PECO Procurement For Default Supply

FAQ Archives - DSP III - September 2016 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-67:
The historical data posted in the Data Room shows a significant drop in the Default Peak Load Contribution (“PLC”) for the 2016/ 2017 planning year. Can you provide a reason for this decrease and is the trend expected to continue?

The historical PLC data in the Data Room is correct. It is the responsibility of the bidder to interpret possible reasons for PLC changes from year to year.

09/19/2016 in Data
FAQ-66:
Will PECO use interval usage when preparing the 2017/2018 planning year Peak Load Contribution (“PLC”) calculations for the Residential Class? If yes, can you please provide information regarding how many residential customers are interval metered as of Summer 2016?

No, at this time PECO does not plan to use interval usage when preparing the 2017/18 planning year PLC for the Residential Class.

09/19/2016 in Data

FAQ-65:
Can you provide any available information on smart meter installation and usage status in PECO by rate class? For PY 17/18, will PECO calculate PLCs for customers with smart meters as interval metered load (therefore not subject to zonal scaling)?

Generally, for AMI metered commercial accounts, except unmetered (UCF/UCG) rate codes, PECO uses interval usage for PLC calculations. PECO is required to install interval metering for their Large Commercial & Industrial customers. AMI metering is currently in the process of being installed for other classes that are metered. The table below provides the end state at full deployment. Note that only unmetered service are marked “N”.

RATE_CLASS	STRATA	Interval Metered
AL	177	N
EP	161	Y
GS	101	Y
GS	107	Y
HT	151	Y
PD	157	Y
POL	173	N
R	111	Y
R	112	Y
R	113	Y
RH	121	Y
RH	122	Y
RH	123	Y
SLE	170	N
SLS	171	N
TL	175	N
TL	176	N

09/15/2016 in Data

FAQ-64:
Where can I find my login information to participate in the September 13 bidder training session?

The Independent Evaluator issued the Part 1 Notification on Thursday, September 6, 2016 by secure file transfer to each RFP Bidder that has met all qualification standards of the Part 1 Proposal. The Part 1 Notification includes the RFP Bidder's confidential information with a username, password, and security code to participate in the bidder training session on September 13, 2016 as well as the username, password, and security code to submit the Bid Form on the Bid Date, September 20, 2016. The confidential information for the bidder training session is the file labeled “2a Confidential Information Training” and has a green border.

The Part 1 Notification also includes your Bid Form, invitation to the training session, and the Bid Form Guide that provides step-by-step instructions for filling out the Bid Form, optionally encrypting the Bid Form, and transferring the completed Bid Form through the secure file transfer interface.

09/13/2016 in General
FAQ-63:
Does a Default Supplier under DSP III that wins tranches in the September 2016 Solicitation execute a new Uniform SMA?

A Default Supplier under DSP III that has winning Bids that are approved by the Commission in this September 2016 Solicitation will execute one Transaction Confirmation for each product for which it has winning Bids and will not execute a new Uniform SMA.

Please refer to paragraph I.3.6 of the RFP Rules, which states, "PECO and each such RFP Bidder execute a single Uniform SMA during the course of DSP III. Each solicitation, PECO and each such RFP Bidder execute one Transaction Confirmation for each product for which such RFP Bidder has Bids that are approved by the Commission". The RFP Rules is available on the RFP Website here:

http://pecoprocurement.com/assets/files/0_DSP%20III%20-%20PECO%20Sept16%20RFP_Rules_AUG_2_20161.pdf

09/08/2016 in Contract
FAQ-62:
What is the required amount of the Pre-Bid Letter of Credit to bid on the fixed-price products for the Residential and Small Commercial Classes?

An RFP Bidder must, in its Part 2 Proposal, submit a Pre-Bid Letter of Credit in an amount of at least: (i) $250,000 per tranche bid on products for the Residential Class; and (ii) $250,000 per tranche bid on products for the Small Commercial Class. This Pre-Bid Letter of Credit must be in the form of the Standard Pre-Bid Letter of Credit provided as Appendix 8 to the RFP Rules or must incorporate only modifications that have been approved by PECO and posted to the RFP website. For more information on the Pre-Bid Letter of Credit see IV.3 in the RFP Rules:
http://pecoprocurement.com/assets/files/0_DSP%20III%20-%20PECO%20Sept16%20RFP_Rules_AUG_2_20161.pdf

09/07/2016 in General

FAQ-61:
Do current Default Suppliers serving tranches won in a solicitation under DSP III need to complete the P1 Certifications (Default Supplier) Insert (#P1-11)?

