We deliver electricity, but we do not generate it. We purchase the electricity we need for ours 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 and contracts are awarded based on the lowest price. 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 small commercial customer will see a total summer bill increase of about 3.5 percent beginning with the June, 2015 billing cycle. The new winter SOS rates beginning October 1, 2015 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, we 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 Initiative.
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 of allowances.
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 customers.
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 October 1.
For Maryland small commercial customers, the new summer SOS rate will increase, by about $15.00, the average monthly summer bill beginning June 1, 2015. The new winter SOS rates beginning October 1, 2015 have not yet been set.
It’s hard to say. Two suppliers were publicly announced as winning a piece of the SOS load during the 2014 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 customers.
The following suppliers were publicly announced as winning supply contracts for this year;
Starting June 1, 2014 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 and winter.
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.
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 3,000 kilowatt hours per month.
Yes. The SOS rates that will take effect on June 1, 2015, will be your summer rate. Winter rates will take effect on October 1, 2015.
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.