PECO Procurement For Default Supply

FAQ Archives - DSP IV - September 2020 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-71:
We noticed the sum across all classes of the Aggregated Hourly Load Data that PECO is providing in response to COVID-19 exceeds the load data reported by PJM for the PECO zone. Is there a reason for this discrepancy?

The Aggregated Hourly Load Data on PECO’s website is provided voluntarily on a temporary basis for informational purposes only and is in response to the COVID-19 pandemic event. The data is provided by class and is associated with both default service customers and customers being served by Electric Generation Suppliers (EGSs). The data does not include applicable distribution and transmission system losses. The data has not been adjusted for unaccounted for energy and has not been de-rated for marginal losses.

Please note that this Data is made available for informational proposes only in response to the COVID-19 pandemic event. The Company is providing the Data on an "AS IS" basis. No warranty, statutorily, express or implied, is made regarding the accuracy, adequacy, completeness, legality, reliability or usefulness of any of the Data.

09/28/2020 in Data
FAQ-70:
What is PECO’s two-step process to settle the hourly load obligations with each LSE and PJM?

PECO settles hourly load obligations with each LSE and PJM via a two-step process:
- Settlement A – PECO determines the estimated “day after” (delivery day) hourly load responsibility by recreating the load characteristics of the delivery day in question using a combination of available known, preliminary, and historically-based information. PECO then submits the load responsibility for all LSEs serving load on the settled day(s) to PJM in accordance with PJM procedural requirements and energy market schedules.
- Settlement B – PECO determines the final hourly load responsibility approximately 60 days after an energy delivery month by reconciling actual individual customer meter readings and applicable load profile data with the Settlement A data for that month. PECO then calculates and submits the energy variances from Settlement A hourly scheduling for all LSEs to PJM in accordance with PJM procedural requirements and energy market schedules.
PECO provides an overview of the determination of hourly load obligations on their website here:

https://electricandgaschoice.force.com/s/article/Determination-of-Hourly-Load-Obligations-Overview

09/28/2020 in Data
FAQ-69:
Where can I find additional information about the methodology for the annual calculation of Peak Load Contribution (“PLC”)? Does PECO expect the PLC to increase or decrease for the next planning year? Will PECO change the methodology to calculate the PLC for the planning year 2021?

Neither PECO nor the Independent Evaluator can speculate on future capacity obligations of customer classes.

PECO provides information regarding the annual calculation of peak load contribution (PLC) and network service peak load (NSPL) on their website here:

PECO Annual ICAP 2020

This methodology will be used for planning year 2021 and is unchanged from prior years.

09/28/2020 in Data
FAQ-68:
How does PECO calculate interval customer NSPL tickets?

Individual customer tickets represent the customer allocation of total actual network transmission service in the PECO Zone. The calculation is based on peak actual metered zone load from within the previous 12 months (November through October).

The sum of all individual customer NSPLs equals PECO’s metered zonal load at the time of the zone’s highest transmission peak value as determined by PJM. PJM provides the Network Service Peak Loads for 2020 by zone on their website here: https://www.pjm.com/-/media/markets-ops/settlements/network-service-peak-loads-2020.ashx?la=en

For more information please contact PJM and see the presentation regarding the annual calculation of peak load contribution (PLC) and network service peak load (NSPL) on PECO’s website here: PECO Annual ICAP 2020

09/28/2020 in Data
FAQ-67:
What is the total number of tranches that an RFP Bidder can win?

It is entirely the responsibility of the RFP Bidder to read and understand the RFP Rules and all governing documents, including the rules related to the submission of Bids and evaluation. While the Independent Evaluator responds to questions of clarification, any such responses are not a substitute for the RFP Bidder being familiar with the governing documents for the RFP. In particular, Paragraph V.1.2. states: “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." Thus, except as limited by the application of Load Caps, an RFP Bidder can win up to the total number of tranches for which a Bid is submitted.

09/24/2020 in Rules
FAQ-66:
What is the price paid to the Default Supplier for a product in which the Default Supplier wins several tranches?

It is entirely the responsibility of the RFP Bidder to read and understand the RFP Rules and all governing documents, including the rules related to the submission of Bids and evaluation. While the Independent Evaluator responds to questions of clarification, any such responses are not a substitute for the RFP Bidder being familiar with the governing documents for the RFP. In particular, Paragraph I.4.7 of the RFP Rules states, “A Default Supplier for a product 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 Default Supplier for a product will be the average of approved Bids for that Default Supplier and for that product.”

