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Bryan Miller — Energy Consultant & Advisor, Shipley Energy Advisors
For commercial and industrial businesses across Maryland, energy remains one of the largest controllable expenses — yet it’s often treated like a fixed one.
In reality, the state’s competitive electricity market gives businesses the ability to choose their supplier, control their timing, and strategically manage their costs.
If your business is still on your utility’s Standard Offer Service (SOS) — the default supply rate — you may be paying more than necessary. The deregulated market in Maryland allows businesses in BGE, Pepco Maryland, Delmarva Power, and Potomac Edison territories to shop for competitive generation supply while still receiving delivery and service from their local utility.
With wholesale market prices and capacity costs continuing to fluctuate under the PJM Interconnection, being intentional about when and how you secure supply has never mattered more.
(Ranges reflect current market-to-PTC comparisons as of recent auctions and wholesale pricing.)
Maryland’s electricity market is part of the broader PJM grid, which manages energy and capacity markets for much of the Mid-Atlantic.
The capacity component — effectively the reliability cost built into every retail supply rate — resets periodically through PJM’s auctions. Those results can drive commercial pricing up or down by several mils per kilowatt-hour.
Most Maryland businesses renew on a set schedule — every 12 or 24 months — without realizing how much these capacity and energy trends affect timing. The key is to align your procurement window with favorable forward pricing and upcoming capacity resets.
As an energy consultant, my approach centers on market awareness and timing. By matching contract start dates with softer periods in the forward curve — and avoiding renewal during volatility — we identify the sweet spot for your supply term. That may be an 11-, 15-, or 17-month structure rather than a standard calendar-based term.
The goal:
Lock in favorable rates before auction-driven price increases take effect, avoid renewal risk, and ensure price stability that supports broader operating budgets.
Maryland’s deregulated framework, overseen by the Maryland Public Service Commission (PSC), requires utilities to conduct competitive wholesale procurements to set the SOS rate. These auctions occur several times per year — meaning there are frequent opportunities for competitive suppliers to outperform the utility’s blended supply price.
Businesses that review their supply strategy between these auction periods often find meaningful savings opportunities before the next SOS adjustment.
For energy-intensive users — like manufacturers, hospitals, schools, data centers, or logistics facilities — even a few mils per kWh can translate to substantial annual savings.
Energy strategy in Maryland isn’t just about shopping for a lower number. It’s about understanding how PJM market timing, capacity pricing, and procurement structure intersect — and using that insight to lower your long-term cost of electricity.
If your accounts are currently on the UTILITY DEFAULT SOS, you likely represent the largest available savings opportunity — especially in today’s competitive market conditions.
Other indicators it’s time to review your options:
When reviewing supplier proposals, make sure to:
Target outcome: 8–18% reduction in supply cost + better renewal flexibility and predictability
Contact Shipley Energy today to explore electricity plans that fit your business’s needs and learn more strategies for managing your energy costs throughout the year.
