FAQ Archives - Spring 2010 Procurement
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-309:
When will results for the Spring 2010 RFP be released?
The Independent Evaluator and PECO will release results for the Spring 2010 RFP on June 23, 2010. The results announcement will be posted to the RFP website under “Background” and “Previous Results”, available here.
06/23/2010 in General
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FAQ-306:
When will PECO announce the LC&I class fixed price results?
The Independent Evaluator and PECO will include the LC&I fixed price results in the June 23 Spring 2010 RFP results release. In addition, PECO expects to develop retail generation service fixed price offers for participating customers in early June. The results announcement will be posted to the RFP website under “Background” and “Previous Results”, available here.
06/02/2010 in Procedures
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FAQ-305:
For the Spring 2010 solicitation, will the published results for the Block Energy RFP include average winning bid prices by product?
The Independent Evaluator will release the average bid price for the Baseload 12-month blocks, and a combined average bid price across the 2-month peak blocks, 24-month Baseload blocks, and 60-month Baseload blocks.
06/02/2010 in Procedures , Rules
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FAQ-304:
For the Spring 2010 solicitation, will the published results for the Full Requirements RFP include average winning bid prices by class, or will an average winning bid price across classes be reported?
The average winning bid price will be provided separately for the Residential, Small Commercial, Medium Commercial and Large Commercial & Industrial classes.
06/02/2010 in Procedures , Rules
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FAQ-300:
When will the results of the Spring 2010 Solicitation be made available?
Please see Exhibit G, “Reporting of Procurement Results”, available on the RFP website under “Background” and “Regulatory Process”, available here.
05/24/2010 in Procedures , Rules
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FAQ-296:
In order for LC&I customers to sign up for the fixed-price Default Service rate, do signed opt-in contracts need to be received by PECO within the 30 day opt-in window, or will signed contracts postmarked before the end of the 30 day opt-in window be accepted?
PECO will be sending the fixed price information via email and prefers that all responses are returned via email. Email responses received by the deadline will be accepted, If a customer would like to send the signed contract back via ground mail or fax, a faxed response will be accepted if it is received by the deadline, and responses sent by ground mail post marked for any date prior to the deadline date will be accepted.
05/21/2010 in Procedures , Rates
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FAQ-294:
When will PECO provide PLC and load data associated with the fixed price customers that opt to take the fixed-price default service rate?
The initial data series posting for the LC&I customers who elect to receive default service on a fixed-price basis will be made available as soon as practicable, and is scheduled to be provided no later than the Bidder Information Session for the Fall 2010 Solicitation on August 6, 2010.
05/19/2010 in Data
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FAQ-292:
The Spring 2010 Webcast Presentation states that 2,015 MW of LC&I load has expressed interest in the fixed-price Default Service option. Can you please provide a breakdown of these customers by rate class?
This data has been provided in the Data Room under “Fixed LC&I”.
05/19/2010 in Data
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FAQ-290:
Will PECO provide winning suppliers with PLC and hourly data for customers who opt into the fixed-price Default Service option?
After the composition of the Fixed-Price LC&I group has been determined, the regularly scheduled monthly updates to the Data Room will include hourly load, PLC and customer count data for this group. Data will be provided at the procurement class and rate class/Strata level.
05/19/2010 in Data
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FAQ-275:
Can you provide a redline comparison of the 2009 Supply Master Agreement and the 2010 Supply Master Agreement?
The Supply Master Agreements have not changed since the previous solicitation. Please see FAQ-263 for more information.
05/19/2010 in Contract
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FAQ-271:
Will the Hourly Load Data be updated beyond January 2010 prior to the PECO RFP Bid Date?
The monthly update to the PECO data room is scheduled to be completed on Thursday, May 13th, 2010.
05/12/2010 in Data
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FAQ-262:
What are the maximum possible amounts of the Pre-Bid Letter of Credit and the Guaranty for the Full Requirements RFP and the Block Energy RFP in this Spring 2010 Solicitation?
Please note that in both the Full Requirements RFP and the Block Energy RFP, there is a Load Cap that is set for a Class and an RFP Bidder such that the customers of a Class have no more than a 65% exposure to any one Supplier at any given time. In this Spring 2010 Solicitation, the Load Cap prevents RFP Bidders from winning all of the available tranches or blocks.
In the Block Energy RFP, no RFP Bidder can win more than 14 blocks; in the Full Requirements RFP, no RFP Bidder can win more than 39 tranches. Please see Article VI of the RFP Rules for the full explanation of the Load Caps. Appendix 3 to the RFP Rules, the Load Cap Examples, gives examples of the application of the Load Cap. Both are available on the Supplier Documents page of the RFP website.
In the Block Energy RFP, the combination of blocks that results in the largest possible amount of pre-bid security required is three (3) 60-month blocks, three (3) 24-month blocks, four (4) 12-month blocks, and four (4) 2-month blocks.
