PECO Procurement For Default Supply

FAQs

Rules

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FAQ-65:
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). In accordance with paragraph I.1.12 of the RFP Rules, the Uniform SMA prepared for execution in this September 2025 Solicitation will include this new billing line item in the table in Appendix D and will indicate the responsible party for the charges and credits is the Default Supplier. The Unform SMA posted to the RFP website will be updated and reposted today to reflect this addition in Appendix D.

09/22/2025 in Rules
FAQ-63:
We are an RFP Bidder seeking to qualify to submit bids on the fixed-price products of this solicitation. Can we make certain types of transactions, specifically for shaped energy products (but not load-following products) with other market participants and still be able to make the certifications required by the Part 2 Proposal? As a point of information, the individuals who transact the shaped energy products with market participants operate independently, with no sharing of sensitive information, from the individuals who are responsible for the PECO Proposal and bids.

In completing the Part 2 Proposal, an RFP Bidder is required to make a number of certifications regarding maintaining the confidentiality of certain information. Such certifications are described in Article V of the RFP Rules.

In particular, an RFP Bidder will be asked to make the following certifications with its Part 2 Proposal (note that the list below is not meant to include all certifications required by the Part 2 Proposal and that may be relevant):
- The RFP Bidder will be asked to certify that it is bidding independently and that it has no knowledge of any information concerning a Proposal by another RFP Bidder in response to this solicitation or any future solicitation under this RFP. Such information includes, but is not limited to: the fact that another RFP Bidder is submitting a Proposal in response to this solicitation or a subsequent solicitation under this RFP; the Bids by another RFP Bidder in this or in a subsequent solicitation under this RFP; the number of tranches bid by another RFP Bidder for any product in this or in a subsequent solicitation under this RFP; the estimation by another RFP Bidder of the value of a tranche of a product; the estimation by another RFP Bidder of the risks associated with providing supply under the Uniform SMA; the preference of another RFP Bidder for bidding on specific products in this or in a subsequent solicitation under the RFP; and the contractual arrangements for power of another RFP Bidder to serve tranches of Default Service Load were that RFP Bidder to become a Default Supplier.
- Other than communicating with its financial institution for the purpose of preparing the Pre-Bid Letter of Credit or communicating with its advisors, the RFP Bidder has not disclosed, and will not otherwise disclose, publicly or to any other party any information relating to its Proposal, which could have an effect on whether another party submits a Proposal in any solicitation under the RFP, or on the contents of the Proposal that another RFP Bidder would be willing to submit in response to the RFP. Such information includes, but is not limited to: the fact that the RFP Bidder is submitting a Proposal in response to this RFP; the RFP Bidder’s Bids in this or in a subsequent solicitation under this RFP; the RFP Bidder’s number of tranches bid for any product in this or in a subsequent solicitation under this RFP; the RFP Bidder’s estimation of the value of a tranche of a product; the RFP Bidder’s estimation of the risks associated with providing supply under the Uniform SMA; and the RFP Bidder’s preference for bidding on specific products in this or in a subsequent solicitation under this RFP.
The information you provide that the individuals who transact the shaped energy products with market participants operate independently, with no sharing of sensitive information, from the individuals who are responsible for the PECO Proposal and bids, does not allow the RFP Bidder to make the certifications required by the Part 2 Proposal. The entity that must make these certifications is the entity qualified as the RFP Bidder, not specific individuals designated as part of the bidding team for the PECO RFP, or those specific individuals employed by the RFP Bidder who are involved in full-requirements transactions. Any protocols internal to the RFP Bidder restricting communications between functions or businesses within the RFP Bidder do not allow the RFP Bidder to make the certifications required by the Part 2 Proposal.

The answer to your fundamental question as to whether the RFP Bidder is able to make the representations of the Part 2 Proposal while making certain types of transactions depends on the nature of the transactions made with these other market participants. The transaction of a shaped product in and of itself may or may not impede your ability to make or uphold the certifications of the Part 2 Proposal (in particular, the certification that you have no knowledge of any information concerning a Proposal by another RFP Bidder, including: the fact that another market participant is submitting a Proposal to the PECO RFP; or: the estimation by another RFP Bidder of the value of a tranche of a product). Transaction of a shaped product in isolation, with that product having a fixed price, a fixed volume and delivery pattern, along with no contingency between winning in this solicitation and purchasing the product, may not reveal such information. A shaped product can be used not only to support a bid in a full requirements auction but it could also be used outside the auction, or it can be resold to another market participant. Indeed, a shaped product in and of itself is not sufficient to meet the supply obligations of a PECO Default Supplier; several other significant components are required. Such a transaction need not, but could, reveal or provide information relative to the Proposal of another RFP Bidder. For example, if this transaction were not an isolated transaction but instead you and one of your transacting parties were engaged in a series of transactions that included shaped products for varying delivery patterns, or if shaped products were added to other components necessary for PECO Default Service, the totality of these transactions may mean that you can establish without doubt that the other market participant is participating in a solicitation under the PECO RFP, and that you possess information relative to the estimation of the value of a tranche for another RFP Bidder. In such circumstances, it would not be possible for you to make or uphold the certifications of the Part 2 Proposal under the PECO RFP.

09/18/2025 in Rules
FAQ-54:
If the RFP Bidder has one or more Bids approved by the Commission, can the RFP Bidder convert their Pre-Bid Letter of Credit into a Post-Bid Letter of Credit?

The Standard Form of the Pre-Bid Letter of Credit is separate from the Standard Form of the Post-Bid Letter of Credit. If using a Post-Bid Letter of Credit to fulfil the creditworthiness requirements under the Uniform SMA, this Post-Bid Letter of Credit must be issued as an entirely separate document from the Pre-Bid Letter of Credit. It would not be acceptable to amend the Pre-Bid Letter of Credit into the Post-Bid Letter of Credit.

If the RFP Bidder has one or more Bids approved by the Commission, by close of the third business day following Commission approval of some or all of the lowest-priced Bids, each Default Supplier complies with all instructions from PECO to fulfill the creditworthiness requirements under the Uniform SMA. A Post-Bid Letter of Credit may be used to fulfil the creditworthiness requirements. PECO can collect on the Pre-Bid Letter of Credit if a winning RFP Bidder does not execute the Uniform SMA and all Transaction Confirmations, or if the winning RFP Bidder does not fulfill the creditworthiness requirements in the required timeframe.

08/05/2025 in Rules
FAQ-46:
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.

07/29/2025 in Rules
FAQ-44:
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.

07/29/2025 in Rules
FAQ-41:
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.

07/29/2025 in Rules
FAQ-39:
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.

07/29/2025 in Rules
FAQ-38:
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.

07/29/2025 in Rules
FAQ-37:
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.

07/29/2025 in Rules
FAQ-36:
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.

07/29/2025 in Rules

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