Default Suppliers serving tranches won in a solicitation under DSP III must complete and submit the P1 Certifications (Default Supplier) Insert (#P1-11) with the Part 1 Proposal. The Officer of the RFP Bidder must make a number of representations and certifications, which may include any or all of those detailed in Paragraphs IV.1.5, IV.3.3, and IV.5.2 of the RFP Rules, by completing this insert.

08/30/2016 in General
FAQ-60:
When did the Commission render a decision on PECO's third Default Service Program ("DSP III")?

The Pennsylvania Public Utility Commission (“PaPUC” or “Commission”) rendered a decision on PECO’s third Default Service Program DSP III (Docket No. P-2014-2409362) in its Order dated December 4, 2014. PECO's petition for DSP III and related filings with the PaPUC, as well as PaPUC orders, are available on the Regulatory Process page of the RFP website.

08/25/2016 in General
FAQ-59:
Is it acceptable to rely on the financial standing of a Foreign Guarantor?

Yes, RFP Bidders may rely on the financial standing of a Foreign Guarantor. Please see Paragraphs IV.7. and V.5. of the RFP Rules for additional requirements applicable to RFP Bidders with Foreign Guarantors. The RFP Rules are available on the Supplier Documents page of the RFP website here.

08/25/2016 in Rules
FAQ-58:
If the State of Pennsylvania increases the AEPS obligation during DSP III, is the Default Supplier responsible for the incremental cost?

Yes. Please see Appendix E of the Pennsylvania Default Service Supplier Master Agreement (“Uniform SMA”) which states, “If AEPS requirements change by law or any other reason, DS Supplier shall be responsible for providing the credits at its expense in order to comply with its obligations under Full Requirements Service.”

08/25/2016 in Rules
FAQ-57:
Is cash an acceptable form of pre-bid security?

No, cash is not an acceptable form of pre-bid security. The RFP Bidder must either use the Standard Pre-Bid Letter of Credit available on the RFP website here, or a Pre-Bid Letter of Credit that incorporates only those modifications to the Standard Pre-Bid Letter of Credit accepted as a result of the evaluation of the Part 1 Proposals. With its Part 1 Proposal, an RFP Bidder may request modifications to the Standard Pre-Bid Letter of Credit that are non-material in nature, or that are advantageous to both PECO and the RFP Bidder. An RFP Bidder requests modifications to the Standard Pre-Bid Letter of Credit by submitting a Draft Pre-Bid Letter of Credit substantially in the form of the Standard Pre-Bid Letter of Credit indicating clearly any and all modifications to the Standard Pre-Bid Letter of Credit using tracked changes in Microsoft Word. All approved modifications to the Standard Pre-Bid Letter of Credit are posted at the bottom of the Supplier Documents page of the RFP website here. Each RFP Bidder may use any of the approved modifications, regardless of whether the RFP Bidder itself or another RFP Bidder proposed the modification.

08/25/2016 in Rules
FAQ-56:
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?

As stated in Paragraph I.3.5 of the RFP Rules, the Commission must approve or reject each of the winning Bids identified by the Independent Evaluator. This means that it is possible that not all winning bids are approved in a given solicitation. For example, in the January 2010 Solicitation under the first Default Service Program (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. The remaining 12 tranches for the LC&I Class were not procured. For more information please see the Fall 2010 Solicitation Results available on the RFP website here.

08/25/2016 in Rules
FAQ-55:
Who can sign the certifications required for the Part 1 Proposal?

Please see Paragraph III.1.13 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 Uniform SMA) and bind the RFP Bidder.

08/25/2016 in Rules
FAQ-54:
Which transmission charges are Default Suppliers responsible for?

