Significant SOS Price Decreases Coming for Most Maryland SOS Customers

Maryland SOS residential customers are forecast to see significant declines in supply rates for the June 2014-May 2015 period, based on results from the October 2013 procurement, PSC Staff said in an auction report.

The October 2013 RFP included the procurement of supplies for residential, Type I, and Type II customers at all four investor-owned utilities. The residential procurement was for supplies for the period beginning June 1, 2014.

The procurement served as the final procurement needed to serve customers for the period June 1, 2014 to September 30, 2014. However, retail SOS rates for this period were not yet available, and will be made public in compliance tariffs from the utilities which are to be filed shortly.

Staff did report, however, the expected change in the SOS power supply rate for the 2014/15 annual SOS period versus the current period. Note that procurements for the October 1, 2014 to May 31, 2015 portion of this annual period have not yet been completed.

Staff reported that residential customers at Baltimore Gas & Electric, both standard and Time of Use customers, are expected to see a 17% decrease in the SOS power supply cost for 2014/15.

Pepco residential customers are expected to see a 14-15% decrease in the SOS power supply cost for 2014/15, depending on whether the customer is on the standard rate, electric heating, or TOU.

All classes of Delmarva residential customers are expected to see a 12% decrease in the SOS power supply cost for 2014/15.

In contrast, all classes of Potomac Edison residential customers are expected to see a 17% increase in the SOS power supply cost for 2014/15.

The October 2013 SOS procurement saw six winning bidders, versus eight winning bidders in the April 2013 procurement (the most recent procurement with comparable products).

There was a total of 11 bidders in the October 2013 RFP, two fewer than the number of bidders in April.

For the entire October 2013 RFP, there was approximately 6.0 MW bid for every MW needed. For the Residential and Type I products alone, the number was 5.8 to 1. These metrics are very similar to last April's RFP, which saw 5.9 MW bid both for every block needed overall and for the Residential and Type I products alone.

In the October RFP, no winning bids were rejected due to implementation of the Price Anomaly Threshold.

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