PECO Procurement For Default Supply

FAQ Archives - DSP V - March 2023 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-66:
Can a modification be made to the Uniform SMA for the March 2023 Solicitation?

The Uniform SMA for the March 2023 Solicitation was posted on December 20, 2022. With the Part 1 Proposal due by Tuesday, February 28, 2023, RFP Bidders accepted the terms of the Uniform SMA without modifications. Thus, modifications to the Uniform SMA cannot be considered for the March 2023 Solicitation. Should you win tranches in this March 2023 Solicitation, you must execute the Uniform SMA and the Transaction Confirmation(s) without modifications with PECO Energy Company for all Bids approved by the Commission.

03/06/2023 in Contract
FAQ-65:
When will the Independent Evaluator notify RFP Bidders of winning Bids for the March 2023 Solicitation?

In light of volatility in energy markets, the Independent Evaluator will commit to notifying RFP Bidders of Bids that will be provided to the Commission as winning bids by 3:00 PM EPT on the Bid Date, March 14, 2023. The Independent Evaluator will provide notification by phone by 3:00PM EPT. The Independent Evaluator will endeavor to also provide written confirmation by 3:00PM EPT; however, it is possible that written confirmation will be provided after that time.

03/06/2023 in General , Rules
FAQ-64:
Our bank requires a physical address to include in the Pre-Bid Letter of Credit strictly for compliance purposes. Can you please provide a physical address for PECO?

PECO’s physical address is as follows:

2301 Market Street

Philadelphia,PA 19103

Please note this address should be used for compliance purposes strictly and that no hardcopy version should be sent. The Pre-Bid Letter of Credit can only be sent via electronic means to PECOProcurement@nera.com. This information can also be found in the Acceptable Modifications to the Pre-Bid Letter of Credit document on the RFP website.

03/02/2023 in Credit
FAQ-63:
Can we request a change to the requirements under the RFP Rules?

The Default Service Program Request for Proposals (“RFP Rules”), which includes the Part 1 and Part 2 Proposal requirements, was approved for PECO’s fifth Default Service Program (“DSP V”) by the PaPUC in its Order dated December 3, 2020 under Docket No. P-2020-3019290. There is no process under the RFP Rules to request changes to the Part 1 and Part 2 Proposal requirements.

02/24/2023 in General
FAQ-62:
Can cash be used for the pre-bid security and for the post-bid margin requirements?

Cash is not an acceptable form of pre-bid security. With the Part 2 Proposal, an RFP Bidder must provide an executed Pre-Bid Letter of Credit. An RFP Bidder must either use the Standard Pre-Bid Letter of Credit available on the RFP website, 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.

At each Default Supplier’s choice, cash or a standby irrevocable letter of credit are acceptable methods for posting security to satisfy Margin requirements, as described in section 6.7 of the Uniform SMA. If a Default Supplier elects to post security in the form of a letter of credit, that letter of credit must be either the Standard Performance Assurance Letter of Credit, Appendix F to the Uniform SMA, or a letter of credit that incorporates only those modifications to the Standard Performance Assurance Letter of Credit that have been approved by PECO and are posted to the RFP website.

02/23/2023 in Credit
FAQ-61:
Will the Bidder Information Webcast and the audio recording be posted to the RFP website?

The March 2023 Bidder Information Webcast, along with the audio recording of the webcast, can be found on the Documents page under the Supplier Information tab on the RFP website.

02/15/2023 in General
FAQ-60:
Where can previous solicitation results be found?

The results of previous solicitations can be found on the “Previous Results” page under the “Background” tab of the PECO Procurement website.

02/03/2023 in General
FAQ-59:
Is a Default Supplier under DSP V that has winning Bids that are approved by the Commission in a subsequent solicitation under DSP V required to execute a new Uniform SMA and guaranty (if applicable)?

No. PECO and each RFP Bidder with Bids that are approved by the Commission execute a single Uniform SMA and guaranty (if applicable) during the course of DSP V. A Default Supplier under DSP V that has winning Bids that are approved by the Commission in a subsequent solicitation under DSP V will execute one Transaction Confirmation for each product for which it has winning Bids and will not execute a new Uniform SMA or guaranty (if applicable).