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

08/25/2016 in Contract
FAQ-53:
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 Uniform SMA at the price specified in the Bid.

08/25/2016 in Rules
FAQ-52:
Can a Default Supplier switch between a Letter of Credit and a guaranty to meet the creditworthiness requirements during the term of the contract?

Can a Default Supplier switch between a Letter of Credit and a guaranty to meet the creditworthiness requirements during the term ofA Default Supplier can meet the creditworthiness requirements of Article 6 of the Uniform SMA 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.

08/25/2016 in Credit
FAQ-51:
In Exhibit 1, Transaction Confirmation, included in Appendix C of the Uniform SMA, there are blanks to provide the average costs for the Alternative Energy Credits (AECs). Will PECO provide these numbers to a winning bidder or are these numbers to be provided by the Seller? Also, why are these prices required by PECO?

Default Suppliers are responsible for providing the AECs necessary for PECO to meet its obligations under the Alternative Energy Portfolio Standard (“AEPS”) Act during the term of the Uniform SMA. The obligations of Default Suppliers in this regard are reduced by the AECs procured separately by PECO. The blanks in the Transaction Confirmation are for the Default Supplier to provide a price for each type of AEC (Tier I, Tier I Solar, and Tier II) that is included in the RFP Bidder’s winning Bids. As specified in the RFP Rules (see Paragraph V.1.2), each such price must be greater than $0/AEC. The RFP Bidder will be required to certify in its Part 2 Proposal that it will comply with this obligation. 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.

08/25/2016 in Contract
FAQ-50:
Appendix E of the Uniform SMA states that the Alternative Energy Credits (AECs) obtained separately by PECO and allocated to Seller’s Alternative Energy Portfolio Standard (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 will be provided in the Bidder Information Webcast Presentation. The presentation will be posted to the Supplier Documents page of the RFP website.

08/25/2016 in Contract
FAQ-49:
Is it mandatory to participate in the bidder information session?

No, it is not mandatory for a supplier to attend the Bidder Information Webcast in order to participate in a solicitation. Prospective suppliers are encouraged to attend. The Bidder Information Webcast 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.

08/25/2016 in General
FAQ-48:
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 website located here. For additional information regarding hourly load data and all other available data please see the data description document.

08/25/2016 in Data
FAQ-47:
Appendix D of the Uniform 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.

08/25/2016 in Data
FAQ-46:
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 RFP Bidder is not required to provide the most recent rating report with the Part 1 Proposal. 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.

08/25/2016 in Credit
FAQ-45:
Appendix E of the Uniform SMA, which deals with the Alternative Energy Portfolio Standards (AEPS) Obligations states: “...DS Supplier’s AEPS Obligation may be reduced by any AECs obtained separately by the Buyer and allocated to DS Supplier’s AEPS Obligation as shown on a Transaction Confirmation.” How does PECO determine to which sellers/tranches, if any, it allocates the AECs?

In the Uniform SMA, 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.

08/25/2016 in Contract
FAQ-44:
What does EGS stand for in the Customer Count data file?

“EGS” stands for “Electric Generation Supplier”.

08/25/2016 in Data
FAQ-43:
On what volumes are the percentages listed for Alternative Energy Portfolio Standards (“AEPS”) compliance based?

AEPS quantities are based on electric energy sold by an Electric Distribution Company (EDC) or Electric Generation Supplier (EGS) 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.

08/25/2016 in Data
FAQ-42:
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.

08/25/2016 in General
FAQ-41:
Is the historical hourly load data posted to the RFP website 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 Program RFP. The hourly load data posted to the RFP website 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 website, please refer to the Data Description document.

08/25/2016 in Data
FAQ-40:
The monthly hourly load data in the Data Room section of the RFP website 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 third Default Service Program (“DSP III”), 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 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 III load settlements, regardless of whether they are hourly metered or not.

08/25/2016 in Data
FAQ-39:
Are the names of winning RFP Bidders posted to the RFP website?

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 thus far are available on the Previous Results page of the RFP website.

08/25/2016 in General
FAQ-38:
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 website 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.

08/25/2016 in Data
FAQ-37:
Where can I find a comprehensive list of historical default service rates for each customer class?

