Residential SOS Rates to Rise at Most Maryland Utilities

Maryland's October SOS procurement will result in higher SOS costs for residential customers at most utilities, according to a forecast by PSC Staff.

Although retail rates will not be available at several utilities until utilities file their updated tariff sheets, PSC Staff said that the October procurement results, blended with the existing portfolio, will lead to the following forecast increase (decrease) on residential customer SOS costs for the period June 2013-May 2014 versus the year-ago period:

BGE:
Standard Rate (non-TOU):        11.8%
TOU Rate:                       10.0%

Delmarva:
Without Electric Heat, non-TOU:  3.1%
With Electric Heat, non-TOU:     3.1%

Pepco: 
Without Electric Heat, non-TOU:  4.6%
With Electric Heat, non-TOU:     4.6%

Potomac Edison:
Without Electric Heat:         (0.41%)
With Electric Heat:            (0.53%)

Note that an April 2013 procurement is still required to procure a portion of October 2013-May 2014 supplies.

Pepco and Delmarva have already filed new SOS rates for the June 2013 - September 2013 period based on the October procurement.

Link to Pepco SOS Rates

Link to Delmarva SOS Rates

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

Boston Pacific reported that for residential and Type I products in the procurement, there were 5.8 MW bid for every MW needed, versus 5.2 MW bid for every MW needed in April 2012, the last RFP with comparable products available.

Notably, participation increased for Potomac Edison residential supply. In the April 2012 procurement, 5 MW was bid for every residential MW available at Potomac Edison. In the October RFP, the Potomac Edison residential products saw 7 MW bid for every MW needed.

Across all products, the October RFP saw 5.7 MW bid for every MW needed, versus 5.8 MW bid for every MW needed in April 2012.

The October RFP saw 7 winners, versus 10 in the April 2012 RFP. Twelve bidders submitted bids in the October RFP, the same number of participants in the April RFP.

All winning prices in the October RFP came in below the Price Anomaly Threshold