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.

A Project that is connected to the distribution system and executes a wholesale market participation agreement (“WMPA”) with PJM to be able to sell energy and capacity into PJM markets may qualify to participate. This process to facilitate participation in PJM’s wholesale markets was approved by FERC in December 2025. It is the responsibility of the Bidder to fully understand the requirements to participate in PJM’s wholesale markets to sell and to deliver Energy and Capacity, as these terms are defined in the Power Purchase Agreement (“PPA”), to PECO under the terms of the PPA.

For purposes of completing the Pre-Qualification Application, a project that cannot confirm that an application been submitted to PJM for interconnection of the Project will be required to explain the plan and status for interconnection of the Project that will enable the Project to meet the requirements to participate in PJM’s wholesale markets. Additional certifications and acknowledgements may be required of the Seller at that time. A Project that is connecting to the distribution system and executing a WMPA with PJM will be required to make at least the following additional certifications and acknowledgements:

1. the Seller has fully investigated the relevant PJM requirements for the Project to participate in PJM markets and certifies that the Project is or will be able to offer Energy and Capacity, as these terms are defined in the PPA, into PJM markets;
2. the Seller has reviewed the terms of the PPA and certifies that the Project will comply with all requirements described therein related to interconnection of the Project in order to perform its obligations under the PPA to sell and deliver Energy and Capacity generated by, or associated with, the Project to the Delivery Point, the PECO_RESID_AGG Zone; and
3. the Project is or will not be a behind the meter Project.

Please refer to Section IV.1 of the PECO Solar Request for Proposals document which states the following: “To be eligible to submit a Proposal for a Project, Bidders must submit a Pre-Qualification Application for that Project. No substitution of Projects is allowed once the pre-qualification has closed.”

A Bidder need not submit a Proposal for each Project for which a Pre-Qualification Application has been completed. It is acceptable to submit a Pre-Qualification Application for multiple Projects and then decide after the Pre-Qualification Application Due Date for which projects to submit a Proposal.

The PPA term is 10 years. There is no provision in the PPA for renewal at the end of the term.  

Yes. A Project constructed on different parcels of land with separate landowners is eligible to participate in the PECO Solar RFP. Such a Project must have a single revenue quality electricity generation meter that satisfies the requirements of PJM and that will measure its generation output.

Behind the meter Projects are not eligible to participate in the PECO Solar RFP.

The PPA term is 10 years.  The governing RFP documents, including the Power Purchase Agreement and the Request for Proposals, for the PECO Solar RFP were approved by the Commission as a part of PECO’s sixth Default Service Plan (DSP VI) in Docket P-2024-3046008 and cannot be modified.

To be eligible to qualify, a Project must be at least 5 MW (DC).

A Project that is connected to the distribution system may qualify to participate as long as the Project is interconnected with PJM and able to sell energy and capacity into PJM markets. A behind the meter project is not eligible.

Under the RFP, Projects must meet the following definitions in order to qualify:

• A Project must be a Utility-Scale Solar Project, which is defined as “a solar facility that is connected to the PJM grid (i.e. not behind the meter) and that has ICAP capacity of at least 5 MW. Aggregations of smaller solar facilities do not satisfy this definition.”
• Projects must be a “new Utility-Scale Solar Project located in the Commonwealth of Pennsylvania, interconnected to PJM, able to sell energy and capacity into PJM markets, and satisfying the requirement of Tier I solar Alternative Energy Systems under Pennsylvania’s Alternative Energy Portfolio Standards Act.”

Regarding whether the Project must be located within PECO’s territory specifically, please refer to FAQ-5 posted to the RFP website.

For more information relating to the Desired Product and the RFP General Requirements, please refer to sections II and IV respectively of the Solar Request for Proposals document posted to the Documents page of the RFP website.

Yes, Projects that are in early stages of development are eligible to participate in the PECO Solar RFP. PECO will consider Proposals from Projects with Guaranteed Initial Delivery Dates no later than May 31, 2029.

When submitting a Proposal for a Project, the Bidder will be required to indicate whether the Project has:

• an executed Interconnection Agreement with PJM; or
• received the Phase 3 System Impact Study; or
• received the Phase 1 System Impact Study; or
• a Completed Application for interconnection of the Project has been submitted, but PJM has not yet reviewed the application; or
• an Application for interconnection of the Project has not yet been submitted to PJM.

Projects that have not yet entered PJM’s interconnection process are eligible to participate. Bidders will be required to submit different documentation as a part of Section 2 (Project Development Plan) of the Proposal depending on which stage of the development process they are in. Appendix 3 – Illustrative Proposal Form, posted to the Documents page of the RFP website, provides further details on the documentation required for each development stage listed above.

The Company anticipates contracting with the Project(s) that, in total, best meet the Company’s needs and those of its customers. Proposals will be ranked based on the stated evaluation criteria provided in Section VII.2 of the RFP including, and not limited to:

• The bid price;
• Development status of the Project;
• Development risk, nodal risk, and other risk factors of the Project;
• Project location; and
• Other assets or Proposals-specific benefits and risk factors.

No, it is not a requirement for Projects to be located in the Company’s (PECO’s) service territory.

The Company anticipates contracting with the Project(s) that, in total, best meet the Company’s needs and those of its customers. Proposals will be ranked based on the stated evaluation criteria provided in Section VII.2 of the RFP including, and not limited to:

• The bid price;
• Development status of the Project;
• Development risk, nodal risk, and other risk factors of the Project;
• Project location; and
• Other assets or Proposals-specific benefits and risk factors.

In order to qualify under the PECO Solar RFP, a Project must meet the definition of “new”. A project will be considered “new” if it has not commenced the delivery of electricity to any entity and its construction has not been completed as of the Proposal due date, April 27, 2026. A repowering of an existing solar project does not meet the definition of “new” and does not qualify to participate in the PECO Solar RFP.

It is possible for an addition of capacity (MW) co-located with an existing solar project to qualify under the PECO Solar RFP. In this case, the addition of capacity (MW) would be the “Project” presented in the Proposal and must meet all qualification requirements for a Project under the RFP. This includes being at least 5 MW (DC rating) and having a dedicated revenue quality electricity generation meter that satisfies the requirements of PJM and that will measure its generation output. In order to qualify, the Bidder will be required to:

• Disclose that the Project is additional capacity (MW) co-located with an existing solar project.
• Provide confirmation that the Project will be eligible with PJM for registration, operation and settlement and explain how the Bidder will handle this process if they have an existing profile with PJM for the co-located, existing solar project.
• Confirm that the Project will remain independently metered and eligible to participate as a generation resource under PJM rules during the term of the PPA and that any generation from the co-located, existing solar project will be separately metered and not interfere with the measurement, performance, or settlement of the generation output of the Project.
• Section 3 of the Proposal Form requires the Bidder to provide a diagram of the Project showing the point of interconnection, metering devices, and other equipment installed at the Project Site. This diagram must show that the Project will be independently metered from the co-located, existing solar project. This diagram will become part of Exhibit A of the PPA if the Project is selected and approved by the PA PUC. 
• The Seller must acknowledge that it is a Seller Covenant under Article 6 of the PPA to construct the Facility in accordance with the specifications set forth in Exhibit A and that it is an Event of Default if any representation, warranty, or covenant made by the Seller is false or misleading in any material respect and remains uncured for a period of thirty (30) days.