PECO Procurement For Default Supply

FAQs

Rules

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FAQ-20:
Is there a cap on the number of tranches that an RFP Bidder can potentially bid?

Yes, an RFP Bidder may have a Load Cap. The Independent Evaluator prepares a Bid Form for each RFP Bidder qualified pursuant to a successful Part 1 Proposal. If the RFP Bidder cannot bid on all tranches available of a product because of the Load Cap for the Class to which such product belongs and because of tranches previously won by the RFP Bidder, the Bid Form reflects that fact. Generally speaking, each Class has “Load Caps”, which are limits on the number of tranches of Default Supply that an RFP Bidder can bid and serve for that Class. The Load Caps ensure that there will be a diversified pool of Default Suppliers for each Class. The Load Caps for the Residential and Small Commercial Classes are set so that the Default Service customers of that Class have no more than a 50% exposure to any one Default Supplier at any given time. The Load Cap for the Consolidated Large Commercial and Industrial Class 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. If two or more Default Suppliers are affiliated, the Load Caps will apply jointly to such group of Default Suppliers.

12/16/2024 in Rules
FAQ-19:
Are the names of winning RFP Bidders publicly available?

No, the names of winning RFP Bidders are not publicly available.

12/16/2024 in Rules
FAQ-18:
When are the solicitation results announced?

Within fifteen (15) days of the close of the solicitation, the Independent Evaluator releases the weighted average price as well as the percentage of load represented by each tranche for each product procured in that solicitation. When the results become available, the Independent Evaluator will make an announcement, and you will be able to access the results here: Background/Previous Results.

12/16/2024 in Rules
FAQ-17:
When completing the Bid Form, if we do not want to submit a Bid for a tranche, do we leave the space provided blank or enter $0?

When completing your Bid Form, Bids should be entered from top to bottom in Section 2 in the “Bids” tab of the Bid Form. Tranches for which no Bid is provided must be left blank. Please note that each price on the Bid Form is for a single tranche. A “Bid” is a price in $/MWh for one tranche of a given product.

12/16/2024 in Rules
FAQ-16:
Is a price on the Bid Form a price for a single tranche? Or does the price associated with the second tranche represent a price offered for two tranches?

Each price on the Bid Form is for a single tranche. A “Bid” is a price in $/MWh for one tranche of a given product.

12/16/2024 in Rules
FAQ-15:
What is the price paid to the Default Supplier for a product in which the Default Supplier wins several tranches?

Paragraph I.4.7 of the RFP Rules states, “A Default Supplier for a product will be paid a supplier-specific price for each MWh of electric load served as specified in the Transaction Confirmation for that product. The supplier-specific price for a Default Supplier for a product will be the average of approved Bids for that Default Supplier and for that product.”

12/16/2024 in Rules
FAQ-14:
Are bidders allowed to make modifications to the Pre-Bid Letter of Credit?

An RFP Bidder must submit a Pre-Bid Letter of Credit in the form of the Standard Pre-Bid Letter of Credit provided as Appendix 9 to these RFP Rules or must incorporate only modifications that have been approved by PECO and provided to RFP Bidders by the Independent Evaluator.

As part of the Part 1 Proposal, an RFP Bidder may request modifications to the Standard Pre-Bid Letter of Credit, posted as Appendix 9 to the RFP Rules, that are non-material in nature, or that are advantageous to both PECO and the RFP Bidder. An RFP Bidder requests modifications to the Standard Pre-Bid Letter of Credit by submitting a Draft Pre-Bid Letter of Credit substantially in the form of the Standard Pre-Bid Letter of Credit indicating clearly any and all modifications to the Standard Pre-Bid Letter of Credit. The Draft Pre-Bid Letter of Credit must be submitted in Microsoft Word with tracked changes by upload to the online Part 1 Form or by email at PECOProcurement@nera.com. A Draft Pre-Bid Letter of Credit that is not substantially in the form of the Standard Pre-Bid Letter of Credit will not be considered or evaluated. The Standard Pre-Bid Letter of Credit and the preliminary list of acceptable modifications to the Pre-Bid Letter of Credit will be posted alongside the other RFP documents in mid-December 2024.

12/06/2024 in Rules
FAQ-13:
When is the deadline to request consideration of an alternate form of guaranty?

The Alternate Guaranty Process allows a prospective supplier unable to use the standard format of the guaranty provided as Appendix G to the PECO Energy Company Pennsylvania Default Service Supplier Master Agreement (“Uniform SMA”) to submit for consideration by PECO Energy Company (“PECO”) an alternate guaranty form that the prospective supplier uses in its normal course of business. A prospective supplier wishing to have PECO evaluate an alternate guaranty form must initiate the process by making a request for such consideration to the Independent Evaluator no later than Tuesday, January 28, 2025. Within three (3) business days of receipt of such a request or of the issuance of the RFP Documents for the upcoming solicitation, whichever is later, the Independent Evaluator will issue a timetable for receipt of the materials from the prospective supplier and for consideration of these materials by PECO. Specific requirements for the Alternate Guaranty Process will be posted as Appendix 2 to the RFP Rules alongside the other RFP documents in mid-December 2024.

12/06/2024 in Rules
FAQ-5:
Can the RFP Bidder rely on its own financial standing instead of relying on the financial standing of a Guarantor? What financial documentation is required for the RFP Bidder and will the Independent Evaluator and PECO sign a confidentiality agreement?

Please note that it is not a requirement of the PECO RFP for an RFP Bidder to rely on the financial standing of a Guarantor even in the case that the RFP Bidder is unrated or does not have discrete financial information available. 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 to receive unsecured credit under the Uniform SMA. 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. The list of all signatories is available to an RFP Bidder upon request.

The RFP Rules, Uniform SMA and Appendix 12 will be available on RFP website in mid-December 2024.

12/06/2024 in Rules

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