PECO posts a Default Service rate calculation model that translates the prices determined through this RFP into Default Service rates or “Price to Compare” ("PTC") by customer class since 2011. These PTCs are available on the Company website here: https://www.peco.com/MyAccount/MyService/Pages/ElectricPricetoCompare.aspx

Please scroll to the bottom of the page and open the applicable drop down box below the heading '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'.

08/25/2016 in Rates
FAQ-36:
A 50 MW block remains part of the supply for the Residential Class until December 2015. Does the historical hourly Default Service Load data need to be adjusted for this volume?

Under PECO’s first Default Service Program (“DSP I”), PECO was responsible to serve 25% of the Default Load for the Residential Class, referred to as the “PECO Share”. PECO purchased Block Energy Supply to meet 80% of the PECO Share (e.g., 20% of the total expected seasonal energy requirements of the Default Load for the Residential Class). PECO balanced the difference between the blocks of energy and remaining load of the PECO share on an hourly basis through the hourly spot market for energy of PJM. As the purchased Block Energy Supply expires, these blocks have been replaced by full requirements tranches. The last block consisting of 50 MW of base load expired on December 31, 2015. The historical hourly load data series provided in the Data Room on the RFP website 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.

08/25/2016 in Data
FAQ-35:
For the remaining Residential Default Load served by PECO, will PECO pay for all of the cost of full requirements service or only the cost of energy and AECs?

In regards to the remaining Default Load, PECO will be a Load Serving Entity in PJM and will acquire all necessary supply through PJM-administered markets and will obtain sufficient Alternative Energy Credits (“AECs”) at market prices to satisfy any near-term obligations under the AEPS Act. Default Suppliers are not responsible for any of the costs related to the portion of the Default Load of the Residential Class served by PECO.

08/25/2016 in Rules
FAQ-34:
What is the exact percentage size of each tranche for the Residential Class under DSP III?

Starting January 1, 2016, the total number of full requirements tranches for supply of the Residential Class is 62. The tranche size is 1.60% or 99%/62.

08/25/2016 in Rules
FAQ-33:
Apart from the deration factor, is there a distribution loss factor or a 500kV loss factor that has to be used to calculate the settlement load?

No, hourly load data provided in the Data Room on the RFP website includes applicable distribution and transmission losses.

08/25/2016 in Data
FAQ-32:
What changes, if any, are there to Default Suppliers’ obligations for Meter Error Correction under DSP III?

The Default Supplier was the responsible party for Line Item 1250 Meter Error Correction under DSP II and continues to be responsible under DSP III. Starting with DSP III, under the PJM tariff, the total meter error correction costs will be allocated among all load-serving entities in PECO’s service territory instead of requiring that only Default Suppliers cover such costs. This change will affect the share of the total cost for which the Default Supplier will be responsible, but it does not affect the provisions that are specific to the Pennsylvania Default Service Supplier Master Agreement (“Uniform SMA”).

08/25/2016 in Contract
FAQ-31:
Will the load data used for Settlement B with PJM use AMI/interval data for all PECO customer classes?

PECO is in the process of completing the deployment of Automated Meter Reading (AMI) for its Residential, Small Commercial, Medium Commercial and Large Commercial & Industrial (LC&I) Classes. PECO is now using AMI interval data for Settlement B for customers with AMI meters. AMI interval data for customers was included starting with the December 2014 Settlement B performed by the end of February 2015. For more details please see the Data Description and Backcasting Methodology documents, updated as of February 13, 2015, that are available on the Additional Data page of the Data Room on the RFP website.

08/25/2016 in Data
FAQ-30:
Is the hourly load data posted in the Data Room for wholesale energy?

As stated in the data description document, the hourly load data provided in the Data Room on the RFP website includes applicable distribution and transmission losses. These values will be de-rated by PJM for marginal losses prior to energy settlement. PECO provides hourly marginal loss deration factors in the Data Room.

08/25/2016 in Data
FAQ-29:
Can I use the formula and the line loss percentage provided in Rule 6.6 of the Supplier Coordination Tariff document to calculate retail energy requirements for purposes of calculating Alternative Energy Portfolio Act (“AEPS”) obligations? For example, if the wholesale load is 100 MW for a specific hour, can I assume that retail load is approximately 90.65 MW (100 MW X (1 - the line loss percentage)?

