Baltimore Electricity Rates
Contents
- 1 Baltimore Electricity Rates
- 2 Baltimore Utility Companies
- 3 Baltimore Power Outage
- 4 Baltimore Price to Compare
- 5 Understanding the Electric Bill
- 6 Energy Choice in Maryland
- 7 Renewable Energy Options
- 8 Select an Energy Plan
- 9 Frequently Asked Questions
- 10 When Will I be Switched to the New Energy Supplier?
- 11 Are There Hidden Charges?
- 12 Is There an Early Cancellation Fee?
- 13 What Happens at the End of my Term?
- 14 View by City
- 15 Clean Energy
- 16 Electricity Rates
Energy consumers living in Baltimore are free to shop for an alternate electric supplier and save up to 25% during optimal market conditions. Baltimore electricity rates have become more competitive since the Maryland Public Service Commission deregulated the electricity market in 1999. This opened the door to outside energy suppliers to begin providing supply services to Baltimore residents looking to get off the utility’s default rate. The main responsibility of the utility companies became to manage and maintain the lines and wires that deliver electricity to homes and businesses in their respective service areas.
The city of Baltimore has a population of just over 600,000 and is located 45 miles northeast of the District of Columbia. The weather throughout the year fluctuates with summers bringing in temperatures near 90 degrees while winters average just under 20 inches of snow. Temperature changes can have a strong correlation with energy prices. Residents have the option to lock in a fixed rate and protect themselves from the volatility of the energy market.
Baltimore Utility Companies
Baltimore Gas and Electric (BGE) is the main utility company that serves the city of Baltimore. If you plan on relocating to the city, then you will need to set up an electricity account through BGE. The utility company will be in charge of delivering power to homes and businesses in its service area. Given the logistics involved, a customer will not be able to change to another utility company for the delivery services. These charges are regulated by the Maryland Public Service Commission.
Baltimore Power Outage
Part of the job of managing the power lines is making sure the lights stay on. If you recently changed to a new electric supplier and experience a power outage, then you will need to contact BGE. It is very rare for a power outage to occur when switching to a new energy supplier. Most power outages occur due to tree branches falling onto the lines and wires.
- BGE Power Outage Number: 1-877-778-2222
Baltimore Price to Compare
BGE is required by the Maryland Public Service Commission to provide a default rate for supply services to homes and businesses that do not switch to another electric supplier. The default rate is known as the price to compare and changes throughout the year. Residents shopping for a new electric supplier can use the price to compare to determine energy savings. The lower the supply rate being offered by the energy supplier is to the price to compare, the greater the percentage of savings will be.
Understanding the Electric Bill
The first step in determining how much you will save by switching to a new energy supplier is figuring out the price to compare. The electric bill has two sections that include the delivery charges and supply charges. The price to compare deals with the supply section of the electric bill. Below is an explanation of the delivery and supply charge:
- Delivery Charge – The delivery charge represents the regulated section of the electric bill and is charged by BGE. The delivery is the cost of delivering electricity to homes and businesses in the utility’s service area. A customer will not be able to change utility companies for this charge.
- Supply Charge – The supply charge represents the deregulated section of the electric bill and is charged by the energy supplier. The supply charge is the cost of generating the power the customer is estimated to use during a period. Residents in deregulated electricity markets are free to change electric suppliers in search of a lower supply rate.
To determine the price to compare in the BGE sample bill above, simply take the total supply charge of $100.96 and divide it by 1513 which is the number of total kilowatt-hours used during the billing period. The price to compare for the BGE sample bill above is 6.67 cents per kWh. This means if an energy supplier is offering a supply rate lower than 6.67 cents, then the customer will be saving money by switching to the new energy supplier.
Energy Choice in Maryland
Before energy deregulation, the utility companies controlled all aspects of the energy market including generation, transmission, and delivery of electricity. Customers had no choice but to stick with their respective utility companies. Thanks to the passage of the Electric Customer Choice and Competition Act, the energy market became restructured, giving Maryland residents more power to take control of their energy costs.
The main responsibility of the utility companies became to manage the infrastructure that carries the electricity to consumers. Consumers now have a choice to switch electric suppliers to lower the supply rate or the cost to generate the power they are estimated to use for a period. The entry of more energy suppliers into the market has helped keep prices competitive while giving Maryland residents a variety of energy plans to select from.
Renewable Energy Options
One of the many great benefits of energy choice is being able to choose from energy plans that are 100% renewable. This means the energy generated will come from renewable energy sources such as hydropower and solar. These sources are considered to be cleaner forms of power generation than conventional sources such as oil and coal. The great thing about renewable energy is that you can never run out!
Maryland has set in place Renewable Portfolio Standards (RPS) for all energy suppliers to follow. The RPS are regulations that require a set percentage of electricity sold in the state to be generated from renewable energy sources. The percentage is expected to increase in the coming years with a goal of 50% power generation from renewable energy by 2030.
According to the U.S. Energy Information Administration, about half of Maryland’s renewable power generation comes from hydropower. Solar and wind represent the next largest sources of total renewable power generation coming in at 33% and 12%, respectively, as of 2019.
Select an Energy Plan
If you’re living in Baltimore and still on BGE’s default rate, then start saving today by selecting a new energy plan. There are a variety of energy plans in Baltimore that can save you 25% or more. The two most common types are the fixed and variable rate plans. Fixed rates will protect against a volatile market but will charge an early cancellation fee if the customer changes electric suppliers before the end of the agreement. If the market goes down, the customer may also be stuck paying a higher rate.
Variable rates change monthly. If you believe energy prices may drop then you may consider going with a variable rate. However, variable rates can change at the sole discretion of the energy supplier. Customers will not be happy when they find out energy prices have gone down but their variable rate has increased. Most variable-rate plans will not charge an early cancellation fee allowing the customer to change to another electric supplier without being hit with a penalty.
Below are the pros and cons of the most popular energy plans.
| Electric Rate Products | Pros | Cons |
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Fixed Rate |
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Variable Rate |
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Index Rate |
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Renewable Energy Rates |
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Frequently Asked Questions
When Will I be Switched to the New Energy Supplier?
Customers that change electric suppliers will be switched over on the next available meter read. A meter read is generally every 30 days. If you signed up right after your meter read, then you will be switched over the following month. Customers may have to wait for two billing cycles before the new rate shows up on the energy bill.
Are There Hidden Charges?
If you’re not paying attention to the energy plan’s terms and conditions, then you might be hit with an unpleasant surprise when the electric bill comes due. All additional fees can be found in the plan’s terms and conditions. Common fees include a monthly base charge which can cost the customer five to $20 per month.
Is There an Early Cancellation Fee?
Most energy plans will come with an early cancellation fee if the customer changes to another electric supplier before the end of the term. Early cancellation fees will be listed in the terms and conditions. These fees can cost the customer up to $300 so be sure the plan has expired before changing electric suppliers!
What Happens at the End of my Term?
If the customer takes no action at the end of an expired term, then most energy suppliers will change their customer to a monthly variable rate. If this happens, then don’t be surprised to have the electric bill double or triple in a single billing period. We recommend shopping for a new energy plan a month before the current plan expires.