The required amount of the Pre-Bid Letter of Credit in the Block Energy RFP is $3,000 per 2-month block bid, $20,000 per 12-month block bid, $30,000 per 24-month block bid, and $50,000 per 60-month block bid; thus, the maximum amount of the Pre-Bid Letter of Credit is 3 * $50,000 + 3 * $30,000 + 4 * $20,000 + 4 * $3,000 = $332,000.
The required amount of the guaranty in the Block Energy RFP is $8,000 per 2-month block bid, $50,000 per 12-month block bid, $75,000 per 24-month block bid, and $125,000 per 60-month block bid; thus, the guaranty amount associated with the maximum bid in the Block Energy RFP for an RFP Bidder who is not a Block Energy Supplier is 3 * $125,000 + 3 * $75,000 + 4 * $50,000 + 4 * $8,000 = $832,000.
Please note that the guaranty amount for a current Block Energy Supplier equals or exceeds the sum of the Guaranty Amount of any current guaranty held by PECO under the Block Energy SMA or the Default Service SMA with the RFP Bidder and the above calculation.
In the Full Requirements RFP, a bidder who has not won any tranches in a previous solicitation can win up to 39 tranches: 11 Residential tranches, 8 Small Commercial tranches, 7 Medium Commercial tranches, and 13 Large Commercial and Industrial tranches. The Pre-Bid Letter of Credit amount associated with this number of tranches is 39 * 250k = $9.75M, and the guaranty amount associated with this number of tranches is 39 * 600k = $23.4M. We apologize for the errors in the presentation.
04/28/2010 in Credit
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FAQ-253:
Slide 22 of the Spring 2010 Bidder Information Webcast presentation indicates that questions concerning the potential generation deactivation charges should be directed to PJM. Where exactly should I send my questions to be sure that they receive timely consideration?
Please email all questions concerning generation deactivation charges to PJM at the following email address: GoTo@pjm.com. PECO has reached out to PJM to alert them of time-sensitive questions related to this solicitation and has received assurance that such questions will be answered in an expedited fashion.
04/16/2010 in General
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FAQ-251:
Will cash be an option for pre-bid security in future solicitations?
The pre-bid collateral requirements, as specified in the RFP Rules, are part of PECO’s Default Service Plan as it was approved by the Commission. At this time, PECO has no plans to petition the Commission to change the rules governing pre-bid collateral.
04/16/2010 in Credit
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FAQ-241:
Will PECO be procuring AECs through this RFP?
Please note that this web site is only for PECO's Default Service Program RFP. Information about PECO's RFPs for Alternative Energy Credits can be found here. You may submit questions concerning AEC procurement directly to PECO at AEPS_RFP@peco-energy.com.
03/24/2010 in General
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FAQ-234:
How will PECO allocate Alternative Energy Credits (“AECs”) to full-requirements tranches?
PECO will communicate the allocation of AECs to each tranche at the Bidder Information Session for each solicitation.
03/10/2010 in Contract , General
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FAQ-211:
The RFP Rules state that 75% of PECO’s Residential load is to be supplied through a Full Requirements Fixed-Price bid and 25% of the Residential load is to be supplied through block energy supply. Does the tranche size for the Full Requirements Fixed-Price bid (e.g. 1.6%) need to be adjusted to reflect this? How about the size of the block?
The Fixed-Price Tranche Size, 1.6%, is a percentage of the Total Default Service Load for the Residential class (and not the Fixed-Price Load): 47 Fixed-Price tranches * 1.6% of total load = 75% of total load. Please note that the size of the Fixed-Price tranche is a percentage of the Default Service Load for the class, and not a fixed MW size.Please also note that the remaining 25% is referred to as the “PECO Share”. PECO will use Block Energy Supply to meet 20% of the expected seasonal energy requirements of the R Class (80% of the PECO Share). PECO will balance the blocks of energy and load of the PECO Share on an hourly basis through the hourly spot market energy in PJM. The block size for the purchases under the Block Energy RFP is 10 MW.
03/09/2010 in Rules
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FAQ-211:
The RFP Rules state that 75% of PECO’s Residential load is to be supplied through a Full Requirements Fixed-Price bid and 25% of the Residential load is to be supplied through block energy supply. Does the tranche size for the Full Requirements Fixed-Price bid (e.g. 1.6%) need to be adjusted to reflect this? How about the size of the block?
The Fixed-Price Tranche Size, 1.6%, is a percentage of the Total Default Service Load for the Residential class (and not the Fixed-Price Load): 47 Fixed-Price tranches * 1.6% of total load = 75% of total load. Please note that the size of the Fixed-Price tranche is a percentage of the Default Service Load for the class, and not a fixed MW size.Please also note that the remaining 25% is referred to as the “PECO Share”. PECO will use Block Energy Supply to meet 20% of the expected seasonal energy requirements of the R Class (80% of the PECO Share). PECO will balance the blocks of energy and load of the PECO Share on an hourly basis through the hourly spot market energy in PJM. The block size for the purchases under the Block Energy RFP is 10 MW.
03/09/2010 in Rules
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FAQ-210:
What is the Expiration Date of the Pre-Bid Letter of Credit?