The percentage and formula provided in Rule 6.6 Line Losses in the Supplier Coordination Tariff allows you to obtain an estimate of the delivered retail energy requirements for purposes of calculating Alternative Energy Portfolio Act (“AEPS”) obligations. Delivered retail energy requirements are approximately equal to wholesale energy requirements divided by [1+ the line loss percentage]. Using your example above where the wholesale energy requirement for an hour is 100MW, the delivered retail energy requirement would be equal to (100/[1+10.31%])=90.65MW when rounded to the nearest two decimal places. Note that this would not precisely match the AEPS obligations since a further adjustment for UFE and other factors would be necessary.

08/25/2016 in Data
FAQ-28:
What are the class average line losses for the Small Commercial, Medium Commercial, and Large Commercial & Industrial classes?

The transmission and distribution line loss percentages are provided in Rule 6.6 Line Losses for each rate class.

08/25/2016 in Data
FAQ-27:
In the Performance Assurance Letter of Credit, under item #2 of the Additional Terms and Conditions, is the word "assigned" meant to be used interchangeably with "transferred" or does it mean the assignment of proceeds?

The word “assigned” should be interpreted to refer to the Post-Bid Letter of Credit itself and the obligations of the issuer of the Post-Bid Letter of Credit, and not to refer to the proceeds of the Post-Bid Letter of Credit in the event it was drawn upon. Transferred and assigned are similar but not always identical concepts. The beneficiary frequently provides that the bank that issues a letter of credit cannot transfer the letter of credit or assign its obligations to another institution, since the beneficiary might not approve of the transferee or assignee.

08/25/2016 in Credit
FAQ-26:
Is a price on the Bid Form a price for a single tranche? Or does the price associated with the second tranche represent a price offered for two tranches?

Each price on the Bid Form is for a single tranche. A “Bid” is a price in $/MWh for one tranche of a given product.

08/25/2016 in Rules
FAQ-25:
What happens if my Pre-Bid Letter of Credit is not sufficient to support my Bids?

Please see paragraph VII.2.10 of the RFP Rules. The Independent Evaluator will determine for such RFP Bidder the greatest number of whole tranches that its Pre-Bid Letter of Credit is sufficient to support. The Independent Evaluator will strike a Bid from a Bid Form for any tranche that is not supported by the Pre-Bid Letter of Credit. The Independent Evaluator will remove a Bid first from the product where there is most competition, as measured by the ratio of the number of tranches bid to the number of tranches needed. For that product, the Independent Evaluator will start with the tranche that has the highest Bid. If more than one RFP Bidder submitted Pre-Bid Letters of Credit that are insufficient to support the number of tranches bid by each such RFP Bidder, the Independent Evaluator will first modify the Bid Form from the RFP Bidder whose Bid Form is received last.

08/25/2016 in Rules
FAQ-24:
PJM implemented residual metered load pricing starting June 1, 2015. What is the new Pnode ID?

Starting on June 1, 2015, the applicable name and Pnode ID changed to Name: PECO_RESID_AGG, Pnode ID: 116472949.

08/25/2016 in Contract
FAQ-23:
We won tranches in a previous solicitation under PECO’s third Default Service Program (“DSP III”). We rely on the financial standing of an RFP Guarantor and we have an executed Guaranty with PECO. If we win additional tranches in the upcoming solicitation under DSP III, is our RFP Guarantor required to execute a new Guaranty with PECO?

An Existing Default Supplier that has already executed a Guaranty with PECO under DSP III is not required to execute a new Guaranty if they win additional tranches in a subsequent solicitation under DSP III. Instead, the Default Supplier will amend the amount of the existing Guaranty to reflect the newly won tranches.

08/25/2016 in Rules

FAQ-22:
Can you please provide us with PY 16/17 PLCs, by customer class, for both shopping and non-shopping customers? It is our understanding that this information has already been provided to retail electric suppliers for the customers they serve. If possible, we would like to have this data based on shopping and non-shopping customers as of the most recent date available.