09/24/2020 in Rules
FAQ-65:
I am looking at Section 2 in the ‘Bids’ tab of the Bid Form. Does the numbers on the left of the blue cells represent the number of tranches for which I am submitting a Bid? If I enter a Bid of $22.00/MWh next to 1, $24.00/MWh next to 2, and $28.00/MWh next to 3, for how many tranches am I submitting a bid? If I win two tranches, what is my winning bid price? If I win three tranches, what is my winning bid price?

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

The numbers on the left side of the blue cells provided for you to input your Bid(s) do NOT represent the number of tranches for which you are submitting a Bid. These numbers keep count of the number of tranches for which you are submitting a bid. In your example, you are submitting bids for three tranches, $22.00/MWh for the first tranche, $24.00/MWh for the second tranche, and $28.00 for the third tranche. If you win two tranches your average winning bid price would be $23.00/MWh, namely the average of the bid for the first two tranches (22+24)/2. If you win three (3) tranches your average winning bid price would be ($22.00/MWh + $24.00/MWh + $28.00/MWh)/3).

It is entirely the responsibility of the RFP Bidder to read and understand the RFP Rules and all governing documents, including the rules related to the submission of Bids and evaluation. While the Independent Evaluator responds to questions of clarification, any such responses are not a substitute for the RFP Bidder being familiar with the governing documents for the RFP. In particular, as stated in Paragraph VII.2.13, “The Bids supported by adequate Pre-Bid Letters of Credit will be evaluated on a price-only basis. The Bids for each product will be ranked from lowest to highest price until all Bids are ranked or until the number of Bids that are ranked equals the number of tranches available for the product.” Bids are taken strictly in price order for a given product.

09/24/2020 in Rules
FAQ-64:
Can you provide information on how PECO calculates peak load contribution and network service peak load data? Also, please provide the 2019 peaks that are applicable to the annual calculation of peak load contribution (PLC)?

PECO provides information regarding the annual calculation of peak load contribution (PLC) and network service peak load (NSPL) on their website here:

PECO Annual ICAP 2020

Regarding the 2019 peaks, please see the file named “5 Coincident Peaks and Weather Normalized Zonal Peaks” for Summer 2019 under the header Forecasts & Reports on PJM’s website here:

https://www.pjm.com/planning/resource-adequacy-planning/load-forecast-dev-process.aspx

09/22/2020 in Data
FAQ-63:
Is the Aggregated Hourly Load Data on PECO’s website associated with both default service customers and customers being served by Electric Generation Suppliers (EGSs)? Does it include applicable distribution and transmission system losses?

The Aggregated Hourly Load Data on PECO’s website is provided voluntarily on a temporary basis for informational purposes only and is in response to the COVID-19 pandemic event. The data is provided by class and is associated with both default service customers and customers being served by Electric Generation Suppliers (EGSs). The data does not include applicable distribution and transmission system losses.

Please note that this Data is made available for informational proposes only in response to the COVID-19 pandemic event. The Company is providing the Data on an "AS IS" basis. No warranty, statutorily, express or implied, is made regarding the accuracy, adequacy, completeness, legality, reliability or usefulness of any of the Data.

09/22/2020 in Data
FAQ-62:
The Pre-Bid Letter of Credit for the September 2020 Solicitation must be submitted as an electronic PDF file via electronic means to the Independent Evaluator at PECOProcurement@nera.com. Please confirm whether it is acceptable to include the following language in Paragraph 15 of the Pre-Bid Letter of Credit: “THIS LETTER OF CREDIT MAY BE SIGNED BY THE ISSUING BANK WITH EITHER A DIGITAL OR ORIGINAL SIGNATURE, EITHER OF WHICH SHALL BE LEGALLY-VALID AND ENFORCEABLE.”

It is acceptable to include “THIS LETTER OF CREDIT MAY BE SIGNED BY THE ISSUING BANK WITH EITHER A DIGITAL OR ORIGINAL SIGNATURE, EITHER OF WHICH SHALL BE LEGALLY-VALID AND ENFORCEABLE.” as additional language in Paragraph 15 of the Pre-Bid Letter of Credit.

09/21/2020 in Data
FAQ-61:
What is the AEC Solar Penalty in the transaction confirmation and do Default Suppliers complete that information during the confirmation process?

The AEC Solar Penalty is the alternative compliance payment as defined in the Alternative Energy Portfolio Standards Act (“AEPS”).

