction Confirmation?

The Transaction Confirmation will list the number of AECs already procured separately by PECO, which will be subtracted from the amount of AECs Default Suppliers must provide. The amount of AECs that will be allocated for this purpose were provided on Slide 22 in the Bidder Information Webcast Presentation held on August 6, 2014. The presentation is available on the Supplier Documents page of the RFP Website.

08/11/2014 in Contract
FAQ-46:
Why did the Commission reject the results of the RES-24-Jun14 product in the January 2014 Solicitation?

The January 2014 Solicitation Approval Secretarial Letter posted on the Results Page of the RFP Web site is the only information available from the Commission in regards to the rejection of the RES-24-Jun14 product.

08/11/2014 in General
FAQ-45:
The Delivery Point is defined in the Default Service Program Supply Master Agreement on page 5 as "the PE Zone as defined within the PJM". We do not see a PE Zone on PJM's website. Should the Delivery Point be the “PECO Zone”?

The acronym PE is defined in PJM’s Manual 35: Definitions and Acronyms as “PECO Energy Company”. The acronym PECO is also defined in this document as “PECO Energy Company, Exelon Corporation, aka PE”. It appears that PJM uses the two acronyms interchangeably.

08/11/2014 in Contract
FAQ-44:
What is being procured in this solicitation? I am trying to figure out how many Alternative Energy Credits (“AECs”) are needed and what are the terms.

The DSP II September 2014 Solicitation will procure full requirements service for PECO’s Residential, Small Commercial and Medium Commercial Classes. Full requirements service includes, without limitation, energy, capacity, transmission (excluding Network Integration Transmission Service ("NITS")), ancillary services, applicable losses, congestion management costs and other services or products that are required to serve the Default Load for a Class. For more information about winning supplier’s obligations please refer to the Default Service Supply Master Agreement posted on the Supplier Documents page of the RFP web site.

A winning supplier in the upcoming solicitation must provide AECs in addition to the services listed above (energy, capacity, etc.) during the term of the contract it won. The amount of AECs that it must provide to PECO is proportional to the amount of Default Load that supplier won. For more information on the AEC requirements please refer to the RFP Rules also posted on the Supplier Documents page of the RFP web site.

07/30/2014 in General
FAQ-43:
Is the webcast on August 6, 2014 mandatory?

No, it is not mandatory for a supplier to attend the Bidder Information Webcast in order to participate in the upcoming September 2014 Solicitation. Prospective suppliers are encouraged to attend. The bidder information session will provide an overview of the products available, the load caps, the terms of the contract, the qualification process, and the comment process for the Letters of Credit.

07/30/2014 in General
FAQ-42:
Was the Retail Opt-in Program ("ROI Program") ever implemented?

No, the ROI Program has never been implemented under PECO's second default service program (“DSP II”).

07/30/2014 in General
FAQ-41:
One risk that we identified with bidding in the PECO RFP is the EGS Opt-In Competitive Offer Program. Please provide an update or a link to more information regarding this program.

On May 4, 2013, the Commission issued an Order in Docket P-2012-2283641 postponing the implementation of PECO’s Retail Opt-in Program (“ROI Program”) with the context of PECO’s second default service program (“DSP II”). The upcoming solicitation is the last solicitation under DSP II. While the Commission may revisit the ROI at some point in the future, there are currently no plans to do so. Furthermore, PECO did not propose to implement an ROI Program in its latest filing for its third Default Service Program (“DSP III”) for the period June 1, 2015 through May 31, 2017. Thus, implementation of the ROI is not expected in this timeframe.

07/24/2014 in General
FAQ-40:
The supply period for some of the products in the September 2014 Solicitation extend beyond May 2015, which is when PECO’s current Default Service Plan (“DSP II”) period ends. One of the proposals for the next DSP includes eliminating Default Service and assigning all Default Service customers to a competitive retail energy supplier if they do not actively select one. 1) In the event this proposal was adopted would the 24 Month Residential contracts be voided? 2) What recourse would default suppliers under these contracts have to be compensated for losses as a result of such legislation? 3) What protections do default suppliers have against these contracts being voided as a result of such legislation?

We believe you are referring to Senate Bill 1121, sponsored by Senator Mensch, which was introduced in October 2013. As of March 2014, Senator Mensch has announced that he was withdrawing SB 1121 and was in the processes of rewriting the bill to “maintain the current default electric structure”. As of July 24, 2014, a revised version of the bill had not been introduced. More information is available on Senator Mensch’s website here:

http://www.senatormensch.com/2014/03/06/addressing-electric-rate-spikes-competition-an-op-ed-by-senator-mensch/

While PECO and the Independent Evaluator cannot speak to the future actions of the Commission or possible changes to legislation, we do note that PECO and other electric distribution companies have now filed petitions for their next Default Service Plan for the period June 1, 2015 through May 31, 2017 and Default Service is expected to remain the obligation of the EDCs for at least this period.

