For Immediate Release
Washington, DC - Pepco today announced results of bidding for its residential Standard Offer Service (SOS) customers in the District of Columbia that will go into effect for one year beginning June 1, 2007. Based on bidding results, the new rates will raise monthly residential electric bills by an average of about 12 percent to an average of $87.16, up $9.25 from the current average of $77.90.
Each year, Pepco purchases electricity for its SOS customers through a competitive bidding process that is conducted under rules issued by the DC PSC.
"Our goal in the procurement process is to secure the lowest prices we can for our customers," says Thomas H. Graham, President of Pepco Region. "The prices that were bid to supply our residential customers for the 2007-2008 rate year reflect earlier price increases in the mix of fuels that go into generating electricity. As a result, even though market prices are not escalating like they were the last few years, prices for procurement that replaces expiring contracts purchased at a time of lower energy prices will still reflect a 'catch-up' to bring them in line with current prices on the wholesale electricity market." Between 1999 and 2005, natural gas prices rose a total of 400 percent; fuel oil prices rose 300 percent; and coal prices rose 150 percent. In just one year, 2005, the price of fuel oil rose 76 percent and of natural gas, 67 percent.
Graham recommends that customers take advantage of a number of Pepco's programs including:
• Budget Billing, where customers can spread their bills evenly over the year avoiding the surges that come with the higher usage in summer and winter.• Energy Know How Solutions, an on-line tool which conducts a personal energy audit and analyzes a customer's individual electric bill to offer ways to save energy and money. • Eighty-Five Ways to Save Money and Energy, a helpful guide available from www.pepco.com, which has additional information as well as links to helpful Web sites.
Pepco has recently launched its Smart Metering Pilot Program. As part of D.C.'s Smart Meter program, 2,500 randomly selected customers will participate in the pilot and test the new meters, designed to provide detailed electric use data to enable customers to track and modify their electric use, and help Pepco make improvements to customer reliability and outage management while streamlining administrative systems and improving customer service. Assuming the pilot is successful, the meters will be installed for all D.C. customers.
Once the rates are approved formally by the District of Columbia Public Service Commission, Pepco's commercial and residential customers can find the new rates by visiting www.pepco.com.
____________________________ Pepco, a subsidiary of Pepco Holdings, Inc. (NYSE: POM), delivers safe, reliable and affordable electric service to more than 745,000 customers in Maryland and the District of Columbia.