On the day the Commission approves some or all of the winning Bids, the Independent Evaluator sends to PECO the Uniform SMA, including all Exhibits, for each New Default Supplier. The Independent Evaluator will update the blank provided for the AEC Solar Penalty at that time.

Please note that Default Suppliers are responsible for providing the AECs necessary for PECO to meet its obligations under the 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. In the Transaction Confirmation RFP Bidders must specify a price for each type of AECs (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.

For more information on a DS Supplier’s obligations related to AEPS compliance, please see Appendix E of the Uniform SMA.

09/21/2020 in Contract
FAQ-60:
Should we upload the Pre-Bid Letter of Credit to the online part 2 form?

The Pre-Bid Letter of Credit must be submitted as an electronic PDF file via electronic means to the Independent Evaluator at PECOProcurement@nera.com. A Pre-Bid Letter of Credit sent in hardcopy cannot be accepted. The Pre-Bid Letter of Credit does not need to also be uploaded to the online part 2 form.

09/16/2020 in Credit
FAQ-59:
Please provide the bank information for Paragraph 7 of the pre-bid letter of credit.

The bank information for Paragraph 7 of the pre-bid letter of credit will be provided by email no later than Tuesday, September 15, 2020.

Please note that it is acceptable to leave the PECO Energy Company banking and contact information for Paragraph 7 of your pre-bid letter of credit blank. Please see the Acceptable Modifications to the Standard Pre-Bid Letter of Credit posted to the Supplier Documents page of the RFP Website.

09/11/2020 in Contract
FAQ-58:
Is a W-9 available for PECO Energy Company upon request?

Yes.

09/11/2020 in General
FAQ-57:
Do you have a sample of the online Part 2 form?

Illustrative Part 2 Forms are provided as Appendices 7 and 8 to the RFP rules and are posted to Supplier Documents page of the RFP website. An RFP Bidder can submit at most one Part 1 Proposal and one Part 2 Proposal for each solicitation.

09/04/2020 in General
FAQ-56:
Has the Independent Evaluator made any changes to the RFP Rules for the September 2020 Solicitation?

For each solicitation, the RFP Rules including the appendices are updated to include the dates for that solicitation and to refer to the particular products to be procured in that solicitation. The RFP Rules may be further updated to reflect additional decisions by the Commission, relevant changes in law, or non-material modifications to the processing of Proposals expected to improve potential participation by suppliers. No changes were made in regards to decisions by the Commission or relevant changes in law for this solicitation. An Addendum to the RFP Rules was issued for this September 2020 Solicitation in response to measures enacted in the wake of COVID-19 and contains non-material modifications to the processing of Proposals that would be expected to improve potential participation by suppliers that are unable to work from their usual place of business.

In the event of conflict between the RFP Rules and the modifications issued in the Addendum, the modifications issued in the Addendum will govern.

09/04/2020 in General
FAQ-55:
If we digitally sign the Inserts, what additional document or information must be provided to verify the identity of the signatory? Can you provide an example?

Due to emergency measures enacted in the wake of COVID-19, the Independent Evaluator is accepting digitally signed inserts during the September 2020 Solicitation. The Inserts may be completed by digitally signing the Insert and providing along with the completed Insert an additional document or information that verifies the identity of the signatory. Additional documentation or information may include: (i) a certificate of completion if the signatory uses DocuSign; (ii) a Final Audit Report if the signatory uses Adobe Sign; (iii) evidence that the digital signature has been certified by the signatory using a document signing certificate; or (iv) other documentation or information produced by a commercially available software that can be used by the Independent Evaluator to verify the identity of the signatory. The additional documentation or information does not need to be notarized.

For Inserts that require the signature to be notarized, notarization is not required if the Insert is digitally signed.

The Independent Evaluator posted a Digital Signatures Instructions document to the Documents page of the RFP Website with screenshots for how to obtain the additional document or information referenced above.

09/02/2020 in Rules
FAQ-54:
If the P1 Certifications (A) Insert is submitted with a digital signature during the September 2020 Solicitation, is the signature from the Notary Public required?

