In 1999, the Electric Customer Choice and Competition Act was implemented, allowing residents to choose their electric suppliers in Maryland. Similar to other states, business customers were the first adopters of this change. Some statistics of businesses making the switch in Maryland include:
- Around 90% of big businesses.
- Around 60% of medium-sized businesses.
- Around 30% of small businesses.
At the same time, there was a steady increase in private residents switching to alternative electric suppliers too. The seamless switching made customers more likely to switch, especially with the assurance of the same reliable service from their local utility.
The main benefit of deregulation is that consumers save money through more competition. For the industrial and commercial sectors, prices dropped. However, for residential customers, according to the Energy Information Administration prices didn’t decrease.
Laurel Peltier, a local energy advocate, took an analysis of 110 low-income Baltimore households. The results were that residents paid a 64 per cent premium for electricity, paying an extra $650 per year on average.
In 2012, Maryland ranked as the 15th highest electricity rate in the United States, with average monthly residential electric bills 4th highest in the nation. The average annual electricity bill for residents in Maryland is $1,594. As of 2021, the average Maryland electricity rate ranks as the highest out of all 50 states.
In Maryland, there are more than 60 retail power companies and roughly 20% of households in Maryland have switched to a third-party supplier. Residents in the following areas can choose their electricity provider:
- Baltimore City and County
- Washington D.C.
- Allegheny
- Anne Arundel
- Carroll
- Frederick
- Howard
- Montgomery
- Washington counties
- The Eastern Shore and a few other areas.
The local utilities that currently serve the state of Maryland are:
Baltimore Gas and Electric (BGE) – Over 200 years of service.
Delmarva Power – Supply energy to approximately 527,000 electric customers.
Pepco – Supply energy to approximately 883,000 customers.
Potomac Edison – Supply energy to approximately 257,000 customers.
The agency that manages the deregulated energy market is the Maryland Public Service Commission. Most Maryland residents can now choose their electric supplier.
Maryland consumes over five times as much energy as it produces and 97% of its electricity is imported from outside providers. The state places as the 18th highest in the United States for average energy usage, leading to higher prices for consumers.
Compared to the regional average, both commercial and residential rates are higher and electricity is more expensive than the national average. For October 2021, the average residential electricity rate is 14.52¢/kWh.
However, there is the Maryland Electric Choice. This is an official program aimed at encouraging residents to shop for both electricity and natural gas rates. Here, you can also find information about electric suppliers in the state and other energy initiatives.
Residents can also compare the standard rates charged by the utility firm, along with competitive electricity rates offered by other retail energy suppliers. Here, customers can see what benefits are available and even switch to a new service.