12/20/2022 in Contract
FAQ-58:
What products will be available in the March 2023 Solicitation?

The March 2023 Solicitation, which is the fifth solicitation under PECO’s DSP V, will seek to procure full requirements service for the Residential (“RES”) Class, the Small Commercial (“SC”) Class, and the Consolidated Large Commercial and Industrial (“CCI”) Class. The products available in the March 2023 Solicitation are RES-12-Jun23 (12 tranches), RES-24-Jun23 (11 tranches), SC-12-Jun23 (6 tranches), SC-24-Jun23 (3 tranches), and CCI-12-Jun23 (8 tranches). 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. The schedule of procurement of products under PECO’s DSP V is provided in Table I-3 of the RFP Rules, which is available on the Supplier Information page of the RFP website.

12/20/2022 in General
FAQ-57:
Can you please provide a physical address for PECO for the purposes of issuing the Pre-Bid Letter of Credit?

Please see the modification on page 5 of the list of acceptable modifications to the Pre-Bid Letter of Credit posted on the Supplier Documents page. If a physical address is required strictly for purposes of identifying the Beneficiary, it is acceptable to use PECO’s address below the beneficiary name. The pre-bid letter of credit must be submitted as an electronic PDF file via electronic means only to the Independent Evaluator. A hardcopy version should not be delivered to this address.

12/20/2022 in Credit
FAQ-56:
What are the additional requirements for an RFP Bidder that has changed its legal name?

If a previously qualified RFP Bidder updates the RFP Bidder’s legal name since the RFP Bidder last submitted a successful Part 1 Proposal, the RFP Bidder must provide evidence of the change of name in Section 1 of the online Part 1 Form.

12/20/2022 in Rules
FAQ-55:
Can you please provide the Planning Year 2023-2024 peak load contribution data for default service customers and for customers served by EGSs for each customer class?

The Total Peak (MW) and Default Peak (MW) for each Class provided in the Addendum to the RFP Rules was updated on December 13, 2022 for Planning Year 2023-2024. Historical daily peak load contribution data for the total retail load, default service customers and for customers served by EGSs is available by Class and strata in the Data Room.

12/20/2022 in Data
FAQ-54:
Is the hourly load data in the Data Room already adjusted to include UFE? How does PECO allocate UFE?

The hourly load data in the Data Room has already been adjusted to include Unaccounted for Energy (“UFE”).

PECO allocates UFE to all Load Serving Entities in the PECO zone (i.e., to EGS and default service Load Serving Entities) each month based on load-ratio share. Prior to March 2015 UFE is allocated to monthly-metered customers and not to hourly/interval metered customers. Starting in March 2015 UFE is allocated to all customers, including hourly/interval metered customers.

12/20/2022 in Data
FAQ-53:
In Section 4 of the Standard Part 1 Form, an RFP Bidder that has not previously qualified pursuant to a successful Part 1 Proposal is required to provide a copy of the signature page of the Reliability Assurance Agreement (“RAA”). If the signature page is not available, can an RFP Bidder provide the current version of the RAA posted to PJM’s website including Schedule 17, which lists the parties to the RAA, to meet this requirement?

If the RFP Bidder is a signatory to the Reliability Assurance Agreement (“RAA”) and the signature page is unavailable, the RFP Bidder may provide current version of the RAA posted to PJM’s website including Schedule 17, which lists the parties to the RAA, to meet this requirement. For purposes of completing the Part 1 Proposal, the RFP must also provide a statement in Section 6 Justification of Omission of the Part 1 Form explaining the signature page is not available.

12/20/2022 in Rules
FAQ-52:
We are relying on a Foreign Entity as RFP Guarantor. What financial documentation should be provided in Section 2 in the online Part 1 Form?