Due to emergency measures enacted in the wake of COVID-19, the Independent Evaluator is accepting digitally signed inserts during the September 2020 Solicitation. The insert may be:
- Printed, signed, notarized, scanned, and uploaded to the online Part 1 Form; or
- Submitted with a digital signature along with an additional document or information that verifies the identity of the signatory. If digitally signed, the signature line for the Notary Public may be left blank.
Electronic signatures, e.g. a picture of a signature by opposition to a digital signature entered through software such as that offered by DocuSign, are not acceptable. The Independent Evaluator posted a Digital Signatures Instructions document to the Documents page of the RFP Website with screenshots for how to obtain the additional document or information referenced above.

09/02/2020 in Rules
FAQ-53:
Is a Default Supplier required to submit the P1 Certifications (A) Insert?

A Default Supplier must submit a complete P1 Certifications (A) Insert by upload to the Part 1 Form.

09/02/2020 in Rules
FAQ-52:
For the September 2020 Solicitation, in addition to sending the electronic PDF file by electronic means, our bank will mail a hard copy version of the Pre-Bid Letter of Credit too. What physical address should I provide the bank for mailing the hard copy?

The Pre-Bid Letter of Credit must be submitted as an electronic PDF file via electronic means to the Independent Evaluator at PECOProcurement@nera.com. A Pre-Bid Letter of Credit sent in hardcopy cannot be accepted.

As part of the terms of the Pre-Bid Letter of Credit, the bank must acknowledge in Paragraph 15 that “the original Letter of Credit has been sent to the Independent Evaluator via electronic means at PECOProcurement@nera.com only (as per Bidder’s instructions, the Independent Evaluator holds the Letter of Credit for the benefit of PECO).” Strictly for purposes of meeting the requirement of providing a physical address, please use:

NERA - Independent Evaluator
PECO Default Service Program RFPs
1835 Market Street, Suite 1205
Philadelphia, PA 19103

08/28/2020 in Credit
FAQ-51:
What is the required amount of the Pre-Bid Letter of Credit for this solicitation?

For the September 2020 Solicitation, an RFP Bidder must, in its Part 2 Proposal, submit a single Pre-Bid Letter of Credit in an amount of at least $250,000 per tranche bid on products for the Residential and Small Commercial Classes.

08/24/2020 in Credit
FAQ-50:
Are there load caps based on the credit assessment for the entity on which an RFP Bidder is relying?

There is no cap on the number of tranches for which an RFP Bidder can bid on based on the credit assessment for the entity on which that RFP Bidder is relying. There are, however, load caps for a Class that are set so that the Default Service customers of that Class have no more than a 50% exposure to any one Default Supplier at any given time. The load caps are provided in Table 1-5 and Table 1-6 of the RFP Rules and may apply to RFP Bidders that have won tranches for products under DSP IV.

08/24/2020 in Credit
FAQ-49:
Where can I find the RFP Documents for the September 2020 Solicitation?

The RFP documents, Uniform SMA, and credit related documents are posted to the Supplier Information / Documents page of the RFP website. You may download the documents from this page.

08/24/2020 in General
FAQ-48:
Have any modifications been made to the products available in the September 2020 Solicitation or to the Uniform SMA in response to the delay of PJM’s Base Residual Auction (“BRA”) for the 2022/23 delivery year?

No modifications will be made to the products available in the September 2020 Solicitation or to the Uniform SMA in response to the delay of PJM’s Base Residual Auction (“BRA”) for the 2022/23 delivery year. All products and the Uniform SMA will remain as approved by the Pennsylvania Public Utility Commission PECO DSP IV Order (Docket No. P-2016-2534980) dated December 8, 2016.

The BRA for the 2022/2023 delivery year has been delayed due to a FERC proceeding considering changes to PJM’s capacity market (Docket Nos. EL16-49-001, EL18-178-001, EL18-1314-002 (consolidated)). PJM’s latest compliance filing was made on June 1, 2020, and FERC has not yet issued a decision on this filing. Given the timeline in PJM’s compliance filings and this proceeding, the delayed BRA for the 2022/2023 delivery year will not be held prior to the Bid Date on September 29, 2020. The BRA for the 2022/2023 delivery year when held will provide a visible capacity price for the last six months of the 24-month products (June through November 2022). Bidders offering to supply the 24-month products are entirely responsible for any uncertainty related to the lack of visibility of the capacity price for those months.

08/13/2020 in General
FAQ-47:
In the hourly load data file, for the CCI-GS rate schedule, the Default Energy (MWh) is negative for hours 10-13 on 10/27/2017. Also, for those same hours, in the Unaccounted For Energy (UFE) file, the Total Zone UFE (MW) is positive. Please confirm that the data is correct.

