The “SOS Pricing Information” is a listing of current and known Standard Offer Service (SOS) prices and a weighted average of known SOS prices, including effective dates. All prices are in cents per kilowatt-hour. The pricing figures in the listing are for use by Maryland consumers to compare prices and estimate potential savings among generation suppliers, including the SOS supplier which is Pepco. The SOS Pricing Information includes Generation and Transmission Services. It does not include other parts of your electric bill such as the cost to deliver electricity to your home (Distribution Services).
The Generation Services consist of the Energy Charge and the Procurement Cost Adjustment. The Energy Charge is the regulated cost of electricity that is purchased by Pepco on behalf of its Standard Offer Service customers. The Procurement Cost Adjustment (PCA) is a monthly charge or credit that ensures that Pepco receives no more or no less than its cost for procuring generation services for Standard Offer Service customers and is often referred to as a "True-Up" mechanism. The "SOS Pricing Information" excludes the PCA.
To help you evaluate offers from suppliers, Pepco is providing the current SOS price, the SOS pricing for the winter period and a 12-month weighted average SOS price by rate class. This information is also provided on your bill under supply charges and is described as "Supply Price Comparison Information". You will want to compare these prices with potential supplier offerings. Consider the price offerings for each potential supplier and the amount of electricity you use each month.
Why so many prices? Pepco purchases power supplies following a PSC approved competitive bid process. Twice each year Pepco requests offers to meet the SOS supply requirements for about 25 percent of the total residential and small commercial loads. The bids are for two-year contracts. This approach has a dampening effect on price swings, keeping prices more stable than if Pepco purchased all of the supply at one time.
However, because prices change with the season and with new procurement contracts, so also does the SOS pricing information. We will update the SOS Pricing Information on your bill and in the table below.
You will find pricing information about Pepco’s Standard Offer Service in the Supply Charges section of your bill, on page 3. Pepco’s SOS current prices, next known SOS winter prices from our latest purchases, and a weighted average SOS price for each rate class may also be found in the table below. All SOS Pricing Information is based on rate class averages obtained through a competitive bidding process overseen by the Maryland Public Service Commission. The table below summarizes SOS Pricing Information by rate class as purchase prices and seasons change.
Residential (Schedule "R")
Small Commercial (Schedule "GS-ND")
Temporary Service (Schedule "T")
* Based on rate class average
This is the annual Weighted Average Price of SOS for the period described in column (E). It is calculated by:
Your individual Average Price for SOS electricity may differ because your electricity usage may be more or less than that of the average consumer in your rate class.
To calculate your individual Weighted Average Price for SOS electricity (rather than using the Weighted Average Price for SOS electricity for your rate class), you should total your summer and winter kWh and KW, if applicable, and multiply them by the generation and transmission service rates shown on your rate schedule. Add the resulting summer and winter revenue totals, and then divide by your total kWh. The result is your individual Weighted Average Price for SOS electricity for the period described in column (E).