PECO Procurement For Default Supply

FAQs

Rules

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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 Rules
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 Rules
FAQ-60:
Does the RFP Bidder have to be rated and have discrete financial information available in order to participate in the PECO RFP?

If the RFP Bidder is unrated or does not have discrete financial information available, the RFP Bidder will not be granted unsecured credit under the terms of the Uniform SMA and must post any required performance assurance collateral in the form of cash or a letter of credit.

Section IV.2.3 of the RFP Rules details the requirements in the Part 1 Proposal for an RFP Bidder wishing to rely on their own financial standing. Specifically, this section states: “If available, the RFP Bidder must submit its most recent quarterly financial information, including a balance sheet, income statement, cash flow statement, and any accompanying notes and schedules. If available, the most recent Securities and Exchange Commission (“SEC”) Form 10-Q or 10-K (whichever is more recent) must be submitted to fulfill this requirement. If the SEC Form 10-Q/10-K is unavailable, the RFP Bidder must submit its most recent quarterly, monthly or bi-annual financial information accompanied by an attestation by the RFP Bidder’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 Bidder.” With regard to credit ratings, according to section IV.2.3 of the RFP Rules, “an RFP Bidder must submit all available credit ratings for the RFP Bidder from the following rating agencies: S&P Global Ratings (“S&P”), Moody’s Investors Service, Inc. (“Moody’s”), and Fitch Ratings (“Fitch”).”

PECO will review the financial qualifications of the RFP Bidder and the Independent Evaluator will provide to the RFP Bidder the amount of unsecured credit granted to the RFP Bidder with the Part 1 Notification. The Independent Evaluator will review and confirm PECO’s determination. Please see the Credit Rating Table in Appendix A to the Uniform SMA for information used to determine how much unsecured credit may be granted based on the RFP Bidder’s Tangible Net Worth and credit ratings. Please note, the Independent Evaluator and representatives from PECO involved in the evaluation of Proposals will consider all data and information provided by RFP Bidders in response to this RFP to be confidential and will attempt to limit its disclosure to the public in accordance with the provisions of the RFP Rules. PECO will also take reasonable action to ensure that its employees, representatives and agents authorized to consider and evaluate all Proposals protect the confidentiality of such data and information. Each representative of the Independent Evaluator and PECO that has access to any portion of the Proposals is required to sign a Confidentiality Statement in the form of Appendix 12 to the RFP Rules prior to evaluation of any portion of the Proposals. A signatory of the Confidentiality Statement may only discuss confidential information with another signatory. The list of all signatories is available to an RFP Bidder upon request.

By signing the Confidentiality Statement, each individual in receipt of confidential information:
- represents that he or she acknowledges and understands the Confidentiality Provisions of the RFP Rules;
- consistent with those rules, agrees to take all reasonable precautions to ensure that all data and information supplied by all RFP Bidders are maintained in confidence and not disclosed to individuals other than those that have signed this Confidentiality Statement; and
- undertakes to consult the list of signatories before communicating RFP information to another person.
In practice, for purposes of evaluating the creditworthiness of the RFP Bidder, the Independent Evaluator will provide a summary of the financial information to PECO for the Entity upon whose financial standing the RFP Bidder is relying. This includes the credit ratings provided by the RFP Bidder in the online Part 1 Form and the backup financial documentation necessary to verify the calculation of the Entity’s Tangible Net Worth. Financial information is transmitted to select representatives at PECO, who have signed the Confidentiality Statement via a secure file transfer system maintained by the Independent Evaluator. Attachments sent via the Independent Evaluator’s secure file transfer system expire after 30 calendar days and cannot be accessed after such time. Information uploaded to the online Part 1 Form is deleted from the application website at the conclusion of the solicitation.

The RFP Rules, Uniform SMA and Appendix 12 are available on the Documents page of the RFP website.

02/23/2026 in Rules
FAQ-44:
When will the Independent Evaluator notify RFP Bidders of lowest-priced Bids?

The Independent Evaluator phones each RFP Bidder that has submitted Bids by 3 PM on the Bid Date and identifies the RFP Bidder’s Bids that are provided to the Commission as lowest-priced Bids. The Independent Evaluator also provides a notification to the RFP Bidder by email.

12/15/2025 in Rules
FAQ-42:
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.

12/15/2025 in Rules
FAQ-39:
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.

12/15/2025 in Rules
FAQ-37:
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.

12/15/2025 in Rules
FAQ-36:
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 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. For purposes of completing the Part 1 Proposal, the RFP Bidder must also provide a statement in Section 6 Justification of Omissions of the Part 1 Form explaining the signature page is not available.

12/15/2025 in Rules
FAQ-35:
Who can sign the Inserts required for the Part 1 and Part 2 Proposals?

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.

12/15/2025 in Rules
FAQ-34:
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.

12/15/2025 in Rules

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