PECOEnergyCompany

DefaultServiceProgram

RequestforProposals

Exhibit B

2

TABLEOFCONTENTS

ARTICLEI. INTRODUCTION ........................................................................................ 3I.1. Overview......................................................................................................................................................3I.2. ProductsandBids .......................................................................................................................................6I.3. Process .......................................................................................................................................................13I.4. Supplier’sObligations ...............................................................................................................................15

ARTICLEII. InformationandSchedule..........................................................................17II.1. RFPWebsite ..............................................................................................................................................17II.2. RFPSchedule .............................................................................................................................................18

ARTICLEIII. GeneralRequirementsforProposals ...........................................................20ARTICLEIV. Part1ProposalRequirements....................................................................25IV.1. ContactInformationandRepresentations ..............................................................................................25IV.2. FinancialRequirementsandAgencyAgreements ..................................................................................27IV.3. CreditInstrumentsandUniformSMA .....................................................................................................33IV.4. Representations ........................................................................................................................................36IV.5. ForeignRFPBiddersandForeignEntities ..............................................................................................39

ARTICLEV. Part2ProposalRequirements....................................................................45V.1. ContactInformationandRepresentations ..............................................................................................45V.2. Pre-BidLetterofCredit ............................................................................................................................48V.3. RFPBiddersRelyingontheFinancialStandingofanRFPGuarantor ..................................................49V.4. RFPBiddersRelyingontheFinancialStandingofanRFPPrincipal.....................................................51V.5. ForeignRFPBiddersandForeignEntities ..............................................................................................53

ARTICLEVI. BidSubmission ........................................................................................58ARTICLEVII. Process ...................................................................................................60VII.1. Part1andPart2Proposals:SubmissionandProcessing ......................................................................60VII.2. Bids:Submission,Processing,andEvaluation ........................................................................................70VII.3. Post-BidProcess........................................................................................................................................73VII.4. PersonnelandConfidentiality..................................................................................................................77

ARTICLEVIII. ReservedRights .......................................................................................79

Exhibit B

3

ARTICLEI. INTRODUCTION

I.1. Overview

I.1.1. Capitalizedtermsinthisdocument,whicharenotdefinedexplicitlyherein,aredefinedinthePECO

Energy Company - Pennsylvania Default Service Supplier Master Agreement (“Uniform SMA” or

“SMA”).TheUniformSMA isattachedasAppendix1tothisdocument.

I.1.2. Aspartofitsfourth DefaultServicePlan(“DSPIV”),PECOEnergyCompany(“Company” or“PECO”)

isproposingacompetitivebiddingprocesstoobtainfullrequirementssupplyfortheCompanyto

meet a portion of its obligations as Default Service Provider pursuant to Chapter 28 of the

PennsylvaniaPublicUtilityCode,66Pa. C. S.§§2801-2812. Thiscompetitivebiddingprocess is

consistentwithChapter28,withP.L.1592No.129(“Act129”),withthePennsylvaniaPublicUtility

Commission’s(“Commission” or“PaPUC”)DefaultServiceregulationsinitsFinalRulemakingOrder

inDocketNo.L-2009-2095604,andtheCommission’sFinalPolicyStatementonDefaultServicein

DocketNo.M-2009-2140580.

I.1.3. PECO currently provides electric generation service to all customerswithin its service territory

who do not select an electric generation supplier (“EGS”). Such customers are “Default Service

customers” or “DS Customers”. The competitive bidding processwould procure supply for the

periodbeginningJune1,2017whenPECO’sthirdDefaultServicePlan(“DSPIII”)expires.

I.1.4. The competitive bidding process will be conducted through a series of Requests for Proposals

(“RFPs”) issued twiceyearly. TheRFPconsistsofa totalof thirteen (13)documents. Thismain

documentiscalledthe“RFPRules” anditdescribeshowtheRFPwillbeconducted.Thefollowing

documentsareappendedto,andshallbeconsideredanintegralpartof,theRFPRules:

Appendix 1:UniformSMAAppendix2:AlternateGuarantyProcessAppendix3:IllustrativeStandardPart1FormAppendix4: IllustrativeShortPart1FormAppendix5:ChiefFinancialOfficerAttestationAppendix6:Officers’ Certificate(forRFPBiddersunderanAgencyAgreement)Appendix7:IllustrativeStandardPart2FormAppendix8:IllustrativeShortPart2FormAppendix9:StandardPre-BidLetterofCreditAppendix10:SampleBidFormAppendix11: TentativeScheduleforFutureSolicitations

Exhibit B

4

Appendix12: ConfidentialityStatement

I.1.5. DSP IV plans for the procurement of full requirements supply for three (3) “Classes” of Default

Service customers: the Residential (“RES”) Class, the Small Commercial (“SC”) Class, and the

Consolidated Large Commercial and Industrial (“CCI”) Class. Each such Class (or “DS Customer

Group”)isagroupofspecificrateschedulesasprovidedinthefollowingtable:

TableI-1.CustomerClasses.

Class CustomersIncludedRate

ScheduleDescription

Residential Allresidentialcustomers R ResidenceService

RH ResidentialHeatingService

Small Non-residentialcustomers GS GeneralService

Commercial withPeakLoadContribution HT High-TensionPower

uptoandincluding 100kW PD Primary– DistributionPower

and lightingcustomers AL AlleyLighting inCityofPhiladelphia

TLCL TrafficLightingConstantLoadService

POL PrivateOutdoorLighting

SL-E StreetLightingCustomer-OwnedFacilities

SL-S StreetLighting-SuburbanCounties

ConsolidatedLargeCommercialandIndustrial

Non-residentialcustomerswithPeakLoadContributiongreaterthan 100kW

GS GeneralService

HT High-TensionPower

PD Primary–Distribution Power

EP ElectricPropulsion

I.1.6. FortheRES andSCClasses,theCompanywillsolicitbidsfortheprocurementoffullrequirements

serviceonafixed-pricebasis.FortheCCIClass,theCompanywillsolicitbidsfortheprocurement

of full requirements servicewith energy priced to the PJM day-ahead spotmarket. The Default

Service supply (“Default Supply” or “DS Supply”) for a Class is the full requirements electricity

supply based on the load of the retail customers in that Class measured and recorded by the

CompanyandsettledbyPJM. TheloadoftheDefaultServicecustomersinaClass isthe“Default

Load” or “DS Load” of that Class. A supplier selected through the competitive bidding process

under DSP IV to provide Default Supply for a particular Class and approved by the Commission

becomesa“DefaultSupplier” or“DSSupplier”forthatClass.

Exhibit B

5

I.1.7. ADefaultServicecustomermaychoosetobeginreceivingservicefromanEGSonthecustomer’s

meter reading date in accordance with the Company’s standard switching requirements as

described in the Company’s Electric Generation Supplier Coordination Tariff including, without

limitation, prior advance notice to the Company. A customer served by an EGS may return to

DefaultServiceonthecustomer’smeterreadingdate inaccordancewiththeCompany’sstandard

switching requirementsasdescribed in theCompany’sElectricGenerationSupplierCoordination

Tariffincluding,withoutlimitation,prioradvancenoticetotheCompany.

I.1.8. There are eight (8) “solicitations” or “DS Solicitations” under DSP IV that will select electricity

suppliers toprovideDefault Supply for theperiod June1, 2017 throughMay31, 2021 and for a

portionoftheCompany’srequirementsforthe RESClassandSCClassforthe periodbeyondJune1,

2021. Each solicitationwill be identified by themonth and year in which the Bid Date occurs.

SolicitationswillbeheldinMarchandSeptemberofeachyear,startingwithasolicitationinMarch

2017 and endingwith a solicitation in September 2020. A typical schedule for a solicitation is

provided in Paragraph II.2.1. The Independent Evaluator and the Company may advise the

Commission to postpone or modify the schedule of a solicitation when market conditions are

impactedbyextraordinaryevents,suchastheadventofwar,terrorism,oranactofGod.

I.1.9. Foreachsolicitation,theseRFPRuleswillbeupdatedtoincludethedatesforthatsolicitationand

torefertotheparticularproductstobeprocuredinthatsolicitation.TheRFPRulesmaybefurther

updatedtoreflectadditionaldecisionsbytheCommission,relevantchangesinlaw,ornon-material

modifications to the processing of Proposals expected to improve potential participation by

suppliers. Additionally, theRFPRulesmaychangeasa resultof issues raised in the stakeholder

collaborativePECOwillholdinJanuary2018and,ifnecessary,inthefollow-upcollaborativetobe

heldinFebruary 2018.Further,theIndependentEvaluatorandtheCompanymayamendtheRFP

Rulesifnecessarytocorrecttypographicalerrors,cureinconsistenciesintheprovisionsofthisRFP,

orclarifytheintentoftheprovisionsofthisRFP.

I.1.10. The rates of Default Service customers for a Class are determined on the basis of the prices

determinedthroughthisRFPforthatClass,exceptforapproximately1% oftheDefaultLoadofthe

RESClass, forwhichPECO assumes responsibility. PECOacquires thenecessary supply through

Exhibit B

6

PJM-administeredmarketsandobtainingsufficientAlternative EnergyCredits(“AECs”)atmarket

prices to satisfyanynear-termobligationsunder theAEPSAct.Asprovided in theCommission’s

directivedatedOctober12,2010(DocketNo.M-2009-2082042),PECOprovidesaDefaultService

ratecalculationmodelthattranslatesthepricesdeterminedthroughthisRFPintoDefaultService

rates.ThiscalculationmodelispostedtothePECOwebsite:

https://www.peco.com/CustomerService/RatesandPricing/EnergyChoice/Pages/PricetoCompare.aspx

I.2. ProductsandBids

I.2.1. Default Load for each Class is divided into tranches. A tranche for a Class represents a fixed

percentageoftheDefaultLoadforthatClass. ADefaultSupplierservingatrancheina particular

ClassprovidesfullrequirementsserviceforthepercentageofthatClass’ DefaultLoadrepresented

bythatone(1)trancheforaspecifiedperiod.

I.2.2. ThetotalnumberoftranchesofDefaultLoadisbasedonthatClass’ annualPeakLoadContribution

(“PLC”)onthePECOsysteminaccordancewithPJM.TheMW-Measureiscalculatedastheannual

PLC for the Default Load of the Class divided by the total number of tranches. This figure is

calculatedforreferencepurposesonly.

I.2.3. EachClasshas“LoadCaps”,whichare limitsonthenumberof tranchesofDefaultSupplythatan

RFPBiddercanbidandserveforthatClass.TheLoadCapsensurethattherewillbeadiversified

poolofDefaultSuppliersforeachClass.TheLoadCapsforaClassaresetsothattheDefaultService

customersofthatClasshavenomorethana50%exposuretoanyoneDefaultSupplieratanygiven

time.IftwoormoreDefaultSuppliersareaffiliated,theLoadCapswillapplyjointlytosuchgroup

ofDefaultSuppliers.

I.2.4. Thetotalnumberoftranches,thepercentagesizeofeachtranche,theMW-Measureofeachtranche,

and theLoadCapsareshowninthefollowingtable.

TableI-2.NumberofTranchesandSizeofaTrancheforDefaultLoad.

