Alternative Energy Credits (AECs)

The PPL Electric Alternative Energy Credits RFP (AEC RFP) seeks to solely procure AECs through a competitive auction process.  This auction is not to procure energy, capacity, or energy-related services from suppliers. Based upon the terms of the RFP, any prospective supplier that can meet the Bidder Qualification requirements, has the minimum supply obligation (1 tranche worth of AECs), and is willing to provide prices at which it will supply tranches of any Product, may respond to any solicitation in the AEC RFP. For further information, the Bidder Qualification requirements are established in Article 4 of the AEC RFP Process and Rules document. The AEC RFP Process and Rules document can be found on the Alternative Energy Credits RFP page of the RFP Website: click here.

In order for AECs to be eligible for the July 2024 AEC RFP, they must meet three explicit criteria:

• Be Pennsylvania eligible AECs (meeting the obligations set forth in the PA AEPS and all subsequent updates and amendments), as approved by the PA PUC and identified in PJM GATS;
• Be an AEC with one of the following vintages:
  1. June 1, 2022 - May 31, 2023
  2. June 1, 2023 - May 31, 2024
  3. June 1, 2024 - May 31, 2025

and,

• Be generated in the PJM GATS system and available for immediate transfer within 5 business days of the PA PUC’s approval of the auction results.

To be clear, the July 2024 AEC RFP is seeking AECs available for immediate transfer – with winning suppliers providing AECs within 5 business days after PA PUC approval of the auction results. The inclusion of vintage parameters is used to explicitly state which AECs are acceptable when being transferred within the 5-business day window.  For the July 2024 AEC RFP, all AECs transferred to PPL Electric must be generated within the three annual vintage periods provided above.  All three criteria detailed above must be met for an AEC to be eligible for PPL Electric’s July 2024 AEC RFP. (updated July 30, 2024)

At this time, use of (i) a manually signed signature or (ii) a digital signature via DocuSign, Adobe Sign, or Infocert is approved for use by PPL Electric. Once the applicable documents have been executed, you will be required to upload a scan of the executed document online; no hardcopy originals are required under the RFP process.

No, all Photo-voltaic AECs must be generated from within Pennsylvania’s borders. Please see FAQ-21 for information on PA Tier 2 AECs. (Revised on January 11, 2022)

No, the submission of the Bidder Qualification form is not a binding commitment to participate in the remainder of this RFP Process or future solicitations under the AEC RFP.

Pursuant to Section 4.1.1 of the Alternative Energy Credits RFP Process and Rules, an applicant is qualified to bid in a given solicitation if it satisfactorily completes or updates the following:

• Submits an executed copy of the Confidentiality Agreement (Appendix 3)
• Submits an executed copy of the AEC Delivery Timing Acknowledgment Form (Appendix 4)
• Submits an executed copy of the Binding Bid Agreement (Appendix 7)
• Provides a fully executed Electronic Funds Transfer form and Bidder W-9.

These required forms and documents are available under the Alternative Energy Credits RFP Documents tab here.

In Appendix 7 the RFP Bidder is acknowledging and certifying that it will be bounded by the price quotes in Bid Proposal Spreadsheet(s) that it submits, and these price quotes shall constitute a firm offer to supply AECs in accordance with the AEC SMA and applicable Pennsylvania law and regulations.  Through Appendix 7, the RFP Bidder also agrees to execute the transaction confirmation in a timely manner if it is awarded AECs, accepts all the terms, conditions and requirements of this RFP, certifies that it is bidding independently and that it has no knowledge of any Proposal being submitted by another RFP Bidder, and is in compliance with the confidentiality requirements laid out in Appendix 7.

You are not required to provide the Branch Name or Zip for the Depository Bank under the Authorization for Electronic Funds Transfer Section.

Cash wire instructions will be released on the Qualified Bidders Notified date. The schedule for when bidders will be notified of their status as Qualified Bidders for this solicitation is available on the AEC RFP Calendar page of the website here.  

Yes, wire transfer instructions can be made available to all bidders who submitted qualification materials prior to the Qualified Bidders Notified Date upon request. To request for the wire transfer instructions, please send an email to PPL-Procurement@NERA.com.

Yes, Wire Transfer Instructions for Cash Bid Assurance Collateral with PPL Electric’s letterhead and/or signature will be provided upon request from the RFP Manager. Please send an email request to PPL-Procurement@NERA.com.