The annual Peak Load Contribution related to the load of Default Service customers (“Default Load”) and Total Customers in a Class is available in Table I-2 of the RFP Rules available on the Supplier Documents page of the RFP website.

This data was updated as of July 2016 for delivery year 2016/17 and is provided in the table below for your convenience.

Class	Total Peak (MW)	Default Peak (MW)
Residential	3,644.06	2,345.27
Small Commercial	1,127.28	426.46
Medium Commercial	942.65	105.87
Large Commercial & Industrial	2,356.76	61.46

08/25/2016 in Data

FAQ-21:
What services are included in full requirements service?

Full requirements service includes, without limitation, energy, capacity, transmission (excluding Network Integration Transmission Service), ancillary services, AECs for compliance with the AEPs Act, transmission and distribution losses, congestion management costs, and such other services or products that are required to serve the specified percentage of Default Load for a Class (except for distribution service).

08/25/2016 in Contract
FAQ-20:
What are the supply periods for the products available in the September 2016 Solicitation?

Table I-3 and Table 1-4 of the RFP Rules provides the schedule of procurement for products in each Solicitation. A product for purposes of the RFP is defined by three characteristics: a) the Class to which it contributes Default Supply; b) the length of the supply period; and c) the date at which the supply period begins. The products for all Classes procured in this September 2016 Solicitation include RES-12-Dec16, RES-24-Dec16, and SC-12-Dec16. The supply period, for example, related to the RES-12-Dec16 product is 12 months from December 1, 2016 through November 30, 2017.

08/25/2016 in General
FAQ-19:
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 in the following manner: Prior to March 2015 UFE is allocated to monthly-metered customers and not to hourly/interval metered customers. Hourly energy values developed from interval or recorder meters do not include UFE. 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. Starting in March 2015 UFE is allocated to all customers, including hourly/interval metered customers.

08/25/2016 in Data
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 website, 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 in the following manner: Prior to March 2015 UFE is allocated to monthly-metered customers and not to hourly/interval metered customers. Hourly energy values developed from interval or recorder meters do not include UFE. 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. Starting in March 2015 UFE is allocated to all customers, including hourly/interval 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 website.

08/25/2016 in Data
FAQ-17:
Are Default Suppliers required to have a retail electricity license within the Commonwealth of Pennsylvania in order to qualify as a Default Supplier?

No, it is not a requirement under the Uniform SMA for suppliers to have a retail electricity license within the Commonwealth of Pennsylvania. When the PaPUC approves the results of a solicitation, it approves the bid prices that will determine retail rates and the winning suppliers that will provide supply to meet the load of Default Supply customers.

08/25/2016 in Contract
FAQ-16:
On the PA state website for competitive retail power (www.papowerswitch.com), it states: "Gross receipts tax is paid by both electric distribution companies and electric generation suppliers on the basis of the company's or the supplier's gross receipts from the sale of electric generation supply within the Commonwealth of Pennsylvania. Electric distribution companies and electric generation suppliers include the GRT as part of the cost of electric generation supply." For the purposes of the RFP, are the winning RFP Bidders considered "electric generation suppliers" subject to the Gross Receipts Tax?

PECO alone is subject to Gross Receipts Tax in regards to providing electric generation service to Default Service customers. For additional information on taxes under the Uniform SMA, please see Section 16

08/25/2016 in Contract
FAQ-15:
What PJM line items are covered on the Delegation of Authority that the winning bidder must sign as part of the contract execution process?

A copy of the Form of Declaration of Authority ("DOA") that winning suppliers must sign is provided as Exhibit III to the Uniform SMA. For the line items that winning suppliers will agree to in the DOA please see Appendix D. The Uniform SMA is posted on the Supplier Documents page of the RFP website here.

08/25/2016 in Contract

FAQ-14:
Please clarify if each customer class, rate schedule, and strata is monthly-metered or interval-metered.

PECO is required to install interval metering for their Large Commercial & Industrial customers. AMI metering is currently in the process of being installed for other classes that are metered. The table below provides the end state at full deployment. Note that only unmetered service are marked “N”.