PECO’s filing is available on its website here:

https://www.peco.com/CustomerService/RatesandPricing/RateInformation/Pages/Filings.aspx

Please refer to Article 5: Term and Survival and Article 12: Events of Default; Remedies; Termination for information regarding termination of a Default Service SMA.

07/24/2014 in Contract
FAQ-39:
How will PECO allocate Unaccounted For Energy (“UFE”) once all customers have hourly meters installed?

Under current plans, PECO will allocate Unaccounted For Energy (“UFE”) in proportion to each customer’s metered hourly load data. This is not expected until 2015 and is contingent upon PUC approval of a UFE method change.

07/01/2014 in General
FAQ-38:
Does an RFP Bidder need to reduce the Residential Class Default Service Load by the Block energy supply purchased under the first Default Service Program (“DSP I”) in order to assess the expected hourly load patterns?

The Block energy supply procured by PECO under the DSP I is used to meet a share of the Residential Class Default Load. PECO balances the blocks of energy and load of the PECO share on an hourly basis. Under its second Default Service Program (“DSP II”), PECO procures full requirements service for each Customer Class, where each tranche is defined as a fixed percentage of Default Load of that Class. A bidder participating in DSP II does not need to subtract block energy purchases from the historical hourly Default Service Load data in order to assess the expected hourly load pattern because the energy block represents a fixed percentage of the load across hours and therefore the load shape is unaffected by the size of the DSP I energy blocks.

07/01/2014 in Contract , Data
FAQ-37:
What are the allocated ARR path and quantities for 2014 and 2015 PJM planning years? Will the winners in the upcoming solicitation be asked to nominate ARR paths?

Default Suppliers can directly participate in PJM’s annual Auction Revenue Rights (“ARR”) path nomination and allocation process. PECO is committed to working with suppliers and PJM to ensure a smooth process. Note that information on current and historical ARR allocations and Financial Transmission Right (“FTR”) auctions is available on PJM’s Web site.

07/01/2014 in General
FAQ-36:
What are the load caps for this September 2014 Solicitation for an RFP Bidder that has not won any tranches in PECO’s first or second Default Service Programs (“DSP”)?

As specified in Paragraph 1.2.8 of the RFP Rules, an RFP Bidder cannot supply more than 50% of the Default Load for a Class at any point in time. An RFP Bidder that has not won any tranches in PECO’s first or second DSP may bid and win up to 27 tranches for the Residential (“RES”) products and may bid on all available tranches for the Small Commercial (“SC”) product. In the case of the Medium Commercial (“MC”) Class, any RFP Bidder, including those that did not win any tranches in a previous solicitation, may only bid and win up to 6 tranches.

07/01/2014 in Rules
FAQ-35:
Under DSP I, PECO procured blocks of around-the-clock energy with supply periods that extend into DSP II. Who is responsible for purchasing the capacity in relation to these awarded blocks?

Default Suppliers that were awarded blocks under the Block Energy RFP of PECO’s first Default Service Program (“DSP I”), are responsible for serving around-the-clock energy associated with those blocks. As stated in Paragraph I.1.8. in the Fall 2012 Block Energy RFP Rules provided in the document archives, PECO purchases all other necessary products in relation to the awarded blocks, including without limitation capacity and ancillary services. Those Default Suppliers that are awarded full requirement products as part of PECO’s second DSP (“DSP II”) will be responsible for providing energy, ancillary services, capacity and all other necessary products associated with those tranches only.

07/01/2014 in Contract
FAQ-34:
Is hourly load data available for PECO’s Residential and Small Commercial customers?

Historical hourly load data is available for PECO’s Default Service Residential, Small Commercial, Medium Commercial, and Large Commercial & Industrial customers in the Data Room on the RFP Web site located here. For additional information regarding hourly load data and all other available data please see the data description document.

07/01/2014 in Data
FAQ-33:
Exhibit D of the Default Service SMA shows that PJM Billing Items 1240 (Day-ahead Economic Load Response) and 1241 (Real-time Economic Load Response) are the responsibility of the Seller. Is there any historical day-ahead and real-time Economic Load Response data available?

PJM’s bill associated with settlement of Economic Demand Response for retail customers is provided directly to each Default Supplier and as a result PECO does not have access to this data.

07/01/2014 in Data
FAQ-32:
Please clarify if each customer class, rate schedule, and strata is monthly-metered or interval-metered. Also, is there a plan to install more interval-meters?

PECO is required to install interval metering for their Large Commercial & Industrial customers. Other interval metering may be installed at the customer’s request. For more information regarding interval metering please see PECO’s Smart Meter Universal Deployment Plan available on the Company’s web site here.

