FAQs
Rules
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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
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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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