Maryland cities that deregulated their energy markets more than a decade ago are seeing an expansion in market activity as both customers and suppliers are exploring their options to benefit from the energy choice laws. The expansion and benefits have been the greatest in Baltimore, the largest city in the state. For electricity suppliers benefiting means gaining more customers to provide power supply at a small profit. Customers looking to benefit from their choice market are looking for the electricity rate product that best fits their desires, which for many is finding the lowest electricity rate.
An increasing number of people living in Baltimore are acknowledging the accumulation of savings that often occur over time by entering into a low fixed electricity rate contract with a competitive Maryland electricity supplier. The alternative is paying the BGE default electric supply price which is procured during limited time periods when wholesale energy prices can be high. When the procurement of the default rate occurs during times of high wholesale price an opportunity is presented for competitive suppliers once the market stabilizes. As wholesale price drop, the competitive prices can buy the power in bulk and start offering lower electricity rates to customers who are on the default rate providing a clear way to save on their monthly BGE electric bill.
Despite strong savings potential offered by the lowest Baltimore electricity rates many consumers have stalled on taking action and shopping for a competitive supplier. Various reasons may occur preventing a potential customer from shopping for a more attractive and lower rate option. One of the more serious concerns is if the quality of power will change after a switch is made. Cheaper electricity obtained through a lower electric rate, might cause an association with lower power quality. This is an unwarranted concern as BGE still delivers power to all customers in Baltimore, regardless of the supplier that a customer has chosen. Electricity shopping is simply about choosing a rate with the specific features that an individual consumer is seeking. These features are often include the price, term, amount of early termination fee, incentives and enrollment bonuses, and how the power is generated. The majority of BGE residential consumers are looking for the lowest Baltimore electricity rate with at least a 12 month fixed term.
As of February 2019 only 24% of BGE residential customers, or 281,057 of the total 1,170,222 customers, are purchasing their power from a competitive supplier. With savings available, the low switch rate suggests that their is still an unwillingness for many long term residents to take the time to learn about the benefits of electricity choice. More sophisticated large business consumers in Baltimore have been more active in shopping for lower electricity rates as the switch rate for large commercial and industrial customers is as high as 96.9%. Though smaller than it should be, the BGE service area does have the largest switch rate among both residential and commercial customers in the state.
Customers looking to find the lowest electricity rate available in Baltimore at any given time can search our rates below which are updated on a daily basis. In addition to low rates that often result in immediate savings, long term fixed rates can also provide protection against the potential of rising utility default rates.