ClassTotal

TranchesLoadCap

%SizeofaTranche

TotalPeak(MW)

DefaultPeak(MW)

MW-MeasureofaTranche

RES 62 31 1.60% 3,596.40 2,377.02 37.93

SC 24 12 4.17% 1,387.99 539.42 22.48

CCI 8 4 12.50% 2,318.29 83.76 10.47

Exhibit B

7

I.2.5. ThetotalnumberoftranchesandthetranchesizefortheSCandCCI Classesaresubjecttochange.

TheIndependentEvaluatorandPECOmayrevisethetotalnumberoftranchesforaClassifdoingso

isexpectedtoincreasesupplierinterest. TheIndependentEvaluatorinformsCommissionStaffof

such a revision and announces the revision to suppliers in advanceof supplierspresenting their

qualifications.

I.2.6. TheactualDefaultLoadfortheRES,SC,orCCIClass willdependuponmanyfactorsincluding,but

notlimitedto,customermigrationtoEGSsandweatherconditions. Themaximumpeakloadofa

ClassmaybehigherorlowerthanthePLCutilizedtodeterminetheMW-Measureoftranchesfor

that Class.EachparticipantisresponsibleforevaluatingtheuncertaintiesassociatedwithDefault

ServiceLoadforaparticularClassandsupplyperiod.

I.2.7. A product for purposes of this RFP is defined by three characteristics: a) the Class to which it

contributesDefaultSupply;b)thelengthofthesupplyperiod;andc)thedateatwhichthesupply

periodbegins.Forexample,theRES-12-Jun17productrepresentsDefaultSupplyfortheRESClass

for the supply period from June 1, 2017 through May 31, 2018. A product name may be

abbreviatedwhenthecontextisclear;forexample,RES-12referstoallproductsfortheResidential

Classthat aretwelve(12)monthsinduration,regardlessofthestartdateofthesupplyperiod.

I.2.8. AProposalisaresponsetothisRFPforasolicitationpursuanttotheseRFPRules.Anentitythat

submitsanypartofaresponsetothisRFPforasolicitationis an“RFPBidder”.ABidforatranche

for anyproduct is a price indollarsperMWh rounded to the nearest cent. AnRFPBiddermay

submitdifferentBidsfordifferenttranchesofagivenproduct.

I.2.9. ThetablebelowprovidestheproductsthatwillbeprocuredforeachsolicitationunderDSPIV.

Exhibit B

8

TableI-3.ScheduleofProcurementforProducts.

Product

Solicitation

March2017

September2017

March2018

September2018

March2019

September2019

March2020

September2020

RES-12-Jun17 12 0 0 0 0 0 0 0

RES-24-Jun17 11 0 0 0 0 0 0 0

RES-12-Dec17 0 12 0 0 0 0 0 0

RES-24-Dec17 0 9 0 0 0 0 0 0

RES-12-Jun18 0 0 12 0 0 0 0 0

RES-24-Jun18 0 0 9 0 0 0 0 0

RES-12-Dec18 0 0 0 12 0 0 0 0

RES-24-Dec18 0 0 0 9 0 0 0 0

RES-12-Jun19 0 0 0 0 12 0 0 0

RES-24-Jun19 0 0 0 0 11 0 0 0

RES-12-Dec19 0 0 0 0 0 12 0 0

RES-24-Dec19 0 0 0 0 0 9 0 0

RES-12-Jun20 0 0 0 0 0 0 12 0

RES-24-Jun20 0 0 0 0 0 0 9 0

RES-12-Dec20 0 0 0 0 0 0 0 12

RES-24-Dec20 0 0 0 0 0 0 0 9

SC-12-Jun17 9 0 0 0 0 0 0 0

SC-24-Jun17 3 0 0 0 0 0 0 0

SC-12-Dec17 0 9 0 0 0 0 0 0

SC-24-Dec17 0 3 0 0 0 0 0 0

SC-12-Jun18 0 0 6 0 0 0 0 0

SC-24-Jun18 0 0 3 0 0 0 0 0

SC-12-Dec18 0 0 0 6 0 0 0 0

SC-24-Dec18 0 0 0 3 0 0 0 0

SC-12-Jun19 0 0 0 0 6 0 0 0

Exhibit B

9

Product

Solicitation

March2017

September2017

March2018

September2018

March2019

September2019

March2020

September2020

SC-24-Jun19 0 0 0 0 3 0 0 0

SC-12-Dec19 0 0 0 0 0 6 0 0

SC-24-Dec19 0 0 0 0 0 3 0 0

SC-12-Jun20 0 0 0 0 0 0 6 0

SC-24-Jun20 0 0 0 0 0 0 3 0

SC-12-Dec20 0 0 0 0 0 0 0 6

SC-24-Dec20 0 0 0 0 0 0 0 3

CCI-12-Jun17 8 0 0 0 0 0 0 0

CCI-12-Jun18 0 0 8 0 0 0 0 0

CCI-12-Jun19 0 0 0 0 8 0 0 0

CCI-12-Jun20 0 0 0 0 0 0 8 0

I.2.10. TheLoadCapsapplytoall productsthatcontributetoDefaultSupplyforaClassatagivenpointin

time.ThetablebelowprovidestheproductsprocuredunderDSPIII andproductstobeprocured

under DSP IV that contribute to Default Supply for that Class during that time period and that

shouldbeconsideredindeterminingwhetherLoadCapsapplytoaparticularDefaultSupplier. The

productsprocuredunderDSPIII areitalicized.Forexample,atanygivenpointintimeintheperiod

from June 1, 2018 to November 30, 2018, the Default Supply for the RES Class includes the

following products: RES-24-Dec16 and RES-24-Jun17 and RES-12-Dec17 and RES-24-Dec17 and

RES-12-Jun18andRES-24-Jun18.

Exhibit B

10

TableI-4.LoadCaps.

Class TimePeriodProductsthatcontributetoDefaultSupply

duringtimeperiod

FromDSPIII FromDSPIV

RES

Jun-Nov17

RES-24-Dec15RES-24-Jun16RES-12-Dec16RES-24-Dec16

RES-12-Jun17RES-24-Jun17

Dec17-May18RES-24-Jun16RES-24-Dec16

RES-12-Jun17RES-24-Jun17RES-12-Dec17RES-24-Dec17

Jun-Nov18 RES-24-Dec16

RES-24-Jun17RES-12-Dec17RES-24-Dec17RES-12-Jun18RES-24-Jun18

Dec18-May19

RES-24-Jun17RES-24-Dec17RES-12-Jun18RES-24-Jun18RES-12-Dec18RES-24-Dec18

Jun-Nov19

RES-24-Dec17RES-24-Jun18RES-12-Dec18RES-24-Dec18RES-12-Jun19RES-24-Jun19

Dec19-May20

RES-24-Jun18RES-24-Dec18RES-12-Jun19RES-24-Jun19RES-12-Dec19RES-24-Dec19

Jun-Nov20

RES-24-Dec18RES-24-Jun19RES-12-Dec19RES-24-Dec19RES-12-Jun20RES-24-Jun20

Dec20-May21

RES-24-Jun19RES-24-Dec19RES-12-Jun20RES-24-Jun20RES-12-Dec20RES-24-Dec20

SC

Jun-Nov17 SC-12-Dec16SC-12-Jun17SC-24-Jun17

Dec17-May18

SC-12-Jun17SC-24-Jun17SC-12-Dec17SC-24-Dec17

Exhibit B

11

Class TimePeriodProductsthatcontributetoDefaultSupply

duringtimeperiod

FromDSPIII FromDSPIV

Jun-Nov18

SC-24-Jun17SC-12-Dec17SC-24-Dec17SC-12-Jun18SC-24-Jun18

Dec18-May19

SC-24-Jun17SC-24-Dec17SC-12-Jun18SC-24-Jun18SC-12-Dec18SC-24-Dec18

Jun-Nov19

SC-24-Jun18SC-12-Dec18SC-24-Dec18SC-12-Jun19SC-24-Jun19

Dec19-May20

SC-24-Dec18SC-12-Jun19SC-24-Jun19SC-12-Dec19SC-24-Dec19

Jun-Nov20

SC-24-Jun19SC-12-Dec19SC-24-Dec19SC-12-Jun20SC-24-Jun20

Dec20-May21

SC-24-Dec19SC-12-Jun20SC-24-Jun20SC-12-Dec20SC-24-Dec20

CCI Any CCI-12

I.2.11. TheRFPRulesforeachsolicitationwillcontainatablewiththeavailabletranchesandLoadCaps

forthatsolicitationspecificallyaswellasanexplanationoftheLoadCapsforthatsolicitation.This

ParagraphincludesasanexampletheexplanationfortheLoadCapsintheMarch2017Solicitation

withtheassociatedtables below:

TheLoadCapfortheRESClasswillapplyasfollows. AnRFPBidderislimitedto31tranchesof

the RES-24-Dec15, RES-24-Jun16, RES-12-Dec16, RES-24-Dec16, RES-12-Jun17, and RES-24-

Jun17 products combined, including tranches of RES-24-Dec15, RES-24-Jun16, RES-12-Dec16,

Exhibit B

12

andRES-24-Dec16wonunderDSPIII andtranchesbid forRES-12-Jun17andRES-24-Jun17 in

thissolicitation.

TheLoadCapfortheSCClasswillapplyasfollows.AnRFPBidderislimitedto12tranchesfor

the SC-12-Dec16, SC-12-Jun17, and SC-24-Jun17 products combined, including tranches of SC-

12-Dec16 woninDSPIIIandtranchesbidforSC-12-Jun17andSC-24-Jun17 inthissolicitation.

TheLoadCapfortheCCI Classwillapplyasfollows.Inthissolicitation,anRFPBidderislimited

to4tranchesfortheCCI-12-Jun17product.

TableI-5.AvailableTranchesand LoadCaps (March2017Solicitation; RESClass).

ProductsAvailable

Tranches

LoadCapsApplytoanRFPBidder

WhenanRFPBidderHas:LoadCapsforRESClass

RES-12-Jun17 12

Wonmorethan19RES-24-Dec15,

RES-24-Jun16,RES-12-Dec16,and

RES-24-Dec16tranchesunderDSPIII31lessRES-24-Dec15,RES-

24-Jun16,RES-12-Dec16,

andRES-24-Dec16tranches

wonunderDSPIIIRES-24-Jun17 11

Wonmorethan20 RES-24-Dec15,

RES-24-Jun16,RES-12-Dec16,and

RES-24-Dec16tranchesunderDSPIII

TableI-6.AvailableTranchesandLoadCaps(March2017Solicitation; SC andCCI Classes).

ProductsAvailable

Tranches

LoadCapsApplytoanRFP

BidderWhenanRFPBidderHas:LoadCaps

SC-12-Jun17 9Wonmorethan3SC-12-Dec16

underDSPIII12lessSC-12-Dec16 tranches

wonunderDSPIII

SC-24-Jun17 3Wonmorethan9SC-12-Dec16

underDSPIII

CCI-12-Jun17 8 LoadCapsapplyalways 4

I.2.12. AsupplierparticipatinginthisRFPbidstoprovideDefaultSupplyforoneormoreoftheRES,SC,

andCCI Classes,and foroneormoresupplyperiods. Theobligationsof theDefaultSupplierare

described in the “Uniform SMA”. The term Uniform SMA is an abbreviation for PECO Energy

CompanyPennsylvaniaDefaultServiceSupplierMasterAgreement,whichmayalsobeabbreviated

Exhibit B

13

by“SMA”,“DSSupplierMasterAgreement”or“SupplierMasterAgreement”.Themainprovisionsof

theUniformSMA aresummarizedinSectionI.4.

