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 Charges).
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 summer 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.
Your individual 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).