The Expiration Date of Pre-Bid Letter of Credit is no earlier than eleven (11) business days after the Bid Date, as stated in Paragraph 1 of the Standard Pre-Bid Letter of Credit.
03/09/2010 in Credit , Qualification
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FAQ-209:
To what email address should the electronic version of proposed modifications to the Draft Letters of Credits (“LOCs”) be sent?
Please send the electronic copies of proposed modifications to the LOCs to IE@pecoprocurement.com.
03/09/2010 in Credit , Procedures , Qualification
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FAQ-195:
What are the line losses (a.k.a. distribution losses) for residential customers?
As stated in Section 6.5 (“Line Losses”) of PECO’s EGS Tariff (available here), “For purposes of forecasting, scheduling and reconciliation in Sections 6-8 of this Tariff the following transmission and distribution line loss percentages will be utilized: For Rates R, RH, RT, OP, GS, SLP, SLS, SLE, TL, AL, and POL, 9.35%; for Rate PD, 7.76%; and for Rates HT and EP, 3.82%. These percentages shall be reduced to the extent that PJM and/or the Company separately charge for line losses, such as for a portion or all of transmission line losses under a FERC jurisdictional tariff.”
03/04/2010 in Rates , Data
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FAQ-192:
On Monday, June 8, 2009, at testimony given with respect to Act 129, Commissioner Christie stated that the PUC is “preparing a rulemaking to amend our existing default service regulation and policy statement to reflect the changes included in Act 129,” and he noted that the rulemaking order should be issued sometime during this summer. Would this amendment have any impact on contracts executed prior to the rulemaking and passage of any policy statement?
On September 10, 2008, PECO filed its Default Service Program with the Commission. Direct testimony explained how this Program was consistent with the Commission's default service regulations and policy statement. Act 129 came into law on October 15, 2008. On November 14, 2008, PECO filed with the Commission a revised Default Service Program. The Program was revised to be mindful of the requirements of the new Act 129 and included supplemental testimony regarding this Program. Act 129 set a new direction in particular aspects of any Default Service Provider's procurement plan. For example, Act 129 states that a prudent mix of contracts should include "long-term" contracts, where "long-term" means longer than four years. This was a new direction compared to the policy statement, which recommended contracts of 1 to 3 years for residential customers and contracts of one year for commercial customers. Each supplier can make its own review and assessment of the changes introduced by Act 129.It is thus neither surprising nor unexpected that a rulemaking would be required to amend existing default service regulations and the policy statement to reflect the changes included in Act 129. Beyond noting that Act 129 included changes compared to the policy statement and default service regulations, PECO cannot speculate on the revisions that the Commission may make in the future to its default service regulations or policy statement. The Commission has approved the form of contracts that are part of the PECO Default Service RFPs. If the Commission approves the results of the Spring 2009 solicitation, this approval will give rise to contracts between PECO and suppliers of the form approved. PECO would have every intention of honoring all its obligations under the Default Service Program Supply Master Agreements that it signs in the RFP to the extent possible under the law.
03/04/2010 in Contract , General
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FAQ-191:
Are suppliers of Full Requirements Service responsible for providing Renewable Energy as required by the Alternative Energy Portfolio Standards Act?
The supplier of a Full Requirements tranche is responsible for compliance with the Alternative Energy Portfolio Standards Act. As stated in Article 1 of the Full Requirements Supply Master Agreement, “Full Requirements Service” means all necessary Energy, Capacity, transmission other than 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 supply the Specified Percentage except for distribution service.Please note that PECO will allocate certain amounts of AECs to winners of Full-Requirements tranches.
03/04/2010 in General , Procedures
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FAQ-180:
Are there any seasonal factors applied to the rates customers pay or the payments to suppliers?
No, there are no seasonal factors in either the Full Requirements RFP or the Block Energy RFP.
03/04/2010 in General , Rates
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FAQ-180:
Are there any seasonal factors applied to the rates customers pay or the payments to suppliers?
No, there are no seasonal factors in either the Full Requirements RFP or the Block Energy RFP.
03/04/2010 in General , Rates
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FAQ-167:
My bank will be sending the Pre-Bid Letter of Credit separately from my Part 2 Proposal. Where should the LOC be sent?
The Pre-Bid Letter of Credit must be sent to the Independent Evaluator Office at the address below. Do not send your LOC to PECO.NERA - Independent Evaluator
PECO Default Service Program RFPs
1835 Market Street, Suite 1205
Philadelphia, PA 19103
Phone: (215) 568-0200
Fax: (215) 568-9358
03/03/2010 in Credit , Procedures , Qualification
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FAQ-154:
Is there a calendar showing key dates for future PECO solicitations?
The schedule of subsequent solicitations can be found on the RFP web site here.
03/03/2010 in General
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FAQ-153:
Where can I find information about selling Solar AECs to PECO?
This web site (www.pecoprocurement.com) is only for PECO's Default Service Program RFP. Information about PECO's RFP for Solar Alternative Energy Credits can be found here.
03/03/2010 in General