| Washington D.C. Default Service |
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District of Columbia non-residential customers can choose between two primary supply sources, the incumbent utility Pepco, or a competitive supplier. For non-residential customers the utility offers a pass through Market Price Service (MPS) or a fixed price Standard Offer Service (SOS). The utility products have no developmental or contract flexibility. A competitive supplier can offer a range of product types that can be developed to meet your unique and specific needs. The competitive supplier product can enable the end user to take advantage of market conditions with terms and conditions that are beneficial to both parties.
Your local electric utility company retains ownership and operational control of distributing your electricity. The distribution infrastructure is the poles, transformers and wires that distribute the electricity. The utility must provide reliable delivery or distribution service even when you choose an alternate supplier.
PEPCO will continue to supply SOS and MPS to customers who are not served by a competitive supplier. The power to meet SOS requirements is procured through a competitive bid. The bid based SOS rates went into effect on 2/8/05 and customers would have to remain on SOS for 12 months. SOS rates for the post-transition period (beginning 2/8/05) are significantly higher than previous rates. In November 2004, the D.C. Public Service Commission (PSC) estimated that small commercial SOS rates would increase 24% above current levels and that larger commercial SOS rates will increase 32%. The MPS rate is market based and consists of the following components: 1) PJM locational marginal price (LMP) for the PEPCO zone 2) PJM posted and verifiable market capacity price 3) transmission and ancillary services 4) line losses 5) appropriate taxes and 6) a fixed retail adder of 1.67 mills/kWh.
Yes, In August 2004 the D.C. PSC approved a PEPCO proposal for an administrative charge similar to the one that is used in Maryland. The administrative charge is made up a retail adder plus utility charges for uncollectible expenses and other incremental costs. In November 2004 the D.C. PSC set the total administrative charges at 4.6 mills/kWh for small commercial customers and 5.2 mills/kWh for large customers. The adder component of these administrative charges is 3 mills/kWh for commercial customers.
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