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Home > BGE Programs, Electric Tariffs & POLR Information > POLR Information

Provider Of Last Resort (POLR) Information

The Maryland Public Service Commission approved on April 29, 2003, a settlement that established POLR for all utilities in Maryland.  POLR provides a new fixed price market based Standard Offer Service for customers when Price Freeze Service ended and no electricity supplier has been selected. This is being done to continue the smooth transition to Customer Choice.  POLR provides for market-based rate plans depending on the customer segment and/or Capacity Peak Load Contribution level.

 

POLR Rates

BGE will make a best effort to communicate new POLR Rates to electricity suppliers at least 2 months prior to the beginning of each service year. The BGE Retail Electric Service Tariff and BGE web site will be updated to reflect the new POLR Rates.  The price structure for each plan will be similar to the current Tariff schedules with the seasonal and Time-of-Use (TOU) components.

 

Electricity suppliers should be aware that BGE's Energy Cost Adjustments need to be added to the POLR Rates to reflect the total POLR charge for all non-residential customers.  In addition the Administrative Cost Adjustments must be added to BGE's distribution charges to reflect the total BGE distribution charge for all customers.  POLR Price to Compare prices represent average annual rates for the market priced Standard Offer Service type and do not reflect TOU or seasonal differences.

Procurement Process
Pricing for all of the POLR plans (with the exception of the Hourly-Priced Non-Residential Service) will be based upon BGE's wholesale procurement cost of electric power plus transmission, other PJM charges, administrative costs, and applicable taxes. BGE's wholesale procurement cost for electric power will be determined through a competitive bidding process for supply contracts with terms ranging from 3 months to 2 years. The schedule for the current wholesale procurement process can be found at the General Info link at BGE's Standard Offer Service Request For Proposals web site.  Below is a brief summary of the current procurement process:

RESIDENTIAL

  • SOS Contract from 6/1/07 – 9/30/07
    • 50% load obtained from Dec 05 – Feb 06 procurement
    • 50% load obtained from Jan 07 - Feb 07 procurement
  • SOS Contract from 10/1/07 – 5/31/08
    • 50% load obtained from Dec 05 – Feb 06 procurement
    • 37.5% load obtained from Jan 07 - Feb 07 procurement
    • 12.5% load to be obtained from Apr 07 procurement
  • SOS Contracts beginning 6/1/08
    • Two year contracts with two procurements per year
    • Each procurement represents 25% of the load
    • Contracts beginning in June will be 25% procured in October of the previous year
    • Contracts beginning in October will be 25% procured in April of that year

TYPE I

  • SOS Contract from 6/1/07 – 5/31/08
    • 40% load obtained from Dec 05 – Feb 06 procurement
    • 60% load obtained from Jan 07 - Feb 07 procurement
  • SOS Contracts beginning 6/1/08
    • New definition for Type I goes into effect
    • Two year contracts with two procurement per year
    • Each procurement represents 25% of the load after the initial phase in period
    • No timelines for procuring loads for contracts that begin in June and October have yet been established by the PSC

TYPE II (Effective 6/1/07)

  • Combines Types II A and II B to Type II
  • Contracts are 3 months with quarterly procurements
  • Each procurement represents 100% of the load
  • Timelines for contracts and procurements are:
    • Contracts beginning in June will be 100% procured in February of that year
    • Contracts beginning in September will be 100% procured in June of that year
    • Contracts beginning in December will be 100% procured in October of that year
    • Contracts beginning in March will be 100% procured in January of that year

INTERVAL METERED ACCOUNTS

  • Accounts with Capacity PLCs > 600 kW not enrolled with an electricity supplier are required to be on hourly pricing
  • Accounts with Capacity PLCs > 550 kW and < 600kW are required to have interval meters but are not eligible for hourly service (Effective 6/1/07)
  • Accounts with Capacity PLCs > 500 kW and < 600kW are required to have interval meters but are not eligible for hourly service (Effective 6/1/08)