Delmarva SOS Winning Bid Prices Decline for Small Customers, Increase for Large Customers

Energy prices in the Residential and Small Commercial SOS portfolio at Delmarva Power in Delaware will decline as a result of the 2012-13 auction for SOS supply, while prices for medium and large C&I customers will increase, but largely due to capacity, according to the auction report from The Liberty Consulting Group, Inc.

The 2012-13 auction sought one-third of Delmarva's residential and small commercial SOS supplies for the 36-month period beginning June 1, 2013, and 100% of supplies for medium and large non-residential customers for the 12-month period beginning June 1, 2013.

Load weighted average winning bids from the 2012-13 auction were as follows (in $/MWh):

Residential/Small Commercial, 36 Months:   $76.77
Medium General Service, 12 Months:         $78.16
Large General Service, 12 Months:          $73.95
General Service, Primary, 12 Months:       $70.14

Prices do not reflect transmission, the procurement cost adjustment, renewable portfolio costs, and the reasonable allowance for retail margin.

The 2012-13 Residential/Small Commercial price reflects a 14.7% decrease from the 2009-10 auction price which it replaces.

The 2012-13 Residential/Small Commercial price of $76.77/MWh will be blended with the existing portfolio, with one-third of supply at the new price, one-third at the 2010-11 price of $85.89/MWh, and one-third at the 2011-12 price of $83.02/MWh.

MGS and LGS prices, where no blending occurs, were higher than those of the 2011-12 auction by 7.2% and 2.8%, respectively, largely influenced by the capacity component of the price.

The 2012-13 auction saw eight participating bidders, and six winning bidders. Winning bidders from the 2012-13 auction were DTE Energy Trading, Inc.; Exelon; Hess Corporation; Macquarie Energy LLC; NextEra Energy Power Marketing, LLC; and Shell Energy North America (US), L.P.

The percent of load served by each supplier for the 2013-14 delivery year (including suppliers winning tranches in prior-year auctions for a portion of small customer load) can be found on page 6 of Liberty Consulting's report

The descending clock auction for Delmarva SOS was conducted by World Energy Solutions.