FAQ Archives - DSP IV - March 2017 Solicitation
The FAQs on this page are no longer relevant, as they are from past solicitations. These FAQs are posted here only for reference purposes. Do not rely on the information provided on this page for the current solicitation.
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FAQ-33:
Are there changes to the PECO RFP schedule due to the impending winter storm affecting the Northeast?
Yes. Please refer to the Announcement page of the RFP website for the latest information on the revised auction schedule.
03/13/2017 in General
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FAQ-32:
Does the fact that PECO does not have any ARR credits to transfer to winning bidders for the 2017/18 PJM planning year mean that a supplier does not keep ARR credits related to Default Load won under DSP III that it is currently supplying?
A supplier or bidder cannot rely on the Independent Evaluator or PECO as a source of information on PJM rules and protocols. Please contact PJM.
03/13/2017 in Contract
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FAQ-31:
Does the fact that PECO does not have ARR credits to transfer to winning bidders for the 2017/2018 PJM planning year mean that bidders should attribute zero value for ARR credits in their bids for the periods from June 2017 to May 2018 for all products in the March 2017 Solicitation?
PECO will not have any ARR credits to transfer to winning bidders for the 17/18 PJM year for all of the products in the March 2017 Solicitation. The Independent Evaluator will not comment on how bidders should reflect this in their bids.
03/13/2017 in Contract
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FAQ-30:
Given that the Bid Date is after the Stage 1A of the 2017 Annual ARR Allocation, can PECO please provide the results of its requests for the 2017/18 and 2018/19 PJM planning years?
Based on the results of the 2016 PJM Financial Transmission Rights (“FTR”) Auction and a third party analysis contracted by PECO to evaluate the projected system congestion for the 17/18 PJM year, PECO chose not to nominate Auction Revenue Rights (“ARRs”) for the 2017/18 PJM planning year. Thus, PECO will not have ARR credits to transfer to winning bidders for the 2017/2018 PJM year for all of the products in the March 2017 Solicitation.For the 2018/2019 PJM year, in regards to the 24-month products, under the Uniform SMA, the Default Suppliers (and not PECO) are the Load Serving Entities ("LSEs") in PJM and Default Suppliers can directly participate in PJM's annual ARR path nomination and allocation process.
03/13/2017 in Contract
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FAQ-29:
The PJM Settlement Agreement before FERC dated June 15, 2016 under Docket EL05-121-009 establishes cost responsibility for charges or credits to transmission customers in the PJM region. The Settlement Agreement states in Section 2.2 (b) Rates and Charges for Covered Transmission Enhancements that “PJM shall collect from Responsible Customers through the PJM Tariff, as two separate line items on their bills: (i) the applicable Current Recovery Charges … and (ii) the applicable Transmission Enhancement Charge Adjustments…”. Will these charges/credits resulting from the Settlement Agreement be the responsibility of PECO Energy or the Default Supplier?
The Federal Energy Regulatory Commission (“FERC”) has yet to render a ruling on the proposed Settlement Agreement in the above referenced FERC docket. It would be premature for PECO to anticipate FERC’s decision in this matter and therefore cannot comment.
03/12/2017 in Contract
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FAQ-28:
If a Bidder plans to submit bids for both the fixed-price product and the spot-price products does the Bidder need to submit two separate Pre-Bid Letters of Credit?
No, a single Pre-Bid Letter of Credit is submitted even if the RFP Bidder bids on more than one product or if the RFP Bidder bids to supply both full requirements on a fixed-price basis and full requirements on a spot-price basis. Each RFP Bidder must provide an executed Pre-Bid Letter of Credit, drawn for the account of the RFP Bidder and acceptable to PECO, in an amount of at least: $250,000 per tranche bid on products of the RES and SC Classes for full requirements on a fixed-price basis, plus $125,000 per tranche bid on a product for the CCI Class for full requirements on a spot-price basis. The maximum amount of the Pre-Bid Letter of Credit is $9,750,000 ($8,750,000 for fixed-price products and $1,000,000 for spot-price products). Please note that depending on load caps, not all bidders will be able to bid on all available tranches.
