The EIA has predicted that home electricity use will be the lowest it has been in 5 years. If this prediction holds true, homeowners may see lower rates because of decreased demand. But since energy rates are never certain, smart energy shoppers will look to short term fixed rate plans to save money while they wait for these potential rate drops.
Maryland Energy Rates per kWh
We have searched for the best 6-month electric rates per kWh in the BGE service area. The competitive Constellation 6 Month Home PowerPlan offers supply rate of 6.59¢ per kWh. Compared to the current BGE price to compare of 6.558¢ per kWh, this may seem like a bad deal. But starting in October of 2019, the BGE electric rate supply charge increases to 7.146¢ per kWh.
According to the EIA, the average Maryland household uses 940 kWh per month. That means that your supply charge with Constellation will be around $61.95 per month. The BGE supply charge will be around $61.64 until October where it will jump to $67.17 per month.
Switching over to Constellation in time for the August billing cycle would end up costing you about $371.70 for 6 months of electricity. If you stayed with BGE ( August $61.64 + $61.64 September + October through January $268.68), you would spend $391.96. If we exclude include both increased winter power usage and the distribution charges ($7.90 customer charge and 3.147 cents per kWh charge) from BGE, you can save $20.26 over the 6 month period.
Maryland Electric Provider Comparison
Constellation isn’t the only energy provider offering 6-month plans to BGE customers. We have also looked at the Spark Energy Spark Secure 6 plan as well as the APG&E TrueSimple 6 plan and still find the 6 Month Home Power plan to be the cheapest.
Constellation only falls short in comparison to these other provider energy plans when it comes to cancellation fees. While Constellation charges $150 for early cancellation, Spark Energy and APG&E charge only $100 each. But consider that while customers have the three day right of rescission to cancel a plan with no penalties, Constellation offers a 90 day guarantee period where you can cancel with no penalties. That’s half-way through the contract to keep comparing and shopping for a better rate. For customers who sign up now, that 90 day period ends just in time for the annual shoulder month period when energy prices typically decrease right before winter.
Constellation comes out ahead with supply charges when you compare their 6.59¢ per kWh rate to the 7.54¢ from APG&E or Spark Energy’s 8.29¢ rate. Spark Energy also has a monthly recurring charge of $4.95.
Best Electric Provider in Maryland
If you’re not ready to commit to a provider, think of 6-month fixed energy plans as try-out periods for electric providers. This way, these plans give you predictable costs and a sense of the customer service you can expect without forcing a long-term investment. Plus for now, you wait to see how far prices might fall. The Constellation 6 Month Home Powerplan provides the cheapest rates just in time for the change of seasons. You can learn more by checking out https://www.mdenergyratings.com.