You may be able to save money by shopping with a competitive supplier. Although Pepco does not endorse any individual suppliers, or solicit door to door to promote electric shopping, we are committed to helping every customer understand how they can shop and potentially save money by choosing the right energy supplier for their needs and circumstances.
Electricity travels from a power plant, a source of generation, to an electrical facility such as a substation in a neighborhood. Moving electricity in this manner is called transmission. After this, moving electricity from that neighborhood electrical facility to your business is called distribution. When you become a Pepco customer, you initially pay Pepco for all of these services -- generation, transmission, and distribution. If you are purchasing the electricity you use from a competitive third party supplier, you would pay Pepco for distribution.
The restructuring of the electric utility industry allows you to select the certified or licensed electricity provider that best fits your needs. If you don't choose a different provider, we buy electricity for you and charge you according to rates approved by your Public Service Commission. This is called the "Standard Offer Service" (SOS) program and is administered under rules established by the Commission.
The Commission has designated Pepco to purchase electricity for you through power supply contracts in an annual competitive auction that provides customers with generation rates that are reflective of market conditions while at the same time providing protection against extreme conditions.
We continue to deliver electricity to all customers, no matter who they choose as their electric provider. Pepco remains your distribution company. We will continue to deliver electricity to all customers through our network of electric power lines. We will continue to maintain these power lines and restore service in the event of any disruption, such as weather related events, and respond to emergency and routine service calls.
The “Supply Charges” section in your electricity bill is broken down to indicate charges for:
If you choose a provider other than Pepco, you will pay that provider’s price for electric supply instead of our electric price. Any additional monthly savings that you achieve by "shopping" will depend on the rate charged by the supplier(s) that you choose. The prices charged by suppliers could be higher or lower than the prices that Pepco charges for the same services.
List of electricity suppliers licensed by the Public Service Commission (PSC).
When you call them, be sure to get answers to the following questions:
The Price to Compare (“PTC”) is the average cost per kilowatt-hour (kWh) for generation and transmission service, based on your rate classification. The PTC is a tool for you to use in comparing Pepco's Standard Offer Service (SOS) generation and transmission rates with offers from competing certified or licensed electricity suppliers
To calculate your potential annual savings, determine the difference between your individual Price to Compare and the similar price of other Electric Generation Suppliers participating in the Energy Choice Program by subtracting one from the other. If the supplier’s price is less than Pepco’s, you’ll save money. Multiply that difference by your average monthly kilowatt-hour (kWh) usage to determine your average monthly and annual savings.
You may be able to buy cleaner power and possibly help protect the environment. By law, all electricity suppliers must tell you how they generate their electricity (nuclear, natural gas, oil, solar, etc.), what types of air emissions they produce and their energy efficiency.
If you choose a new supplier, making the change is easy. Contact the supplier of your choice and complete the enrollment paperwork. It is then up to your new supplier and Pepco to make the switch.
If you choose to stay with Standard Offer Service, you do not need to do anything.
Information for Retail Energy Suppliers