07/01/2014 in General
FAQ-31:
What is the contract mix for each class under PECO’s second Default Service Program (“DSP II”)?

Under PECO’s DSP II, Default Supply will be procured for the Company’s Residential (“RES”), Small Commercial (“SC”), Medium Commercial (“MC”) and Large Commercial & Industrial (“LC&I”) classes. Table I-3 in the RFP Rules, posted on the Supplier Documents page of the RFP Web site, provides the schedule of procurements for the products under DSP II.

For the RES Class, PECO will transition to procuring a mix of 40% one year and 60% two year full requirements products. PECO will transition to this contract mix through the purchase of transition products with term lengths that vary from five months to twenty-four months. For the SC Class, PECO has transitioned to procuring 100% one year full requirements products. In the first solicitation, the November 2012 Solicitation, PECO procured a six month full requirements product for this class. Default supply for the MC Class and LC&I Class consists of 100% six month products and 100% one year products, respectively.

07/01/2014 in General
FAQ-30:
Where can I find the schedule for the next PECO solicitation? Also, is a schedule available that shows the percentage of load procured to date?

The schedule for the PECO DSPII September 2014 Solicitation is available on the RFP Web site here. The Bid Date will be Wednesday, September 3, 2014. This is the final solicitation under PECO’s second Default Service Program.

After each solicitation concludes, the results, including the weighted average winning bid price for each product procured and the percentage of Default Service Load represented by each tranche for each product, are posted on the Previous Results page of the RFP Web site.

07/01/2014 in General
FAQ-29:
How do I become a vendor for PECO?

This RFP 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.

07/01/2014 in General
FAQ-28:
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 ratings as part of Section 2 of the Short Part 1 Form in this solicitation.

07/01/2014 in Credit , Qualification
FAQ-27:
In the PECO Data Room, in the Customer Counts file for the Residential rate class, the number of customers for the Residential Off-Peak 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 rate, 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.

07/01/2014 in Data
FAQ-26:
Please explain the significant increase in the Default Service PLC and NSPL for the Large Commercial HT rate class on December 31, 2012.

The large increase in the 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.

07/01/2014 in Data
FAQ-25:
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.

07/01/2014 in Data
FAQ-24:
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 to which sellers/tranches, if any, it allocates the AECs?

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 a given solicitation are provided in the Bidder Information Session Presentation. 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.

07/01/2014 in Contract
FAQ-23:
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. You may email questions concerning generation deactivation charges directly to PJM at the following email address: GoTo@pjm.com.

07/01/2014 in General , Rates
FAQ-22:
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.

07/01/2014 in Credit
FAQ-21:
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.

07/01/2014 in Contract , General , Data
FAQ-20:
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.

07/01/2014 in General , Procedures , Qualification
FAQ-19:
Will the presentation from the bidder information webcast be posted to the RFP Web site?

The bidder information webcast presentation is posted to the Supplier Information / Documents page within one business day of the webcast.

07/01/2014 in General
FAQ-18:
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&I)? Does the UFE need to be derated?

As described in the Data Description Document currently posted on the RFP Web site, PECO allocates Unaccounted For Energy (“UFE”) to all Load Serving Entities (“LSEs”) in PECO’s zone (i.e., to Electric Generation Suppliers or “EGSs” as well as Default Service Suppliers that are LSEs) by Customer Class every month, based on each Class’ load-ratio share. As a result, the UFE attributable to a particular Customer Class 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 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 RFP Web site.

07/01/2014 in Data
FAQ-17:
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).

07/01/2014 in Data
FAQ-16:
What does EGS stand for in the Customer Count data file?

“EGS” stands for “Electric Generation Supplier”.

07/01/2014 in Data
FAQ-15:
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 based on the retail load, which is delivered energy at the retail meter and does not include marginal losses.

07/01/2014 in Data
FAQ-14:
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.

07/01/2014 in Qualification
FAQ-13:
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.

07/01/2014 in Qualification
FAQ-12:
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.

07/01/2014 in Contract
FAQ-11:
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.

07/01/2014 in Contract , Procedures
FAQ-10:
When are the solicitation results 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.

07/01/2014 in General
FAQ-9:
Is the historical hourly load data posted to the RFP 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?

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 RFP 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 data series posted to the Data Room of the RFP Web site, please refer to the Data Description document.

07/01/2014 in Data
FAQ-8:
I have a question regarding the monthly hourly load data that is available in the Data Room section of the RFP Web site. 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 supplier 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 Electric Generation Supplier, and therefore do not belong to PECO DSP II load settlements, regardless of whether they are hourly metered or not.

07/01/2014 in Data
FAQ-7:
Are the names of winning RFP Bidders posted to the RFP Web site?

