|FOR IMMEDIATE RELEASE
May 25, 2004
Information, Please Contact:
Office of External Relations
STANDARD OFFER SERVICE PRICES WILL INCREASE FOR PEPCO'S COMMERCIAL CUSTOMERS
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