For customers who are purchasing their electric supply from Pepco under Standard Offer Service, the new SOS rates will go into effect July 1, 2026. This is a change from all other years when SOS rates are updated June 1st. Pepco requested a one-month delay in the application of the rates to ensure that the new rates are accurately updated in their system. Note that the SOS prices will be in effect from July 1, 2026 -May 31, 2027. For the month lag, Pepco will accrue the lost revenue from the lower rates in June and adjust the SOS rate through the Procurement Cost Adjustment (“PCA”), which is filed annually by Pepco. The PCA is a true-up mechanism for the cost to provide SOS service to customers. Pepco reserves the right to adjust SOS rates throughout the year through the PCA and Administrative Charge mechanisms.
Estimates for the all-in cost for SOS supply are in the $0.17 per kwh range representing the highest SOS rates for Pepco DC which is driven by increased capacity costs, increased Renewable Portfolio Standard costs and wholesale energy price escalation.
Participants who are interested in evaluating moving off SOS service and into a competitive supply agreement through AOBA Alliance can contact Kevin Carey @ kcarey@aoba-metro.org.