No, the names of winning RFP Bidders are not publicly available. 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 for each product. Results of the solicitations held under DSP I and DSP II thus far are available on the Previous Results page of the RFP Web site.

07/01/2014 in General
FAQ-6:
Where can I find the static Load profile info for PECO?

The static load profile data is located on the "Additional Data" page in the Data Room on the RFP Web site here. PECO started applying this static load profile data to monthly-metered customers (those without interval meters) on January 1, 2011. Please note that from 2006 through 2010, PECO developed hourly load data by customer group for monthly-metered customers using other older profiles and will not be able to retrofit the new load profiles to the historical hourly load data that is provided in the Data Room.

For additional information, please see page 3 of the Data Description Document available here.

07/01/2014 in Data
FAQ-5:
If we have qualified for the previous solicitations under DSP II, do we need to send in a new Part 1 Proposal?

Yes. Please note, RFP Bidders that previously qualified in a previous solicitation under DSP II may participate in an abbreviated qualification process by using the Short Part 1 Form. This form allows RFP Bidders to update contact information and confirm that financial information and credit ratings remain unchanged since the previous solicitation. If the entity on whose financial standing the RFP Bidder relies has changed since the previous solicitation, the RFP Bidder must use the Standard Part 1 Form.

For more information, each of the sections of Article IV of the RFP Rules explains the abbreviated Part 1 Proposal process in which previously qualified RFP Bidders may participate.

07/01/2014 in Qualification
FAQ-4:
In order to accurately represent delivered hourly load volumes, should the hourly load data posted in the Data Room be adjusted with the UFE data also posted?

Please refer to the data description document available in the Data Room here, which states “PECO allocates UFE to all Load Serving Entities in the PECO Zone (i.e., to EGS and default service Load Serving Entities) each month based on load-ratio share. Note that PECO only allocates UFE to monthly-metered customers and does not allocate UFE to hourly/interval metered customers. Hence to the extent that the load values provided in the above energy reports are developed from monthly meter readings and load profiles they include UFE. Hourly energy values developed from internal or recorder meters do not include UFE. Post 2010, PECO plans to continue allocated UFE only to monthly-meted customers.” Therefore, for non-interval metered customers, UFE amounts do not need to be added to the historical hourly loads posted to the Data Room since they already include UFE. Note that PECO is required to install interval metering for their Large Commercial & Industrial customers.

07/01/2014 in Data
FAQ-3:
What Guaranty Amount do we need to post if we currently have an existing guaranty with PECO?

Please refer to paragraph V.3.2 of the RFP Rules which states “if an RFP Bidder holds a current Default Service SMA with PECO (either under DSP I or DSP II), the Guaranty Amount must meet or exceed the lesser of (i) the Unsecured Credit Limit corresponding to the RFP Guarantor lowest Credit Rating most recently published by S&P, Fitch and/or Moody’s and the RFP Guarantor TNW Amount; (ii) the sum of the Guaranty Amount of any current guaranty held by PECO and $600,000 per tranche bid on the RES, SC, and MC products ".

In your case, if PECO currently holds a guaranty on account of your firm's current Default Service SMA with PECO, the Guaranty Amount, or the maximum aggregate liability under the terms of your guaranty, must be the lesser of your Unsecured Credit Limit amount, or the sum of the current Guaranty Amount held by PECO plus the required amounts per tranche that you are planning to bid in the September 2014 solicitation.

07/01/2014 in Contract
FAQ-2:
Where can I find a comprehensive list of historical default service rates for each customer class?

PECO posts the historical Price to Compare ("PTC") by customer class from 2011-2013 on the Company web site here:

https://www.peco.com/CustomerService/CustomerChoice/Pages/PricetoCompare.aspx

Please scroll to the bottom of the page and open the drop down box labeled 'PTC Archive'. The PTC for the Residential class is provided under the header 'Residential' and PTC for the Small Commercial, Medium Commercial and Large Commercial and Industrial classes are provided under the header 'Commercial'.

07/01/2014 in Rates
FAQ-1:
In the January 2014 Solicitation, the Commission rejected the results of the RES-24-Jun14. How will PECO procure these unfilled tranches?

The contingency plan for products that are more than six months in duration is provided in paragraph I.2.13 of the RFP Rules. PECO is assuming responsibility for the unfilled tranches as a PJM Load Serving Entity (“LSE”) for the first six (6) months of the supply period (June 1, 2014 - November 30, 2014), acquiring the necessary supply through PJM-administered markets and obtaining sufficient Alternate Energy Credits (“AECs”) at market prices to satisfy any near-term obligations under the AEPS Act.

The unfilled tranches will be re-bid in the September 2014 Solicitation with an 18-month supply period (December 1, 2014 - May 31, 2016), which is the remainder of the 24-month supply period.

07/01/2014 in Rules