For Immediate Release
New Standard Offer Service rates Effective June 1
WASHINGTON - Standard Offer Service (SOS) supply rates recently approved by the Maryland Public Service Commission for Pepco's Maryland residential customers will result in an approximate decrease of 15 percent in their electric bills.
Pepco delivers electricity but does not generate it. The company purchases the electricity it needs for customers from competitive wholesale suppliers, who own power plants and produce electricity or who buy and sell it on the wholesale market.
For Maryland residential customers, starting June 1 the new SOS rates will decrease the total annual bill by about 15 percent. For a typical residential customer who uses about 1,000 kilowatt-hours (kWh) of electricity a month this will result in a monthly decrease by about $ 22.00, decreasing the overall bill from $150.69 to $128.65.
Earlier this year, the District of Columbia Public Service Commission (DCPSC) authorized a decrease in the supply rates for District Standard Offer Service customers. Beginning June 1, the change will decrease average monthly residential electricity bills by about 10 percent. The monthly bill for an average District residential SOS customer will decrease by about $10.00 adjusting the average bill from $97.66 to $87.72.
SOS, the cost of what customers pay for electricity, represents about 71 percent of a residential customer's bill. SOS rates apply to customers who do not select an alternative energy supplier and are based on market prices obtained through a competitive bidding process approved by the Maryland and District of Columbia Public Service Commissions.
"This is good news for our customers, who will reap the benefits of contracts negotiated when energy costs were on the decline as opposed to the present rising fuel costs," said Thomas H. Graham President, Pepco Region. "I would encourage our customers to stretch their savings by conserving energy usage during the summer months."
Pepco offers the following summer cooling tips:
Pepco, a subsidiary of Pepco Holdings, Inc. (NYSE: POM), delivers safe, reliable and affordable electric service to more than 778,000 customers in Maryland and the District of Columbia.