• Rates 101

  • We are committed to providing you with reliable electricity service at the lowest possible cost. As part of our commitment to you, we provide you with information to help you understand your electricity bill and rates. This information can help you make informed choices about how and when you use electricity, so that you can save money and calculate your savings on a monthly basis. 

    Your Energy Bill

    Your energy bill is based on the rates to both supply and deliver your electricity. 

    Supply Rate

    Supply rates refer to the generation of electricity and are itemized under Generation Services and Transmission Services. If you do not have another energy supplier, we charge you for the Standard Offer Service (SOS), the rate at which we buy electricity for our customers. 

    Delivery Rate

    The delivery rate is charged to cover the cost of getting electricity to your home or business. It covers the cost of maintaining, expanding and improving our electric system. This includes the power poles, lines, meters, and customer service representatives who help answer your questions and concerns.

    Click here for more on how to read your bill

    How We Determine Rates

    We charge you standard rates based on your location and whether you are a residential or commercial customer. These rates are provided in rate schedule documents both on our websites and at your request. The schedules are reviewed regularly during summer and winter months to ensure you are receiving competitive rates that follow industry standards.

    Occasionally, we will determine that adjustments need to be made to our utility rates. This takes place through a public and transparent legal proceeding known as a Rate Case Process. You can learn more about this process and how these decisions are made by watching our video. 


    How to Choose

    You can choose who supplies your energy to you. Whether you choose us or another company as your supplier, we will still deliver electricity to you. If you choose us, we buy the electricity for you and charge you according to the rates discussed above. However, if you decide to go with another supplier, making the change is easy. Once your signed agreement is submitted to your new supplier, we will coordinate with them to make the switch. 

    If you are still debating the options, here are some ways to help you compare us to other suppliers:

    Price Comparison

    All of your energy prices are in cents per kilowatt-hour (kWh). The pricing in the rate schedules is for our consumers to calculate their rates, compare prices and estimate potential savings among other suppliers.

    The Price to Compare is the average cost per kilowatt-hour (kWh) for generation and transmission service, based on your rate classification, and allows you to compare our Standard Offer Service (SOS) rates with offers from competing electricity suppliers.

    The Price to Compare is calculated by taking the total kilowatt-hour usage for all customers in a specific rate class for a 12-month period and multiplying that amount by the actual generation and transmission rates. The total amount is divided by the total 12-month kilowatt-hour usage, providing an average per kilowatt-hour rate for generation and transmission for the rate class. The final amount is the Price to Compare rate.

    • Total your summer and winter kWh and KW (if applicable) 
    • Multiply them by the generation and transmission rates shown on your rate schedule (which you can find here)
    • Add the summer and winter revenue totals,
    • Divide by your total kWh.
    • The result is your individual Price to Compare.

    Price to Compare includes the Procurement Cost Adjustment (PCA). The Procurement Cost Adjustment is an adjustment to the rates customers are billed to reflect Pepco's actual costs of providing Standard Offer Service (SOS). The current PCA can be viewed under Tariffs.

    Calculate Your Savings

    If you are not already a customer with us: calculate your potential annual savings, determine the difference between our Weighted Average Price of SOS electricity beginning October 1, 2013 through September 30, 2014 and the price of other Electric Generation Suppliers participating in the Energy Choice Program by subtracting one from the other. If the supplier’s price is less than ours, you’ll save money. Multiply that difference by your average monthly kilowatt-hour (kWh) usage to determine your average monthly and annual savings.

    If you are already one of our customers:

    • Total your summer and winter kWh use and multiply them by the generation and transmission rates shown on your rate schedules.
    • Separately, add the summer and winter revenue total together.
    • Divide the total revenue by your total kWh. 
     

    Environmental Factors

    All electricity suppliers must tell you how they generate their electricity (e.g., nuclear, natural gas, oil, solar), what types of air emissions they produce and their energy efficiency. We are committed to increasing the amount of power that comes from renewable resources. You can also help protect the environment by purchasing cleaner energy. We have a number of programs that are designed to reduce the amount of energy we use from fossil fuels. For example, at Pepco we offer our customers Green Power Connection ™ which enables customers to install renewable-powered generators and then sell unused power back to the power grid. Delmarva Power currently offers customers grants to offset the installed cost of photovoltaic, solar water heating, wind and geothermal renewable energy technologies.