We deliver electricity, but we do not generate it. We purchase the electricity we need for our customers from unregulated wholesale suppliers, who own power plants and produce electricity or who buy and sell it on the wholesale market. Maryland law requires us to use a competitive bidding process to buy electricity for customers who do not choose an alternative electricity supplier. Customers are charged for this service – called Standard Offer Service (SOS) – under rates approved by the Maryland Public Service Commission (PSC). It is estimated that the average residential customer will see a total summer bill decrease of about 2.0 percent beginning with the June, 2016 billing cycle. The new winter SOS rates beginning October 1, 2016 have not yet been set.
Competitive bidding occurs twice each year. Delmarva Power purchases the electricity it needs for its SOS customers from unregulated wholesale suppliers, who own power plants and produce electricity or who buy and sell it on the wholesale market. Contracts are awarded based on lowest price.
New SOS rates are effective for the Summer on June 1 and for Winter on October 1. Two times a year, Delmarva Power offers about 25 percent of the total residential and small commercial SOS peak load for bids. The bids are for two-year contracts. The bidding combination of load, contract term and bidding frequency has been approved by the PSC. This approach has a dampening effect on price swings.
Also, a monthly rate
credit which changes quarterly is being applied to the bills of all Maryland
residential customers. The credit, entitled “RGGI Rate Credit,” appears as a
line item on the bill. It provides a billing credit to help offset surcharges for
the cost of programs that will decrease energy demand and promote clean energy
to fuel Maryland’s future prosperity. RGGI stands for Regional Greenhouse Gas
Funding for the RGGI
credit comes from the Maryland Strategic Energy Investment Fund, which receives
proceeds mainly from the sale of CO2 emission allowances by the State of
Maryland. The credit is a direct pass-through from the state to all residential
electric customers and will be adjusted quarterly to reflect the latest sales
Our customers who do not
choose an electric supplier will receive Standard Offer Service (SOS). This
means Delmarva Power both delivers and purchases electricity for supply to its
We follow a PSC approved competitive bid process – twice each year Delmarva Power offers about 25 percent of the total residential and small commercial SOS peak load for bids. The bids are for two-year contracts. This approach has a dampening effect on price swings.
New SOS rates are effective for the Summer on June 1 and for Winter on October1.
For Maryland residential customers, the new summer SOS rate will decrease, by about $3.00, the average monthly summer bill beginning June 1, 2016. The new winter SOS rates beginning October 1, 2016 have not yet been set.
It’s hard to say. One supplier
was publicly announced as winning a piece of the SOS load during the 2015
competitive bid process, and a total of five suppliers currently serve all of
the SOS load. The suppliers buy and trade the energy in the PJM marketplace so
tracking its origin is difficult. The bid process simply ensures that we’ll get
the needed reliable and competitive supply of electricity for delivery to our
The following supplier was publicly announced as winning the supply contract for this year;
Starting June 1, 2015 your electricity will be supplied by the following suppliers;
Pricing information is confidential in compliance with PSC Formal Case No. 9056 and 9064 which govern the SOS bidding process. The percentage of load won by each supplier is listed below.
First, you need to find
out if there is an alternative retail electric supplier available to you. You
can do this by calling the Maryland Public Service Commission, (800) 492-0474
or visit the Commission’s Web site, www.psc.state.md.us. If you are considering
a competitive supplier, you should know your “SOS
Pricing Information”, which is a listing of current and known Standard Offer
Service (SOS) prices and a weighted average of known SOS prices, including
effective dates based on your rate classification. The SOS Pricing Information
includes Standard Offer and Transmission Services. It does not include other
parts of your electric bill such as the cost to deliver electricity to your
home (Distribution Services). All prices are in cents per kilowatt-hour and are
provided as information to help you evaluate Delmarva Power’s SOS rates with
offers from competing electricity suppliers.
Delmarva Power provides
each customer with SOS Pricing Information on the monthly electric bill. Such
information will change from time to time as new rates are set for the summer
Your bill will
essentially look the same. The new rates for Standard Offer Service will be
reflected in the Supply Charges portion of your bill. See our brochure on the bill format for
The new rates are already available on our Web site at delmarva.com in the Tariff section.
The kilowatt hour
consumption used to calculate the annual small commercial bill for the average
customer is about 1,000 kilowatt hours per month.
Yes. The SOS rates that will take effect on June 1, 2016, will be your summer rate. Winter rates will take effect on October 1, 2016.
The RGGI Rate Credit is a
monthly rate credit that is applied to the bills of all Maryland residential
customers. The credit appears as a line item on the bill. It provides a billing
credit to help offset surcharges for the cost of programs that will decrease
energy demand and promote clean energy to fuel Maryland’s future prosperity.
RGGI stands for Regional Greenhouse Gas Initiative.