Surety bond is not an acceptable form of bid assurance collateral or Performance Assurance.

There are two types of collateral: (1) bid assurance collateral to support your Bid(s), which is due by the Proposal Due Date, April 27, 2026; and (2) Performance Assurance required under the terms of the PPA if a Bid for a Project is selected and approved by the Pennsylvania Public Utility Commission, which is due by June 10, 2026.

Please see the response below to your question as it relates to (1) bid assurance collateral and (2) Performance Assurance.

1. Bid assurance collateral

All Bidders are required to post bid assurance collateral in the form of cash or a pre-bid letter of credit.

As stated in Section V.16 of the RFP document, Bidders will be required to post bid assurance collateral in an amount of $20,000/MWdc. If a portion of a larger Project is proposed, the portion of the Project should be multiplied by $20,000/MWdc for purposes of determining the required amount of bid assurance collateral. The standard form of the pre-bid letter of credit and acceptable modifications approved by PECO are posted to the Documents page of the RFP website: https://peco-solarrfp.com/index.cfm?page=documents.

Bid assurance collateral for Bidders that have winning Proposal(s) will be returned shortly after all contract execution formalities have been completed. Bid assurance collateral for Bidders that do not have winning Proposal(s) will be returned shortly after the Commission has issued a decision on the results of the RFP.

2. Performance Assurance

Sellers from successful Proposals may be required to post Performance Assurance at the time of execution of a PPA. Credit Requirements are as follows: Sellers that have a minimum investment grade credit rating shall be deemed to have met the creditworthiness standard and shall not be required to post Performance Assurance. Additional information on credit ratings is provided in the PPA.

• If a Seller is either not rated or has ratings below investment grade (as defined in the PPA), the creditworthiness standard may be met with cash, a letter of credit, or by issuing a corporate guaranty from an acceptable credit support provider that satisfies the above minimum investment grade standard. Any letter of credit must be in a form acceptable to PECO. Exhibit F to the PPA provides a Letter of Credit form that is acceptable to PECO.
• PECO’s acceptance of a corporate guaranty shall be subject to a satisfactory review of the credit support provider that is issuing the guaranty. In addition, the guaranty shall be in a form acceptable to PECO. Exhibit E to the PPA provides a Form of Guaranty Agreement that is acceptable to PECO.

Performance Assurance will be equal to 20% of the Total Notional Value of the PPA, as specified in Exhibit G of the PPA (Appendix 1) posted to the Documents page of the RFP website: https://peco-solarrfp.com/index.cfm?page=documents. The amount of required Performance Assurance will decline annually during commercial operation and is subject to a minimum. The Total Notional Value of the PPA will be calculated based on the Facility Nameplate Rating in AC rating.