I.2.13. ThecontingencyplanintheeventthatPECOisunabletoobtainDefaultSupplyforall tranchesofa

productinasolicitationisasfollows.Iftheproductismorethansix(6)monthsinduration,PECO

willassumeresponsibilityfortheunfilledtranchesasaPJMLSE forthefirstsix(6)monthsofthe

supply period, acquiring the necessary supply through PJM-administeredmarkets and obtaining

sufficient AECs at market prices to satisfy any near-term obligations under the AEPS Act. The

unfilled tranches, with a supply period that starts six (6)months later than tranches that were

unfilled,willbeplacedforre-bid inthenextsolicitation. Forproductsthataresix(6)monthsor

shorter, PECOwill assume responsibility for theunfilled tranches as an LSEandwill acquire the

necessarysupplythroughPJM-administeredmarketsfortheentiresupplyperiod. PECOreserves

therighttofileanalternateplanwiththeCommission.

I.2.14. AnyprospectivesupplierthatmeetsthequalificationstandardsestablishedintheseRFPRules and

thatiswillingtoprovidepricesatwhichtoservetranchesofDefaultServiceLoadcanrespondto

thisRFP,includingany PECOaffiliates.

I.3. Process

I.3.1. Priortoatypicalsolicitation,asupplierunabletousetheGuarantyprovidedasAppendix Gtothe

UniformSMA (the“StandardGuaranty”)canrequestconsiderationbyPECOofanalternateformof

guarantythatthesupplierusesinitsnormalcourseofbusiness.Suchrequestmustbereceivedno

laterthanfifteen(15)businessdayspriortotheopeningofthePart1Window. Withinthree(3)

business days of receipt of such a request, the Independent Evaluator will issue a timetable for

receiptofthematerials fromthesupplierandforconsiderationofthesematerialsbyPECO. This

timetablewill be such that a final decisiononwhether to accept the supplier’s alternate formof

guarantywillbecommunicatedtothesupplierpriortothePart1Window.

I.3.2. To qualify for a typical solicitation, suppliers provide materials to respond to the qualification

standardsdescribedinArticleIV.RFPBiddersthatdidnotqualifyinaprevioussolicitationunder

DSPIVusetheStandardPart1FormavailableonlinethroughtheProposalsubmissionwebsiteto

Exhibit B

14

respond to these qualification standards. Previously qualified RFP Bidders under DSP IV may

participateinanabbreviatedqualificationprocessbyusingtheShortPart1Formavailableonline

through the Proposal submission website to respond to these qualification standards. An

IllustrativeStandardPart1FormandanIllustrative ShortPart1FormareavailableasAppendix3

andAppendix 4 respectively to theseRFPRules and are also available electronically on theRFP

website: www.PECOProcurement.com. The generic term “Part 1 Form” refers either to the

StandardPart1FormortheShortPart1Form.Part1Proposalsaresubmittedduringthe“Part1

Window”.

I.3.3. Tobecomeeligibletobidforasolicitation,RFPBiddersthathavemetthequalificationstandardsof

Article IVmust respond to thePart 2Proposal requirementsdescribed inArticleV of theseRFP

Rules. RFPBiddersusethePart2FormavailableonlinethroughtheProposalsubmissionwebsite

torespondtotheserequirements. RFPBiddersthatbecameeligibletosubmitBids inaprevious

solicitationheldunderDSPIVmayparticipateinanabbreviatedprocessbyusingtheShortPart2

FormavailableonlinethroughtheProposalsubmissionwebsitetorespondtotheserequirements.

Thegenericterm“Part2Form”referseithertotheStandardPart2FormortheShortPart2Form.

Part2Proposalsaresubmittedduringthe“Part2Window”.

I.3.4. RFP Bidders use the Bid Form provided by the Independent Evaluator to submit their Bids. A

sampleBidFormisprovidedforillustrativepurposesasAppendix10 oftheseRFPRules.EachRFP

Bidder’s Bids must be received between 10 AM and 12 PM (noon) on the “Bid Date” or “Bid

ProposalDueDate”.

I.3.5. OnthefirstbusinessdayaftertheBidDate,theIndependentEvaluatorpresentstotheCommission

theresultsofthesolicitationinaconfidentialreport.TheCommission hasone(1)businessdayto

considerthereportoftheIndependentEvaluatorandtoapproveorrejecteachofthewinningBids.

IfthePaPUCdoesnotactwithinone(1)businessday,thewinningBidsaredeemedtobeapproved.

I.3.6. PECO and each RFP Bidder with Bids that are approved by the Commission proceed to the

executionoftheUniformSMA andtheTransactionConfirmationswithinone(1)businessday ofthe

Commissiondecision. PECOandeachsuchRFPBidderexecutea singleUniformSMA during the

courseofDSP IV. Eachsolicitation,PECOandeachsuch RFPBidderexecuteone(1)Transaction

Exhibit B

15

Confirmation for each product for which such RFP Bidder has Bids that are approved by the

Commission.AppendixEtotheUniformSMA specifiestheAEPSpercentageobligationsineffecton

theBidDatefortheperiodcoveredbyeachTransactionConfirmation.

I.3.7. Within fifteen (15) days of the close of the solicitation, the Independent Evaluator releases the

weightedaveragepriceforeach productprocured aswellasthepercentageofloadrepresentedby

eachtranche.

I.4. Supplier’s Obligations

I.4.1. AsupplierselectedthroughthisRFPtoprovideDefaultSupplyforaparticularClassandapproved

by the Commission becomes a “Default Supplier” for that Class. A Default Supplier may be

providingDefaultSupplyforoneormoreoftheRES,SC,andCCI Classes.

I.4.2. ThisSectiondescribesingeneraltermsseveralprovisionsoftheUniformSMA.Thisisasummary

onlyandissubjecttoandqualifiedin itsentiretybytheUniformSMA providedasAppendix1to

theRFPRules. EachRFPBidderaccepts theobligationsandassociated rights toprovideDefault

SupplyasdefinedintheUniformSMA aspartofitsProposal.

I.4.3. DefaultSuppliersforaClasswillservetheCompany’sDefaultLoadforthatClass. DefaultService

for oneof theseClasses is theCompany’s full requirements service including,without limitation,

energy, capacity, transmission (excluding Network Integration Transmission Service), ancillary

services,AECsforcompliancewiththeAEPSAct,transmissionanddistributionlosses,congestion

management costs, and such other services or products that are required to serve the specified

percentageofDefaultLoadforthatClass(exceptfor distributionservice). DefaultLoadfortheRES

Class is reduced by a fractional percentage of committed energy and capacity obtained under

contractwithAlleghenyElectricCooperative,Inc.forsupplyfromtheNewYorkPowerAuthority.

I.4.4. Default Suppliers are also responsible for providing AECs during the term of the Uniform SMA

necessaryforPECOtomeetitsobligationsundertheAEPSAct,aswellasotherOrders,regulations

andrulesthatmaybepromulgatedbythePaPUCwithrespecttotheAEPS.DefaultSupplierswill

be required to participate in the PJMGenerationAttribute Tracking System (“PJM-EISGATS”) to

transfer AECs to PECO. The Company will provide an estimate of the Default Supplier’s AEPS

Exhibit B

16

obligationfollowingthesecondquarteroftheAEPSReportingPeriodandtheDefaultSupplierwill

berequiredtotransferAECstoPECOintheamountoftheestimatewithinforty-five(45)calendar

days of the date of that estimate. The Company will provide a final statement to the Default

Supplier within thirty (30) calendar days of the end of AEPS Reporting Period and the Default

Supplierwill be required to transferAECs in the amount of the final statementwithin forty-five

(45)calendardaysafterthedateofthefinalstatement.

I.4.5. ADefault Supplier that fails to provide sufficient AECs for a tranchewill be required to pay any

AEPS penalties, costs, charges, etc. assessed against the Default Supplier and/or the Company

associatedwiththeDefaultSupplier’snon-performancewithAEPSrequirements.

I.4.6. PECO has obtained AECs from separate AEPS procurement(s) approved by the Commission and

PECO will reduce the amount of AECs that Default Suppliers must provide. Prior to each

solicitation, PECOwill informRFPBiddersof the amounts ofAECs allocated for thispurpose for

eachtrancheofeachproductforwhichDefaultSupplyisprocuredinthatsolicitation.

I.4.7. A DefaultSupplierforaproductwillbepaidasupplier-specificpriceforeachMWhofelectricload

servedasspecifiedintheTransactionConfirmationforthatproduct.Thesupplier-specificpricefor

aDefaultSupplierforaproductwillbetheaverageofapprovedBidsforthatDefaultSupplier and

for that product. ThePJMday-aheadprice for energy and theReliability PricingModel (“RPM”)

priceforcapacity arealsopaidtoaDefaultSupplierprovidingfullrequirementsserviceonaspot-

pricebasis.

I.4.8. TheDefault Supplierwill specify in the Transaction Confirmation the price of each type of AECs

includedinitssupplier-specificprice.

I.4.9. PECO will transfer or assign Auction Revenue Rights (“ARRs”) to each Default Supplier in

proportionto thepercentageofDefaultLoadthat it serves. ADefaultSupplierwillparticipate in

the PJM process for the nominations of ARRs to the extent that the supply period under the

Transaction Confirmation is inclusive of the PJM Planning Period for which the ARRs are

nominated;otherwise,PECOwillparticipateinthePJMARRnominationprocess.

Exhibit B

17

ARTICLEII. InformationandSchedule

II.1. RFPWebsite

II.1.1. PECOand its Independent Evaluatorhave established anRFPwebsite that is themain sourceof

information.RFPBiddersandotherstakeholderscanvisitthisRFPwebsite toobtaininformation

anddocumentsrelatedtothisRFP.TheRFPwebsite addressiswww.PECOProcurement.com.

II.1.2. TheRFPwebsite containsthesectionsdescribedbelow.Newsectionsmaybeaddedasnecessary

toassistRFPBidders.

Home: This section provides announcements of interest toRFPBidders and to other interested

parties,anoutlineoftheRFPprocess,asearchfunction,andasummaryofimportantdates.

Background: Thesesectionsprovidebackgroundinformationontheregulatoryprocess,theresults

of previous solicitations and archives of documents. FAQs and announcements from previous

solicitationsareprovidedforreferencepurposesonly.

Supplier Information: This section provides documents regarding theRFP aswell as frequently

asked questions (“FAQs”), and RFP-related announcements. All stakeholders, including RFP

Bidders,areabletoaskquestionsviaawebform.TheIndependentEvaluatorprovidesananswer

tothequestionviaemailtothequestioner,andacopyofthequestionandanswerispostedsothat

all stakeholders and RFP Bidders have access to the same information. Aspects of the question

and/oranswerthatmightidentifythepartyaskingthequestionare removedbeforeposting tothe

extentpractical.

DataRoom:Thissectionprovideshistoricaldatatoassistprospectivesuppliers.LinkstothePJM

website andrelateddocumentscanalsobefoundinthissection.

Calendar: This section provides the timeline for the main events in the current and upcoming

solicitations.