The values provided for the Default Energy (MWh) for the CCI-GS rate schedule and the Total Zone UFE in hours 10-13 on 10/27/2017 should be disregarded due to metering error.

07/20/2020 in Data
FAQ-46:
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 were 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.

07/20/2020 in General
FAQ-45:
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.

07/20/2020 in Data
FAQ-44:
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.

07/20/2020 in Rules
FAQ-43:
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.

07/20/2020 in Rules
FAQ-42:
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.

07/20/2020 in Data
FAQ-41:
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.

07/20/2020 in Contract
FAQ-40:
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 2017. These PTCs are available on the Company website here below the heading 'PTC Archive': www.peco.com/MyAccount/MyService/Pages/ElectricPricetoCompare.aspx

07/20/2020 in Rates
FAQ-39:
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.

07/20/2020 in Data
FAQ-38:
Are the names of winning RFP Bidders publicly available?

No, the names of winning RFP Bidders are not publicly available.

07/20/2020 in Rules
FAQ-37:
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.

07/20/2020 in Data
FAQ-36:
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.

07/20/2020 in Rules
FAQ-35:
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.

07/20/2020 in General
FAQ-34:
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.

07/20/2020 in Contract
FAQ-33:
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.

07/20/2020 in Rules
FAQ-32:
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.

07/20/2020 in Credit , Rules
FAQ-31:
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.5. 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

07/20/2020 in Credit
FAQ-30:
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.”

07/20/2020 in Contract
FAQ-29:
Does a Default Supplier under DSP IV that wins tranches in a subsequent solicitation under DSP IV execute a new Uniform SMA?

A Default Supplier under DSP IV that has winning Bids that are approved by the Commission in a subsequent solicitation under DSP IV 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.3.7 of the RFP Rules, which states, "PECO and each such RFP Bidder execute a single Uniform SMA during the course of DSP IV. 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: www.pecoprocurement.com/index.cfm?s=supplierInformation&p=documents

07/20/2020 in Contract
FAQ-28:
Can RFP Bidders request modifications to the Uniform SMA?

The Uniform SMA was approved by the Commission in Docket No. P-2016-2534980 and comments will not be accepted at this time. RFP Bidders that apply to participate in the PECO RFP are required to accept all of the terms of the Uniform SMA without modifications. The Uniform SMA is posted on the Supplier Documents page of the RFP website as Appendix 1 to the RFP Rules: www.pecoprocurement.com/index.cfm?s=supplierInformation&p=documents

07/20/2020 in Contract
FAQ-27:
Are Default Suppliers responsible for providing any of the services or products included in full requirements service for the fractional percentage of committed energy and capacity obtained under contract with Allegheny Electric Cooperative, Inc. for supply from the New York Power Authority (“NYPA”)?

No. Default Load for the Residential Class is reduced by a fractional percentage of committed energy and capacity obtained under contract with Allegheny Electric Cooperative, Inc. for supply from the New York Power Authority (“NYPA”). Default Suppliers are not responsible for providing any of the services or products included in full requirements service for NYPA supply.

07/20/2020 in Contract
FAQ-26:
Is there a credit-based tranche cap in the PECO RFP?

No, there is no cap on the number of tranches for which an RFP Bidder can bid on based on the credit assessment for the entity on which that RFP Bidder is relying. There are, however, load caps for a Class that are set so that the Default Service customers of that Class have no more than a 50% exposure to any one Default Supplier at any given time.

07/20/2020 in Credit , Rules
FAQ-25:
Is a Default Supplier under DSP IV that has winning Bids that are approved by the Commission in a subsequent solicitation under DSP IV required to execute a new guaranty?

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

07/20/2020 in Contract
FAQ-24:
Is it required for the RFP Bidder to be registered to do business in the state of Pennsylvania?

No, it is not a requirement under the Uniform SMA for suppliers to be registered to do business in the state of Pennsylvania. Please see Section 3.1 of the Pennsylvania Default Service Supplier Master Agreement (“Uniform SMA”) which states, the DS Supplier “is a corporation, partnership, limited liability company or other legal entity, duly organized, validly existing and in good standing under the laws of the Commonwealth of Pennsylvania or, if another jurisdiction, under the laws of such jurisdiction and, in such case, is duly registered and authorized to do business in such other jurisdiction.”

07/20/2020 in Contract , General
FAQ-23:
In the Uniform SMA Insert (#P1-4), an RFP Bidder is given the option to add subsection 5.4(a)(1). What calculation is used to calculate quantities if the RFP Bidder chooses to not add this subsection?

