The majority of Maryland electricity consumers who have not shopped for competitive electric prices will see their electric rates increase in June. Baltimore Gas & Electric (BG&E), Potamac Electric Power (PEPCO), and Delmarva Power will all increase their rates for default paying residential customers. The larges increase will be placed on Delmarva customers who will see their rates increase 11% from 8.35 cents to 9.28 cents.
While prices will be increasing, consumers actually have the ability to pay even less than they are currently paying for their power supply by shopping for lower electric rates through the Maryland energy choice market. Maryland energy choice simply gives the consumer the option to purchase their power from an alternative supplier. Perhaps an alternative supplier is offering an electric rate that is less than the current price to compare default rate, or perhaps they are offering a green energy plan that you wish to take part in. The majority of people who decide to shop and compare electric rates do so to save money.
Many Maryland energy consumers would rather pay higher prices and “stay loyal” with their incumbent utility company. The reality is that the local utility companies (BGE, PEPCO, Delmarva, Allegheny) do not care if their customers shop for lower rates. With Maryland electric choice, the local utility continues to deliver power to their customers, as well as manage the lines and wires and respond to power failures and emergencies, no matter which electric supplier is chosen. The Maryland utilities are no longer in the business of offering competitive generation supply rates and only offer their default rates because they are forced to do so by the Maryland Public Service Commission.
For example, if you are a customer of Baltimore Gas & Electric, and decide to buy power from a competitive supplier who is offering a lower rate than the BG&E price to compare, here is what will happen: You will still continue to receive your monthly electric bill from BG&E (assuming the supplier does consolidated billing which they should); on your monthly electric bill you will see distribution charges that are regulated by the state, and supply charges which include the generation and transmission costs. The competitive offer you choose will include the generation and transmission charges and be displayed in the supply section. If an emergency occurs such as a power failure, BG&E will still send out their repairmen to rectify the situation. The repairmen will not act slower to repair your home because you have switched suppliers. This is another big misconception.
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