Financial information must be available for a Foreign Entity as RFP Guarantor. The RFP Bidder must submit the RFP Guarantor’s most recent quarterly financial information, including a balance sheet, income statement, cash flow statement, and accompanying notes and schedules. If the SEC Form 10-Q is unavailable, the RFP Bidder must submit the RFP Guarantor’s most recently quarterly financial information accompanied by an attestation by the entity’s Chief Financial Officer (or similar position) that the information contained in the financial statements fairly presents in all material respects the financial condition and results of the operations of the RFP Guarantor. The requirements for this attestation are provided more specifically in Appendix 5 of the RFP Rules. If this attestation is not available, the RFP Bidder must state so in the Justification of Omissions.

12/20/2022 in Rules
FAQ-51:
Is it acceptable to provide a link to the financial information for the entity upon whose financial standing the RFP Bidder is relying?

Quarterly financial information required in Section 2 of the online Part 1 Form must be submitted by upload to the online Part 1 Form or by email to the Independent Evaluator at PECOProcurement@nera.com. A link to the entity’s financial information on the entity’s website would not be acceptable.

12/20/2022 in Rules
FAQ-50:
For an RFP Bidder relying on the financial standing of a Foreign Guarantor, when must the additional documents listed under Paragraph V.5.3 of the RFP Rules be submitted?

With the Part 2 Proposal, an RFP Bidder that relies on the financial standing of a Foreign Entity as RFP Guarantor, must provide fully executed versions of the additional documents listed under Paragraph V.5.3 of the RFP Rules for the Foreign Entity as RFP Guarantor to be granted unsecured credit and for the RFP Bidder to rely on the financial standing of the RFP Guarantor under the terms of the Uniform SMA.

With the Part 1 Proposal, the RFP Bidder may, but is not required to, submit a draft of these documents. If an RFP Bidder submits a draft of the documents for evaluation, the Independent Evaluator will provide this evaluation to the RFP Bidder, including notice of any changes required to the documents, along with the Part 1 Notification. Any evaluation communicated to the RFP Bidder of such draft documents is final. The RFP Bidder cannot submit a subsequent request for changes on the basis of this evaluation.

Please see Paragraphs IV.5.3 and V.5.3 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.

12/20/2022 in Rules
FAQ-49:
Should an RFP Bidder relying on the financial standing of a Foreign Entity as RFP Guarantor elect (b) in the Fifth Item of Section 1 for purposes of completing the online Part 1 Form?

RFP Bidder relying on the financial standing of a Foreign Entity as RFP Guarantor should elect (b) in the Fifth Item of Section 1 in the online Part 1 Form to indicate the RFP Bidder is relying on the financial standing of an RFP Guarantor. Please complete items 1-3 with information regarding the Foreign Entity. If you need additional fields for completing the address for the Foreign Entity please use the space provided in Section 6. Justification of Omissions.

12/20/2022 in General , Rules
FAQ-48:
If we use a digital signature to complete the Inserts, what additional document or information must be provided to verify the identity of the signatory? Can you provide an example?

The Independent Evaluator accepts digital signatures. 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 if the signatory uses a digital signature created in Adobe Acrobat; 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 Independent Evaluator has posted a Digital Signatures Instructions document to the Supplier Documents page of the RFP Website.

Please note that for purposes of completing an applicable Insert, a “digital” signature is one that is created using commercially available software (such as DocuSign, Adobe Acrobat, or Adobe Sign), which generates an additional document or information that can be used by the Independent Evaluator to verify the identity of the signatory. A digital signature is different from an “electronic” signature, which is computer-generated but is not created using a software that generates additional documentation or information that can be used to verify the identity of the signatory. An example of an electronic signature is an image of a signature.

12/20/2022 in Rules
FAQ-47:
Is a sample of the legal opinion of outside counsel required to qualify a Foreign Entity as RFP Guarantor available?

A sample of the legal opinion of outside counsel required to qualify a Foreign Entity as RFP Guarantor is available upon request.

12/20/2022 in General
FAQ-46:
Can I submit more than one Draft Pre-Bid Letter of Credit for review in a solicitation?

