Maryland Residential SOS Rates to Fall at BGE, Pepco

Maryland's April SOS procurement will result in lower SOS costs for residential customers at most utilities.

Although retail rates will not be available until utilities file their updated tariff sheets, PSC Staff said that the April RFP results, blended with the existing portfolio, will lead to the following increase (decrease) on residential customer SOS costs for the period June 2012-May 2013 versus the year-ago period:

BGE:
Standard Rate (non-TOU): (4.5%)

Delmarva:
Without Electric Heat, non-TOU: 2.5%
With Electric Heat, non-TOU: 2.8%

Pepco:
Without Electric Heat, non-TOU: (4.8%)
With Electric Heat, non-TOU: (4.1%)

Potomac Edison:
Without Electric Heat: (12.3%)
With Electric Heat: (12.2%)

The April RFP procured a portion of residential supplies for the period October 1, 2012 to September 30, 2014 at BGE, Pepco, and Delmarva, and the period June 1, 2012 to May 31, 2014 at Potomac Edison. SOS rates for utilities other than Potomac Edison for the June - September 2012 period had been previously set and reported by Matters (BGE, Pepco, Delmarva)

Maryland's April SOS procurement saw increased bidder participation, including for residential and Type I products.

Boston Pacific reported that for residential and Type I products in the procurement, there was 5.2 MW bid for every MW needed, versus 4.5 MW bid for every MW needed in October 2011, the last RFP with comparable products available.

Across all products, the April RFP saw 5.8 MW bid for every MW needed, up from 5.2 MW bid for every MW needed in October 2011.

Notably, participation increased for Potomac Edison Type I supply. In the January 2012 procurement, only 3 MW were bid for every Type I MW available at Potomac Edison. In the April RFP, the Potomac Edison Type I product saw 5 MW bid for every Type I MW needed.

The April RFP saw 10 winners, versus 9 in the October 2011 RFP. Twelve bidders submitted bids in the April RFP, the same number of participants in the October RFP.

All winning prices in the April RFP came in below the Price Anomaly Threshold.