Contact Us: This section gives any stakeholder an opportunity to register its email address to

receive updates and announcements regarding this RFP. The section also provides the contact

information for the Independent Evaluator, an electronic web form to submit questions to the

Exhibit B

18

IndependentEvaluator,andawebformforprospectivesupplierstoregisterforbidderinformation

sessions.

II.2. RFPSchedule

II.2.1. Eachsolicitationwillfollowtheorderofeventsinthegeneralschedule providedbelow.

TableII-1. General Schedule.

Event Timing

Deadlinetorequestconsiderationofanalternateformofguaranty

Day-15

BidderInformationWebcast Day-7

Decisiononalternateguarantyforms (ifany) Day-2

Part1WindowOpens Day0

Part1Date(Part1WindowCloses) Day4

Part1NotificationDate Day6

ApprovedmodificationstoStandardGuarantyposted Day7

Part2ProposalWindowOpens Day7

BidSubmissiontraining Day8

Part2Date(Part2WindowCloses) Day11

Part2NotificationDate Day13

BidDate(BidsareDue) Day14

IEprovidesitsreporttothePaPUC Day15

PaPUCDecision(closeofbusiness) NolaterthanDay16

IfBidsareapprovedbythePaPUC:

PECOandeachwinningRFPBidderproceed toexecutionoftheUniformSMA andeachTransactionConfirmation

WithinthreebusinessdaysoftheBidDate

II.2.2. A total of eight (8) solicitations are planned under DSP IV. The Bid Dates for each of the

solicitationsareprovidedbelow.

TableII-2.BidDates.

Solicitation BidDates

March2017 Tuesday,March14,2017

September2017 Tuesday,September26,2017

March2018 Tuesday,March13,2018

September2018 Tuesday,September25,2018

March2019 Tuesday,March12,2019

September2019 Tuesday,September24,2019

March2020 Tuesday,March10,2020

September2020 Tuesday,September29,2020

Exhibit B

19

II.2.3. The date for each event in each solicitation is provided in the Tentative Schedule for Future

Solicitationsattached asAppendix11 totheseRFPRules.Thedatesfollowtheorderofeventsand

the number of days between events in the general schedule above except as needed to

accommodateholidays.The scheduleforasolicitationmaybeamendedifcircumstanceswarrant.

Anysuchamendments willbepostedtotheRFPwebsite.

II.2.4. Specific times for submissionofmaterials for thePart 1Proposals, thePart2Proposals, and the

Bidsareprovidedelsewherein thisRFP.AllsuchtimesareEasternPrevailingTime(“EPT”) unless

specificallynoted.

Exhibit B

20

ARTICLEIII. GeneralRequirementsforProposals

III.1.1. AnentitythatsubmitsanypartofaresponsetothisRFPforasolicitationisan“RFPBidder”. An

RFPBiddercansubmitatmostonePart1ProposalandonePart2Proposal foreachsolicitation.

An RFP Bidder that qualifies for a solicitation by submitting a Part 1 Proposal that fulfills all

requirements described in Article IV and that submits a Part 2 Proposal that fulfills all the

requirements described in Article V is eligible to submit Bids in that solicitation. Aside from

submissionoffinancialguaranteestosupportitsBids,allmaterialsforthePart1Proposalsandall

Part2Proposalsare submitted to the IndependentEvaluatoronline through theonlineProposal

submissionwebsiteinaccordancewiththeinstructionsprovidedinArticleVII.

III.1.2. ThesubmissionofaPart1ProposaloraPart2ProposaltotheIndependentEvaluatorconstitutes

the RFP Bidder’s acknowledgement and acceptance of all the terms and conditions of this RFP,

regardlessoftheoutcomeofthesolicitationortheoutcomeofsuchProposal.

III.1.3. EachsolicitationwillhaveaPart1WindowduringwhichPart1Proposalsmaybesubmitted.The

lastday of thePart1Window is the “Part1Date”. The requirementsof thePart 1Proposalare

described in Article IV. “Previously qualified RFP Bidder” means an RFP Bidder that met the

qualificationstandardsinaprevioussolicitationunderDSPIVbysubmittingaPart1Proposalthat

fulfilledalltherequirementsofArticleIV.ApreviouslyqualifiedRFPBiddermayparticipateinan

abbreviatedPart1Proposalprocess. Asupplierselectedthroughthecompetitivebiddingprocess

under DSP IV to provide Default Supply for a particular Class and approved by the Commission

becomesaDefaultSupplierforthatClass.

III.1.4. Theexclusivemethod foranRFPBiddertocompletethePart 1Proposalistosubmit theonlinePart

1 Form aswell as provide Inserts to the Part 1 Form available as separateWord Forms on the

Proposal submission website or from the Independent Evaluator. Documents (supporting

documents,draftLetterofCreditordraftStandardGuaranty,andInserts)maybeuploadedtothe

Proposal submission website or sent to the Independent Evaluator by email at

PECOProcurement@nera.com.

Exhibit B

21

III.1.5. Each RFP Bidder must comply with all Part 1 Proposal requirements described in Article IV.

SectionIV.1 describesthecontactinformationandrepresentationsrequired.SectionIV.2 describes

financial requirements including requirements thatapply toRFPBidders relyingon the financial

standing of an RFP Guarantor and additional requirements applicable only to RFP Bidders

submittingaProposalunderanAgencyAgreement. Section IV.3describes theprocessbywhich

RFPBiddersmayproposemodificationstothecredit instruments(theStandardPre-Bid Letterof

Credit, the Standard Post-Bid Letter of Credit, and the Standard Guaranty) and describes the

informationthatanRFPBidder is askedtoprovide fortheIndependentEvaluator topreparethe

Uniform SMA documents should the Independent Evaluator identify one or more of the RFP

Bidder’s Bids to the Commission as winning Bids. Section IV.4 describes the representations

required. Section IV.5 listsadditionalrequirementsapplicableonly toRFPBidders thathavenot

been incorporated or otherwise formed under the laws of a state of the United States or of the

DistrictofColumbia(“ForeignRFPBidders”),ortoRFPBiddersthatrelyonthefinancialstanding

ofanentity thathasnotbeen incorporatedorotherwise formedunder the lawsofa stateof the

United States or of theDistrict of Columbia (“Foreign Entity”). Eachof the SectionsofArticle IV

explains theabbreviatedPart1Proposalprocess inwhichpreviouslyqualifiedRFPBiddersmay

participate.

III.1.6. The Independent Evaluator informs each RFP Bidder of whether it has met all qualification

standardsofArticle IV throughaPart1Notification that the IndependentEvaluatorsends to the

RFPBidderby thePart1NotificationDate. The IndependentEvaluator transmitswithin two(2)

business days of the Part 1 Notification Date to each RFP Bidder that has a successful Part 1

Proposalanumberofdocumentsandinstructions,calledthe“Part1Materials”.

III.1.7. All information provided and certifications made in the Part 1 Proposal must remain valid and

remain in full force and effect until six (6) business days after the Bid Date. Regardless of the

reason,ifanyinformationprovidedinthePart1Proposalchangesoranypreviouscertificationfails

toremainvalid,itisthesoleresponsibilityoftheRFPBiddertonotifytheIndependentEvaluatoras

soon as practicable. Failing to do somay result in disqualification of the RFP Bidder and of its

Exhibit B

22

Proposal. The Independent Evaluator reserves the right to change the assessment of an RFP

Bidder’squalificationsbasedonanyrevisedinformationprovidedbytheRFPBidder.

III.1.8. EachsolicitationwillhaveaPart2WindowduringwhichPart2Proposalsmaybesubmitted.The

lastdayofthePart2Windowis the“Part2Date”.RFPBiddersalsohavetheoptiontosubmitthe

Part 2 Form during the Part 1 Window for early processing. The requirements of the Part 2

Proposalaredescribed in ArticleV. “Previously eligibleRFPBidder” meansanRFPBidder that

becameeligibletosubmitBidsinaprevioussolicitationheldunderDSPIVbysubmittingaPart1

Proposalthat fulfilledall therequirementsofArticleIV anda Part2Proposalthat fulfilledall the

requirementsofArticleV.ApreviouslyeligibleRFPBiddermayparticipateinanabbreviatedPart

2Proposalprocess.

III.1.9. TheexclusivemethodforanRFPBidderto completethePart2Proposalistosubmit theonlinePart

2Formaswell asprovide anexecuted Pre-BidLetter ofCredit. Anydocuments requiredby the

Part2Proposalmaybeuploadedto theProposalsubmissionwebsite orsent to the Independent

EvaluatorbyemailatPECOProcurement@nera.com.

III.1.10. EachRFPBiddermustcomplywithallPart2ProposalrequirementsdescribedinArticleV.Section

V.1 describesthecontactinformationandrepresentationsrequiredbythePart2Proposal.Section

V.2 describes thePre-BidLetterofCreditrequiredtosupport theRFPBidder’sBids. SectionV.3

listsadditionalrequirementsforRFPBiddersrelyingonthefinancialstandingofanRFPGuarantor.

Section V.4 lists additional requirements applicable only to RFP Bidders submitting a Proposal

underanAgencyAgreement. SectionV.5 listsadditionalrequirementsapplicableonlytoForeign

RFPBiddersortoRFPBiddersthatrelyonthefinancialstandingofaForeignEntity. Eachofthe

SectionsofArticleV explainstheabbreviatedPart2Proposalprocessinwhichpreviouslyeligible

RFPBiddersmayparticipate.

III.1.11. The Independent Evaluator informs each RFP Bidder of whether it has met all qualification

standardsofArticleIV andallrequirementsofArticleV sothatitiseligibletosubmitBidsthrough

aPart2Notification.TheIndependentEvaluatorsendsthePart2NotificationtotheRFPBidderby

thePart2NotificationDate.

Exhibit B

23

III.1.12. All information provided and certifications made in the Part 2 Proposal must remain valid and

remain in full force and effect until six (6) business days after the Bid Date. Regardless of the

reason,ifanyinformationprovidedinthePart2Proposalchangesoranypreviouscertificationfails

toremainvalid,itisthesoleresponsibilityoftheRFPBiddertonotifytheIndependentEvaluatoras

soon as practicable. Failing to do somay result in disqualification of the RFP Bidder and of its

Proposal. The Independent Evaluator reserves the right to change the assessment of an RFP

Bidder’seligibilitytosubmitBidsbasedonanyrevisedinformationprovidedbytheRFPBidder.

III.1.13. Foragivensolicitation,allrepresentationsandcertificationsrequiredbythisRFPmustbemadeby

a single individualwho serves as Officer of the RFP Bidder. An Officer of the RFP Bidder is an

individual authorized to undertake contracts (including the Uniform SMA) and bind that RFP

Bidder. As a requirement of the Part 1 Proposal, the RFPBiddermust name an individualwho

servesasOfficer of theRFPBidderandmustprovide full contact information for this individual.

TheOfficeroftheRFPBiddermaysignallrepresentationsandcertificationsofthePart1Formand

Part2FormatonetimeandRFPBiddershavetheoptiontosubmitcertificationsrequiredbythe

Part2FormduringthePart 1Windowforearlyprocessing.

III.1.14. The Officer of the RFP Bidder named in the Part 1 Proposalwill sign, or will nominate another

authorizedindividualtoexecute theUniformSMA aswellasanyTransactionConfirmationsifany

oftheRFPBidder’sBidsareapprovedbytheCommission.