If you opt for the notional quantity provision, under an event of default, future quantities are determined by looking at quantities from the previous calendar year and making any adjustments for DS Load changes (i.e., for current switching levels). In that manner, historical data is used and the quantities largely are pre-specified. The alternative is expected to use a forecast that would be made at the time of default; under such an option the quantities could not be pre-specified.

07/20/2020 in Rules
FAQ-22:
Will DS Suppliers be responsible for Transmission Enhancement charges?

PECO is the responsible party for Transmission Enhancement charges (ID #1108). 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.

07/20/2020 in Rules
FAQ-21:
Is there a cap on the number of tranches that an RFP Bidder can potentially bid?

Yes, an RFP Bidder may have a Load Cap. The Independent Evaluator prepares an electronic Bid Form for each RFP Bidder qualified pursuant to a successful Part 1 Proposal. If the RFP Bidder cannot bid on all tranches available of a product because of the Load Cap for the Class to which such product belongs and because of tranches previously won by the RFP Bidder, the Bid Form reflects that fact. Generally speaking, each Class has “Load Caps”, which are limits on the number of tranches of Default Supply that an RFP Bidder can bid and serve for that Class. The Load Caps ensure that there will be a diversified pool of Default Suppliers for each Class. The Load Caps for a Class are set so that the Default Service customers of that Class have no more than a 50% exposure to anyone Default Supplier at any given time. If two or more Default Suppliers are affiliated, the Load Caps will apply jointly to such group of Default Suppliers. More information on Load Caps is provided in paragraphs 1.2.10 and 1.2.11 of the RFP Rules.

07/20/2020 in Rules
FAQ-20:
The Bidder Information Session presentation refers to PECO’s NYPA allocation as a MW allocation. Does that refer to a block energy MW allocation (i.e. flat across all hours)?

No, the MW provided in the Bidder Information Session refers to cleared capacity in the PJM RPM Auction, and it is not a flat MWh amount.

07/20/2020 in General
FAQ-19:
Is it possible to submit more than one Draft Pre-Bid Letter of Credit with our Part 1 Proposal?

No, an RFP Bidder can only submit one Draft Pre-Bid Letter of Credit. An RFP Bidder that submits a Draft Pre-Bid Letter of Credit will receive a review of any proposed modifications within two business days. The Independent Evaluator sends such review by email. Any review communicated to the RFP Bidder of the Draft Pre-Bid Letter of Credit is final. The RFP Bidder cannot submit a subsequent request for changes on the basis of this review.

07/20/2020 in Credit
FAQ-18:
Can the Independent Evaluator provide the word version of the Uniform SMA?

The Uniform SMA is available in PDF format on the Supplier Information page of the RFP website. A word version is not available. The Independent Evaluator will prepare the Uniform SMA, including all Exhibits, for each New Default Supplier, and send these documents to PECO on the day the Commission approves some or all of the winning Bids.

07/20/2020 in General
FAQ-17:
We do not have an RFP Guarantor that meets the creditworthiness requirements under the Uniform SMA. Does this mean that we cannot participate in the PECO RFP?

An unrated entity or an entity with a credit rating below BBB- for S&P and/or Fitch or below Baa3 from Moody’s would not be granted any Unsecured Credit and cannot serve as an RFP Guarantor under the terms of the Uniform SMA (see Appendix A). It is not a requirement for an RFP Bidder to be rated or to rely on the financial standing of a Guarantor that meets the creditworthiness requirements in order to participate in the PECO RFP. In this case, the RFP Bidder would not be granted any Unsecured Credit and must post any required performance assurance collateral in the form of cash or a letter of credit.

07/20/2020 in Credit
FAQ-16:
What products will be available in the September 2020 Solicitation?

The September 2020 Solicitation, which is the eighth and final solicitation under PECO’s DSP IV, will seek to procure full requirements service for two classes of customers: the Residential (“RES”) Class and the Small Commercial (“SC”) Class. A product for purposes of this 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. For example, the RES-12-Dec20 product represents Default Supply for the RES Class for the supply period from December 1, 2020 through November 30, 2021. The products available in the September 2020 Solicitation are RES-12-Dec20 (12 tranches), RES-24-Dec20 (9 tranches), SC-12-Dec20 (6 tranches), and SC-24-Dec20 (3 tranches).

