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
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
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 summer 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.
* Based on rate class average
This is the annual Weighted Average Price of SOS for the period described in column (D). 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 (D).