If a physical address is required for the completion of the wire transfer request, please use the following: PPL Electric Utilities Corporation 827 Hausman Rd., 1st Floor Allentown, PA 18104 Attn: PPL Electric Energy Procurement Team (Revised on January 13, 2023)

The “Price (US$/AEC)” column of the Bid Proposal Spreadsheet indicates the RFP Bidder’s price quote corresponding to the number of the Total Tranches Supplied in that row. An example is provided below for illustrative purposes only. For purpose of this example, one tranche of Photovoltaic AEC Product corresponds to 1,280 AECs.

Total Tranches Supplied	Price (US$/AEC)
1	40.00
2	45.00
3	50.00
4	55.00
5	60.00
6	X
7	X
8	X
...	...
20	X

Bidder ABC has submitted a complete Bid Proposal Spreadsheet for the Photovoltaic AEC Product. Bidder ABC has bid for a Total of One (1) Tranche Supplied at US$40/AEC, a Total of Two (2) Tranches Supplied at US$45/AEC, a Total of Three (3) Tranches Supplied at US$50/AEC, a Total of Four (4) Tranches Supplied at US$55/AEC, and a Total of Five (5) Tranches Supplied at US$60/AEC. Bidder ABC has marked an “X” for Six (6) Total Tranches Supplied to Twenty (20) Total Tranches Supplied to indicate that they do not wish to bid on more than Five (5) Total Tranches Supplied.   CASE 1: Bidder ABC is awarded Two (2) Total Tranches Supplied. If Bidder ABC is awarded Two (2) Total Tranches Supplied for the Photovoltaic AEC Product, Bidder ABC would be required to deliver a total number of 2,560 AECs (1,280 AECs x 2 Tranches) to PPL Electric’s GATS account. Bidder ABC will be paid US$45 per Photovoltaic AEC. This payment would be in total US$115,200 (2,560 AECs x US$45/AEC).   CASE 2: Bidder ABC is awarded Four (4) Total Tranches Supplied. If Bidder ABC is awarded Four (4) Total Tranches Supplied for the Photovoltaic AEC Product, Bidder ABC would be required to deliver a total number of 5,120 AECs (1,280 AECs x 4 Tranches) to PPL Electric’s GATS account. Bidder ABC will be paid US$55 per Photovoltaic AEC. This payment would be in total US$281,600 (5,120 AECs x US$55/AEC).

The qualified bidder will be the only party qualified to bid, the only counterparty to the AEC SMA, and the only party that is responsible for the AEC deliveries under the AEC SMA. AECs may be secured externally by any RFP Bidder without the need to disclose any RFP specific information. This RFP does not stipulate how bidders must arrange for AEC supply.

Under PPL Electric’s traditional process, the PPL Electric W-9 is provided to winning suppliers following the approval of auction results by the Pennsylvania Public Utility Commission, and the complete execution of all contracts by all parties. In support of the AEC auction process and to expedite the AEC transfer and payment process, the PPL Electric W-9 will be issued upon request if in advance of the auction. In all other instances, PPL Electric will supply the W-9 as part of the post-auction package of materials. PPL Electric Utilities Corporation is a subsidiary of PPL Corporation. The PPL Corporation Articles of Incorporation and 10k can be found in the links below. PPL Electric Utilities Corporation Articles of Incorporation can be found here. The 10k includes an organization charge showing the relationship of PPL Electric to PPL Corporation (see page 3 of the report). PPL Corporation’s article of incorporation can be found here. PPL Corporation’s 10k (issued February 2021) can be found here. The most up to date SEC-10K can be found here.

In order for AECs to be eligible for the January 2022 AEC RFP, they must meet three explicit criteria:

• Be Pennsylvania eligible AECs (meeting the obligations set forth in the PA AEPS and all subsequent updates and amendments), as approved by the PA PUC and identified in PJM GATS;
• Be an AEC with one of the following vintages:
  1. June 1, 2019- May 31, 2020
  2. June 1, 2020- May 31, 2021
  3. June 1, 2021- May 31, 2022

and,

• Be generated in the PJM GATS system and available for immediate transfer within 5 business days of the PA PUC’s approval of the auction results.