III.1.15. EachRFPBiddermust complywith the instructions for the submissionofBidsprovidedwith its

Part1Notification. ArticleVI describes ingeneral terms the requirements for the submissionof

Bids.

III.1.16. Proposals that do not adhere to the terms and conditions of this RFP, or that do not fulfill all

requirements of Article IV, Article V, and Article VI of this RFP, or that are not submitted in

accordancewith theprocessofArticleVII or inaccordancewith theinstructionsprovidedby the

IndependentEvaluatorinanaddendumtotheseRFPRules, willnotbeconsidered.

III.1.17. The Independent Evaluator will send to each RFP Bidder that submitted a successful Part 1

Proposal in a previous solicitation under DSP IV an email confirming its status as a previously

qualifiedRFPBidder.SuchRFPBiddermayparticipate inanabbreviatedPart1Proposalprocess.

Exhibit B

24

The Independent Evaluator will send to each RFP Bidder that submitted a successful Part 1

Proposal and a successful Part 2 Proposal in a previous solicitation under DSP IV an email

confirming its statusasapreviouslyeligibleRFPBidder. SuchRFPBiddermayparticipate inan

abbreviatedPart1ProposalprocessandanabbreviatedPart2Proposalprocess.

III.1.18. TheRFPBidder,atitsowncostandexpense,shalldefendPECO,andtheIndependentEvaluatorand

theirsubsidiaries,affiliates,successorsandassigns,andeachandeveryoneoftheirrespectivepast,

present,orfutureofficers,directors, trustees,employees,shareholders,executors,administrators,

successorsandassigns,otherthanentitiesthatarealsoRFPBidders,againstanyandallmannerof

past, present, or future claims, demands, disputes, controversies, complaints, suits, actions,

proceedings,orallegationsofanykindwhichinanymannerrelateto,ariseoutof,orresult from

anyfalsestatementintheProposalorbreachofanycovenantbytheRFPBiddersetforth herein.

TheRFPBiddershallindemnifyandholdharmlessPECO,theIndependentEvaluator,theirparent

companies, subsidiaries, affiliates, successors and assigns, and each and every one of their

respectivepast,present,orfutureofficers,directors,trustees,employees,shareholdersandagents,

aswellastheheirs,executors,administrators,successorsandassigns,otherthanentitiesthatare

RFPBidders, against any and all liens, judgments, liabilities, losses, injuries, damages, fees, fines,

penalties, costs or expenseswhich in anymanner relate to, ariseout of, or result fromany false

statementormisrepresentationintheProposalorbreachofanywarrantybytheRFPBidderasset

forthherein.

Exhibit B

25

ARTICLEIV. Part1ProposalRequirements

Previously qualifiedRFPBidders underDSP IVmay participate in an abbreviated qualification process by

using theShortPart1Formavailableonline through theProposalsubmissionwebsite to respondto these

qualificationstandards.

IV.1. ContactInformation andRepresentations

IV.1.1. Contact Information for the RFP Bidder. Each RFP Bidder must provide the RFP Bidder’s legal

nameandaddress.

AnRFPBidderthathasnotpreviouslyqualified mustsubmitthiscontactinformationinits

Part1Proposal.

ApreviouslyqualifiedRFPBiddereithermustconfirmthatthepreviouslyprovidedcontact

information remainsvalidormustupdate this information. If theRFPBidderupdates the

RFPBidder’s legalname, theRFPBiddermustprovide evidenceof thechangeofname. If

there was a change in the corporate structure of the RFP Bidder, through a merger for

example, theRFPBiddermaynotparticipate in the abbreviatedPart 1Proposal orPart 2

Proposalprocess.

IV.1.2. Officer of the RFP Bidder. The Officer of the RFP Bidder must be an officer, a director, or an

individualotherwiseauthorizedtoundertakecontracts(includingtheUniformSMA)andbindthe

RFPBidder. TheOfficer of theRFPBidderwhose contact information is provided in the Part 1

ProposalmustmakeallrepresentationsrequiredbytheonlinePart1Form.ShouldtheRFPBidder

submitaPart2Proposal,theindividualnamedasOfficeroftheRFPBidderinthePart1Proposal

mustmaketherepresentationsrequiredbytheonlinePart2Form.TheOfficeroftheRFPBidder

maysignallrepresentationsandcertificationsofthe online Part1FormandonlinePart2Format

onetime andRFPBiddershavetheoptiontosubmitthecertificationsrequiredbythePart2Form

duringthePart1Windowforearlyprocessing.

IfanRFPBidderhasnotpreviouslyqualified underDSPIV,oriftheindividualwhoservedas

Officer of the RFP Bidder for a previously qualified RFP Bidder is not available in this

Exhibit B

26

solicitation, thentheRFPBiddermustprovide thename, title,and full contact information

(address,phonenumber,emailaddress)oftheindividualwhowillserveasOfficeroftheRFP

Bidder.

Ifan RFPBidderhaspreviouslyqualifiedandtheindividualwhoservedasOfficeroftheRFP

Bidderinaprevioussolicitationisavailableforthissolicitation,theRFPBiddereithermust

confirmthatthepreviouslysubmittedcontactinformationfortheOfficeroftheRFPBidder

remainsvalidormustupdatethisinformation.

IV.1.3. RepresentativeoftheRFPBidder.TheIndependentEvaluatorusestheRepresentativeasthemain

pointofcontactfortheRFPBidder.TheIndependentEvaluatorcontactstheRepresentativeifthe

IndependentEvaluatorrequiresadditional informationregardingtheRFPBidder’sProposal. The

Independent Evaluator sends correspondence related to the solicitation to the Representative,

includingconfidentialinformationrequiredtosubmitBidsontheBidDate.

Ifan RFPBidderhasnotpreviouslyqualified,theOfficeroftheRFPBiddermustdesignatean

individual to serve asRepresentative of theRFPBidder by completing theRepresentative

InsertpreparedforthispurposeandavailableontheProposalsubmissionwebsite.TheRFP

Bidder provides the Representative Insert by upload to the online Part 1 Form. The RFP

Biddermustprovide thename, title, and full contact information (address,phonenumber,

email address)of the individualnamedby theOfficer of theRFPBidderwhowill serveas

RepresentativeoftheRFPBidder.

ApreviouslyqualifiedRFPBiddereithermustconfirmthatthepreviouslysubmittedcontact

information for the Representative of the RFP Bidder remains valid or must update this

information. The Officer of the RFP Bidder may, at his or her option, name another

individual to serve asRepresentative of theRFPBidder by completing theRepresentative

Insert. TheRFPBidderprovides theRepresentative Insert byupload to theonlinePart 1

Form.

IV.1.4. Nominees. The Independent Evaluator provides notifications to the RFP Bidder by email and

providesdocumentsneededforparticipationbysecurefiletransfer.WhetherornotanRFPBidder

Exhibit B

27

haspreviouslyqualified, the RFPBiddermaydesignateup to three (3) authorized individuals to

receivecommunications fromthe IndependentEvaluator inaddition to theRepresentativeof the

RFPBidder. Eachsuchauthorizedindividual isaNominee. EithertheRepresentativeoftheRFP

Bidder or the Officer of the RFP Bidder may complete the Nominee Insert prepared for this

purpose. The Nominee Insert requires that the following be provided for each authorized

individualwhowill serveasNominee: the individual’snameandtitle,phonenumber,andemail

address. TheRFPBidderprovides theNominee Insertbyupload to theonlinePart1Form. The

Representative of the RFP Bidder or the Officer of the RFP Bidder may designate such other

authorized individuals at any time during the solicitation using the Nominee Insert. The RFP

BidderisnotrequiredtodosointhePart1Proposalprovided,however,thatthetotalnumberof

Nomineesnotexceedthree(3)individualsatanyonetime.

IV.1.5. Allinformationrequiredby thisSectionIV.1 mustbeprovidedexclusivelybycompletingSection1

oftheonlinePart1Form andtheInsertspreparedforthispurpose,asfurtherexplainedinArticle

VII.InsertsmustbesubmittedbyuploadtotheonlinePart1Form.Incaseoftechnicaldifficulties,

documents or Inserts may be sent by email to the Independent Evaluator at

PECOProcurement@nera.com.

IV.2. FinancialRequirements andAgencyAgreements

IV.2.1. AgencyAgreement.TheRFPBiddermuststatewhetheritissubmittingaProposalunderanagency

authorization(“AgencyAgreement”). IfanRFPBidder issubmittingaProposalunderanAgency

Agreement,theRFPBiddermustidentifyaPrincipalastheentityonwhosefinancialstandingthe

RFPBidderrelies,as furtherexplainedinthenextparagraph.

IV.2.2. Election of Entity on Whose Financial Standing the RFP Bidder is relying. For purposes of

submitting to the requirements of this section, each RFP Bidder elects: (a) to rely on its own

financialstanding;or:(b)torelyonthefinancialstandingofan“RFPGuarantor”;or:(c)torelyon

the financial standing of a Principal. An RFP Bidder submitting a Proposal under an Agency

Agreementmustselectoption(c)andoption(c)mayonlybeselectedbyanRFPBiddersubmitting

aProposalunderanAgencyAgreement.

Exhibit B

28

AnRFPBidderthathasnotpreviouslyqualifiedmustclearlyselectoneoftheseoptions.

A previously qualified RFP Bidder must confirm that the identity of the entity on whose

financial standing the RFP Bidder last relied remains valid in order to participate in the

abbreviatedPart1Proposalprocess.IfsuchRFPBidderchangestheidentityoftheentityon

whosefinancialstandingtheRFPBidderrelies,theRFPBiddermustusetheStandardPart1

Formandsubmitall informationrequiredforthePart1Proposalas if theRFPBidderhad

notpreviouslyqualified.

A previously qualified RFP Biddermust either confirm that the previously provided legal

nameoftheentityonwhosefinancialstandingtheRFPBidderreliesremainvalidortheRFP

Biddermustupdatethisinformation.IftheRFPBidderupdatestheentity’slegalname,the

RFP Bidder must provide evidence of the change of name. If there was a change in the

corporatestructureoftheentity,throughamergerforexample,theRFPBiddermustusethe

StandardPart1FormtopresentitsPart1Proposal.

IV.2.3. Information Required from RFP Bidders Relying on Their Own Financial Standing. The

requirementsofthisparagraphonlyapply toanRFPBidderthatselectsoption(a)inresponseto

ParagraphIV.2.2.

Whether or not the RFP Bidder has previously qualified, an RFP Bidder must submit

available financial information for theRFPBidderbyupload to theonlinePart1Form. 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.IftheSECForm10-Q/10-Kisunavailable,theRFPBiddermustsubmititsmost

recentquarterly,monthlyorbi-annualfinancialinformationaccompaniedbyanattestation

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. The requirements for this

Exhibit B

29

attestationareprovidedmorespecificallyin Appendix5oftheseRFPRules.Ifsuchfinancial

informationisunavailablefortheRFPBidder,theRFPBiddermustclearlystatethisfact.