03/06/2017 in Contract
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FAQ-27:
Please provide the PLC value for each Class for the 2017/18 delivery year.
The Total Peak (MW) and Default Peak (MW) for each Class is provided in Table I-2 of the RFP Rules. This data was updated as of December 2016 for delivery year 2017/18. The RFP Rules is available on the Supplier Documents page of the RFP Website: http://pecoprocurement.com/index.cfm?s=supplierInformation&p=documents
03/01/2017 in General , Rules
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FAQ-26:
Do RFP Bidders have to execute a new Uniform SMA for DSP IV?
All RFP Bidders that have one or more Bids approved by the Commission in the March 2017 Solicitation, the first solicitation under PECO’s fourth Default Service Program (“DSP IV”), must execute the Uniform SMA approved for DSP IV.
02/28/2017 in Contract , General
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FAQ-25:
Can you provide an update on interval meter deployment? Which rate classes and strata will be interval metered at full deployment?
As of February 2017, interval meter deployment for residential and commercial customers with annual peak demand less than 500 kW is approximately 99.9% complete and deployment for commercial customers with annual peak demand 500 kW or greater is approximately 20% complete. At full deployment, interval meters will be installed for the rate schedules and strata indicated in the table below. Please note that only unmetered service are marked “No”.Rate Schedule
Strata
Interval Metered
AL
177
No
EP
161
Yes
GS
101
Yes
GS
107
Yes
HT
151
Yes
PD
157
Yes
POL
173
No
R
111
Yes
R
112
Yes
R
113
Yes
RH
121
Yes
RH
122
Yes
RH
123
Yes
SLE
170
No
SLS
171
No
TL
175
No
TL
176
No
02/23/2017 in Data
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FAQ-24:
What data in the Data Room is produced by interval meters?
Starting in December 2014, hourly load data is based on interval usage data for customers with interval meters. Also, PECO uses interval usage data to calculate PLC/NSPL values for commercial accounts with interval meters.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.
02/23/2017 in Data
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FAQ-23:
Can you post redline documents of the Supplier Master Agreements and Bidding Rules, so the documents can be compared between DSP IV and DSP III.
A redline that compares the Uniform SMAs under DSP III and DSP IV was filed as Exhibit JJM-4 along with PECO’s Petition for approval of its fourth Default Service Program (“DSP IV”) on March 17, 2016. This exhibit is available on PECO’s website here: https://www.peco.com/SiteCollectionDocuments/JJM-4.pdf.In regards to the RFP Rules, while a redline of the two documents could be generated, it would not serve the purpose of illustrating key differences between the two documents because the structure of the document has changed substantially. While a bidder is entirely responsible for becoming familiar with the RFP Rules and other governing documents for DSP IV, for your convenience, we provide below the key differences between the RFP Rules from DSP III and those from DSP IV. These are:
1. Updates to Data Tables
- Tables were updated for the products to be procured under DSP IV
- Tables were updated with dates for the eight (8) solicitations scheduled for March and September in each year from 2017 – 2020 2.
2. Program Changes
- References to the Medium Commercial and Large Commercial and Industrial Classes from DSP III were replaced with references to the Consolidated Large Commercial & Industrial Class formed under DSP IV
- Reference to blocks of around-the-clock energy purchased under DSP I that no longer contribute to supply of the Residential class was removed
- Reference to PECO’s contract with the Allegheny Electric Cooperative, Inc for NYPA supply was added
- Reference to the stakeholder collaborative that will be held at the halfway point in January 2018 was added
- Changes were made in various sections of the document to implement the new timing to request modifications to the Standard Guaranty appended to the Uniform SMA (during the Part 1 Proposal Window rather than in a separate process held prior to proposal submission)
3. General
- The phrasing of the requirements for the Part 1 and Part 2 Proposals was updated to conform more closely to the online proposal submission process
02/23/2017 in Contract , Rules
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FAQ-22:
We were a previously qualified RFP Bidder under DSP III. Do we retain our previously qualified status under DSP IV? Are we required to resubmit documents submitted under DSP III?