To be clear, the January 2022 AEC RFP is seeking AECs available for immediate transfer, not to contract for a long-term duration. Winning suppliers must transfer all AECs within 5 business days after the PA PUC approval of the auction results. The inclusion of vintage parameters is used to explicitly state which AECs are acceptable to be transferred within the 5-business day window.  For the January 2022 AEC RFP, all AECs transferred to PPL Electric must be generated within the three annual vintage periods provided above and subject to the provisions of Addendum 3 to the AEC RFP. Addendum 3 to the AEC RFP provides for a limit on the number of AECs that may be transferred from energy generation that occurred between June 1, 2019 and May 31, 2020. All three criteria detailed above must be met for an AEC to be eligible for PPL Electric’s January 2022 AEC RFP.

No. There shall be no adjustments to the delivery window.  The PPL Electric AEC RFP has been approved by the PA PUC in its current form and is not eligible for alteration by the Company.  Pursuant to Section 1.3.3 of the AEC RFP Process and Rules, the AEC Supplier shall transfer AECs into PPL Electric’s GATS account(s) equal to the number and type awarded within five (5) business days of the approval of the bid results by the PA PUC.

No, the Confidentiality Agreement (Appendix 3), the AEC Delivery Timing Acknowledgement Form (Appendix 4), and the Binding Bid Agreement (Appendix 7) to the Alternative Energy Credits RFP Process and Rules, as well as the AEC SMA, are non-negotiable. The PPL Electric AEC RFP has been approved by the PA PUC and the RFP and contract documents are not subject to negotiation or changes. RFP Bidders may propose non-substantive and clarifying modifications to the Bid Assurance Letters of Credit (Appendix 5a and 5b). The RFP Bidder must submit proposed modifications in MS Word redline as Additional Upload(s) in the Justification of Omissions Section of the Qualification Form before the Bidder Qualifications Due Date, which is noon on Wednesday, July 17, 2024. The acceptability of such proposed modifications will be at PPL Electric’s sole discretion, and such acceptability will be communicated to the applicant no later than 12 PM (noon) on July 22, 2024.

Please see FAQ-21 for information on PA Tier 2 AECs. (Revised on January 11, 2022)

Once the Confidentiality Agreement is received from the RFP Bidder, PPL Electric will complete the execution of the agreement and send a copy of the fully executed agreement to the RFP Bidder by email along with Notification of Qualification materials on the Qualified Bidders Notified Date.

Yes, Tier 2 AECs from outside of Pennsylvania will be accepted by PPL Electric if they are generated and issued by PJM-EIS GATS prior to November 23, 2020. All Tier 2 AECs generated and issued by PJM-EIS GATS on or after November 23, 2020 must be sourced from Pennsylvania. Further, please note that all AECs delivered to PPL Electric must allow PPL Electric to comply with the AEPS Act pursuant to the AEC SMA and must meet the vintage requirement set out in Addendum 3 of the AEC RFP.

Yes, a combination of AEC Transfer in lieu of Bid Assurance Collateral and Cash is acceptable for purposes of posting bid assurance collateral for this January 2022 solicitation. Each form of Bid Assurance Collateral transferred must equate to a complete tranche – fractional transfers are not acceptable. For example, if a bidder is intending to bid on two tranches of a product, AECs transferred must equate to one tranche and cash or an letter of credit must equate to the second tranche. Further, the combination in aggregate must support the qualified RFP Bidder’s Bid Proposals.

The Target Quantity for each AEC Type, pursuant to Section 1.1.5 of the Alternative Energy Credits RFP Process and Rules (“AEC RFP Process and Rules”), is the total quantity of AECs that the AEC RFP intends to solicit under this January 2022 solicitation. Each AEC provided by an AEC Supplier must be associated with the acceptable vintage period as stated in Addendum 3 to the AEC RFP Process and Rules.

The submission of a signed AEC SMA and Bid Assurance Collateral does not create a binding obligation to submit bids on Bid Proposal Due Date.

Yes. Any AECs that are approved and certified in the PJM GATS system as PA AECs and that meet the vintage requirements set forth in the RFP in which they are offered will be accepted.

Bidders do not complete the Transaction Confirmation(s) – this is the responsibility of PPL Electric. Pursuant to Section 7.5.2 of the AEC RFP Process and Rules, following completion of the auction, the winning RFP Bidders will receive a partially executed Transaction Confirmation(s) from PPL Electric on the date of the PUC’s approval of the auction results, or, in the event the PUC does not act, no later than the next business day following the date which the PUC was expected to act. Specifically, PPL Electric will send each winning RFP bidder, by email or other acceptable means, one partially executed Transaction Confirmation for each product won.