07/20/2020 in General
FAQ-15:
Does the hourly load data provided in the Data Room include transmission and distribution loss factors?

The hourly load data provided in the Data Room includes both applicable distribution and transmission losses. These hourly load 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. Please see Section 3.a.iii. Assumptions on page 10 of the data description document for assumptions and additional information related to the hourly energy data provided.

07/20/2020 in Data
FAQ-14:
We are considering relying on the financial standing of a Foreign Entity as RFP Guarantor. Is it the case that the RFP Guarantor must be a parent or affiliate of the RFP Bidder?

The RFP Guarantor need not be an affiliate of the RFP Bidder. We note that you are considering relying on a Foreign Entity as RFP Guarantor. For your convenience, we summarize some key requirements. It is a requirement of the Uniform SMA to have the following documents:

a legal opinion of outside counsel qualified to practice in the foreign jurisdiction in which the RFP Guarantor is incorporated or otherwise formed that the guaranty pursuant to the Uniform SMA is, or upon the completion of execution formalities will become, the binding obligation of the RFP Guarantor in the jurisdiction in which it has been incorporated or otherwise formed; and the sworn certificate of the corporate secretary (or similar officer) of such RFP Guarantor that the person executing the guaranty pursuant to the Uniform SMA on behalf of the RFP Guarantor has the authority to execute the guaranty pursuant to the Uniform SMA and that the governing board of such RFP Guarantor has approved the execution of the guaranty pursuant to the Uniform SMA; and the sworn certificate of the corporate secretary (or similar officer) of such RFP Guarantor that the RFP Guarantor has been authorized by its governing board to enter into agreements of the same type as the guaranty pursuant to the Uniform SMA.

These documents are required in order for the RFP Guarantor to be granted unsecured credit and thus for the RFP bidder to be able to rely on the financial standing of the RFP Guarantor under the terms of the Uniform SMA. If you are considering relying on a Foreign Entity as RFP Guarantor, to ensure you can meet the requirements under the Uniform SMA, the proposal requirements are:

Part 1 Proposal: Submit additional evidence of creditworthiness (optional), acknowledge the documents listed above are required with the Part 2 Proposal in order for the Foreign Entity as RFP Guarantor to be granted unsecured credit, and submit a draft of any of the documents above for evaluation by PECO (optional).

Part 2 Proposal: Submit executed versions of the additional documents listed above and if the documents are not sufficient, the Foreign Entity as RFP Guarantor is not granted unsecured credit and the RFP Bidder may not rely on the financial standing of the RFP Guarantor. In this case, the Independent Evaluator may request additional financial or credit information regarding the RFP Bidder.

07/20/2020 in Contract
FAQ-13:
Can you confirm that the hourly load data, and daily PLC and NSPL data in the Data Room has not already been adjusted for the NYPA allocation?

The daily peak load contribution (“PLC”) and network transmission service peak load (“NSPL”) data for the Residential class are not adjusted for the NYPA allocation. Hourly load data for the Residential Class, which is broken down by load related to PECO’s default service customers (“Default Energy”) and load related to customers who have elected to be supplied by an Electric Generation Supplier (“EGS Energy”), is handled differently. In regards to the hourly load data for the Residential class, PECO subtracts the NYPA allocation from the Default Energy (MWh) column and adds a corresponding amount to the EGS Energy (MWh) column. For more information see the data description document posted to the Monthly data page in the Data Room. As a reminder, PECO assumes responsibility of approximately 1% of the Default Load of the Residential Class and the data in the Data Room has not be adjusted for this amount.

07/20/2020 in Data
FAQ-12:
Are Default Suppliers responsible for the AEPS Quarterly Adjustments?

As fully described in Appendix E to the Uniform SMA, PECO provides Default Suppliers with an estimate of AEPS obligations following the second quarter of the AEPS reporting period with a final statement within thirty (30) calendar days of the end of the AEPS reporting period. Data on AEPS Quarterly Adjustments is available on the Pennsylvania Alternative Energy Credit Program website here: http://www.pennaeps.com/electricity-suppliers/

As stated in Appendix E, “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.” A Default Supplier that fails to provide sufficient AECs for a tranche will be required to pay any AEPS penalties, costs, charges, etc. assessed against the Default Supplier and/or the Company associated with the Default Supplier’s non-performance with AEPS requirements.

