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Know Your Provider

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What is a Utility?

Your local utility provides electricity, natural gas, and/or water to your home. In Maryland’s electricity market, the utility distributes power, but you can often choose your supplier and energy sources. The Maryland Public Service Commission (PSC) regulates these utilities to ensure safe, reliable, and economic service.

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Electricity Pricing & Incentives

Variable vs. Fixed Rates
Utility rates can be confusing. Some rates change depending on the time of year, known as variable rates. Other rates stay the same all year, called fixed rates. Knowing the difference can help you choose the best plan for your budget. Visit Retail Choice to learn how to compare suppliers.  

Peak and Off-Peak Hours
Did you know that the cost of electricity can vary depending on the time of day if you are on Time-of-Use (TOU) Pricing? During peak hours, when demand is high, rates are higher. Off-peak hours, like late at night or early morning, are cheaper. Try to run major appliances like dishwashers and washing machines during off-peak hours to save money.  

There are currently four participating utilities offering residential TOU rates:

Visit our Save Energy & Reduce Costs page for more information on ways to save during peak hours.  

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Understanding Your Energy Bill

Understanding your utility bill is key to managing energy use. Look for these main charges:

  • Energy Usage: Cost of the energy you consume.
  • Delivery Fees: Fixed charges for bringing energy to your home.
  • Additional Charges: Variable taxes and service fees.

Analyze your bill for usage patterns to identify reduction opportunities. Smart meters offer detailed usage data. Even without one, tracking monthly usage reveals trends and potential savings. Visit your utility’s website for more bill information:

For an in-depth overview of how to read your utility bill, visit The Maryland Office of People’s Counsel website to check out their most recent virtual training.

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Choosing Your Supplier

While your local utility delivers electricity, you often have the option to choose a separate electricity supplier for the power itself. The utility (like BGE or PEPCO) remains responsible for infrastructure and delivery, while the supplier generates or purchases the electricity you consume, allowing you to potentially find better rates or renewable energy options by comparing offers and checking the list of licensed suppliers. Taking a little time to do this research can help you make the best choice for you and your home.

Find licensed electrical suppliers using Maryland Electric Choice.

MD Electric Choice
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