At Pepco, we’re here to help you better understand your electric bill—especially the supply rate. Whether you use our Standard Offer Service (SOS) or choose a third-party supplier, knowing how the supply rate works can help you make confident, informed decisions. 

What Is the Supply Rate? 

The supply rate is the price you pay for the electricity you use. The supply rate is a pass-through cost, meaning we don’t make a profit from it. It’s based on market prices and is set through a yearly process called the Base Residual Auction, run by PJM Interconnection. This auction helps secure electricity for future years at competitive prices.  

Who Is PJM? 

PJM Interconnection is the organization that manages the electric grid for our region, including Maryland and The District. They help ensure there’s always enough electricity to meet demand and coordinate how power flows from generators to utilities like Pepco. 

Where to Find It on Your Bill 

You’ll see the supply charge listed as “Standard Offer Service” on your bill. This includes the cost of electricity and the cost of getting it to our area. If you’ve chosen a third-party supplier, their name and rate will show up here instead. 

Choosing a Third-Party Supplier 

You have the option to shop around for electricity suppliers. Some may offer different rates or contract terms that better suit your needs. No matter who you choose, Pepco will still deliver your electricity and maintain your service. To compare options, visit our customer choice webpage at My Service | Pepco – An Exelon Company.