PECO Procurement For Default Supply

FAQs

Contract

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FAQ-72:
In Section 6.6 Line Losses in the tariff, does the term “wholesale energy requirements” refer to load that has already been derated?

In Section 6.6 Line Losses in PECO’s Current Electric Generation Supplier Tariff, the term “wholesale energy requirements” refers to wholesale load that has been derated.

03/09/2026 in Contract
FAQ-71:
Should an RFP Bidder use the first or second set of line loss factors in the tariff to convert wholesale load to retail load for purposes of calculating AEPS obligations?

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. The first set of line losses provided for purposes of backcasting, scheduling and reconciliation should be used.

03/09/2026 in Contract
FAQ-70:
What is the percentage size of each tranche for the Residential Class under DSP VI?

Under DSP VI, there are 62 full requirements tranches for supply of the Residential Class. The tranche size is 99%/62, which rounds to 1.60%.

03/06/2026 in Contract
FAQ-65:
Will Suppliers be allocated Solar AECs from selected project(s) in PECO’s Solar RFP?

If the Solar RFP is successful, Solar AECs from the selected project(s) would be used to meet Residential Class AEPS requirements related to the sliver (approximately 0.8%) of default supply of the RES Class for which PECO acquires necessary supply. Solar AECs from selected project(s) resulting from a successful Solar RFP will not be allocated to Default Suppliers.

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 will remain the property of PECO and are not transferred to the Supplier. The number of AECs that PECO will allocate to each tranche is provided on slide 26 in the Bidder Information Webcast, which can be accessed here.

03/03/2026 in Contract
FAQ-63:
Will PECO participate in the 2026 Annual ARR allocation process on behalf of Default Suppliers for the products available in this March 2026 Solicitation? How are the rights to ARRs transferred or assigned?

Section 2.3 of the Uniform SMA states, “The Company shall transfer or assign to the DS Supplier the Company’s rights to ARRs to which the Company is entitled as a LSE pursuant to the PJM Agreements provided that such rights are related to the service being provided to meet the DS Supplier Responsibility Share and such rights are for the Delivery Period indicated in the Transaction Confirmation(s). All rights, liabilities and obligations associated with such ARRs will accrue and be assumed by the DS Supplier through the transfer or assignment from the Company to the DS Supplier including the responsibility and ability of the DS Supplier to request or nominate such ARRs when applicable and feasible. Should the conditions above not be met, the entity recognized by PJM as having the right to make the nominations will nominate such ARRs for the upcoming PJM planning period and such ARRs will be allocated to the DS Supplier in accordance with the PJM Agreements based upon its DS Supplier Responsibility Share.”

Furthermore, please refer to paragraph I.4.9 of the RFP Rules, which states, “Specifically, for any product with a supply period that starts in June, PECO will participate in the PJM ARR nomination process and will transfer or assign ARRs to each Default Supplier for the first June-May period, and for a 24-month product the Default Supplier will participate directly in the PJM ARR nomination process for the second June-May period.”

At this time, PECO anticipates to participate in Stage 1A of the 2026 Annual ARR allocation. PECO will confirm whether it is participating in Stage 1A and Stage 1B and will have ARR credits to transfer to winning bidders for the products available in the March 2026 Solicitation. This confirmation is expected to be sent to RFP Bidders by March 4, 2026. If PECO is participating in Stage 1A and the results are available from PJM, PECO will provide the results including the paths and the amount of MWs awarded along with an allocation estimate for each Class on March 9, 2026. This information will be provided on a confidential basis to RFP Bidders that submit a Part 2 Proposal. Regardless of whether PECO plans to participate in Stage 1B, due to the timing of the 2026 PJM process, no information will be made available to RFP Bidders in this solicitation regarding Stage 1B.

02/26/2026 in Contract
FAQ-61:
Does the approximately 0.8% of the Default Load for the RES Class that PECO acquires separately have any impact on a Default Supplier’s obligation?

To serve the Default Load of the Residential Class, PECO procures full requirements supply through the PECO RFP represented by a total of 62 tranches at any point in time. The size of each tranche for the Residential Class is approximately 1.60%. In order to serve the remaining sliver of default supply of the Residential Class, PECO acquires necessary supply as described in paragraph I.1.11 of the RFP Rules (pasted below for your convenience). This sliver is the residual amount and is approximately 0.8%. Default Suppliers are not responsible for providing any of the services or products included in full requirements service related to this sliver served by PECO.

Paragraph I.1.11. The rates for the Residential Class are also determined on the basis of the cost to PECO to acquire the necessary supply to serve 0.8% of the Default Load of the RES Class. PECO also receives an annual allocation of capacity and associated energy from the New York Power Authority and uses this allocation to offset the amount of supply needed for the RES Class. During DSP VI, the Company will hold a separate request for proposals (“Solar RFP”) process to solicit bids for the energy, capacity and solar photovoltaic alternative energy credits (“Solar AECs”) generated by one or more new Pennsylvania solar photovoltaic projects with total capacity of up to 25 MW (DC) through ten-year, fixed-price power purchase agreements (“Solar PPAs”). If the Solar RFP is successful, energy generated by the selected project(s) would be used to offset the spot purchases necessary to serve the 0.8% for the Residential Class and the Solar AECs from the project would be used to meet Residential Class AEPS requirements. For supply related to the 0.8% portion that is not served through Solar PPAs, PECO acquires necessary supply through PJM administered markets including procuring necessary AECs at market prices to satisfy any near-term obligations under the AEPS Act.

02/24/2026 in Contract
FAQ-59:
Can a Default Supplier that does not own generation or use their generation to serve Default Load provide generation by fuel source data from PJM to complete Appendix H?

The inclusion of Appendix H in the SMA was approved by the PaPUC 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.

02/20/2026 in Contract
FAQ-55:
Who is the responsible party, PECO or the Default Supplier, for the new PJM billing line item for DOE 202C charges (ID # 1935) and credits (ID # 2935)?

Default Suppliers are the responsible party for DOE 202C charges (ID # 1935) and credits (ID # 2935). The Uniform SMA posted to the Supplier Information – Documents page of the RFP website includes this billing line item in the table in Appendix D and indicates the responsible party for the charges and credits is the Default Supplier.

02/20/2026 in Contract
FAQ-52:
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.

12/15/2025 in Contract
FAQ-50:
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.

12/15/2025 in Contract

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