FAQs
Credit
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FAQ-58:
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.
12/16/2024 in Credit
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FAQ-56:
Can you please provide a physical address for PECO for the purposes of issuing the pre-bid letter of credit?
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. Please see the acceptable modification to the header to include PECO’s address in the list of acceptable modifications to the Pre-Bid Letter of Credit posted on the Supplier Documents page. 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.
12/16/2024 in Credit
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FAQ-55:
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.
12/16/2024 in Credit
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FAQ-53:
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.
12/16/2024 in Credit
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FAQ-21:
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 the Residential and Small Commercial Classes that are set so that the Default Service customers of these Classes have no more than a 50% exposure to any one Default Supplier at any given time. There is a load cap for the Consolidated Large Commercial and Industrial Class that is set so that the Default Service customers of that Class have no more than a 75% exposure to any one Default Supplier at any given time.
12/16/2024 in Credit
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FAQ-8:
Does PECO provide Default Suppliers with a daily exposure calculation?
PECO does not provide Default Suppliers with a daily exposure calculation. A Default Supplier will be provided the Total Exposure Amount when a margin call request is made. As detailed in Section 6.5 of the Uniform SMA, “If at any time and from time to time during the term of Transaction(s) under this Agreement, the Total Exposure Amount, rounded by the Rounding Amount, exceeds the DS Supplier’s or the Guarantor’s credit limit by the Minimum Transfer Amount, then the Company on any Business Day, may request that the DS Supplier provide cash or a letter of credit in an acceptable form as defined in Section 6.7(b) of this Agreement (see standard format in Appendix F), in an amount equal to the Margin (less any performance assurance collateral for Margin posted by the DS Supplier and held by the Company pursuant to this Agreement or any other agreement(s) between the Company and the DS Supplier for the provision of DS Supply).”
12/06/2024 in Credit
