SOS Procurement Results In Record Low Prices

A recent SOS procurement at Delmarva Power in Delaware resulted in record low prices, a post-auction report said

For the 2020 procurement, "Year over year, the weighted average auction prices were lower for all customer types, largely due to lower wholesale energy prices year over year, somewhat offset by higher capacity prices. In fact, prices for all classes reached record lows this year," the auction report said

Winning bid prices for the 2020 procurement, by class and product, along with prices from the last three years are provided in the table below. The columns showing the change in price reflect change in prices from 2019 to 2020

This year’s SOS auctions reflect the completion of the transition from three-year to two-year contracts for the supply for the Residential and Small Commercial and Industrial (RSCI) SOS customers. Historically (up to and including the 2017 RFP), the bids to serve this load were for a three-year delivery period. For the 2020 procurement and beyond, these blocks are for two-year periods. The transition from three to two years required that the 2018 RSCI bids were for 1 year contracts and the 2019 RSCI bids were for a combination of one and two-year contracts.

Winning bidders from the 2020 procurement were as follows:

• Axpo
• DTE
• Exelon
• Hartree
• NextEra
• TransAlta

Those suppliers will serve the following percents of SOS load for the 2020 Delivery Period (includes amounts from prior auctions as well):