Maryland Energy Choice
What Is Standard Offer Service?
Pepco is required to buy electricity for customers who do not choose an alternative electricity supplier. Customers are charged for electricity – called Standard Offer Service (SOS) – under rates approved by the Maryland Public Service Commission. Under a settlement with the Commission, Pepco began offering SOS supply at market-based rates in Maryland on July 1, 2004.
Each year in June and October, supply rates are adjusted to reflect the cost of power that Pepco buys on behalf of its customers who do not contract with an alternative supplier.
For Maryland residential customers, the new summer SOS rate will reduce the average monthly bill by about $7.00 beginning June 1, 2012. Also, in October when the new winter SOS rates take effect in Maryland the average monthly bill will decrease by about $2.00.
Combined, the new winter and summer supply rates for Maryland will decrease the annual average monthly bill by about $4.00. For an average Maryland residential customer who uses about 1,000 kilowatt-hour of electricity a month this would result in a decrease of about 3 percent.
