Compare Maryland’s Electricity Rates
Contents
- 1 Compare Maryland’s Electricity Rates
- 2 Why shop for a Retail Electricity Supplier?
- 3 What will Change on My Electric Bill?
- 4 What Happens at the End of My Rate Plan?
- 5 Utility Companies in Maryland
- 6 Baltimore Gas and Electric Company
- 7 Southern Maryland Electric Cooperative
- 8 An Overview of Maryland’s Energy Market
- 9 Electricity Generation by Source
- 10 Renewable Energy in Maryland
- 11 Maryland’s Electricity Prices Compared to the National Average
- 12 Electric Suppliers
- 13 Utility Companies
Residents living in Maryland can shop and compare electricity rates for their homes and businesses. The “Electric Customer Choice and Competition Act of 1999,” deregulated the energy market allowing customers to engage in energy choice. Before 1999, utility companies had a monopoly over the infrastructure (lines and wires) and generation facilities. After the bill was passed, utility companies were forced to sell their generation facilities to competing suppliers. The main responsibility became to maintain the lines and wires and provide a Standard Offer Service (SOS) generation rate to customers who choose not to shop around.
Why shop for a Retail Electricity Supplier?
Energy choice opens up more options for customers that choose to shop for a retail electricity supplier. The increase in competition has a tendency to drive down prices passing the savings onto the customer. Not only will customers benefit from lower rates, but they can also choose from what resources the power is generated. Retail energy suppliers will offer different rate product plans, based on the customers’ preference. Green energy or power generated from 100% renewable resources is a growing trend across the country. This product plan offered by most energy suppliers can help Maryland customers to significantly reduce their carbon footprint.
What will Change on My Electric Bill?
The only change on the electric bill will be the lower supply rate the customer will pay! The majority of residential and commercial customers will be put on single billing after switching to a retail energy supplier. The single billing method will have both the supply rate (generation rate) and the delivery rate incorporated on the same bill. This means the customer will receive one electric bill from the utility company and will not have to worry about another bill from the retail energy supplier.
What Happens at the End of My Rate Plan?
If you decide to switch over to a retail energy supplier, it is important to pay attention to when the rate plan expires. After the rate plan expires, most suppliers will put the customer on a month-to-month variable rate. Once this happens, don’t be surprised to find a high electric bill on the next billing period. To switch back to the utility company, the customer will have to contact the energy supplier and let them know they wish to cancel upon the expiration of the rate term. Once the rate term expires, the customer will automatically be switched back to the utility company.
Energy comparison sites, such as our website, will provide a list of energy suppliers along with the rates for the customer to choose from. After signing up, we’ll handle the switch, along with sending the customer an email reminder near the end of the product term. Never be surprised again with a high electric bill!
Utility Companies in Maryland
Baltimore Gas and Electric Company
Serving customers in both electric and gas, Baltimore Gas and Electric (BGE) is Maryland’s largest local distribution company. Headquartered in Baltimore, BGE covers more than 2,300 square miles in electric and 800 square miles for gas. The company has a combined customer base of more than 1.9 million gas and electric customers. BGE’s main responsibility is to maintain the lines and wires to safely deliver the energy to its customers.
Potomac Edison serves more than 400,000 customers in Maryland and West Virginia. Potomac Edison is a local distribution company that is responsible for generation, transmission, and delivery of electric service to customers that have not selected a 3rd party generation supplier.
Delmarva Power is part of the Exelon Corporation family, providing electric service to more than 206,280 customers in Maryland.
PEPCO operates both in Maryland and the District of Columbia, providing safe and reliable energy to nearly 883,000 customers. With over 1,500 employees, PEPCO’s service area covers more than 640 square miles. Customers who select a 3rd party generation supplier will still contact PEPCO for any power outages.
Southern Maryland Electric Cooperative
Southern Maryland Electric Cooperative (SMECO) is a customer-owned electric cooperative providing service in southern Prince George’s County, Charles County, St. Mary’s County, and all but the northeast portion of Calvert County. The customers receiving an electric service number just above 165,000.
An Overview of Maryland’s Energy Market
Maryland consumes five times more energy than it produces. However, the state is among the top 10 lowest per capita in energy consumption. The transportation, commercial, and residential sectors’ consumption rates are nearly equivalent, each accounting for roughly 30 percent. The industry sector consumes the least amount of energy at just under eight percent.
Electricity Generation by Source
More than half of Maryland’s electricity comes from nuclear and natural gas-fired power plants. Each source generates nearly the same amount of electricity. Power from natural gas-fired generation has nearly tripled since 2015, accounting for nearly 32 percent of the total net generation.
Historically, coal-fired power plants have played a huge role in electricity generation in Maryland. However, recent economic changes have caused the total net generation to fall below 25 percent as of 2018. This trend is expected to continue as most of the coal-fired power plants are becoming outdated, with three expecting to shut down in 2019 and 2020.
Renewable Energy in Maryland
Power from renewable energy resources accounts for just over 10 percent of Maryland’s total net generation. Hydropower makes up more than half of this amount. The largest hydroelectric generation station in Maryland was built off the Susquehanna River and began operating in 1928. It consists of 11 turbines that have a combined summer generating capacity of 572 megawatts.
Power generation from solar energy is increasing and nearly tripled in three years between 2016 and 2018. In 2019, solar energy in Maryland had a power generating capacity of 1,100 megawatts. This trend is expected to increase as the largest solar project located on the Eastern Shore was completed in 2018.
Electricity generated from renewable energy resources will continue to expand in Maryland as the legislature, back in 2004, enacted a renewable portfolio standard (RPS). This requires a percentage of total electricity retail sales within the state of Maryland to come from renewable energy sources. As of May 2019, the RPS is requiring 50 percent of retail electricity sales come from renewable energy sources by 2030.
Maryland’s Electricity Prices Compared to the National Average
| Electricity | Maryland | U.S. Average | Period |
|---|---|---|---|
Residential | 13.59 cents/kWh | 13.08 cents/kWh | March 2020 |
Commercial | 9.90 cents/kWh | 10.41 cents/kWh | March 2020 |
Industrial | 7.62 cents/kWh | 6.40 cents/kWh | March 2020 |