New Rates Released for Retail Energy Suppliers

The Maryland Public Service Commission issued a news release this month to alert energy customers who contract with retail energy suppliers that the cold temperatures may affect their rates if they have variable rate contracts with retail energy suppliers.

The release reads:

BALTIMORE—The Maryland Public Service Commission is alerting Maryland energy customers who have contracted with retail energy suppliers that the recent spate of extremely cold temperatures may affect their rates if they have contracted with retail energy suppliers through variable rate contracts. Therefore, the commission urges all customers, particularly those with variable rate agreements, to review their contracts, as the continued frigid weather has increased both demand and the wholesale price of natural gas and electricity.

In Maryland, customers may choose to receive electricity or gas supply from their local utility company or to contract with a retail energy supplier. For customers who have entered contracts that allow rates to vary with market conditions (variable rates), prices can change daily or monthly, depending on market conditions and contract terms. Although fixed-price customers are guaranteed a set rate for a period of time, when some of those contracts expire they may be converted to a variable rate agreement.

Current retail customers are advised to review their existing contracts and contact their suppliers to answer questions and address any concerns. Those customers who are shopping for an alternative energy supplier or are considering returning to their utility Standard Offer Service provider should evaluate the different types of offers, along with the terms, conditions, renewal and cancellation provisions when entering into or cancelling a retail contract.

More information on retail supply choice can be found on the Office of People’s Counsel website.