Maryland SOS
What Is Standard Offer Service?
Pepco is required to buy electricity for customers who do not choose an alternative electricity supplier. Customers are charged for electricity – 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 in Maryland on July 1, 2004. Pepco’s electric supply rates had been reduced 7 % by February 2001 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.
Each year in June, supply rates are adjusted to reflect the cost of power that Pepco buys on behalf of its customers who do not contract with an alternative supplier.
