Maryland Confirms SOS Bidding Process at Potomac Edison

The Maryland PSC voted to continue the current SOS procurement schedule at Potomac Edison.

Under this schedule, for Potomac Edison's residential SOS, bidding will take place in October 2012, January 2013, and April 2013 for June 1, 2013-May 31, 2014 and June 1, 2013-May 31, 2015 power flow. Potomac Edison's June 2013 residential bidding will be for a June 1, 2014-May 31, 2015 and June 1, 2014-May 31, 2016 power flow.

As indicated, each Potomac Edison residential procurement includes one 12-month and one 24-month contract, and all delivery start dates are all on June 1 (with no October 1 start dates).

In an annual review of the SOS procurement process, the PSC had been presented again with modifying Potomac Edison's schedule to mirror the procurement process used at the other investor-owned utilities, where residential SOS and Type I SOS, bidding will take place in October of 2012 for June 1, 2013 power flow and in April of 2013 for October 1, 2013 power flow (all contracts are for two years, and all residential procurements occur in April and October).

Among other reasons, Potomac Edison uses a unique schedule for SOS procurements to extract greater value for Auction Revenue Rights. The PSC saw no reason to change the current schedule given that it is functioning well.