RATE_CLASS	STRATA	Interval Metered
AL	177	N
EP	161	Y
GS	101	Y
GS	107	Y
HT	151	Y
PD	157	Y
POL	173	N
R	111	Y
R	112	Y
R	113	Y
RH	121	Y
RH	122	Y
RH	123	Y
SLE	170	N
SLS	171	N
TL	175	N
TL	176	N

08/25/2016 in General

FAQ-13:
Please provide the steps and calculations that PECO uses to calculate the Capacity Obligation for a non-interval customer.

PECO does not calculate a capacity obligation for customers. Instead, PECO calculates Peak Load Contributions (PLC), which are used by PJM to calculate the capacity obligation. For details on how PJM converts PLCs to a capacity obligation please contact PJM directly. Please see the presentation below provided by PECO detailing the PLC calculation.

Please see pages 9-17 for examples of non-interval accounts and pages 18-21 in regards to lighting accounts. PLC Presentation_1-1-2016.pdf

08/25/2016 in Data
FAQ-12:
In regards to completing the Transaction Confirmation, does the price that a Default Supplier provides for each type of AEC have to reflect actual costs or can it be an estimated cost to procure the AECs?

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. This price can reflect actual costs or they can be the estimated costs of procuring the AECs if the prospective bidder becomes a Default Supplier. 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.

08/25/2016 in Contract
FAQ-11:
The Bidder Information Webcast Presentation indicates that provisional winning RFP Bidders will be notified by 6pm on the bid date. Historically has there ever been a case where this notification was delayed? If so by how much was it delayed?

Historically the notification to provisional winning bidders has occurred within the timeframes specified in the RFP Rules.

08/25/2016 in Rules
FAQ-10:
Can you confirm that the energy volume that a Default Service Supplier is required to deliver and on which they will be paid will be the same volume? For example if a Default Service Supplier receives an invoice from PECO indicating payment for 100 MWh's, can they expect to see a bill from PJM indicating charges for 100 MWh's over the same period? If the volumes are different could you please list the reasons why they would not match?

The volume used for settlement is the same for both PECO and PJM. It is calculated using the formula provided in FAQ-51 (hourly default service load*(1-deration)*load share(# of tranches* tranche size)).

08/25/2016 in Rules
FAQ-9:
Are the Hourly PJM Deration Factors for the PECO Zone provided in Eastern Standard Time or Eastern Prevailing Time?

Hourly reports align with Eastern Prevailing Time. For instance, Hour 1 pertains to the hour between 12:00 a.m. EPT and 1:00 a.m. EPT. Daylight Savings Time (DST) is treated as follows:
- Hourly reports spanning the Fall DST period contain 25 consecutive hours.
- Hourly reports spanning the Spring DST period contain 23 consecutive hours.
For more information please see the Data Description document posted to the Data Room.

08/25/2016 in Data
FAQ-8:
Do all winning bidders of a product receive the highest winning price for that product or does each winning bidder for a product receive the price as stated on their bid form?

For each product in this solicitation, a Default Supplier will be paid a supplier-specific price for each MWh of electric load served as specified in the Transaction Confirmation for that product. The supplier-specific price for a product will be the average of approved Bids for that Default Supplier and for that product, as provided in the Bid Form.

08/25/2016 in Rules
FAQ-7:
Is it acceptable to provide a Pre-Bid Letter of Credit with the text in capital letters and what modifications are acceptable in regards to the signature line?

It is acceptable to provide a Pre-Bid Letter of Credit with the text in capital letters. The current list of approved modifications to the Standard Pre-Bid Letter of Credit is posted at the bottom of the Supplier Documents page of the RFP website here under the heading “Credit Instruments – September 2016”. Please see approved modifications in regards to the signature line. Each RFP Bidder may use any of the approved modifications, regardless of whether the RFP Bidder itself or another RFP Bidder proposed the modification.

08/25/2016 in Rules
FAQ-6:
In regards to allocating UFE, which customers are considered monthly-metered versus hourly/interval metered customers? Does UFE need to be added back to the hourly load data provided for the Residential and Small Commercial classes in the Data Room?