An RFP Bidder can only submit one (1) Draft Pre-Bid Letter of Credit in a solicitation. For more information, please refer to Section VII.1.8. of the RFP Rules.

12/20/2022 in Credit
FAQ-45:
Who can sign the Representative Insert (#P1-1)?

The Representative Insert (#P1-1) must be signed by the individual who serves as the Officer of the RFP Bidder. The Officer of the RFP Bidder is an individual authorized to undertake contracts (including the Uniform SMA) and bind that RFP Bidder.

12/20/2022 in Rules
FAQ-44:
Can an RFP Bidder rely on the financial standing of an RFP Guarantor that does not file a SEC Form 10-Q/10-K? If so, what are the requirements?

In order to rely on the financial standing of an RFP Guarantor, discrete financial information must be available for the RFP Guarantor.

An RFP Bidder must submit the RFP Guarantor’s most recent quarterly financial information, including a balance sheet, income statement, cash flow statement, and any accompanying notes and schedules. If the SEC Form 10-Q/10-K is unavailable, the RFP Bidder must submit the RFP Guarantor’s most recent quarterly, monthly, or bi-annual financial information accompanied by an attestation by the entity’s Chief Financial Officer (or similar position) that the information contained in the financial statements fairly presents in all material respects the financial condition and results of the operations of the entity. The requirements for this attestation are provided more specifically in Appendix 5 of the RFP Rules.

12/20/2022 in Rules
FAQ-43:
Has PECO implemented a time-of-use (“TOU”) rate option for residential and small commercial customers?

PECO has implemented a TOU rate option for default service customers. Any residential customer who elects to go on TOU rate will be assigned to the residential default load. Any small commercial customer who opts to go on the TOU rate will be assigned to the small commercial default service load.

See Tariff information for TOU rates for Procurement Class 1 (residential) and Procurement Class 2 (small commercial): https://www.peco.com/MyAccount/MyBillUsage/Pages/CurrentElectric.aspx

12/20/2022 in General , Rates
FAQ-42:
Where can I find ICAP Weather Factors for each load profile?

ICAP Weather Factors are available in the Data Room - Additional Data section of the RFP website.

12/20/2022 in Data
FAQ-41:
Can we submit cash or a surety bond instead of posting a Pre-Bid Letter of Credit with the Part 2 Proposal?

No, neither cash nor surety bonds are an acceptable form of pre-bid security. With the Part 2 Proposal, an RFP Bidder must provide an executed Pre-Bid Letter of Credit. An RFP Bidder must either use the Standard Pre-Bid Letter of Credit available on the RFP website, 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.

12/20/2022 in Rules
FAQ-40:
Is the load profile information from 2011 that is provided on the Additional page of the Data Room the latest data available?

The load curves published on the website are weather-response functions (WRFs) calculated in 2011 that are performing their load shape estimation function well and are expected to be in place for the foreseeable future.

Please note that from 2014 onwards, PECO has been using actual per-customer AMI interval readings to calculate the final PJM settlement, and the use of WRFs is mostly limited to preliminary settlements and forecasts. Furthermore, PECO load estimation methodology includes an annual recalculation of usage factors that adjust estimations up or down based on the energy consumption trends.

12/20/2022 in Data
FAQ-39:
Can a Default Supplier that does not own generation or use their generation to serve Default Load provide generation by fuel source data from the State of the Market Report for PJM to complete Appendix H?

The inclusion of the new Appendix H in the SMA was approved by the Pa PUC to enable PECO to provide better information in its annual report to the Commission on default service. Under the Commission’s regulations (52 Pa. Code section 54.39), PECO must report “the percentage of total electricity supplied by each energy source, including a detailed breakdown of renewable resources as defined in section 2803 of the code (relating to definitions).”

PECO intends to aggregate supplier-provided information from Appendix H when compiling this data and will not attribute the generation delivered to any particular supplier or suppliers.

PECO is not being prescriptive on how to complete Appendix H. If a supplier cannot determine the actual generation resource mix delivered to PECO under the SMA in a calendar year and chooses to use the PJM system mix for the calendar year as a proxy for their generation sources, we request that be notated on Appendix H when the completed form is submitted to PECO so that we may footnote which of our reported data is based on the PJM average mix and which is not.

