AEC Rules

Yes, it is possible.

First, the bid evaluation process follows the Section 7.4.6 of the AEC RFP Rules, “The Bid Proposal Evaluation Team will, for each Product, consider all combinations of Bid(s) (across RFP Bidders) whose sum of Total Tranches Supplied is equal to the Available Tranches for that Product in that solicitation. … For each combination, the Bid Proposal Evaluation Team will calculate the 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 the Bid(s) contained in the combination with the lowest CAP. 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.

Since each bidding price corresponds to a total number of tranches and not a single tranche, it is possible that a non-awarded price bid is lower than the CAP. Please see the following example:

In this example, the winning combination is when Bidder A supplies 1 tranche and Bidder B supplies 2 tranches, and the CAP is $15.33. Even though Bidder A’s bid for two tranches is $15.00, lower than the CAP $15.33, it would not be included in the winning combination.

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 sixth default service program petition that was filed with and approved by the Pennsylvania Public Utility Commission (PUC) in Docket Number P-2024-3047290. 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.

The PA Tier 2 AEC product is only for immediate delivery. Winning suppliers must transfer AECs within 10 business days of PUC approval. There is no long-term product for PA Tier 2 AECs.

No, qualification documents signed under the prior DSP V are not acceptable. In addition, please refer to AEC-Rules-FAQ-3.

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.

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 ten (10) 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.

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-Rules-FAQ-24 for more details on AECs transferred in lieu of Bid Assurance Collateral.

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.

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.

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-Rules-FAQ-24 for more details on AECs transferred in lieu of Bid Assurance Collateral.

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.

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.

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.

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.

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 no later than the next business day following the PUC approval in the event the PUC approves the results prior to the expected decision date, or no later than the next business day following the expected decision date in the event the PUC does not 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 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.

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 that 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, assuming one tranche of Photovoltaic AEC Product corresponds to 1,280 AECs, if an RFP Bidder offers 6 Total Tranches Supplied for $20 per Photovoltaic AEC, then the RFP Bidder must provide that price quote for 6 Total Tranches Supplied in the Photovoltaic 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) Photovoltaic AECs regardless of what the CAP is.

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 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 1.1.9 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.

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 shall be paid under a firm price contract in which it will receive the price it bid for such Product.

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.

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, PA Tier 1 AECs that are sourced from outside of the State of Pennsylvania are acceptable. 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.

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, or no later than the next business day following the PUC approval in the event the PUC approves the results prior to the expected decision date, or no later than the next business day following the expected decision date in the event the PUC does not 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. 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.

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 a 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.

Yes, a combination of AECs Transfer in lieu of Bid Assurance Collateral and/or cash and/or an irrevocable Letter of Credit is acceptable for purposes of posting bid assurance collateral. 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 a Letter of Credit must equate to the second tranche. Further, the combination in aggregate must support the qualified RFP Bidder’s Bid Proposals.

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.

No. There shall be no adjustments to the delivery window.  The PPL Electric AEC RFP has been approved by the Pennsylvania Public Utility Commission (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 ten (10) business days of the approval of the bid results by the PUC.

To be clear, the AEC RFP is seeking AECs available for immediate transfer, not to contract for a long-term duration. PPL Electric also conducts Long-Term PA Solar AEC RFP (“LTAEC RFP”) concurrently to procure long-term supply of Photovoltaic AECs for a 20-year delivery period. Please see the Documents page of the LTAEC RFP here.

For each solicitation, information on the number of AECs per Tranche and vintage requirements can be found in RFP Addendum 3 issued at the start of the solicitation.

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.

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.

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).

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

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.  If you wish to receive wire transfer instructions prior to the Qualified Bidders Notified Date, please send an email to PPL-Procurement@NERA.com.

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)
• Demonstrates that it has a GATS account and 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 completed Electronic Funds Transfer Authorization Form as Appendix 8 and a W-9 Form, if applicable.

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

No, all Photovoltaic AECs and Tier 2 AECs must be generated from within Pennsylvania’s borders.

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 ability to meet 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.