All legacy large commercial and industrial customers and Automated Meter Reading ("AMI") customers are considered hourly/interval metered customers. All other customers, including the Residential and Small Commercial customers, are monthly-metered customers. Starting in March 2015, UFE is allocated to all customers. Prior to March 2015 Residential and Small Commercial class hourly load data already included UFE. Thus, UFE does not need to be added to the historical hourly load data of Residential and Small Commercial Classes posted to the Data Room.

08/25/2016 in Data
FAQ-5:
If a winning bidder is relying on the financial standing of an RFP Guarantor, how is the final amount of the Guaranty determined?

The guaranty amount will be the lesser of 1) the Total Exposure Amount at the time the Agreement is executed as such amount may be modified in any amended or substitute Guaranty provided to the Company during the term of this Agreement; or 2) the Maximum Credit Limit. Please note that a Default Supplier may not increase or substitute its Guaranty for the purpose of increasing its applicable credit limit during the time period after the Company has made a Margin call but before the Default Supplier has posted the required Margin.

The Maximum Credit Limit as determined based on the credit matrix table for Guarantors in Appendix A. The Maximum Credit Limit is based on the Guarantor’s lowest Credit Rating, which is used to calculate both the applicable Tangible Net Worth (TNW) Amount and Unsecured Credit Limit Cap.

08/25/2016 in Contract
FAQ-4:
Please confirm whether or not Appendix D - RESPONSIBILITIES FOR PJM BILLING LINE ITEMS AS DEFINED IN APPLICABLE PJM AGREEMENT OR MANUAL to the Uniform SMA is applicable to the Medium Commercial and Large Commercial & Industrial Classes?

For the Medium Commercial and Large Commercial & Industrial Classes, PECO is soliciting bids for the procurement of full requirements service but with energy priced to the PJM day-ahead spot market. A Default Supplier serving tranches for the Medium Commercial and Large Commercial & Industrial Classes is paid a supplier-specific price, which will be the average of approved Bids for that Default Supplier, the PJM day-ahead price for energy, and the Reliability Pricing Model (“RPM”) price for capacity. Appendix D is applicable to Default Suppliers for the Medium Commercial and Large Commercial & Industrial Classes as well.

08/25/2016 in Contract
FAQ-3:
The Bidder Information Session presentation, on slide 25, mentions that Default Load for the Residential Class will be reduced by 5.5 MW in 2016 due to a contract with the New York Power Authority (“NYPA”). Could you specify the details of this arrangement? What volume should bidders anticipate for 2017 and 2018? Is the capacity obligation also reduced by 5.5 MW? Is this change reflected in the data posted in the RFP Data Room?

PECO receives for the benefit of its residential customers an annual allocation of capacity and associated energy from the St. Lawrence hydroelectric project operated by the New York Power Authority (“NYPA”). PECO has established a separate sub-account with PJM exclusively for the St. Lawrence project power allocation from NYPA for a slice of the residential default load. Thus Default Suppliers are not responsible for any services required to serve this portion of the load. The NYPA power, therefore, serves to reduce supply needed from Default Suppliers in proportion to their share associated with their tranches of the Residential Class.

The NYPA determines the annual allocation based on the number of residential customers PECO serves. PECO does not provide forecasts of its number of residential customers, thus PECO cannot speculate on how this allocation would change in the future. Currently, the NYPA power represents approximately 0.2% of PECO’s 2,400 MW of residential load.

The data series in the data room are not adjusted for the NYPA allocation and suppliers are responsible for making these adjustments.

08/23/2016 in Data
FAQ-2:
When will the Addendum to the RFP rules be sent to suppliers?

Suppliers that request an account to access the proposal website (and returning RFP Bidders) will receive an Addendum to the RFP Rules that provides additional instructions for completing and submitting the online forms. This Addendum will be sent no later than Monday, August 29, 2016, the day before the Part 1 Window opens.

08/22/2016 in Procedures
FAQ-1:
Can you please confirm the Bid Date for the September 2016 Solicitation?

The Bid Date for the September 2016 Solicitation is Tuesday, September 20, 2016. The updated RFP Schedule is available on the Calendar Page of the RFP website.

08/04/2016 in General