12/20/2022 in General
FAQ-38:
Will the Independent Evaluator retain a Pre-Bid Letter of Credit between solicitations if requested by an RFP Bidder?

The Independent Evaluator will retain a Pre-Bid Letter of Credit between solicitations if requested by an RFP Bidder.

12/20/2022 in Credit
FAQ-37:
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?

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 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 online Part 1 Form and the online Part 2 Form. To confirm the list of required inserts, please contact the Independent Evaluator at pecoprocurement@nera.com.

12/20/2022 in Rules
FAQ-36:
What are the line loss factors for calculating retail load from wholesale load?

The loss percentages for each customer class are available in PECO’s Current Electric Generation Supplier Tariff (see 6.6 Line Losses on page 30) available here: Current Electric Rate Information | PECO - An Exelon Company

12/20/2022 in Data
FAQ-35:
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:

o 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.

o 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

12/20/2022 in Data
FAQ-34:
What is the price paid to the Default Supplier for a product in which the Default Supplier wins several tranches?

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.”

12/20/2022 in Rules
FAQ-33:
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.

12/20/2022 in Contract
FAQ-32:
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.

12/20/2022 in Data
FAQ-31:
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.

12/20/2022 in General
FAQ-30:
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:

o Hourly reports spanning the Fall DST period contain 25 consecutive hours.

o 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.

12/20/2022 in Data
FAQ-29:
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.

12/20/2022 in Rules
FAQ-28:
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.

12/20/2022 in Data
FAQ-27:
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.

12/20/2022 in Contract
FAQ-26:
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': https://www.peco.com/MyAccount/MyService/Pages/ElectricPricetoCompare.aspx

12/20/2022 in Rates
FAQ-25:
Are the names of winning RFP Bidders publicly available?

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

12/20/2022 in Rules
FAQ-24:
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.

12/20/2022 in Rules
FAQ-23:
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.

12/20/2022 in General
FAQ-22:
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.

12/20/2022 in Contract
FAQ-21:
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.

12/20/2022 in Rules
FAQ-20:
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.

12/20/2022 in Rules
FAQ-19:
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: https://www.pecoprocurement.com/index.cfm?s=supplierInformation&p=documents

12/20/2022 in Credit
FAQ-18:
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.”

12/20/2022 in Contract
FAQ-17:
Can RFP Bidders request modifications to the Uniform SMA?

The Uniform SMA was approved by the Commission in Docket No. P-2020-3019290 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.

12/20/2022 in Contract
FAQ-16:
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.

12/20/2022 in Contract
FAQ-15:
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.

12/20/2022 in Credit , Rules
FAQ-14:
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.”

12/20/2022 in Contract , General
FAQ-13:
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.

12/20/2022 in Rules
FAQ-12:
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.

12/20/2022 in Rules
FAQ-11:
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 a 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.

12/20/2022 in Rules
FAQ-10:
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 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.

12/20/2022 in Credit
FAQ-9:
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.

12/20/2022 in Data
FAQ-8:
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 been adjusted for this amount.

12/20/2022 in Data
FAQ-7:
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.

12/20/2022 in Data
FAQ-6:
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).

12/19/2022 in Credit
FAQ-5:
What is the settlement volume for which Default Suppliers are paid?

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.

12/19/2022 in Contract
FAQ-4:
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.

12/19/2022 in Rules
FAQ-3:
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 or must incorporate only modifications that have been approved by PECO and posted to the RFP website.

12/19/2022 in Credit
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.

12/19/2022 in Contract
FAQ-1:
On November 23, 2020, Act 114 of 2020 was signed into law. Are Default Suppliers responsible for providing alternative energy credits that are compliant with Act 114?

Yes, Default Suppliers are responsible for providing the alternative energy credits necessary for PECO to meet its obligations under the Alternative Energy Portfolio Standard (“AEPS”) Act during the term of the Uniform SMA.

12/19/2022 in Rules