PECO Procurement For Default Supply

FAQs

Contract

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FAQ-30:
Are Default Suppliers responsible for the Pennsylvania electric gross receipts tax (EGRT)?

Section 16.9 of the Uniform SMA states “the DS Supplier is responsible for the payment of all taxes imposed by all present and future federal, state, municipal or other taxes imposed by any taxing authority on the wholesale sales of DS Supply under this Agreement”.

The Pennsylvania electric gross receipts tax (EGRT) is imposed upon receipts from sales of electric energy. The EGRT provides an exemption from taxable gross receipts for sales for resale to persons, partnerships, associations, corporations and political subdivisions subject to the EGRT upon gross receipts derived from such resale of electric energy services. The Pennsylvania Department of Revenue will issue annual Gross Receipts Tax Electric Reseller Acknowledgment forms to resellers that report taxable sales and valid sales for resale to confirm they are subject to gross receipts tax (GRT) and reporting GRT as required by law. Suppliers that want to claim a GRT sale for resale exemption must obtain a copy of this form from the reseller. The resale exemption claimed is subject to review and verification by the Pennsylvania Department of Revenue.

Default Suppliers that wish to claim a GRT sale for resale exemption may request a copy of the annual Gross Receipts Tax Electric Reseller Acknowledgment form from PECO directly.

Additional terms related to taxes are provided in Section 16.9 of the Uniform SMA. It is the responsibility of each bidder to review the terms. Each bidder accepts these terms as a condition of its participation in the PECO RFP.

12/16/2024 in Contract
FAQ-29:
Are Default Suppliers responsible for providing any of the services or products included in full requirements service for the fractional percentage of committed energy and capacity obtained under contract with Allegheny Electric Cooperative, Inc. for supply from the New York Power Authority (“NYPA”)?

No. Default Load for the Residential Class is reduced by a fractional percentage of committed energy and capacity obtained under contract with Allegheny Electric Cooperative, Inc. for supply from the New York Power Authority (“NYPA”). Default Suppliers are not responsible for providing any of the services or products included in full requirements service for NYPA supply.

12/16/2024 in Contract
FAQ-28:
In Exhibit 1, Transaction Confirmation, included in Appendix C of the Uniform SMA, there are blanks to provide the average costs for the Alternative Energy Credits (AECs). Will PECO provide these numbers to a winning bidder or are these numbers to be provided by the Seller?

Default Suppliers are responsible for providing the AECs necessary for PECO to meet its obligations under the Alternative Energy Portfolio Standard (“AEPS”) Act during the term of the Uniform SMA. The obligations of Default Suppliers in this regard are reduced by the AECs procured separately by PECO. The blanks in the Transaction Confirmation are for the Default Supplier to provide a price for each type of AEC (Tier I, Tier I Solar, and Tier II) that is included in the RFP Bidder’s lowest-priced Bids. As specified in the RFP Rules (see Paragraph V.1.2), each such price must be greater than $0/AEC. The RFP Bidder will be required to certify in its Part 2 Proposal that it will comply with this obligation.

12/16/2024 in Contract
FAQ-27:
If the State of Pennsylvania increases the AEPS obligation, is the Default Supplier responsible for the incremental cost?

Yes. Please see Appendix E of the Pennsylvania Default Service Supplier Master Agreement (“Uniform SMA”) which states, “If AEPS requirements change by law or any other reason, DS Supplier shall be responsible for providing the credits at its expense in order to comply with its obligations under Full Requirements Service.”

12/16/2024 in Contract
FAQ-23:
Does PECO have an example of a completed Form of PJM Declaration of Authority (Appendix C, Exhibit 3 to the Uniform SMA)?

PECO does not have an example of a completed Form of PJM Declaration of Authority (Appendix C, Exhibit 3 to the Uniform SMA). Please direct all questions regarding completing the PJM Declaration of Authority to PJM.

12/16/2024 in Contract
FAQ-22:
Is it required for the RFP Bidder to be registered to do business in the state of Pennsylvania?

No, it is not a requirement under the Uniform SMA for suppliers to be registered to do business in the state of Pennsylvania. Please see Section 3.1 of the Pennsylvania Default Service Supplier Master Agreement (“Uniform SMA”) which states, the DS Supplier “is a corporation, partnership, limited liability company or other legal entity, duly organized, validly existing and in good standing under the laws of the Commonwealth of Pennsylvania or, if another jurisdiction, under the laws of such jurisdiction and, in such case, is duly registered and authorized to do business in such other jurisdiction.”

12/16/2024 in Contract
FAQ-12:
Is a new Transaction Confirmation executed if the on-peak and off-peak estimated quantities per MW-Measure (MWh) change?

PECO and a winning RFP Bidder will execute a single Transaction Confirmation for each product for which such RFP Bidder has Bids that are approved by the Commission within three business days of the Bid Date. This Transaction Confirmation will include an on-peak and off-peak estimated quantity per MW-Measure (MWh). If the estimated quantities change, no new Transaction Confirmation will be signed.

12/06/2024 in Contract
FAQ-11:
Does PECO’s invoice to the Default Supplier itemize by PJM Billing Line Items?

PECO’s invoice to the Default Supplier does not itemize by PJM Billing Line Items. For itemization by PJM Billing Line Items, the Default Supplier can refer to their PJM invoice.

12/06/2024 in Contract
FAQ-10:
Is a sample invoice available?

A sample invoice is not available.

12/06/2024 in Contract
FAQ-9:
Once the contract is created in PJM InSchedule, will PECO initiate the Billing Line Items Transfer?

Yes. Once both parties confirm a contract in InSchedule, PECO will enter the Billing Line Items. PECO will then notify the Default Supplier to review and confirm. Once the Default Supplier confirms and the contract start date initiates, the Default Supplier will see the charges and credits on their PJM invoice.

12/06/2024 in Contract

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