Market Structure In Maryland

Email Print

Restructuring of the electricity market in Maryland effectively separated the generation or supply component of your electricity from transmission and distribution. The unbundling allows customers like you to either accept Standard Offer Service from your old monopoly utility or choose your retail electricity supply company, based on competitive products, prices and services that best fit your needs.

Most non-shopping Maryland customers on the SOS pay market-based rates. For small- to medium-sized customers these SOS rates are based on prices obtained through RFP-based competitive solicitations for full requirements power. In addition to energy and transmission charges, these SOS rates also include an Administration Charge that functions as a retail adder. For larger (>= 600 kW) C&I customers these market-based rates are based on hourly wholesale prices.

When you choose Liberty Power as your competitive retailer, we become the seller of your electricity supply. However, your electricity is still delivered by your local utility, which remains responsible for ensuring reliable transmission and delivery to your business. In the BG&E and PEPCO service territories you still receive your bill from the utility, but with your electricity supply charges from Liberty Power listed separately. That way you can see exactly what you are paying for your electricity supply.

The Maryland electricity market is under the jurisdiction of the PJM Interconnection, the regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. Acting neutrally and independently, PJM operates the world's largest competitive wholesale electricity market and ensures the reliability of the largest centrally dispatched grid in the world. The company coordinates the continuous buying, selling and delivery of wholesale electricity through robust, open and competitive markets. In operating the markets, PJM balances the needs of suppliers, wholesale customers and other market participants and continuously monitors market behavior.