AnRFPBidderthathasnotpreviouslyqualifiedmustsubmitallavailablecreditratingsfor

the RFP Bidder from the following rating agencies: Standard & Poor’s Ratings Services

(“S&P”),Moody’sInvestorsService,Inc.(“Moody’s”),andFitchRatings(“Fitch”).Ifnoratings

areavailablefortheentity,theRFPBiddermustclearlystatethisfact.Apreviouslyqualified

RFPBiddermusteitherconfirmthatthepreviouslyprovidedcreditratingsremainvalidor

theRFPBiddermustupdatethisinformation.

IV.2.4. Information Required from RFP Bidders Relying on the Financial Standing of an RFP Guarantor.

TherequirementsofthisparagraphonlyapplytoanRFPBidderthatselectsoption(b)inresponse

toParagraphIV.2.2.

Financialinformationmustbeavailable fortheRFPGuarantor.

Ifnotpreviouslyqualified,theRFPBiddermustprovidethe RFPGuarantor’slegalnameand

address.ApreviouslyqualifiedRFPBiddermusteitherconfirmthatthepreviouslyprovided

legalnameandaddressof theRFPGuarantorremainvalidor theRFPBiddermustupdate

thisinformation.IftheRFPBidderupdatestheRFPGuarantor’slegalname,theRFPBidder

must provide evidence of the change of name. If there was a change in the corporate

structureoftheRFPGuarantor,throughamergerforexample,theRFPBiddermustusethe

StandardPart1FormtopresentitsPart1Proposal.

An RFP Bidder must submit by upload to the online Part 1 Form, if available, the RFP

Guarantor’smost recent quarterly financial information, including abalance sheet, income

statement,cashflowstatement,andanyaccompanyingnotesandschedules.Ifavailable,the

mostrecentSECForm10-Qor10-K(whicheverismorerecent)mustbesubmittedtofulfill

thisrequirement.IftheSECForm10-Q/10-Kisunavailable,theRFPBiddermustsubmitthe

RFP Guarantor’s most recent quarterly, monthly, or bi-annual financial information

accompaniedbyanattestationbytheentity’sChiefFinancialOfficer(orsimilar position)that

theinformationcontainedinthefinancialstatementsfairlypresentsinallmaterialrespects

Exhibit B

30

thefinancialconditionandresultsoftheoperationsoftheentity.Therequirementsforthis

attestationareprovidedmorespecificallyinAppendix5oftheseRFPRules.

AnRFPBidderthathasnotpreviouslyqualifiedmustsubmitallavailablecreditratingsfor

theRFPGuarantorfromthefollowingratingagencies:S&P,Moody’s,andFitch.Suchratings

mustbeavailable for theRFPGuarantor. ApreviouslyqualifiedRFPBiddermust confirm

thatthecreditratingslastsubmittedfortheRFPGuarantorremainvalidortheRFPBidder

must update this information with respect to any or all of the credit ratings. The

Independent Evaluator uses the information submitted by such RFP Bidder in the most

recent solicitationunder thisRFP forwhich theRFPBidder submitted a successful Part 1

Proposal.IftheRFPBidderupdatestheinformation,theRFPBiddermuststatethenameof

theratingagencythathasupdateditscreditrating,theupdatedcreditrating,andthetypeof

rating. The IndependentEvaluatormay also inquire specifically about oneormore credit

ratings on file for the entity onwhose financial standing theRFPBidder and ask theRFP

Biddertoconfirmthatnoupdateshavebeenissued.

IV.2.5. InformationRequiredfromRFPBiddersRelyingontheFinancialStandingofanRFP Principal.The

requirementsofthisparagraphonlyapplytoanRFPBiddersubmittingaProposalunderanAgency

Agreementthatselectsoption(c)inresponsetoParagraphIV.2.2.

If not previously qualified, the RFP Bidder must provide each Principal’s legal name and

address.ApreviouslyqualifiedRFPBiddermusteitherconfirmthatthepreviouslyprovided

legalnameandaddressofeachPrincipalremainvalidor theRFPBiddermustupdate this

information.

Ifnotpreviouslyqualified,theRFPBiddermustprovideacopyoftheagencyagreementby

uploadtotheonlinePart1Form.Ifpreviouslyqualified,theRFPBiddermusteitherconfirm

that the previously provided document remains valid or theRFPBiddermust update this

information.

IftheRFPBidderisacting asanagentformultiplePrincipals,theRFPBiddermustidentify

thePrincipalwiththelowestcreditratingastheentityonwhosefinancialstandingtheRFP

Exhibit B

31

Bidderrelies.IfseveralPrincipalshavethesamelowestcreditrating,theRFPBiddermust

identify the Principal that also has the lowest tangible net worth as the entity on whose

financialstandingtheRFPBidderrelies.ThisPrincipalisreferredtoasthe“RFPPrincipal”.

IfthereisasinglePrincipal,thesinglePrincipalisthe“RFPPrincipal”.Financialinformation

mustbeavailable fortheRFPPrincipal.

An RFP Bidder must submit by upload to the online Part 1 Form, if available, the RFP

Principal’s most recent quarterly financial information, including a balance sheet, income

statement,cashflowstatement,andanyaccompanyingnotesandschedules.Ifavailable,the

mostrecentSECForm10-Qor10-K(whicheverismorerecent)mustbesubmittedtofulfill

thisrequirement.IftheSECForm10-Q/10-Kisunavailable,theRFPBiddermust submitthe

RFP Principal’s most recent quarterly, monthly, or bi-annual financial information

accompaniedbyanattestationbytheentity’sChiefFinancialOfficer(orsimilarposition)that

theinformationcontainedinthefinancialstatementsfairlypresentsinallmaterialrespects

thefinancialconditionandresultsoftheoperationsoftheRFPPrincipal.Therequirements

forthisattestationareprovidedmorespecificallyinAppendix5oftheseRFPRules.

AnRFPBidderthathasnotpreviouslyqualifiedmustsubmitallavailablecreditratingsfor

theRFPPrincipalfromthefollowingratingagencies:S&P,Moody’s,andFitch.Suchratings

must be available from at least two rating agencies for the RFP Principal. A previously

qualifiedRFPBiddermust confirmthatthecreditratingslastsubmittedfortheRFPPrincipal

remainvalidortheRFPBiddermustupdatethisinformationwithrespecttoanyorallofthe

credit ratings. The Independent Evaluator uses the information submitted by such RFP

Bidder inthemostrecentsolicitationunderthisRFPforwhichtheRFPBiddersubmitteda

successfulPart1Proposal.IftheRFPBidderupdatestheinformation,theRFPBiddermust

state the name of the rating agency that has updated its credit rating, the updated credit

rating,andthetypeofrating.TheIndependentEvaluatormayalsoinquirespecificallyabout

oneormorecredit ratingson file for theRFPPrincipalandask theRFPBidder to confirm

thatnoupdateshavebeenissued.

Exhibit B

32

WhetherornotanRFPBidderhaspreviouslyqualified,theOfficerofthe RFPBiddermust:

(i)certifythattheOfficeroftheRFPBidderhastheauthoritytobindthePrincipal(s);and(ii)

acknowledge that an Officers’ Certificate, signed by an officer of each Principal and

substantiallyintheformofAppendix6totheseRFP Rules,mustbeprovidedwiththePart2

Proposal.TheOfficeroftheRFPBiddermakesthiscertificationandthisacknowledgmentby

completingtheP1AgencyCertificationsInsert.

Whether or not the RFP Bidder has previously qualified, the RFP Bidder may, but is not

required to, submit adraft Officers’ Certificate for evaluation. If anRFPBidder submits a

draft Officers’ Certificate for evaluation, the Independent Evaluator will provide this

evaluation to the RFP Bidder, including notice of any changes required to the Officers’

Certificate,alongwiththePart1Notification.ThisOfficers’Certificatewillstatethat:(i)the

Agency Agreement submitted in response to this RFP is a true and complete copy of the

AgencyAgreementascurrentlyineffect;(ii)theAgencyAgreementisinfullforceandeffect

and shall remain in full force and effect for a period extending to six (6) business days

following the Bid Date; (iii) there are no proceedings pending for the amendment or

terminationoftheAgencyAgreement,contemplatedbytheRFPBidder,orcontemplatedby

thePrincipal(s)totheRFPBidder’sknowledge; (iv)eachindividualwhohasexecuted the

Officers’CertificateandtheAgencyAgreementis(or wasatthetimeoftheexecutionofsuch

documents)authorizedtoexecuteanddeliversuchdocumentsonbehalfofthePrincipal(s);

and(v)theOfficeroftheRFPBidderisauthorizedtoexecutetheUniformSMAaswellasany

TransactionConfirmation(s)pursuanttotheUniformSMAonbehalfofthePrincipal(s).

IV.2.6. Allinformation requiredbythisSectionIV.2 mustbeprovidedexclusivelybycompletingSection2

oftheonlinePart1FormandtheInsertspreparedforthispurpose,asfurtherexplainedinArticle

VII. InsertsmustbesubmittedbyuploadtotheonlinePart1Form.Incaseoftechnicaldifficulties,

documents or Inserts may be sent by email to the Independent Evaluator at

PECOProcurement@nera.com.

Exhibit B

33

IV.3. CreditInstrumentsandUniformSMA

IV.3.1. Standard Pre-Bid Letter of Credit. RFP Bidders have an opportunity, in the Part 1 Proposal, to

proposemodificationstothePre-BidLetterofCredit.

Whetherornot theRFPBidderhaspreviouslyqualified, anRFPBiddermust, in itsPart2

Proposal,submitaPre-BidLetterofCreditinanamountofatleast: $250,000pertranchebid

onproductsoftheRESandSCClasses;and $125,000pertranchebidonaCCIproduct. This

Pre-BidLetterofCreditmustbeintheformoftheStandardPre-BidLetterofCreditprovided

as Appendix 9 to these RFP Rules ormust incorporate onlymodifications that have been

approvedbyPECOandtheIndependentEvaluator.

AspartofthePart1Proposal,anRFPBiddermayrequestmodificationstotheStandardPre-

BidLetterofCreditthatarenon-materialinnature,orthatareadvantageoustobothPECO

andtheRFPBidder.AnRFPBidderrequestsmodificationstotheStandardPre-BidLetterof

CreditbysubmittingaDraftPre-BidLetterofCreditsubstantiallyintheformoftheStandard

Pre-BidLetterofCreditindicatingclearlyanyandallmodificationstotheStandardPre-Bid

Letter of Credit. TheDraft Pre-Bid Letter of Creditmust be submitted inMicrosoftWord

withtrackedchanges byupload totheonlinePart1Form. ADraftPre-BidLetterofCredit

that is not substantially in the form of the Standard Pre-Bid Letter of Credit will not be

consideredorevaluated.

AllapprovedmodificationstotheStandardPre-BidLetterof Credit willbepostedtotheRFP

website.EachRFPBiddermayuseanyoftheapprovedmodifications,regardlessofwhether

theRFPBidderitselforanotherRFPBidderproposedthemodification.

AnRFPBidderthatchoosesnottoproposemodificationstotheStandardPre-BidLetterof

Creditmustclearlystatethatfact.

IV.3.2. Standard Post-Bid Letter of Credit. RFPBidders have an opportunity, in the Part 1 Proposal, to

proposemodificationstothePost-BidLetterofCredit.

Exhibit B

34

TheUniformSMA includes,asAppendix F, LetterofCreditDocumentationthatmaybeused

topostsecurityunderthetermsoftheUniformSMA.ThisParagraphreferstothisletterof

creditasthe“StandardPost-BidLetterofCredit”.

