The four Maryland
investor-owned electric companies (“utility or utilities”) are Potomac Edison
Company (“PE”), Baltimore Gas and Electric Company (“BGE”), Delmarva Power and Light Co.("Delmarva"), and Potomac Electric Power Co. ("Pepco"). Electric supply service is currently available to the vast majority of
Maryland (MD) customers through fixed price power supply tariffs offered by
Maryland’s electric utilities pursuant to the Phase I and Phase II settlement
agreements governing the procurement of full requirements wholesale power
supply for Standard Offer Service (SOS) electric customers.
In May 2005, the Maryland
Public Service Commission (“Commission”) established Case No. 9037 regarding
the continued provision of Type II Non-Residential SOS once the Phase I and
Phase II settlement provisions for Type II Non-Residential SOS expired on
May31, 2006. On June 24, 2005, a settlement (Type II settlement) was presented
to the Commission proposing the terms and conditions for the continued
provision of Type II Non-Residential SOS. On October 12, 2005, in Order No.
80342, the Maryland Public Service Commission approved a modified Type II
settlement agreement in Case No. 9037. As set forth in the Order, the former
Type II was replaced by Type II-A representing customers from 100kW to 600kW
and Type II-B representing customers from 25kW to 100kW for Pepco.
On February 17, 2006, the
Commission issued order 80608 and established Case No. 9056 for the purpose of
determining what form of SOS or default service will be made available to Type
II customers beginning on June 1, 2007. On August 28, 2006, the Commission
issued Order No. 81019 and directed that Type II A and Type II B SOS customers
be reunited into a single customer class and that electric supply be procured
for all Type II SOS customers on a quarterly basis, for a one year period
beginning with service provided June 1, 2007.
On May 10, 2006, the
Commission issued an Order initiating Case No. 9063 to investigate the Optimal
Structure of the Electric Industry in Maryland. This Case was subsequently
closed in 2007 and Case No. 9117 was opened to examine various modifications,
including a managed portfolio, to the competitive process through which
investor-owned utilities obtain their electricity supply for residential and
small commercial customers that choose Standard Offer Service.
On May 10, 2006, the
Commission issued an additional Order initiating Case No. 9064, as a major
policy review proceeding covering the provision of standard offer service to
residential and small commercial customers. On November 8, 2006, the Commission
issued Order No. 81102 in Case No. 9064, and on December 6, 2006, the
Commission approved the Utilities’ Compliance Plans to implement Order 81102 in
Case No. 9064. Among several other important changes, Order 81102 and the
accompanying Compliance Plans provide that Residential SOS will be procured
twice a year using two-year contracts effective June 1, 2007, and subject to a
contract term transition period; and that Type I Non-Residential SOS will be
procured twice a year using two-year contracts effective June 1, 2008. Also
effective June 1, 2008, Type I was defined as “small commercial” with a demand
below 25kW and the Type II demand will range from 25kW up to 600kW.
On August 16, 2007, the
Commission issued Order 81563 initiating Case No. 9117 to review the
competitive process through which the Utilities obtain electricity supply for
residential and small business customers participating in Standard Offer.
The settlement agreements
and Commission Orders have been posted on PHI’s RFP Web site. Any additional
Orders in Case No. 9064 and Case No. 9063 will be posted as they become
This RFP reflects the
wholesale bidding process set forth in the Case No. 8908 Phase II, Case No.
9037 settlement agreements, Case No. 9056, Case No. 9064 and Case No. 9063 to
solicit proposals from suppliers interested in providing SOS to Pepco for the
customer classes and terms indicated in Section 2-2 (Product Definition). The
RFP is for full requirements wholesale supply service to meet the needs of
Pepco's SOS retail load obligation as described in the settlements and further
discussed in the RFP.
The information provided
herein is based on the most recent Procurement Improvement Process as required
under the Phase II agreement in Case No. 8908 and as approved by the Commission
in Case No. 9056, and Case No. 9064 as a Letter Order dated September 7, 2016
accepting Staff's Procurement Improvement Process Report and RFP Documents.
Should the Commission
require any changes to the documents or other information provided under Case
No. 8908 or any other applicable case currently under review at the Commission,
Pepco will update such documents or information in accordance with the
Commission’s requirements and will post such changes herein.