UGI Utilities, Inc. (“UGI”) is requesting proposals to procure default electric supplies under its Fifth Default Service Plan (“DSP V”) for its residential and smaller commercial and industrial customers with peak loads of less than 100kW (“GSR-1 Group”). The Auction Manager will hold a bidder information session covering changes for the 2025 RFP #2, the DSP V plan, products available, qualification requirements, and contract terms on Wednesday, June 18, 2025 at 1PM EPT. If you are interested in attending, and have not done so already, please RSVP here. Dial-in information will be provided the same day as the bidder information session.

 

The products available under the 2025 RFP #2 are:

• 12-month full requirements tranche (50% of hourly requirements for GSR-1 Group) with a supply period from December 1, 2025 through November 30, 2026
• 60-month around the clock (“ATC”) block energy product (10 MW) with a supply period from September 1, 2025 through August 31, 2030

 

Changes for the 2025 RFP #2 include, but are not limited to the following:

 

Applicable to the full requirements product: As the final capacity price for the 2026/27 delivery year will not be known on the Bid Date, UGI will instruct Bidders to use a “Capacity Proxy Price“ for that delivery year when formulating their bid. The Capacity Proxy Price will be provided in the webcast and confirmed at least three business days prior to the Bid Date. In each month during the supply term, for those months that are also months covered by the 2026/27 delivery year, a winning supplier will be compensated (or charged) based upon the difference between the Capacity Proxy Price and the final capacity price from PJM;

 

Applicable to the full requirements product and the ATC block energy product: In regard to Bid Assurance Collateral, (i) only a single Bid Assurance Letter of Credit is required to bid on either the full requirements tranche and/or the ATC energy block; and (ii) a fixed amount of $150,000 is required regardless of the number of products for which the Bidder intends to bid. The standard form of the Bid Assurance Letter of Credit has changed for the 2025 RFP #2 and is attached to this email. A Bidder may instruct the Auction Manager to keep the Bid Assurance Letter of Credit in place for the next RFP. In this case, a Bidder may work with the Issuing Bank to provide an amendment at the end of the RFP to reduce the amount of the Bid Assurance Letter of Credit to $1, or another nominal amount, and to extend the expiration date to keep the Bid Assurance Letter of Credit open between RFPs.

 

A 50% load cap applies to full requirements products. Beginning with the 2025 RFP #2, a supplier cannot serve more than 50% of the hourly requirements for UGI’s GSR-1 Group at any one time. Thus, a supplier that wins a 12-month full requirements product in an RFP cannot bid on this product in the immediately succeeding RFP. There is no load cap for block energy products.

 

Please click here if you would like to ask a question, or email the Auction Manager at UGIDSP@nera.com.