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MD PSC Announces Successful Completion of Bidding For Electric Standard Offer Service


May 25, 2004
For More Information, Please Contact:
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Baltimore, MD -Maryland's electric market is open to customer choice. This gives customers the opportunity to choose the provider of the generation supply component of their electric service. Customers can buy their generation supply from their local utility or from an electricity supplier. Electricity suppliers are licensed with the Maryland Public Service Commission (PSC). The delivery component of electric service will still be provided by the local utility and the local utility is still the company to call if the power goes out. Customers who do not choose an electricity supplier, will receive generation supply from their local utility. This power supply is called Standard Offer Service (SOS) and is based upon market bids.

The fixed price generation component of bills for commercial customers in Pepco's service territory will expire on July 1, 2004. Since wholesale generation costs have been increasing while the generation component of Maryland's SOS prices has remained at a fixed price, the new market based SOS prices have increased compared to Pepco's current prices. Increases compared to current SOS prices will depend on each customer's class and individual usage characteristics, and reflect only increases in the generation component. Generally, a small commercial customer's total bill will increase by roughly 13 percent; a medium-sized commercial customer's bill will go up by roughly between 25 to 30 percent; large-sized commercial customers can expect to see bill increases from roughly 48 percent to 57 percent. Pepco has posted their SOS retail prices on their web site at www.pepco.com. Customers should use the generation and transmission components of those prices to compare offers from licensed retail electric suppliers.

There are strategies for dealing with the new generation prices. Shopping for the generation component of your electric service though electric suppliers or aggregators may be one of the best ways to manage price increases. A list of electricity suppliers offering generation supply service in your territory and additional information on customer choice is available on the PSC's web site www.md-electric-info.com. It will also be helpful to better understand and manage your load/usage patterns, monitor your energy costs and seek to implement usage/cost reduction techniques. Pepco can assist you in understanding how to use energy wisely. Visit their web site at www.pepco.com.

In April, the PSC announced the results of a successful bidding process. That process has secured electric suppliers to provide market priced electric SOS for Maryland customers of investor owned electric companies whose fixed price electric service offerings are expiring. The highly competitive bidding process involved 25 wholesale electric suppliers offering electric supply 4-5 times in excess of the load solicited. Detailed information on this bidding process is available on the PSC's web site at www.md-electric-info.com.


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