Whether or not theRFPBidder has previously qualified, anRFPBiddermay, in its Part 1

Proposal, request modifications to the Standard Post-Bid Letter of Credit that are non-

material in nature, or that are advantageous to both PECO and the RFP Bidder. An RFP

BidderrequestsmodificationstotheStandardPost-BidLetterofCreditbysubmittingaDraft

Post-BidLetterofCreditsubstantially intheformoftheStandardPost-BidLetterofCredit

indicating clearly any and allmodifications to the StandardPost-BidLetter of Credit. The

DraftPost-BidLetterofCreditmustbesubmittedinMicrosoftWordbyupload totheonline

Part 1 Form. ADraft Post-Bid Letter of Credit that is not substantially in the formof the

StandardPost-BidLetterofCreditwillnotbeconsideredorevaluated.

All approvedmodifications to the Standard Post-Bid Letter of Creditwill be posted to the

RFPwebsite. Each RFP Biddermay use any of the approvedmodifications, regardless of

whethertheRFPBidderitselforanotherRFP Bidderproposedthemodification.

AnRFPBidderthatchoosesnottoproposemodificationstotheStandardPre-BidLetterof

Creditmustclearlyindicatesthatfact.

IV.3.3. Standard Guaranty. RFP Bidders have an opportunity, in the Part 1 Proposal, to propose

modificationstotheStandardGuaranty.

The Uniform SMA includes, as Appendix G, Guaranty Documentation thatmay be used to

provideafinancialguarantyunderthetermsoftheUniformSMA.ThisParagraphrefersto

thisfinancialguaranty asthe“StandardGuaranty”.

Whether or not theRFPBidder has previously qualified, anRFPBiddermay, in its Part 1

Proposal,requestmodificationstotheStandardGuaranty thatarenon-materialinnature,or

that are advantageous to both PECO and the RFP Bidder. An RFP Bidder requests

modificationstotheStandardGuaranty bysubmittingaDraftGuaranty substantially inthe

formof theStandardGuaranty indicatingclearlyanyandallmodifications to theStandard

Exhibit B

35

Guaranty.TheDraftGuaranty mustbesubmittedinMicrosoftWordbyupload totheonline

Part1Form.ADraftGuarantythatisnotsubstantiallyintheformoftheStandardGuaranty

willnotbeconsideredorevaluated.

AllapprovedmodificationstotheStandardGuaranty willbepostedtotheRFPwebsite.Each

RFP Bidder may use any of the approved modifications, regardless of whether the RFP

BidderitselforanotherRFPBidderproposedthemodification.

AnRFPBidderthatchoosesnottoproposemodificationstotheStandardPre-BidLetterof

Creditmustclearlyindicatesthatfact.

IV.3.4. InformationtoPreparetheUniformSMA.Thisparagraphapplies onlytoRFPBiddersthatarenot

Default Suppliers. Such RFP Bidder is asked, in its Part 1 Proposal, to provide all information

neededbytheIndependentEvaluatortoprepareforexecutiontheUniformSMA anditsExhibits by

completing the Uniform SMA Insert prepared for this purpose and available on the Proposal

submissionwebsite. TheRFPBidderprovidestheUniformSMAInsertbyupload totheonlinePart

1 Form. If the Independent Evaluator identifies one or more of such RFP Bidder’s Bids to the

Commission aswinningBids, the IndependentEvaluatorwilluse this information toprepare the

UniformSMA anditsExhibitsforexecution.

Such RFPBidderis asked:(i)to specify anyelectionstobemadeintheUniformSMA; and(ii)

toprovidethecontactinformationrequiredtopreparetheFormofNotice,whichisincluded

asExhibit2totheUniformSMA;and(iii)toprovideanyadditionalinformationrequiredto

preparetheUniformSMAanditsExhibits.

IfsuchRFPBidderfailstosubmittheseelectionsandinformationwiththePart1Proposal,

theOfficerof theRFPBiddermustacknowledge that, if the IndependentEvaluatornotifies

theRFPBidderthattheIndependentEvaluatorisidentifying oneormoreoftheRFPBidder’s

BidstotheCommission aswinningBids,theRFPBidderwillberequiredto provide:(i) any

elections to bemade in theUniform SMA; and (ii) the contact information to prepare the

FormofNotice; and (iii) any additional information required toprepare theUniformSMA

and itsExhibits; by12PM (noon)EPTon the day after suchnotification is received. The

Exhibit B

36

OfficeroftheRFPBidderprovidestherequiredacknowledgementbycompletingtheDelay

(SMA) Insertprepared for thispurposeandavailableon theProposal submissionwebsite.

TheRFPBidderprovidestheDelay(SMA)Insertbyupload totheonlinePart1Form.

IV.3.5. AllinformationrequiredbythisSectionIV.3 mustbeprovidedexclusivelybycompletingSection3

oftheonlinePart1Form andtheInsertspreparedforthispurpose,asfurtherexplainedinArticle

VII. InsertsmustbesubmittedbyuploadtotheonlinePart1Form.Incaseoftechnicaldifficulties,

documents or Inserts may be sent by email to the Independent Evaluator at

PECOProcurement@nera.com.

IV.4. Representations

IV.4.1. Representationsby theOfficerof theRFPBidder. WhetherornotanRFPBidderhaspreviously

qualified,theOfficeroftheRFPmustcertifythat:

he/sheisanofficer,a director,oranindividualotherwiseauthorizedtoundertakecontracts

(includingtheUniformSMA)andbindtheRFPBidder;

all information provided in the Part 1 Proposal is true and accurate to the best of the

knowledgeandbeliefoftheOfficerofthe RFPBidder;

if, for any reason or due to any circumstance, any information provided in the Part 1

Proposalchangesoranypreviouscertificationfailstoremainvalidbeforethesixthbusiness

day after theBidDate, the Officer of theRFPBidder or theRepresentativewill notify the

IndependentEvaluatorofsuchchangesassoonaspracticablebutinnoeventlaterthanone

(1)daybeforetheBidDate;

thePart1Proposalwillremainvalidandremaininfullforceandeffectuntilsix(6)business

daysaftertheBidDate;and

the RFP Bidder is not part of a bidding agreement, a joint venture for purposes of

participating in any solicitation for this RFP, a bidding consortium, or any other type of

agreement related to bidding in any solicitation of this RFP. An RFP Bidder found to be

actinginconcertwithanotherRFPBiddermaybedisqualifiedbytheIndependentEvaluator.

Exhibit B

37

TheOfficerof theRFPBidderpresentssuchcertificationsbycompleting theP1Certifications(A)

Insert prepared for thispurpose. TheRFPBidderprovides the required Insert by upload to the

Part1Form.

IV.4.2. AdditionalRepresentationsforRFPBiddersthathavenotpreviouslyqualified.Ifan RFPBidderhas

notpreviouslyqualified,theOfficeroftheRFPBiddermustcertifythat:

he/she understands the terms of theUniform SMA, that theRFPBidder accepts all of the

termsof theUniformSMAwithoutmodifications,and that theRFPBidderwillexecute the

UniformSMAandtheTransactionConfirmation(s)forallBidsapprovedbytheCommission;

the submission of the Part 1 Proposal constitutes the RFPBidder’s acknowledgement and

acceptance of all the terms and conditions of the RFP, regardless of the outcome of the

solicitationortheoutcomeofsuchProposal;

theRFPBidderhasnoactionsatlaw,suitsinequity,proceedingsorclaimspendingor,tothe

RFP Bidder’s knowledge, threatened against it before any federal, state, foreign or local

court,tribunalorgovernmentalagencyorauthoritythatmightmateriallydelay,preventor

hindertheRFPBidder’sperformanceofitsobligationsundertheUniformSMA;

theRFPBidderisnotbankruptorinsolventandtherearenoproceedingspendingorbeing

contemplatedbyitor,toitsknowledge,threatenedagainstitwhichwouldresultinitbeing

orbecomingbankruptorinsolvent;and

if the Independent Evaluator notifies the RFP Bidder that the Independent Evaluator is

identifying one or more of the RFP Bidder’s Bids to the Commission as winning Bids, all

information required for the preparation of the Uniform SMA and its Exhibits must be

submittedandcompleteby12PM(noon)EPTonthedayaftersuchnotificationisreceived;

TheOfficerof theRFPBidderpresentssuchcertificationsbycompleting theP1Certifications(B)

Insert prepared for thispurpose. TheRFPBidderprovides the required Insert by upload to the

Part1Form.

Exhibit B

38

IV.4.3. Additional Representations for RFP Bidders have previously qualified but that are not Default

Suppliers.IfanRFPBidderhaspreviouslyqualifiedbutisnotaDefaultSupplier,theOfficerofthe

RFPBiddermustcertifythat:

TheRFPBidderhasnoactionsat law,suits inequity,proceedingsorclaimspendingor, to

theRFPBidder’sknowledge,threatenedagainstitbeforeanyfederal,state,foreignorlocal

court,tribunalorgovernmentalagencyorauthoritythatmightmateriallydelay,preventor

hindertheRFPBidder’sperformanceofitsobligationsundertheUniformSMA;

TheRFPBidderisnotbankruptorinsolventandtherearenoproceedingspendingorbeing

contemplatedbyitor,toitsknowledge,threatenedagainstitwhichwouldresultinitbeing

orbecomingbankruptorinsolvent;and

if the Independent Evaluator notifies the RFP Bidder that the Independent Evaluator is

identifying one or more of the RFP Bidder’s Bids to the Commission as winning Bids, all

information required for the preparation of the Uniform SMA and its Exhibits must be

submittedandcompleteby 12PM(noon)EPTonthedayaftersuchnotificationisreceived.

TheOfficerof theRFPBidderpresentssuchcertificationsbycompleting theP1Certifications(C)

Insert prepared for thispurpose. TheRFPBidderprovides the required Insert by upload to the

Part1Form.

IV.4.4. PJMLoadServingEntity.TherequirementsofthisparagraphapplyonlytoRFPBiddersthatarenot

previously qualified RFP Bidders. A Default Supplier must be an LSE by the start of the supply

period.

An RFP Bidder that has not previously qualified must, in its Part 1 Proposal, either: (i)

demonstrate that theRFP Bidder is an LSE in PJMby providing the signature page of the

ReliabilityAssuranceAgreement(“RAA”);or(ii)certifythattheRFPBidderhasinvestigated

therequirementstobecomeanLSEinPJMandthatthereexistnoimpedimentsfortheRFP

Bidder to become an LSE by the start of the supply period and to remain an LSE for the

durationofthesupplyperiod.

Exhibit B

39

AnRFPBidderthatprovidesthesignaturepageoftheRAAdoessobyuploadtotheonline

Part1Form.

An RFP Bidder that submits the certification above does so by completing the LSE

Representation Insertprepared for thispurposeandavailableon theProposal submission

website. TheRFPBidder provides the LSERepresentation Insert by upload to the online

Part1Form.

IV.4.5. AllinformationrequiredbythisSectionIV.4 mustbeprovidedexclusivelybycompletingSection4

oftheonlinePart1 FormandtheInsertspreparedforthispurpose,asfurtherexplainedinArticle

VII. InsertsmustbesubmittedbyuploadtotheonlinePart1Form.Incaseoftechnicaldifficulties,

documents or Inserts may be sent by email to the Independent Evaluator at

PECOProcurement@nera.com.

