Maryland Standard Offer Service (SOS) RFP

Potomac Electric Power Company (Pepco) is soliciting offers for full-requirements wholesale electric power supply through a Request for Proposals (RFP) process approved by the Maryland Public Service Commission. This RFP is part of a statewide Maryland procurement conducted concurrently for all Standard Offer Service (SOS) loads on a utility-specific basis. The RFP seeks offers to meet the needs of three customer service types: Residential SOS, Type I Non-Residential SOS (small commercial customers with demand below 25kW), and Type II Non-Residential SOS (customers with demand ranging from 25kW up to 600kW). The service types were redefined consistent with Order 81102, effective June 1, 2008.

The bidding process will be conducted through a multi-procurement process, involving four procurements plus reserve procurements if necessary, to fulfill the utility's requests for various customer service types. The exact number of procurements will vary by utility depending on the retail load for each service type. The solicitation for this RFP covers two-year wholesale supply contracts for Residential load and Type I load, while Type II load will be solicited for quarterly contract terms. Preliminary Peak Load Contributions (PLC) are provided for the specific service types, with the RFP soliciting a total of 1,074 MW (787 MW Residential, 24 MW Type I, and 263 MW Type II).

The load in each procurement is divided into blocks of approximately 50 MW for bidding purposes. Suppliers may bid on as many blocks as they deem appropriate. A supplier's full-requirements obligation is stated as a percentage of Pepco's actual retail load for a service type, following variations in load from day to day and hour to hour. For Residential and Type I Small Commercial, a volumetric risk mechanism mitigates risk to suppliers if there is large customer migration back to SOS from competitive retail service. In such events, the utility will be responsible for the incremental load obligation while the supplier's percentage obligation remains unchanged.

Bidders must submit bids using the Bid Form Spreadsheets, with separate spreadsheets for each procurement and service type. All shaded cells must be completed; blank shaded cells will render a bid non-conforming and eliminate it from consideration. Price quotes are limited to two decimal places. All pricing components are reduced to a single discounted price (Discounted Average Term Price) for comparison, and blocks will be awarded to the lowest bidders until procurement targets are filled. Interested applicants must express their non-binding interest by completing and submitting the Expression of Interest Form to be eligible to submit proposals. Upon submission, applicants receive a password to access additional information on the RFP website.