You can make 170 valid words from the letters in PENCILLED using the Scrabble US/CAN dictionary.
How many points is PENCILLED worth in Scrabble?
PENCILLED is worth 14 points in Scrabble (US/CAN) and 19 points in Words With Friends.
How do I use the Word Unscrambler tool?
Enter any letters into the input box and press Search. The tool will return every valid English word that can be made from those letters using the dictionary you select.