Maryland SOS Auction Sees Improved Competitiveness for Mass Market Tranches

The April 18 auction for Maryland SOS supplies saw improved competitiveness for mass market tranches, easing a concern identified by the bid monitor in the October 2010 procurement.

Although the number of bidders (11) and winning suppliers (7) across all procurement classes (residential, Type I, Type II) remained the same as in the October auction, the amount of megawatts bid per tranche improved.

For the Residential and Type I products, the RFP saw 4.2 MW bid for every 1 MW needed. This represents an increase from last October's bid, which saw 2.6 MW bid for every residential MW needed.

Across all classes, the April auction saw 4.6 MW bid for every 1 MW needed, versus 3.8 MW bid for every block needed in the October auction.

No winning bids were rejected due to implementation of the Price Anomaly Threshold.

Retail rates are not available until developed and posted by the utilities based on the accepted procurement results. However, Staff reported that, at Baltimore Gas & Electric, SOS power supply costs will decrease 16% starting October 1. At Pepco, the decrease is projected at 20%.