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Maryland Utilities Issue Request For Proposals For Generation Capacity Resources Under Long-Term Contract

Friday, October 07, 2011

The Baltimore Gas and Electric Company (“BGE”), Delmarva Power & Light Company (“Delmarva”), Potomac Electric Power Company (“Pepco”), and The Potomac Edison Company (“PE”) have issued Requests for Proposals (RFPs) for Generation Capacity Resources Under Long-term Contract.

On September 29, 2009, the Maryland Public Service Commission (“Commission”) initiated Case No. 9214 to investigate whether it should exercise its authority to order Maryland’s regulated electric distribution companies (“EDCs”) to enter into long-term contracts with entities that construct new generation facilities in Maryland or alternatively to direct the EDCs to construct, acquire, or lease, and operate new electric generation facilities in Maryland. On September 29, 2011, the Commission issued a Notice of Approval of Request for Proposals for New Generation to be issued by Maryland Electric Distribution Companies.

The Commission has determined that the RFP will have the following elements:

· proposals for generation capacity resources must include capacity and energy and be located within the PJM defined Southwest MAAC zone,

· the generation capacity resources must be new, natural-gas fired units,

· a maximum 20-year term of agreement,

· the generation capacity resource proposed may not exceed 1,500 MW,

· the generation capacity resource must not have cleared any prior PJM Base Residual Auction (“BRA”) for capacity,

· the winning bidder must offer its capacity in the BRA in accordance with BRA rules,

· the winning bidder will not be paid for any year in which its capacity does not clear the BRA,

· the contract structure will be a contract for differences between the winning bidder and the applicable Maryland EDC.

The RFP schedule, as listed in Section 8 of the RFP, is as follows:

Activity Date

RFP issued October 7, 2011

Pre-offer conference October 21, 2011

Eligibility Documents due October 28, 2011

Issue Respondents’ eligibility status November 4, 2011

Deadline for receipt of Respondents’ questions November 4, 2011

Initial Proposal Due Date November 11, 2011

Initial Shortlist evaluation complete December 16, 2011

Commission hearing January 31, 2012

Final Shortlist evaluation complete February 10, 2012

Commission selects and approves any winning offers February 23, 2012

EDC(s) execute Commission-approved agreements March 1, 2012

Advance notification of intent to offer due to PJM March 1, 2012

Executed system impact study agreement in place April 13, 2012

Additional details regarding the RFPs can be found by visiting any of the following websites:

Maryland Public Service Commission http://webapp.psc.state.md.us/Intranet/procurements/info_new.cfm

Potomac Edison www.alleghenypower.com/rfp

Baltimore Gas & Electric rfp.bge.com

Delmarva Power www.delmarva.com/mdrfp

Potomac Electric Power Company www.pepco.com/mdrfp

In accordance with Section 7 of the RFP, all questions regarding this RFP must be directed to Dolline Serra of the Commission at dserra@psc.state.md.us