Yes, PA Tier 1 AECs that are sourced from outside of the State of Pennsylvania are acceptable in this January 2022 solicitation. Additionally, AECs provided by the RFP Bidder should be 1) approved and certified as being acceptable in Pennsylvania in the PJM GATS system, 2) meet the vintage requirements set forth in Addendum 3 to the AEC RFP Process and Rules for this solicitation and 3) fulfill PPL Electric’s AEPS Obligation as set forth in the AEPS Act and PUC rules and Orders in the amounts the RFP Bidder is awarded.

Pursuant to Section 6.1.5 of the AEC RFP Process and Rules, if the RFP Bidder was not awarded tranches in the solicitation for which the AEC SMA was provided, PPL Electric will not return to the bidder a fully executed SMA. Rather, PPL Electric will retain the partially executed AEC SMA for any future AEC solicitation in which the RFP Bidder may submit a bid proposal. Should the RFP Bidder win supply under a future solicitation, PPL Electric will then provide the fully executed AEC SMA to the RFP Bidder along with the requisite transaction confirmations. Please note, in that case, it is the responsibility of the RFP Bidder to submit any updated pages of the AEC SMA no later than two (2) business days prior to the Bid Proposal Due Date of the solicitation in which the RFP Bidder is participating.

Yes, the RFP Bidder may submit bids less than or equal to the number of total tranches indicated in the Maximum Bid Indication on the online form. The number of total tranches supplied in the Bid Proposal Spreadsheets should be fully supported by the Bid Assurance Collateral or AEC transfer in lieu of Bid Assurance Collateral. Pursuant to Section 7.4.4 and 7.4.5 of the AEC RFP Process and Rules, once Bid Proposal Spreadsheets are submitted by the RFP Bidder, the Bid Proposal Evaluation Team will ensure that sufficient financial guarantees or AEC transfers are provided to support the Bids. If a qualified RFP Bidder’s Bid Assurance Collateral is insufficient to support the sum of the maximum number of tranches offered for each Product by the RFP Bidder, the Bid Proposal Evaluation Team will modify that RFP Bidder’s Bid Proposal Spreadsheets down to the maximum allowed per the provided bid assurance collateral. (Revised on February 8, 2022)

No, an RFP Bidder cannot indicate the vintage of AECs. Pursuant to Section 1.1.4 of the AEC RFP Process and Rules, an AEC Supplier selected to supply a Product or Products shall be paid under a firm price contract in which it will receive the price it bid. It is the RFP Bidder’s sole responsibility to evaluate AECs supplied in PPL Electric’s AEC RFPs and provide a firm price of which the RFP Bidder will receive.

AECs provided by any RFP Bidder must be 1) approved and certified as being acceptable by the PA Public Utility Commission for Pennsylvania through the PJM GATS system, 2) meet the vintage requirements set forth in Addendum 3 to the AEC RFP Process and Rules for each solicitation, and 3) fulfill PPL Electric’s AEPS Obligation as set forth in the AEPS Act and PUC rules and Orders in the amounts the RFP Bidder is awarded. All AECs must be vetted through this process, regardless of where a facility is sourced. Tier 1 AECs that are sourced from outside of the State of Pennsylvania and within PJM are acceptable.

Pursuant to Section 1.1.9 of the Alternative Energy Credits RFP Process and Rules, in any solicitation, the RFP Bidder may only submit Bids for whole numbers of tranches. Therefore, if an RFP Bidder does not have sufficient AECs to fill a tranche, the RFP Bidder is not eligible to bid for such product.

There are no material differences between AEC and REC. An Alternative Energy Credit (“AEC”) is a tradable instrument that is used to establish, verify, and monitor compliance with the AEPS Obligation in Pennsylvania. One AEC equals one megawatt hour of electricity from an alternative energy source.

Pursuant to Section 1.1.5 and Section 1.1.9 of the Alternative Energy Credits RFP Process and Rules, a tranche of a product represents an equal quantity of AECs of the target quantity of such product and in any solicitation, the RFP Bidder may only submit Bids for whole numbers of tranches. Therefore, if an RFP Bidder does not have sufficient AECs to fill a tranche, the RFP Bidder is not eligible to bid for such product. For each solicitation, information on the number of AECs per Tranche can be found in RFP Addendum 3 issued at the start of the solicitation.

