PECO Procurement For Default Supply

FAQs

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FAQ-67:
Can we propose modifications to the Uniform SMA?

Under the PECO RFP, all RFP Bidders accept the obligations and associated rights to provide Default Supply as defined in the Uniform SMA as part of its Proposal. There is no process to request modifications to the Uniform SMA that may be supplier specific except to Appendix F Post-Bid Letter of Credit and Appendix G Standard Guaranty. Any modification approved to Appendix F or Appendix G during the procurement process will be made available to each RFP Bidder, regardless of whether the RFP Bidder itself or another RFP Bidder proposed the modification.

02/03/2025 in General
FAQ-66:
Is there an overview of the timeline for the execution of the Uniform SMA and Transaction Confirmation(s) after the bid date?

The Post-Bid Process is described in VII.3. of the RFP Rules. As stated in paragraphs VII.3.7 - VII.3.8, “The winning RFP Bidders and PECO must execute the Transaction Confirmations and Uniform SMAs (if applicable) within five (5) business days of the Bid Date. 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.”

Please refer to the RFP Rules available on the RFP Website here: https://pecoprocurement.com/index.cfm?s=supplierInformation&p=documents

01/28/2025 in Contract
FAQ-65:
Section 2.2(b)(iii) of the Uniform SMA states that Buyer agrees “to provide to the DS Supplier its estimated aggregate load obligation (Capacity MW value) for each Supply Day no less than five (5) calendar days prior to the day of delivery. Further, this information will be posted in the DS Supplier’s specific PJM eMTR account, or successor system or process;” Can you provide more detail about what information is provided?

Each day PECO will submit to PJM the NSPL (MW) and PLC (MW) values related to a DS Supplier’s DS Supplier Responsibility Share under the Uniform SMA for the current day and the next ten days. DS Suppliers are able to see this information in their PJM Capacity Exchange account.

01/28/2025 in Contract
FAQ-64:
Is there a dispute right under the Uniform SMA related to posting performance assurance?

The calculation of Buyer’s Exposure is available to the Default Supplier in Appendix B. Appendix B explains the methodology and data sources that the Buyer will use to calculate the MtM Exposure Amount and Total Exposure Amount along with a numerical example. A Default Supplier will be provided the Total Exposure Amount when a margin call request is made.

Article 6 outlines the timelines and requirements related to posting performance assurance when a Margin call request is made. The Company will not unreasonably deny a request for a one-day extension for posting performance assurance; however, there is no specific dispute right under the Uniform SMA as it relates to the posting of performance assurance. In the event that the Default Supplier fails to post performance assurance collateral to cover Margin when due in accordance with this Section 6.5, then an Event of Default under Article 5 of this Agreement will be deemed to have occurred and the Company will be entitled to the remedies set forth in Article 5 of this Agreement. Please refer to the Uniform SMA for more information; each Default Supplier is responsible for reviewing and understanding the Uniform SMA.

01/28/2025 in Credit
FAQ-63:
What is the timeline for notifying PECO of a change to a credit rating or the financial condition of the entity on which the Default Supplier relies for creditworthiness under the Uniform SMA?

A Default Supplier that relies on the financial standing of itself or a Guarantor under the Uniform SMA, must agree to promptly notify PECO of any change in its credit rating or financial condition or that of its Guarantor, as stated in Section 6.8(a). Such Default Supplier or Guarantor must also furnish evidence of an acceptable credit rating or financial condition upon the request of PECO. Information related to confidential treatment of documents or information furnished by a Party in connection with the Uniform SMA is provided in Section 16.12 Confidentiality.

01/28/2025 in Rules
FAQ-62:
Are margin call requests delivered by email?

Margin call requests are sent by email to the representatives listed in Exhibit 2 Form of Notice in the Uniform SMA under “All Notices” and “Credit and Collections”. The contact information for representatives to populate Exhibit 2 Form of Notice is submitted with the Part 1 Proposal in the Uniform SMA Insert (#P1-4).

01/28/2025 in Contract
FAQ-61:
What is the timeframe for the return of performance assurance collateral under the Uniform SMA?

Please see Section 6.5(b) of the Uniform SMA which states, “Surplus Margin being held by the Company that is not needed to satisfy the Total Exposure Amount, as determined above, will be returned to the DS Supplier upon receipt of a written request by the DS Supplier. Surplus Margin means cash or a letter of credit posted by the DS Supplier as a result of a request by the Company pursuant to Section 6.5(a) that exceeds the Total Exposure Amount less the DS Supplier’s or the Guarantor’s credit limit (rounded by the Rounding Amount). If the resulting surplus Margin amount is more than the Minimum Transfer Amount, it will be returned to the DS Supplier. If the DS Supplier posted cash and notice is received by 1:00 p.m. New York time on a Business Day, the surplus Margin will be returned by the next following Business Day and if the DS Supplier posted cash and notice is received by the Company after 1:00 p.m. New York time on a Business Day, the surplus Margin shall be returned by the second Business Day following the date of notice, unless the DS Supplier agrees in writing to extend the period to return the surplus Margin. If the DS Supplier posted a letter of credit, the surplus Margin shall be returned on the next Business Day following the Business Day on which the amendment to the letter of credit is received from the issuing bank, unless the DS Supplier agrees in writing to extend the period to return the surplus Margin. The DS Supplier will not unreasonably deny a request for a one-day extension of such period. In the event that the Company fails to return the surplus Margin when due in accordance with this Article, then an Event of Default under Article 5 of this Agreement will be deemed to have occurred and the DS Supplier will be entitled to the remedies set forth in Article 5 of this Agreement.”

01/23/2025 in Credit
FAQ-60:
Where can I read about timing for switching for Default Service customers?

As stated in paragraph I.1.7. of the RFP Rules, “A Default Service customer may choose to begin receiving service from an EGS on the customer’s meter reading date in accordance with the Company’s standard switching requirements as described in the Company’s Electric Generation Supplier Coordination Tariff including, without limitation, prior advance notice to the Company.” The Company’s Electric Generation Supplier Coordination Tariff is available here: https://www.peco.com/my-account/my-dashboard/rates-tariffs/electric-service/current-electric.

12/18/2024 in Contract
FAQ-59:
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.

12/16/2024 in Rules
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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