The "SOS Pricing
Information" is a listing of current and known Standard Offer Service
(SOS) prices and a weighted average of known SOS prices, including effective
dates. All prices are in cents per kilowatt-hour. The pricing figures in the
listing are for use by Maryland consumers to compare prices and estimate
potential savings among generation suppliers, including the SOS supplier which
is Delmarva Power. The SOS Pricing Information reflects the cost of producing
electricity for you (Supply Charges). It does not include other parts of your
electric bill such as the cost to deliver electricity to your home (Delivery
The Supply Charges
consist of the costs for Standard Offer Service, Transmission Service and the
Procurement Cost Adjustment. The Standard Offer Service is the regulated cost
of electricity that is purchased by Delmarva Power on behalf of its Standard
Offer Service customers. The Procurement Cost Adjustment (PCA) is a
monthly charge or credit that ensures that Delmarva Power receives no more or
no less than its cost for procuring supply for Standard Offer Service customers
and is often referred to as a "True-Up". The SOS Pricing information
does not include other parts of your electric bill such as the cost to deliver
electricity to your home (Delivery Charges).
To help you evaluate
offers from suppliers, Delmarva Power is providing the current SOS price, the
SOS pricing for the winter period and a 12-month weighted average SOS price by
rate class. You will want to compare these prices with potential supplier
offerings. Consider the price offerings for each potential supplier and the
amount of electricity you use each month.
Why so many prices?
Delmarva Power purchases power supplies following a PSC approved competitive bid
process. Twice each year Delmarva Power requests offers to meet the SOS supply
requirements for about 25 percent of the total residential and small commercial
loads. The bids are for two-year contracts. This approach has a dampening
effect on price swings, keeping prices more stable than if Delmarva Power
purchased all of the supply at one time.
However, because prices
change with the season and with new procurement contracts, so also does the SOS
pricing information. We will update the SOS Pricing Information on your bill
and in the table below.
You will find pricing
information about Delmarva Power's Standard Offer Service in the "Detail
of your Electric Charges" section of your bill, on page 3. Delmarva
Power's SOS current prices, next known SOS winter prices from our latest
purchases, and a weighted average SOS price for each rate class may also be
found in the table below. All SOS Pricing Information is based on rate class
averages obtained through a competitive bidding process overseen by the
Maryland Public Service Commission.
* Based on rate class average
This is the annual Weighted Average Price of SOS for the period described in column (E). It is calculated by:
Multiply the total
kilowatt-hour usage each month for all customers within a specific rate class
within the 12-month period by the generation and transmission price (summer or
winter rates) for that month to get the monthly cost for all customers within
that rate class.
Note that some monthly kilowatt-hour usage figures may be estimated projections
of future usage within the 12-month period, pending actual usage results.
The 12 individual monthly
costs are added together and the sum is then divided by the total 12-month
kilowatt-hour usage for the rate class. The result is the average cost per
kilowatt-hour rate for generation and transmission for the rate class.
Average Price for SOS electricity may differ because your electricity usage may
be more or less than that of the average consumer in your rate class.
To calculate your individual
Weighted Average Price for SOS electricity (rather than using the Weighted
Average Price for SOS electricity for your rate class), you should total
your summer and winter kWh and KW, if applicable, and multiply them by the
standard offer service and transmission service rates shown on your rate schedule. Add the resulting
summer and winter revenue totals, and then divide by your total kWh. The result
is your individual Weighted Average Price for SOS electricity for the period
described in column (D).