Residential SOS Tranche Remains Unfilled After Reserve Procurement; Standard Process Would Be To Initially Serve Load Under Spot Prices

A reserve procurement for residential and Type I SOS electricity supplies in Maryland for various utilities resulted in one of the products at Potomac Edison being unfilled

Specifically, among other products, the reserve procurement had sought 46.1 MW of residential supply at Potomac Edison covering the June 1, 2024 to May 31, 2025 period

The application of the Price Anomaly Threshold (PAT) led to rejection of the winning bid for the Potomac Edison June 1, 2024 to May 31, 2025 product

The PSC's bid monitor noted that, in a case where the reserve procurement fails, per the Phase II settlement agreement in Case No. 8908, the load is to initially be purchased in the spot market, with PSC Staff convening a meeting of parties to discuss alternative ways of meeting this supply need. The utility is then tasked with submitting a proposal to the Commission.

However, given that the start date for the failed product is June 2024, the bid monitor said that, "Because this product does not start delivery until June of 2024, one possibility would be to seek the product in the 5 upcoming June bid day."

All other sought products and tranches were filled in the reserve procurement, including 184.4 MW of Residential supply at Potomac Edison covering the October 1, 2024 to May 31, 16 2025 period

While retail rates have not yet been filed, PSC Staff reported that, in terms of the SOS supply cost, the latest procurements, along with the current SOS portfolio, will result in the following SOS cost impacts to non-shopping customers:

% Change in SOS Power Supply Cost
Period June 2023 - May 2024

Residential:
BGE:             25.2% increase
Pepco            26.5% increase
Delmarva:        24.3% increase


Type I
BGE:             24.0% increase
Pepco            33.6% increase
Delmarva:        25.0% increase