Shop Best Maryland Electricity
Maryland energy customers are always shopping for the best deals. Because you can save money when you switch to the best electricity rates in town. But how do you know if you are saving money? Let’s talk about the electricity cost in Maryland.
About Utilities And Energy Companies
You might have noticed two charges on your electricity bill; one for distribution and the other for supply.
The distribution part of your bill is what utilities, like Pepco or BGE, charge to get power to you. Utilities use this charge to pay for maintenance, improvement, and upkeep of the grid. This is always charged by your utilities to recoup costs and turn a profit. In effect, this encourages grid development.
On the other hand, the supply charge is the cost of acquiring the electricity sent to your home. What you pay for supply depends on whether you stick with the utility standard offer service (SOS) rates or sign on with a retail energy supplier. Utilities are not allowed to make a profit on SOS rates. So you pay the exact cost for the energy you use. The SOS rate is set after an energy auction where utilities choose the lowest bidders to cover the energy they estimate they need. SOS rates must also be approved by the Maryland PSC.
SOS rates vary from utility to utility. This is partly because different service areas can have very different geographies and demand loads that affects transmission costs. For example, in the case of Prince George’s County (PGC), there’s a lot of rural space surrounding residential areas. On the other hand, crowded Baltimore City is snugged up to rivers and harbors. So, the geography makes it easier and cheaper to run bulk power lines through PGC than Baltimore. As a result, PGC tends to have better SOS rates.
Why Shop Maryland Electricity Suppliers
As mentioned, utilities make a profit through the delivery charge. Retail suppliers must compete with each other to attract customers. This encourages suppliers to offer the best rates possible, which can be better than SOS rates. In addition, companies like Direct Energy will add further value with shopping discounts or rebate programs.
One thing customers should consider is that SOS rates change twice a year. However, supplier rates can last 12-36 months. As a result, you could save money when you lock in a cheap, stable rate for a longer term.
Save On Maryland Electricity
The price of power in Maryland is different from city to city. But if you take a moment to shop around, you can find the cheapest deals in your town. Plus, you can keep your eyes peeled for the news that affects your bills right here at https://www.mdenergyratings.com. Be sure to shop for great plans and find ways to save money on lower electricity rates.