UPDATE (as of August 4, 2023):
Yes, you should.
Step Up has advised that if you received the email that went out the first week of August 2023 confirming you have been awarded PEP for your tudents--and your scholarship program now shows "FTCPEP" for your student in Step Up's system---then you have been awarded PEP and you will be funded through FTC once everything processes. If you still want to accept the PEP scholarship for your students, you should go ahead and submit your letter of termination for each student who will be switching to PEP.
(You will also need to complete your Student Learning Plan (SLP) inside Step Up's portal, if you haven't already done so.)
You will find your confirmation details by logging into EMA, then "My Students" on your Dashboard, then clicking "View" next to each individual student. Be sure to confirm "FTCPEP" is listed for each student you applied for! See screenshot below for what it should look like.
If you're seeing that FTCPEP listed there, then you should go ahead and submit your letter of termination to the county. Step Up and DOE will be working with the districts to ensure PEP students aren't registered as Home Ed, so you'll want to go ahead and terminate to avoid any issues there.
By the way, THIS is what the email we're referring to looks like. Step Up began sending them out first week of August, but as of today (August 14, 2023), they are still working on notifying parents.