Watch Out For Rising SOS Rates
Winter residential Standard Offer Service (SOS) rates are set to rise this October. And that means high electricity bills in the coldest part of the year. While winter electricity rates may be six months away, it’s never too early to plan for higher bills SOS rates. Don’t throw away your hard earned money! Let’s dig into what prices look like now and what they may look like later on in the fall.
Compare Residential SOS Rates
So how high will SOS rate rise this October? BGE customers will see SOS rates rise from 8.444 cents per kilowatt hour (kWh) to 10.29 cents per kWh. Also, Pepco customers SOS rates are set to spike from the June 7.853 cents per kWh rate to 10.293 cents per kWh. Lastly, Delmarva Power customers will see their rates rise from 8.348 cents per kWh to 9.6015 cents per kWh. These rates will be in effect through May 31, 2024.
To put this in perspective, we can compare these rates using the 973 kWh average monthly energy consumed in MD.
The average monthly supply charges on MD bills rise from about $82 to about $100 for BGE customers. Pepco customer supply charges could rise from about $76 to about $100. And Delmarva customer supply charges rise from about $81 to about $93.
So what can MD customers do to avoid these rate hikes? Shop for a better rate, of course!
Shop Cheapest Electricity Rates
To be clear, the spring shoulder months are pretty much done and warmer weather is moving in. October’s higher SOS rates run between .2 to .6 of a penny per kWh cheaper that currently offered by MD’s energy suppliers. So for the moment, the higher SOS rates will be cheaper than current plans by just a whisper.
In my experience, the best rates usually come around March-May. But this time cheaper retail rates could show up in the fall. That’s because natural gas prices have been on a decline since the start of the year. Prices may surge a bit this summer due to demand for power burn to meet air conditioning demand. But it’s likely to be temporary. So, natural gas prices may dip during the fall shoulder months. These Maryland utility companies will be locked into their SOS supply contracts for the winter. But, retail suppliers will be free to shop the cheapest wholesale deals to offer the best rates.
This is especially important when you consider that nearly half of home energy use goes towards space heating. So winter energy bills tend be much bigger than the rest of the year.
This means smart energy shoppers should plan to get ready for the winter now. And you could save in the long-run with a long-term fixed-rate.
Jump Ahead Of Increasing SOS Rates
Once summer fires up, Maryland electricity rates will likely rise. While you might be tempted to sit on an SOS rates, come October you may see great deals. Stay on your toes and you may be able to beat the spiking residential SOS rates.
Meanwhile, you can keep your eyes peeled for the news that affects your bills right here at https://www.mdenergyratings.com. You can also shop for great plans and find ways to save money on lower electricity rates.