woman switching PEPCO energy rates

Switch Energy Rates in PEPCO Maryland

Table of Contents

Introduction

Recent rate increase in the PEPCO Maryland standard offer service has increased interest among consumers in the area on their ability to switch energy rates and buy their power from an alternative supplier. Customers who were previously unfamiliar, or completely clueless, with their options to switch energy rates onto a plan offered by a competitive Maryland electricity supplier are quickly becoming aware of the benefits that come from energy choice: cheaper rates, lower electric bills, renewable energy options, superior customer service, and a better energy shopping experience all around!

PEPCO MD

12.01¢ Price to Compare

Through May 31, 2024

Provider Plan Term Rate Savings  
Tomorrow Energy
12 months
9.89¢ / kWh

Save 18%

Constellation
6 months
9.99¢ / kWh

Save 17%

Constellation
12 months
9.99¢ / kWh

Save 17%

Energy Harbor
10 months
10.49¢ / kWh

Save 13%

Direct Energy
9 months
10.59¢ / kWh

Save 12%

PEPCO Electricity Deregulation

The state of Maryland is an energy choice state which allows PEPCO customers to shop the market for better electricity rates. Switching off of the PEPCO standard offer service (SOS) and onto a lower rate will result in lower monthly PEPCO electric bills in times when the SOS default rate is high.

The PEPCO Maryland SOS rate has been steadily increasing throughout 2023 at a time when competitive energy supplier can offer substantially lower fixed electric rate contracts (source).

The Role of PEPCO as a Power Delivery Company

PEPCO services around 599,563 electricity customers in the state of Maryland, all of whom have the ability to switch energy rates if they decide to shop the competitive market. Even though PEPCO customers can switch suppliers for their electricity generation supply, they still must receive their power from the PEPCO lines and wires which continues to be a regulated business.

Maryland electricity choice laws unbundled the state utilities to make way for competition, however the distribution portion of the bill remains regulated. This secures the role that PEPCO plays for their customers which includes delivering the power, maintaining the reliability of the power lines, and the monthly billing and electric bill collection process.

This means that even if you switch energy rates you will still continue to receive your electric bill form PEPCO Energy.  The rate that you have switched to will replace the PEPCO standard offer service which is a default rate they charge to their customers who have not switched energy suppliers. 

PEPCO will not be upset if you switch energy rates and suppliers as their revenue stream is only derived from the delivery and distribution charges found on the electric bill.  Even when you are on their standard offer service default rate, the income collected for that rate is passed on to other competitive Maryland electricity suppliers who have bid for the right to provide power supply service to those customers.

PEPCO Retail Electricity Suppliers

Maryland electricity companies can now market their service to PEPCO customers for the power supply portion of the electric bill which includes generation and transmission. Switching energy companies is an easy process that does not require a technician to visit the property. The switch process is simply a computer switch and will only be noticed when lower electric bills start arriving in the mail, or email.

Different PEPCO retail electricity suppliers are able to offer different rates, terms, customer service quality, and generation source products based on their specific business operations.  The actual prices and rates that a specific supplier is able to offer is based on their energy trading desk strategies and wholesale energy buying performance.

Retail electricity suppliers purchase large blocks of electricity on the wholesale energy market overseen and regulated by the Federal Energy Regulatory Commission (FERC).  They then break up that block and sell it back to their customers in the form of their monthly electric bill.  They can choose to purchase wholesale energy blocks that are generated from green energy sources such as wind mills and solar farm communities, and then create a green energy rate product for customers who want to reduce their carbon footprint.