07/20/2020 in Data
FAQ-11:
An RFP Bidder that is relying on the financial standing of an RFP Guarantor and is not a Default Supplier must provide a complete Guaranty Intent Insert (#P2-2) with the Part 2 Proposal. How do I calculate the Indicative Amount?

The Indicative Amount must meet or exceed the sum of: (i) $600,000 times the number of tranches bid on products for the RES and SC Classes for full requirements on a fixed-price basis; and (ii) $300,000 times the number of tranches bid for the CCI Class for full requirements service on a spot-price basis (if applicable). Please see Section V.3.2 of the RFP Rules for additional information.

07/20/2020 in Credit
FAQ-10:
Can you please provide line loss data?

The loss percentages for each customer class is available in PECO’s Current Electric Generation Supplier Tariff (see 6.6 Line Losses on page 30) available here: www.peco.com/MyAccount/MyBillUsage/Pages/CurrentElectric.aspx

07/20/2020 in Contract
FAQ-9:
What settlement volume are Default Suppliers get paid on?

Default Suppliers are responsible for and are paid based on a percentage of the Default Load for a Class. The applicable settlement volume includes distribution losses, transmission losses, unaccounted for energy (as reflected in PJM settlement volumes), and adjustments required by PJM for PJM’s derating in conjunction with implementation of marginal losses as appropriate per PJM Agreements. The hourly load data provided in the Data Room includes both applicable distribution and transmission losses, and has not been de-rated. PJM hourly de-ration factors and the hourly UFE values are available separately on the Data Room page on the RFP website. Please also see the Data Description Document, for information regarding how PECO allocates Unaccounted For Energy (“UFE”) to all Load Serving Entities (“LSEs”) in PECO’s zone.

07/20/2020 in Contract
FAQ-8:
When completing the Bid Form, if we do not want to submit a Bid for a tranche, do we leave the space provided blank or enter $0?

When completing your Bid Form, Bids should be entered from top to bottom in Section 2 in the “Bids” tab of the Bid Form. Tranches for which no Bid is provided must be left blank.

Please note that 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.

07/20/2020 in Rules
FAQ-7:
Is there more recent load profiles? The data on the Additional data page was posted in 2010.

The 2011 load profiles data currently posted to the Additional Data page of the Data Room is the most recent data available. The Data page of the RFP website contains all available data. Data items on the Monthly Data page are typically updated monthly, on or before the 13th of each month. Additional data items updated less frequently are found on the Additional Data page of the Data Room.

07/20/2020 in Data
FAQ-6:
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?

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.

07/20/2020 in Data
FAQ-5:
Where can I find load and PLC data by customer class?

Please visit the Data Room on the RFP website: http://pecoprocurement.com/index.cfm?s=dataRoom&p=monthly

07/20/2020 in Contract
FAQ-4:
Does a Bidder submit a single Pre-Bid Letter of Credit for all products on which it plans to bid?

An RFP Bidder must, in its Part 2 Proposal, submit a single Pre-Bid Letter of Credit in an amount of at least: (i) $250,000 per tranche bid on products for the Residential and Small Commercial Classes; and (ii) $125,000 per tranche bid on a CCI product (if applicable). 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 modifications that have been approved by PECO and posted to the RFP website.

07/20/2020 in Credit
FAQ-3:
What materials do I need to submit with my Part 2 Proposal if the officer who made the representations and certifications of the online Part 1 Form is unavailable to make the representations of the online Part 2 Form?

As stated in paragraph V.1.2, if the Officer of the RFP Bidder who made the representations and certifications of the online Part 1 Form is unavailable to make the representations of the online Part 2 Form, the RFP Bidder must re-submit the certifications of the Part 1 Form by email naming a new individual to serve as Officer of the RFP Bidder by the Part 2 Date, and that Officer of the RFP Bidder must make all representations and certifications required by the Part 1 Form and the Part 2 Form.

07/20/2020 in Rules
FAQ-2:
Is Buyer or Seller the responsible party for Network Integration Transmission Service (ID #1100)?

PECO is the responsible party for Network Integration Transmission Service charges (ID #1100). 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.

07/20/2020 in Contract
FAQ-1:
Can PECO provide more up-to-date historical load data considering the COVID-19 pandemic event?

Please see the following link to metered hourly load data by class that PECO is providing voluntarily and on a temporary basis for informational purposes only in response to the COVID-19 pandemic event: https://www.peco.com/MyAccount/MyService/Pages/meteredhourlyloadbyclass.aspx

05/19/2020 in Data