IV.5. ForeignRFPBiddersandForeignEntities

IV.5.1. The requirementsof thisSectionapplyonly to: (1)ForeignRFPBidders thatseek tobegranted

unsecuredcreditunderthetermsoftheUniformSMA;or(2)RFPBiddersthatrelyonthefinancial

standingofaForeignEntity(eitheranRFPGuarantororaPrincipal). OtherRFPBiddersarenot

subjecttotherequirementsofthisSection.

IV.5.2. AdditionalrequirementsforForeignRFPBidders. TherequirementsofthisParagraphapplyonlyto

ForeignRFPBiddersthatseektobegrantedunsecuredcreditunderthetermsoftheUniformSMA;

otherRFPBiddersarenotsubjecttotherequirementsofthisParagraph.

WhetherornotsuchRFPBidderhaspreviouslyqualified,suchRFPBiddermayprovide,in

addition to supplying all required information and documents under Section IV.2, any

additionalevidenceofcreditworthinesssoastoprovidePECOwithcomparableassurances

of creditworthiness as is applicable for an RFP Bidder that has been incorporated or

otherwiseformedunderthelawsofastateoftheUnitedStatesoroftheDistrictofColumbia.

WhetherornotsuchRFPBidderhaspreviouslyqualified,theOfficerofaForeignRFPBidder

must acknowledge that the following additional documents are required with the Part 2

ProposalfortheForeignRFPBiddertobegrantedunsecuredcreditunderthetermsofthe

Exhibit B

40

Uniform SMA: (i) a legal opinion of outside counsel qualified to practice in the foreign

jurisdiction inwhich theForeignRFPBidder is incorporatedorotherwise formed that the

UniformSMA is, orupon the completionof execution formalitieswill become, the binding

obligationoftheForeignRFPBidderinthejurisdictioninwhichithasbeenincorporatedor

otherwiseformed;(ii)thesworncertificateofthecorporatesecretary(orsimilarofficer)of

suchForeignRFPBidderthatthepersonexecutingtheUniformSMA onbehalfoftheForeign

RFPBidderhas theauthority toexecute theUniformSMA andthat thegoverningboardof

suchForeignRFPBidderhasapprovedtheexecutionoftheUniformSMA;and(iii)thesworn

certificateofthecorporatesecretary(orsimilarofficer)ofsuchForeignRFPBidderthatthe

ForeignRFPBidderhasbeenauthorizedbyitsgoverningboardtoenterintoagreementsof

thesametypeastheUniformSMA.

WhetherornotsuchRFPBidderhaspreviouslyqualified,suchRFPBiddermay,but isnot

requiredto,submitadraftofthefollowingdocuments forevaluation:(i)a legalopinionof

outside counsel qualified to practice in the foreign jurisdiction in which the Foreign RFP

BidderisincorporatedorotherwiseformedthattheUniformSMA is,oruponthecompletion

ofexecutionformalitieswillbecome,thebindingobligationoftheForeignRFPBidderinthe

jurisdictioninwhichithasbeenincorporatedorotherwiseformed;(ii)thesworncertificate

of the corporate secretary (or similar officer) of such ForeignRFPBidder that the person

executingtheUniformSMA onbehalfoftheForeignRFPBidderhastheauthoritytoexecute

theUniformSMA andthatthegoverningboardofsuchForeignRFPBidderhasapprovedthe

executionoftheUniformSMA;and(iii) thesworncertificateofthecorporatesecretary(or

similarofficer)ofsuchForeignRFPBidderthattheForeignRFPBidderhasbeenauthorized

byitsgoverningboardtoenterintoagreementsofthesametypeastheUniformSMA.The

IndependentEvaluatorwillmakeavailable toRFPBiddersasampleof the legalopinionof

outsidecounselthatissufficientforaForeignEntityasPrincipal. IfsuchRFPBiddersubmits

a draft of these documents for evaluation, the Independent Evaluator will provide this

evaluation tosuchRFPBidder, includingnoticeofanychangesrequiredto thedocuments,

alongwiththePart1Notification.

Exhibit B

41

The RFP Bidder presents this information by completing the P1 Foreign Bidder Insert

preparedforthispurposeandprovidesassociateddocuments.ThisInsertisavailableonthe

Proposalsubmissionwebsite.

IV.5.3. AdditionalrequirementsforRFPBiddersrelyingonthefinancialstandingofaForeignGuarantor.

TherequirementsofthisParagraphapplyonlytoRFPBiddersthatrelyonthefinancialstandingof

aForeignEntityasRFPGuarantor;otherRFPBiddersarenotsubject to therequirementsof this

Paragraph.

Whether or not such RFP Bidder has previously qualified, an RFP Bidder relying on the

financialstandingofaForeignEntityasRFPGuarantormayprovide,inadditiontosupplying

all required information and documents under Section IV.2, any additional evidence of

creditworthinessfortheRFPGuarantorsoastoprovidePECOwithcomparableassurances

of creditworthiness as is applicable for an entity that has been incorporated or otherwise

formedunderthelawsofastateoftheUnitedStatesoroftheDistrictofColumbia.

Whether or not such RFP Bidder has previously qualified, the Officer of such RFP Bidder

must acknowledge that the following additional documents are required with the Part 2

ProposalfortheForeignEntityasRFPGuarantortobegranted unsecuredcreditandforthe

RFPBidder to rely on the financial standing of theRFPGuarantor under the terms of the

Uniform SMA: (i) a legal opinion of outside counsel qualified to practice in the foreign

jurisdiction in which the RFP Guarantor is incorporated or otherwise formed that the

guarantypursuant to theUniformSMA is,orupon thecompletionof execution formalities

willbecome,thebindingobligationoftheRFPGuarantor inthe jurisdictioninwhichithas

been incorporated or otherwise formed; and (ii) the sworn certificate of the corporate

secretary(orsimilarofficer)ofsuchRFPGuarantorthatthepersonexecutingtheguaranty

pursuanttotheUniformSMA onbehalfoftheRFPGuarantorhastheauthoritytoexecutethe

guarantypursuanttotheUniformSMA andthatthegoverningboardofsuchRFPGuarantor

hasapprovedtheexecutionoftheguarantypursuanttotheUniformSMA;and(iii)thesworn

certificateofthecorporatesecretary(orsimilarofficer)ofsuchRFPGuarantorthattheRFP

Exhibit B

42

Guarantorhasbeenauthorizedbyitsgoverningboardtoenterintoagreementsofthesame

typeastheguarantypursuanttotheUniformSMA.

Whether or not suchRFPBidder has previously qualified, theRFPBiddermay, but is not

requiredto, submitwith itsPart1Proposaladraftof the followingdocuments: (i)a legal

opinionofoutsidecounselqualifiedtopractice intheforeignjurisdictioninwhichtheRFP

Guarantor is incorporatedorotherwise formed that theguarantypursuant to theUniform

SMA is,oruponthecompletionofexecutionformalitieswillbecome,thebindingobligation

of the RFP Guarantor in the jurisdiction in which it has been incorporated or otherwise

formed;and(ii)thesworncertificateofthecorporatesecretary(orsimilarofficer)ofsuch

RFP Guarantor that the person executing the guaranty pursuant to the Uniform SMA on

behalf of the RFP Guarantor has the authority to execute the guaranty pursuant to the

Uniform SMA and that the governing board of such RFP Guarantor has approved the

executionoftheguarantypursuanttotheUniformSMA;and(iii)thesworncertificateofthe

corporate secretary (or similar officer) of suchRFPGuarantor that theRFPGuarantorhas

been authorized by its governing board to enter into agreements of the same type as the

guarantypursuant to theUniformSMA. The IndependentEvaluatorwillmakeavailable to

RFPBiddersasampleofthelegalopinionofoutsidecounselthatissufficient foraForeign

Entity asPrincipal. If anRFPBidder submits adraft of the documents for evaluation, the

IndependentEvaluatorwillprovidethisevaluationtotheRFPBidder,includingnoticeofany

changesrequiredtothedocuments,alongwiththePart1Notification.

The RFP Bidder presents this information by completing the P1 Foreign Guarantor Insert

preparedforthispurposeandprovidesassociateddocuments.ThisInsertisavailableonthe

Proposalsubmissionwebsite.

IV.5.4. AdditionalRequirementsforRFPBidderssubmittingaProposalunderanAgencyAgreementwitha

ForeignEntityasPrincipal. TherequirementsofthisParagraphapplyonlytoRFPBiddersthatrely

onthefinancialstandingofaForeignEntityasRFPPrincipal;otherRFPBiddersarenotsubjectto

therequirementsofthisParagraph.

Exhibit B

43

Whether or not such RFP Bidder has previously qualified, an RFP Bidder submitting a

ProposalunderanAgencyAgreementwithaForeignEntityasPrincipalmay,inadditionto

supplyingallrequiredinformationanddocumentsunderSectionIV.2,provideanyadditional

evidence of creditworthiness for the Principal so as to provide PECO with comparable

assurancesofcreditworthinessas isapplicable foranentity thathasbeen incorporatedor

otherwiseformedunderthelawsofastateoftheUnitedStatesoroftheDistrictofColumbia.

Whether or not such RFP Bidder has previously qualified, the Officer of such RFP Bidder

must acknowledge that the following additional documents are required with the Part 2

Proposal for the RFP Bidder and the Foreign Entity as Principal to be granted unsecured

creditunderthetermsoftheUniformSMA:(i)alegalopinionofoutsidecounselqualifiedto

practice in the foreign jurisdiction in which the Principal is incorporated or otherwise

formed that the Uniform SMA is, or upon the completion of execution formalities will

become, the binding obligation of the Principal in the jurisdiction in which it has been

incorporatedorotherwiseformed;and(ii)thesworncertificateofthecorporatesecretary

(orsimilarofficer)ofsuchPrincipalthatthePrincipalhasbeenauthorizedbyitsgoverning

boardtoenterintoagreementsofthesametypeastheUniformSMA.

WhetherornotsuchRFPBidderhaspreviouslyqualified,suchRFPBiddermay,but isnot

requiredto,submitwithitsPart1Proposaladraftofthefollowingadditionaldocuments:(i)

alegalopinionofoutsidecounselqualifiedtopracticeintheforeignjurisdictioninwhichthe

Principal is incorporated or otherwise formed that the Uniform SMA is, or upon the

completionofexecutionformalitieswillbecome,thebindingobligationofthePrincipalinthe

jurisdiction in which it has been incorporated or otherwise formed; and (ii) the sworn

certificateofthecorporatesecretary(orsimilarofficer)ofsuchPrincipalthatthePrincipal

hasbeenauthorizedbyitsgoverningboardtoenterintoagreementsofthesametypeasthe

UniformSMA.TheIndependentEvaluatorwillmakeavailabletoRFPBiddersasampleofthe

legalopinionofoutsidecounselthatissufficientforaForeignEntityasPrincipal.IfanRFP

Bidder submits a draft of the documents for evaluation, the Independent Evaluator will

Exhibit B

44

provide this evaluation to theRFPBidder, includingnotice ofanychanges required to the

documents,alongwiththePart1Notification.

The RFP Bidder presents this information by completing the P1 Foreign Principal Insert

preparedforthispurposeandprovidesassociateddocuments.ThisInsertisavailableonthe