There are no material changes to the AEC Supplier Master Agreement (“AEC SMA”) between the July 2022 and January 2022 solicitations. A non-substantive change was made to the AEC SMA to remove the blank fields for “Date” on page 27 and page 28 of the AEC SMA.

The bidder will receive payment corresponding to its bids and the AEC RFP does not feature a uniform clearing price. Pursuant to Section 7.4.6 of the AEC RFP Process and Rules, the RFP Manager will consider all combinations of Bid(s) whose sum of Total Tranches Supplied is equal to the Available Tranches in the July 2022 solicitation for each product. For each combination, the RFP Manager will calculate a Combination Average Price (“CAP”) equal to the average Price (U.S. $/AEC) of the Bids in the combination weighted by their corresponding Total Tranches Supplied. The winning Bid(s) will be those in the combination with the lowest CAP. Please note that the CAP is calculated for the sole purpose of selecting the winning bids only. If selected as a winner, an RFP Bidder that is awarded tranches shall receive the Price (U.S. $/AEC) corresponding to the winning Bid as stated in its Bid Proposal Spreadsheet under the Bid Information section. For example, if an RFP Bidder offers 6 Total Tranches Supplied for $20 per Photo-voltaic AEC, then the RFP Bidder must provide that price quote for 6 Total Tranches Supplied in the Photo-voltaic AEC Bid Proposal Spreadsheet. If the 6 Total Tranches Supplied are selected as a part of the winning combination, the RFP Bidder will be paid $20 per Photovoltaic AEC for a quantity of 7,680 (6 Total Tranches Supplied x 1,280 AECs per tranche) Photo-voltaic AECs regardless of what the CAP is.

No, the number of tranches the bidder wins will never exceed the maximum number of Total Tranches Supplied indicated in the Bid Proposal Spreadsheet. Pursuant to Section 1.1.7 of the AEC RFP Process and Rules, a Bid is a price, in U.S. Dollars per AEC for each Product, at which the RFP Bidder is willing to supply a number of tranches of a given product. For each product, a maximum of one (1) Bid from each RFP Bidder will be selected as a part of the winning combination.

In accordance with Section 7.5.2 of the AEC RFP Rules, RFP Bidders will be notified by PPL Electric of the RFP results on the date of the PUC’s approval, or, in the event the PUC does not, act no later than the next business day following the date when the PUC was expected to act. Pursuant to Section 5.3.4 of the AEC RFP Rules, if the RFP Bidder is notified by PPL Electric that it has not been awarded tranches for a solicitation or has been awarded fewer tranches than the maximum bid by the RFP Bidder, excess AECs transferred in lieu of Bid Assurance Collateral will be returned within two (2) business days of such notification. Note that if the RFP Bidder is awarded all of the tranches bid, no AECs will be transferred back to the RFP Bidder. PPL Electric will retain the AECs and the RFP Bidder will not be expected to transfer any additional AECs.

No, the Electronic Funds Transfer Authorization Form is non-negotiable and must be submitted in its current form.

The authorization is only applicable to companies that elect ACH under the “EFT Instructions are applicable to:” field in the Electronic Funds Transfer Authorization Form. The above authorization is not applicable if you elect FEDWIRE under the “EFT Instructions are applicable to:” field.

AECs may be secured externally by the RFP Bidder. This RFP does not stipulate how RFP bidders must arrange for AEC supply; however, the bidder must have control of the AECs it is seeking to include as part of the bid. Please note that the qualified bidder will be the only party qualified to bid, the only counterparty to the AEC SMA, and the only party that is responsible for the AEC deliveries under the AEC SMA.

If you are transferring AECs in lieu of the bid assurance collateral, please indicate the name of the RFP Bidder in the space provided on page 1 of the Maximum Bid Indication Form and simply include in brackets next to the RFP Bidder name, the name(s) of the GATS account(s) that the AECs will be transferred from. The Maximum Bid Indication Form must be uploaded to the online Collateral and SMA Form.

Yes, an RFP bidder is only required to provide Bid Assurance Collateral sufficient to support the maximum number of tranches across all products indicated in the Maximum Bid Indication Form.

