How does SB1 Affect My Long Term Electric Supply Contract?

If you have a 24 month or 36 month Maryland electricity plan, you'll want to find out how SB1 affects when it goes into affect on January 1, 2025.

Important Notice For Long Term Electric

Will long term electric plans be honored after January 1, 2025? Learn how the new SB1 law affects your Maryland electric choice.
While some SB1 rules offer some consumer protections, its term restrictions are confusing consumers with current long term electric plans.

MD lawmakers have been hard at work to keep energy customers safe. This has led to SB1, ostensibly a consumer protections law that goes into effect. However, Maryland Energy Advocates Coalition (MEAC) are now urging the MD PSC warn customers about the new law. Specifically, they say consumers need to know how SB1 will affect customers who signed on to long term electric contracts. After all, SB1 restricts MD electric choice by eliminating that class of plan. So, many customers are now confused about what happens to their long term electric contracts when the law takes effect.

What Is SB1?

SB1 is a new energy consumer protection law that goes into effect on January 1, 2025. Specifically, it increases accountability among energy providers. Its intent is to discourage scam tactics and make it easier to punish companies that make use of them. Unfortunately, it restricts energy choice to do this.

As a result, Maryland energy companies will no longer be able to offer or renew plans that last longer than 12 months. Plus the new law sets price limits on plans.

And that’s the problem for customers who either still have long term electric contracts or who are shopping for one while there’s still time. There’s been no clear statement from the PSC yet about how this will be handled.

How SB1 Affects Long Term Electric

For that reason, the consumer advocacy group MEAC urged the PSC to warn customers that contracts entered before January 1, 2025 won’t be subject to the new restrictions. MEAC points out that some companies may offer plans with rates that may exceed the law’s limitations that last well past the January 1 deadline. MEAC believes that the PSC should tell customers to be extra careful while they shop plans before these energy choice restrictions go into effect.

Should You Shop Long Term Electric?

It’s easy to assume that now isn’t the best time to shop. But that isn’t the case. Because right now, you could lock in plans and promotions that could cut down your energy costs. Keep in mind that we’re getting knee deep in summer heat, so cooling costs could jack up your bills. Don’t forget that winter is usually the most expensive time of the year.

However, the new law adds extra complexity to shopping for plans because it changes rules. It will be easy to misunderstand how some plans may work. So while it’s never a bad time to energy shop, you should be careful to avoid scams whenever possible. For that reason, you can always shop for the best deals by checking out rates and reviews posted here on We’re also the best place to go for all the news that could affect your energy bills.

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