Maryland Retail Energy Overview:

Maryland’s residential retail energy market took off in 2010 after Maryland’s Public Service Commission (PSC) approved Utility Consolidated Billing with purchase of receivables (POR). The 2018 Abell Foundation Report cowritten by Arjun Makhijani, Ph.D. and Laurel Peltier made the case with data that POR when combined with variable rates that have no maximums was partially driving sky-high retail supplier rates (pg. 8).

Even after the Abell Foundation report detailed the dysfunctional market, retail suppliers continued to increase electricity and gas third-party supplier rates (see historical chart below).

In 2022, an extensive UC Berkeley Haas report was published using BGE territory retail energy billing data. The report asked: Why did low-income retail energy accounts pay more than higher income accounts? The 108-page analysis laid out how and why retail supplier pricing discrimination focused on low-income, immigrant, and community of color ZIP codes.

In 2023, based on increasing PSC retail energy consumer complaints, the PSC launched a maximum enforcement effort demanding that retail suppliers improve their business and sales practices. By 2023, Maryland residential consumers had overpaid $1.2 billion compared to regulated utility default electricity and gas. Residential retail supplier market share had dropped from 28% to 13% - high rates and aggressive sales tactics didn’t promote a healthy business market.

The back drop to increasing retail supplier rates was that Maryland’s overall energy rates were rising due to PJM supply/demand imbalances - Virginia data centers loads, increased utility delivery rates and higher grid transmission rates.

Residential retail energy wasn’t working. Instead of savings, residential consumers had higher power bills. The initial deregulatory 1999 Electric Choice Act‘s goal was to “provide economic benefits for all customer classes.” While residential accounts paid more, in 2024 90% of Maryland’s Commercial accounts were serviced by third-party energy supply and paid $650 million less for electricity supply than if they were serviced by Maryland’s regulated utilities.

Maryland passed SB1 in May 2024.

SB1 became effective on January 1, 2025. The law required suppliers to charge no more than the average of the previous 12 months default rates. SB1 also eliminated purchases of receivables. “Green” energy offers are required to be reviewed by the Public Service Commission and those offer rates can be higher than regulated default rates. Retail energy supplies have made no new offers since 1/1/25. In 2026, the third-party supplier rate cap was adjusted to 110% of regulated rates for 36-month contracts.

The data below are 2023 and 2024 market analysis by supplier comparing average regulated electricity rates 2 historical summary chart revealing the price differential and overpayments since 2013.