Pursuant to Section 6.1.4 of the Alternative Energy Credits RFP Process and Rules, all Bid Assurance Collateral, in the form of a Letter of Credit, cash or AECs transferred in lieu of Bid Assurance Collateral, must be received no later than two (2) business days prior to the Bid Proposal Due Date for that solicitation. For the July 2022 AEC RFP, the Bid Assurance Collateral must be received by the PPL Electric RFP Team by 12 PM (noon) on July 22, 2022.

No, an RFP Bidder who is interested in supplying multiple tranches of AECs may submit a different price quote for each Total Tranches Supplied in a Bid Proposal Spreadsheet. Please see AEC-FAQ-13 for more details.

In accordance with the AEC RFP Process and Rules, PPL Electric will hold the Bid Assurance Collateral until either: (i) the RFP Bidder is notified by PPL Electric after the PUC decision that it has not been awarded tranches for a solicitation, or (ii) the RFP Bidder executes the Transaction Confirmation forms upon being awarded tranches and delivers the AECs pursuant to the AEC SMA. Upon either of the above two conditions, Bid Assurance Collateral in the form of cash will be returned within one (1) business day, and Bid Assurance Collateral in the form of an LOC will be returned within two (2) business days. Please see AEC-FAQ-38 for more details on AECs transferred in lieu of Bid Assurance Collateral.

The Bidder must have an account with PJM-EIS Generation Attribute Tracking System (“GATS”). Once in GATS, the Bidder can transfer AECs to PPL Electric. The GATS account to which AECs should be transferred is “PPL Electric Utilities Corp. dba PPL Utilities (Trader)”. Please ensure you are transferring to the correct account. Please reach out to the PJM-EIS GATS administrator if you have trouble with access or operations of your GATS account.

Each RFP Bidder must provide liquid Bid Assurance Collateral in an amount consistent with the requirements provided in the RFP Addendum 3 no later than two (2) business days before the Bid Proposal Due Date. However, the RFP Bidder is not required to post a Letter of Credit to meet the Bid Assurance Collateral requirement under the RFP Rules. The form of collateral can be either cash, an irrevocable Letter of Credit (“LOC”), or in lieu of providing the Bid Assurance Collateral, the RFP Bidder may elect to transfer AECs to PPL Electric’s GATS account as further explained in Section 5.3.4 of the RFP Rules. AECs transferred must be for the Product and in the quantity of such Product the RFP Bidder intends to submit a bid. Credits transferred in lieu of Bid Assurance Collateral must be transferred to “PPL Electric Utilities Corp. dba PPL Utilities (Trader)” in PJM-EIS GATS.

For an RFP Bidder that has successfully qualified in previous solicitation of the AEC RFP under DSP V, it is eligible to participate under an abbreviated qualification process. A previously qualified applicant is qualified to bid in a given solicitation if it satisfactorily submits an executed copy of the Binding Bid Agreement for that solicitation (Appendix 7) and confirm its contact information in the online Application form. Submission of the Confidentiality Agreement (Appendix 3), or the AEC Delivery Timing Acknowledgment Form (Appendix 4), are not required to be re-submitted for previously qualified bidders. Please note it is the sole responsibility of the RFP Bidder to notify PPL Electric of any changes to the RFP Bidder’s previously submitted Bidder Qualification materials. These required forms and documents are available under the Alternative Energy Credits RFP Documents tab here.

PPL Electric’s W-9 form is available upon request and will be sent directly via email to the requesting party. Regarding other onboarding and due diligence requests, please note the following.  The AEC RFP is conducted pursuant to PPL Electric’s fifth default service program petition that was filed with and approved by the Pennsylvania Public Utility Commission (PUC) in Docket Number P-2020-3019356. All bidders must participate pursuant to the process as described in the RFP and based on the terms of the RFP. During the RFP, NERA is the RFP Manager and is the contact for PPL Electric Utilities Corporation. During the term of the AEC supplier master agreement, contact information for PPL Electric is provided in the applicable SMA. PPL Electric endeavors to work to provide the information you requested upon approval of the results by the Pennsylvania Public Utility Commission (“PUC”) on a commercially reasonable basis.  No additional information is provided prior to the approval of bid results by the PUC.