An RFP Bidder’s status as previously qualified or previously eligible does not transfer from DSP III to DSP IV. An RFP Bidder must use the standard Part 1 and Part 2 Forms in the first solicitation in which it participates under DSP IV and it must submit all required documents anew. For example, an RFP Bidder that relies on the financial standing of a Foreign Guarantor cannot rely on documents submitted under DSP III and must submit new documentation the first time the RFP Bidder participates in a solicitation under DSP IV. Paragraph V.5.3. of the RFP Rules provides the list of executed documents that are required with the Part 2 Proposal and for which the RFP Bidder may, but is not required to, submit drafts for review by PECO with the Part 1 Proposal.
02/08/2017 in General , Rules
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FAQ-21:
What was the timeline of the Medium Commercial Class transition from default service on a fixed-price basis to default service on an hourly-price basis?
On June 1, 2016, PECO’s non-residential customers with a Peak Load Contribution between 100kW and 500kW, known as the Medium Commercial Class until May 31, 2017, transitioned from default service on a fixed-price basis to default service on an hourly-price basis with energy priced to the PJM day-ahead spot market. Starting June 1, 2017, these customers will be merged with PECO’s Large Commercial & Industrial Class, non-residential customers with a Peak Load Contribution greater than 500kW, to form the Consolidated Commercial & Industrial Class (“CCI”). CCI customers will receive default service on an hourly-price basis with energy priced to the PJM day-ahead spot market.
02/03/2017 in Data
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FAQ-20:
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.
01/26/2017 in Data
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FAQ-19:
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.
01/26/2017 in Rules
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FAQ-18:
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.
01/26/2017 in Contract , General
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FAQ-17:
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.
01/26/2017 in Credit , Rules
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FAQ-16:
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.
01/26/2017 in Rules
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FAQ-15:
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.
01/26/2017 in Data
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FAQ-14:
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.
01/26/2017 in Contract
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FAQ-13:
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 below the heading 'PTC Archive': https://www.peco.com/MyAccount/MyService/Pages/ElectricPricetoCompare.aspx
01/26/2017 in Rates
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FAQ-12:
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.
01/26/2017 in Data
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FAQ-11:
Are the names of winning RFP Bidders posted to the RFP website?
No, the names of winning RFP Bidders are not publicly available.
01/26/2017 in Rules
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FAQ-10:
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?
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 load settlements, regardless of whether they are hourly metered or not.
01/26/2017 in Data
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FAQ-9:
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.
01/26/2017 in Data
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FAQ-8:
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.
01/26/2017 in Rules
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FAQ-7:
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.
01/26/2017 in General
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FAQ-6:
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?
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.
01/26/2017 in Contract
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FAQ-5:
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.
01/26/2017 in Rules
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FAQ-4:
Is cash an acceptable form of pre-bid security?
No, cash is not an acceptable form of pre-bid security. An 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 that have been approved by PECO and posted to the RFP website.
01/26/2017 in Credit
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FAQ-3:
If the State of Pennsylvania increases the AEPS obligation, 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.”
01/26/2017 in Contract
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FAQ-2:
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:http://www.pecoprocurement.com/index.cfm?s=supplierInformation&p=documents.
01/26/2017 in Credit
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FAQ-1:
What is the required amount of the Pre-Bid Letter of Credit?
An RFP Bidder must, in its Part 2 Proposal, submit a Pre-Bid Letter of Credit in an amount of: $250,000 per tranche bid on products for the Residential and Small Commercial Classes, plus $125,000 per tranche bid on the product for the Consolidated Large Commercial and Industrial Class.This Pre-Bid Letter of Credit must be in the form of the Standard Pre-Bid Letter of Credit provided as Appendix 9 to the RFP Rules or must incorporate only those modifications that have been approved by PECO and posted to the RFP website. For more information on the Pre-Bid Letter of Credit, see paragraph V.2 in the RFP Rules available on the Supplier Documents page: http://www.pecoprocurement.com/index.cfm?s=supplierInformation&p=documents.
01/26/2017 in Credit