Electricity Market Structure
While all Maryland electricity consumers (except some served by co-op utilities) have had the ability to choose their power providers since July 2000, a process to fully open the market has been in place to ensure a smooth transition to competition.
As a part of its restructuring order, the Maryland Public Service Commission (PSC) froze the State's utility rates for various time periods depending on the amount of energy consumed by the customer. This price freeze ended for large commercial and industrial customers (using more than 600 kilowatts) as of June 1, 2005. Now these customers have an hourly priced utility default supply service. Customers interested in fixed price electric service can obtain a quote from a competitive retail energy provider such as Constellation NewEnergy.
The PSC also designated Maryland utilities as the default provider-known as the Provider of Last Resort (POLR)-for customers, who do not choose an alternative electric provider. The POLR Standard Offer Services are provided at market-based prices determined by a competitive bidding process.*
* In Maryland, utility default supply prices are established annually through a competitive wholesale bid process in the regulated utility service areas. Transmission charges, retail administration charges and taxes are added to the winning wholesale bid prices. Beginning in 2006, Type IIA business customers will have different rates for summer and non-summer periods. Summer rates are determined in the winter and are effective June through September of 2006. Non-summer rates are determined in June and are effective October, 2006 through May, 2007. Under certain conditions, these fixed seasonal prices can be adjusted as a result of new wholesale costs, new renewable energy requirements or high customer switching activity.
About Switching in Maryland
To be eligible to switch, your company must be located in one or more of these utilities' service territories:
- Baltimore Gas and Electric (BGE)
- Conectiv
- Potomac Edison Electric Power Company (Pepco)
- Allegheny Power
The first step in switching your business' electricity service is completing an Electric Supplier Authorization form that allows Constellation NewEnergy to gather historical electricity usage data from your utility. This data is necessary to analyze your power consumption patterns and to develop a proposal that is customized to the needs of your business.
You will then sign a retail Electricity Supply Agreement stating the specific product your price for electric service and the duration of the agreement. After our agreement is signed, the enrollment process is simple. Our local operations team will work to provide a seamless transition from the utility as your electricity accounts are transferred to our service.
Customers are generally switched to a competitive supplier on their next meter read/cycle date as long as notification took place 17 days prior to your next meter read date. If your contract is signed less then 17 days before your next meter read date, your service with Constellation NewEnergy will begin on the following meter read date.
If you switch your service from Constellation NewEnergy back to the utility, the utility requires 35 days notice prior to your meter read date. If the utility is given less then 35 days, your service will continue with Constellation NewEnergy until the next months meter read date.
 authorization_midatlantic_utilities.pdf
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Why Switch?