A current AEC Supplier with a previously executed AEC SMA for the currently effective DSP V Program is not required to submit a new executed AEC SMA. As set forth in Section 6.1.5 of the AEC RFP Rules, “If the RFP Bidder is awarded any tranches in any solicitation in this RFP, the signed AEC SMA that was initially submitted will be executed by PPL Electric and provided to the RFP Bidder together with the partially executed Transaction Confirmation forms via email. The execution of a Transaction Confirmation is all that will be required in subsequent solicitations wherein an RFP Bidder that has previously executed the AEC SMA in a satisfactory manner is awarded additional tranches.” If an AEC Supplier has a fully executed AEC SMA, a new AEC SMA is not required.

Bid Assurance Collateral and SMA requirements for the January 2023 AEC RFP are due by 12pm EPT on January 12, 2023. This includes AECs transferred in lieu of bid assurance collateral, which must be transferred to the PPL account (PPL Electric Utilities Corp. dba PPL Utilities (Trader)) in GATS by 12pm EPT on January 12, 2023. As set forth in Section 5.3.4, “In lieu of providing the Bid Assurance Collateral, the RFP Bidder may elect to transfer AECs to PPL Electric’s GATS account. AECs transferred must be for the Product and in the quantity of such Product the RFP Bidder intends to submit a bid.” All Bidders must indicate the number of maximum tranches they are intending to bid for each Product by uploading the completed Maximum Bid Indication Form to the Collateral and SMA Form. The Maximum Bid Indication Form will be posted to the Documents page of the Alternative Energy Credits RFP section of the RFP website. The Collateral and SMA Form will open by January 9, 2023.

No, a bidder is not required to indicate the specific vintage period of the AECs they are bidding for, as that information will be provided along with the AECs in the PJM-GATS system upon AEC transfer. However, please note that for this January 2023 Solicitation, 100% of the AECs per tranche for each product type must be from the June 1, 2020 – May 31, 2023 vintage. Further, please note that bids are not evaluated based upon the vintage of the AECs provided. A minimum qualification requirement is that the AECs transferred meet the vintage requirements set forth in the RFP terms (and described above); however, bids are solely evaluated based upon price. If a bidder elects to transfer AECs to PPL Electric’s GATS account, PPL Electric Utilities Corp. dba PPL Utilities (Trader), in lieu of providing the Bid Assurance Collateral, the AECs transferred must be for the Product and in the quantity of such Product the RFP Bidder intends to submit a bid.

As noted in the Electronic Funds Transfer Authorization Form, this Authorization is subject to 1) the ACH option is elected, and 2) if necessary to correct for any ACH credit entries that were previously made in error.

Historically, when returning excess AECs PPL Electric has retained the AECs with the oldest vintage first, to the extent possible, and then returned the newer vintages back to the Bidder. Please also refer to Addendum 3 for any vintage requirements per tranche. Please see AEC-FAQ-38 for more details on AECs transferred in lieu of Bid Assurance Collateral.

Yes. If the RFP Bidder is awarded tranches in this RFP and wish to replace the AECs transferred in lieu of Bid Assurance Collateral, it may make its request to PPL Electric and must transfer AECs of the appropriate Product type, vintage, and quantity into PPL Electric’s GATS account(s) within five (5) business days of the approval of the bid results by the Pennsylvania Public Utility Commission. Please note both the AECs transferred in lieu of Bid Assurance Collateral and the AECs transferred after the Solicitation to replace the AECs transferred in lieu of Bid Assurance Collateral must be of the appropriate Product type, vintage, and quantity and follow the vintage requirements of the RFP. Please refer to Addendum 3 to the RFP Process and Rules for vintage requirements specific to the solicitation.

There are no material changes to the Alternative Energy Credits RFP Process and Rules between the July 2023 and January 2024 solicitations. A non-substantive change was made to the Alternative Energy Credits Supplier Master Agreement (“AEC SMA”) to update the communications address for PPL Electric Utilities Corporation on page 24 of the SMA. Update to AEC Supplier Master Agreement is posted on the “Documents” Section of the RFP website here.

The OBI Reference is a field to facilitate the identification of the wire transfer between the PPL Electric and the RFP Bidder. RFP Bidders are encouraged to provide an OBI Reference that would allow the RFP Bidder to easily identify the return of the cash collateral from PPL Electric.

In order for AECs to be eligible for the January 2025 AEC RFP, they must be an AEC with one of the following vintages: • June 1, 2023 - May 31, 2024 • June 1, 2024 - May 31, 2025 Please see Addendum 3 to the RFP Rules for more information.