PECO Procurement For Default Supply

FAQs

Contract

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FAQ-62:
What is the timing for when the true-up related to the Capacity Proxy Price is made on the Default Supplier’s invoice for the 24-month products in this solicitation?

Under the Capacity Supplement in the Transaction Confirmation, a true-up will take place in each Billing Month of the Delivery Year for which a Capacity Proxy Price is used that overlaps with the Delivery Period for the product. The “Delivery Year” relevant to the Capacity Proxy Price in this solicitation is June 2027 through May 2028. The “Delivery Period” for each of the 24-month products in this solicitation is December 2025 through November 2027. Thus, for a 24-month product in this solicitation, in each Billing Month from June 2027 to November 2027, the Statement of amounts due to the Default Supplier will include an additional line item for the true-up related to the Capacity Proxy Price.

This timing and the calculation of the true-up is confirmed in the Capacity Supplement, which states “For each month of the Delivery Year that is also a Billing Month of the Delivery Period, this Statement will include an additional line item that will show the sum, over all days of the Billing Month, of the difference between the Capacity Price actually charged for load served for the Delivery Point and the Capacity Proxy Price, multiplied by the amount of Capacity for the day reported as the DS Supplier’s Capacity obligation by Buyer to PJM for the Transaction.”

For more information related to the Capacity Proxy Price Mechanism, please refer to slides 24 and 25 of the Bidder Information Webcast, and the Capacity Supplement in the Transaction Confirmation in the Uniform SMA. The Bidder Information Webcast and the Uniform SMA are posted to the documents page of the RFP website.

09/17/2025 in Contract
FAQ-61:
Is the failure to deliver AECs considered an Event of Default under the Uniform SMA?

Under the SMA, a supplier has an express duty to satisfy AEPS requirements associated with the percentage of default service load served by that supplier. See, e.g., Sections 2.2(ix); 5.3(d), Appendix C, Appendix E, and Appendix I; see also Article I, definition of “Default Service Supply.” Failure to fulfill this duty can constitute an Event of Default under Section 5.1(xiv). Damages may include, but are explicitly not limited to, any AEPS charges which the Company must pay due to the supplier’s conduct or inaction. See Section 5.3(d).

09/12/2025 in Contract
FAQ-60:
Where can I find the number of AECs to be allocated by PECO to each tranche?

Under the Uniform SMA, a Default Supplier’s AEPS obligation may be reduced by a number of AECs allocated to the Default Supplier in the Transaction Confirmation. Any PECO AECs allocated to Default Supplier’s AEPS Obligation remain the property of PECO and are not transferred to the Supplier. The number of AECs to be allocated to each tranche in the Transaction Confirmation are provided within the Bidder Information Session.

09/11/2025 in Contract
FAQ-59:
Can you please clarify the timing of the delivery of AECs by a Default Supplier?

Please see paragraph I.4.4 of the RFP Rules, which states “The Company will provide an estimate of the Default Supplier’s AEPS obligation following the second quarter of the AEPS Reporting Period and the Default Supplier will be required to transfer AECs to PECO in the amount of the estimate within forty-five (45) calendar days of the date of that estimate. The Company will provide a final statement to the Default Supplier within thirty (30) calendar days of the end of AEPS Reporting Period and the Default Supplier will be required to transfer AECs in the amount of the final statement within forty-five (45) calendar days after the date of the final statement.”

09/11/2025 in Contract
FAQ-58:
Can a Default Supplier that has winning Bids that are approved by the Commission in a subsequent solicitation amend the guaranty in place with PECO or do we have to issue a new guaranty?

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 VI. A Default Supplier under DSP VI that has winning Bids that are approved by the Commission in a subsequent solicitation under DSP VI 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). If the guaranty requires amending this process may be handled directly with PECO during the contract execution process.

09/11/2025 in Contract
FAQ-57:
Is a redline of the Uniform SMA posted on July 29, 2025 for the September 2025 Solicitation to the version posted for the March 2025 Solicitation available?

A redline of the Uniform SMA posted on July 39, 2025 for the September 2025 Solicitation to the version posted for the March 2025 Solicitation is not available. The Uniform SMA posted on July 29, 2025 for the September 2025 Solicitation is unchanged from the previous version posted for the March 2025 Solicitation.

09/05/2025 in Contract
FAQ-55:
Is a Default Supplier’s load obligation netted against generation from qualifying behind-the-meter renewable energy installations under PECO’s net metering program?

Yes, Default Load served by a Default Supplier would be net of generation from qualifying renewable energy installations under PECO’s net metering program. For more information on PECO’s net metering program please see the following webpage: https://www.peco.com/smart-energy/my-green-power-connection/developers-contractors/net-metering.

The hourly load data available in the Data Room on the RFP website is reduced for generation from qualifying renewable energy installations.

08/19/2025 in Contract
FAQ-51:
Can an alternate guaranty form approved through the Alternate Guaranty Process in a solicitation under DSP VI be used through the end of DSP VI?

An alternate guaranty form approved through the Alternate Guaranty Process in a solicitation under DSP VI may be used by the prospective supplier through the end of DSP VI barring changes in the applicable law or changes to the RFP as may be ordered by the Pennsylvania Public Utility Commission.

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 VI. A Default Supplier under DSP VI that has winning Bids that are approved by the Commission in a subsequent solicitation under DSP VI 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).

08/05/2025 in Contract
FAQ-50:
Is there a redline of the Uniform SMA for DSP VI to the version for DSP V?

A redline of the Uniform SMA posted to the RFP website to the DSP V version was filed with the petition for DSP VI as PECO Exhibit SD-3 beginning on page 204 and is available on the PUC’s website here: https://www.puc.pa.gov/pcdocs/1815136.pdf.

07/29/2025 in Contract
FAQ-49:
Is PECO an adhering party to the International Swaps and Derivatives Association (“ISDA”) 2018 U.S. Resolution Stay Protocol (“ISDA U.S. Stay Protocol”)?

Yes, PECO Energy Company is an adhering party to the ISDA U.S. Stay Protocol. The list of adhering parties is available on the ISDA website: https://www.isda.org/protocol/isda-2018-us-resolution-stay-protocol/adhering-parties.

07/29/2025 in Contract

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