LTAEC Rules

The Performance Assurance Collateral must be posted in concurrence with the execution of the Transaction Confirmation, which is within two business days of PUC decision.

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. The form of collateral can be either cash or an irrevocable Letter of Credit (“LOC”), which LOC must be in a form that allows for electronic issuance and presentation of documents. An acceptable Bid Assurance LOC form that allows for electronic issuance and presentation of documents is provided as Appendix 5 and can be found on PPL Electric’s RFP Website here: https://ppldsp.com/long-term-pa-solar-aec-rfp/documents/.

In accordance with the LTAEC 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. 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.

Pursuant to Section 1.1.9 of the Long-Term PA Solar 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 per year to fill a tranche, the RFP Bidder is not eligible to bid for the LTAEC product.

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. The PPL Electric LTAEC RFP has been approved by the PA PUC and the RFP and contract documents are not subject to negotiation or changes.

To be clear, the Long-Term PA Solar Alternative Energy Credits RFP (LTAEC RFP) is seeking 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 the July 2025 Solicitation, PPL Electric is separately conducting the Alternative Energy Credits RFP (AEC RFP), and is seeking to procure Photovoltaic, Tier 1 and Tier 2 AECs for immediate delivery. Please see the Documents page of the AEC RFP here.

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 Long-Term PA Solar AEC Product corresponds to 3,000 AECs per year.

Bidder ABC has submitted a complete Bid Proposal Spreadsheet for the Long-Term PA Solar 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, and a Total of Three (3) Tranches Supplied at US$50/AEC. Bidder ABC has marked an “X” for Four (4) Total Tranches Supplied to Five (5) Total Tranches Supplied to indicate that they do not wish to bid on more than Three (3) 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 LTAEC Product, Bidder ABC would be required to deliver a total number of 6,000 AECs (i.e., 3,000 AECs x 2 Tranches = 6,000 AECs) each Annual Time Period (as defined in the LTAEC SMA) to PPL Electric’s GATS account. Bidder ABC will be paid US$45 per AEC.  CASE 2: Bidder ABC is awarded Three (3) Total Tranches Supplied. If Bidder ABC is awarded Three (3) Total Tranches Supplied for the LTAEC Product, Bidder ABC would be required to deliver a total number of 9,000 AECs (3,000 AECs x 3 Tranches = 9,000 AECs) each Annual Time Period to PPL Electric’s GATS account. Bidder ABC will be paid US$50 per AEC.

Pursuant to the terms of the LTAEC SMA, AECs shall be supplied on a quarterly basis. AECs delivered for an Annual Time Period must be based on energy generation (i.e., vintage) within the same Annual Time Period pursuant to Section 2.3(d) of the LTAEC SMA. AECs must Be Pennsylvania eligible AECs (meeting the obligations set forth in the PA AEPS and all subsequent updates and amendments), as approved by the PA PUC and identified in PJM GATS to be eligible for PA AEPS compliance.

PPL Electric is seeking to procure long-term supply of Photovoltaic AECs only through the Long-Term PA Solar Alternative Energy Credits RFP (LTAEC RFP).  Based upon the terms of the RFP, any prospective supplier that can meet the Bidder Qualification requirements, has the minimum supply obligation (1 tranche worth of Photovoltaic AECs), and is willing to provide prices at which it will supply tranches of any Product, may respond to any solicitation in the LTAEC RFP. For further information, the Bidder Qualification requirements are established in Article 4 of the LTAEC RFP Process and Rules document. The LTAEC RFP Process and Rules document can be found on the Long-Term PA Solar AEC RFP page of the RFP Website: click here.

AEC Suppliers will deliver AECs on a quarterly basis. As stated in Section 1.3.3 of the LTAEC RFP Rules, “AEC Supplier is required to transfer AECs on a quarterly basis to PPL Electric’s GATS account corresponding to 25% of its awarded quantity for an Annual Time Period as explained below. Within forty (40) calendar days after the end of each quarterly period as specified in the LTAEC SMA, but not to exceed seventy (70) calendar days after the end of the Annual Time Period during the Delivery Period, the AEC Supplier shall transfer AECs into PPL Electric’s GATS account(s) in an amount commensurate with the AEC Supplier’s contractual obligation during the said time period. AECs supplied for a given quarter in an Annual Time Period must be based on energy generation (i.e. vintage) within such Annual Time Period.”

Also, as stated in Section 1.3.4 of the LTAEC RFP Rules, “Subject to the LTAEC SMA, failure to provide AECs may require the AEC Supplier to pay PPL Electric in an amount equal to the alternative compliance payment required by the AEPS Act for each AEC not delivered as liquidated damages. Failure to pay liquidated damages under the LTAEC SMA will result in an event of default and subject the AEC Supplier to termination of their contract and payment of damages as set forth in the LTAEC SMA.”

PPL Electric is seeking to procure long-term supply of Photovoltaic AECs through the Long-Term PA Solar Alternative Energy Credits RFP (LTAEC RFP). PPL Electric seeks to procure AECs for a Delivery Period beginning on the effective date of the Transaction (which is around the date of PUC approval of the RFP results) and ending on May 31, 2046. The AEC Supplier is required to deliver the Annual Contract Quantity each Annual Time Period (as defined in the LTAEC SMA) except for partial Annual Time Period from the effective date of the Transaction through the first occurring May 31st after such effective date. During the partial Annual Time Period, the AEC Supplier may, but is under no obligation to, transfer Photovoltaic AECs to PPL Electric up to the Annual Contract Quantity for payment, and any failure to meet the Annual Contract Quantity during such stub period shall be excused. AECs delivered for an Annual Time Period must be based on energy generation (i.e., vintage) within the same Annual Time Period pursuant to Section 2.3(d) of the LTAEC SMA.

Pursuant to Section 2.2.3 of the LTAEC RFP Rules, the Bid Assurance Collateral requirements are provided in Addendum 3 issued for the solicitation, posted here (https://ppldsp.com/long-term-pa-solar-aec-rfp/documents/).

Regarding Credit Exposure under the term of the LTAEC SMA, please see Exhibit C of the LTAEC SMA. The LTAEC SMA is posted here (https://ppldsp.com/long-term-pa-solar-aec-rfp/documents/).