Potomac Ed Rate Increasing By a Third!
Winter heating is always expensive. Especially with high natural gas prices and market uncertainty. But in spite of falling natural gas prices, Potomac Ed customers can still expect summer SOS rates to spike even higher. Here’s what you need to know about the Potomac Ed residential SOS rate increase and how you can save.
Residential SOS Rate Spike
According to First Energy, Potomac Ed customers are paying 6.537 cents per kWh. This includes the transmission costs to send power from generators to Potomac Ed. The rate lasts until June 1, when the rate increases to 8.910 cents per kWh. Then the rate rises again to 9.222 cents per kWh from October 1 to May 31, 2024. This means that from June 1 through spring 2024, SOS rates will rise and stay that way for another year. And that means higher electricity bills.
To put it in perspective, the average Maryland home owners uses 973 kWh per month. That means an average SOS part of the bill will go from around $63.60 per month to about $89.73 per month. That’s an increase of $26.13!
These rate hikes really add up fast.
Why Increasing Residential SOS Rate
Usually, summer electricity rates are lower than winter rates. And that especially true because most electricity customers stay home during the bitter cold. So, you might wonder why Potomac Edison SOS rates are rising.
About 38% of the electricity produced in the country comes from natural gas. The second and third largest sources, renewables and coal, make up about 42% combined. This means that the natural gas market has a huge impact on retail electricity prices. So high demand, natural gas supply constraints, and world events can cause electricity prices to surge.
Thankfully, some Maryland counties are pushing for more energy efficiency and less natural gas dependency. Hopefully, this means cheaper renewable forms of energy and the potential for lower prices in the future.
Beat Potomac Ed SOS Rate
But there’s good news. The rate hike won’t kick in until June 1. This means you have plenty of time to shop for great rates with third party energy companies. Right now, the Potomac Ed SOS rate is the best deal, but that may not remain the case. Especially if you shop for better rates during the April-May shoulder months. Because the weather is mild and energy demand is lower, prices tend to fall as well.
So, if you find better fixed rates in April, they can save you money for the whole year.
Avoid Rising Residential Rate
There are many reasons for the upcoming Potomac Edison SOS rate hike. But there’s still plenty of time to save money if you shop smart in the next few months. Be sure to keep up with the news that affects your bills at https://www.mdenergyratings.com. You can also shop for great plans and find ways to save money on lower electricity rates.