Maryland SOS
What Is Standard Offer Service?
Under Maryland law, Maryland electric utilities are required to buy electricity for customers who do not choose an alternative electricity supplier. Customers are charged for this service—called Standard Offer Service (SOS)—under rates approved by the Maryland Public Service Commission. Under a settlement with the Commission, Pepco began offering SOS supply at market-based rates on July 1, 2004. Pepco's base rates had been reduced 7% by July 2000, and remained capped to give a competitive electricity market time to develop. On July 1, 2004, these caps were lifted and new rates, which were established through a competitive bidding process on the wholesale electricity market, took effect.
