Delaware Mass Market SOS Rates to Decrease; C&I Rates to Increase

Delmarva Power's Delaware procurement of SOS supplies for the period starting June 1, 2015 resulted in residential and small C&I clearing prices lower than the prices from the 2011-12 auction (whose results are being rolled out of the portfolio for mass market customers), while medium and large C&I rates were higher.

The Delmarva 2014-2015 SOS procurement, for one-third of residential and small commercial (RSCI) supplies for the 36-month period beginning June 1, 2015 and 100% of medium and large commercial (MGS, LGS, and GS-P) supplies for the 12-month period beginning June 1, 2015, resulted in load weighted average clearing prices as follows ($/MWh):

Customer Type       2014-15 RFP 
RSCI                   $82.18
MGS                    $77.06
LGS                    $75.10
GS-P                   $79.23

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

In contrast, results from the 2011-12 procurement, whose contracts are being replaced (for mass market customers), and 2013-14 procurement are below ($/MWh):

Customer Type     2011-12 RFP     2013-14 RFP
RSCI                 $83.02          $74.48
MGS                    N/A           $67.79
LGS                    N/A           $62.81
GS-P                   N/A           $64.00

The 2014-15 residential/small commercial price of $82.18/MWh will be blended with the existing portfolio, with one-third of supply at the new price, one-third at the 2012-13 price of $76.77/MWh. and one-third at the 2013-14 price of $74.48/MWh

The 2014-15 procurement saw five bidders participate. The winning bidders were from the 2014-15 procurement were Exelon Generation Company, LLC and DTE Energy Trading, Inc.

The percent of load, by customer class, to be served by each supplier for the 2015-16 delivery year is below (including suppliers winning tranches in prior-year auctions for a portion of 2015-16 small customer load):

Supplier              RSCI     MGS     LGS     GS-P
DTE Energy Trading   11.3%    33.3%   100.0%
Energy America       11.1%
Exelon               43.6%    66.7%           100.0%
Macquarie            11.4%
NextEra               5.7%
NRG                   5.5%
Shell                11.4%