PEPCO MD

12.01¢ Price to Compare

Through May 31, 2024

Provider Plan Term Rate Savings  
Tomorrow Energy
12 months
9.89¢ / kWh

Save 18%

Constellation
6 months
9.99¢ / kWh

Save 17%

Constellation
12 months
9.99¢ / kWh

Save 17%

Energy Harbor
10 months
10.49¢ / kWh

Save 13%

Direct Energy
9 months
10.59¢ / kWh

Save 12%

Types of Electricity Rate Plans in PEPCO Maryland

Energy choice gives PEPCO customers the option to choose between a variety of energy rate plans.  Here are the most popular plans offered by competitive PEPCO electricity suppliers:

About PEPCO Electricity Rate Contracts

When you switch PEPCO energy rates the supplier offering the rate plan will provide you with a rate contract for that plan.  The contract is sometimes referred to as the Terms of Conditions or the Terms of Service.

PEPCO electricity rate contracts lay out what the rate will be – if it is a fixed rate – and the term of the contract.  This allows you to see very clearly what the price for electricity will be and for how long it will be locked in for.  Review the contract and make sure it lines up with what you think you are selecting.

Avoid Month to Month Electricity Pricing in PEPCO

infographic explaining how to avoid variable electric rates

Month to month electricity pricing, where the price is not fixed and locked in, should be avoided if you are a PEPCO Maryland customer.  Without a fixed rate in place, your PEPCO electric bill could rise rapidly in any given month and without warning.

You would find yourself on month to month pricing in one of two ways.  One, you select a variable rate plan from a competitive PEPCO supplier.  This should not be done as you are basically giving the energy supplier the ability to charge you whatever they please, and it will say this much in the contract.  Only a fixed rate plan will avoid a Maryland electricity supplier from having the flexibility.

Alternatively, you could find yourself on month to month pricing if your fixed electricity rate contract expires and you don’t renew with the supplier or select another supplier with a fixed rate.  In order to avoid this scenario you can work with an energy price comparison who provides the service of keeping their customer up to date with their contract status and reminds them when their contract is expiring.  ElectricRate.com goes out of their way to keep their customers informed about their status and sends them the lowest PEPCO Maryland rates available from all supplier, not just the one the customer is currently with, as the contract is approaching the expiration date. 

Switching off of the PEPCO MD Standard Offer Service Rate in 2024

With rising rates in 2023 and into 2024, switching PEPCO MD energy rates will offer customers the ability to save a significant amount on their electric bill.  The PEPCO standard offer service rate jumps to 12.01¢ per kWh on October 1, 2023 from the previous rate of 9.4¢ that went into effect on June 1, 2023.  That June rate increased from the previous rate of 8.97¢ that had been in effect since the beginning of 2023. The new 12.01¢ rate will remain in effect through May 31, 2024.

The trend in 2023 for PEPCO energy rates has been a steady increase and many believe that will continue into 2024 as inflation continues to drive prices up throughout the country.  The 12.01¢ rate will remain the PEPCO default rate through May 31, 2024.  Meanwhile, competitive PEPCO electricity rates in Maryland can be locked in that are around and below 10.5¢ making now a great time to switch and find the lowest PEPCO electricity rate.

You can switch PEPCO energy rates online.  The process takes as little as five minutes.

The most common reason to switch PEPCO energy rates and suppliers is to save money.  Some people also switch to purchase renewable or green energy, while others might switch to lock in a long term fixed rate for price security and peace of mind.

Any customer, residential or business, who gets their electric bill from PEPCO in Maryland can switch their energy rate structure from the PEPCO default rate onto a better competitive electric rate.

Energy price comparison sites like ElectricRate.com allow you to easily switch PEPCO energy rates in Maryland.

Anytime. There are no limited shopping periods as is the case in some other energy choice markets.  In PEPCO Maryland, customers can switch off of their default rate and onto another energy rate plan at any time.

Todd Yasbin

Todd Yasbin

Todd Yasbin is the founder and current COO of ElectricRate.com, a energy price comparison site that has helped thousands of customers learn about electricity choice while saving money by selecting competitive electricity rate plans. He was one of the first commercial electricity brokers in Texas, beginning his career in 2003 right after the Texas electricity market deregulated in 2002.

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