Third Party Suppliers

What Is a Retail Supplier?

In Maryland, you can choose who supplies your electricity or natural gas.

  • Your local utility delivers energy to your home using wires or pipelines.

  • But you can choose your local utility or a retail supplier to provide the electricity or gas itself.

  • You don’t get to choose your local utility—it’s assigned based on where you live. But you can chose your energy supplier.

What Happens If You Choose a Retail Supplier?

  • You still get your energy through your local utility’s wires or pipelines.

  • You may get one bill from your utility that includes both delivery and supply charges.

  • Or, you may get two bills, one from the utility and one from the supplier (though this is rare).

Price Differences

  • If you don’t choose a retail supplier, you will automatically get your energy from your local utility under the Standard Offer Service (SOS).

  • SOS prices are set through competitive auctions monitored by the Maryland Public Service Commission (PSC). These auctions aim to keep prices economical.

  • Retail suppliers set their own prices, which are not regulated by the PSC.

  • Retail supplier prices may be higher or lower than SOS prices, but they can change at any time, so read the contract carefully.

Things to Know Before You Sign a Contract

  • Make sure the supplier is licensed by the PSC.

  • Ask for the supplier’s license number and make sure it’s included in your contract.

  • Always compare the supplier’s price to the utility’s Standard Offer Service price.

  • Be careful of deals that sound too good to be true, some start low and increase over time.

How Retail Suppliers Sign Consumers Up for Service

Retail suppliers market to consumers in a variety of ways.

  • Some retail suppliers may try to illegally sign you up for service.

  • Be careful and do not agree to anything you do not understand. It could be a costly mistake.

  • Retail suppliers frequently charge higher prices than your utility. In particular, you should never show a supplier’s sales agent your utility bill or provide them with your utility account number or Customer Choice ID number.

  • Be aware of your rights and file a complaint with the PSC about the retail supplier if they are being deceptive.

What Should Be in the Contract

What Should Be in the Contract What to Look for and Think About
Company Name, License Number, Email, and Website Is there a Customer Service number where you can call in case you want to cancel, have questions, or want to speak with someone?
Price Structure It does not matter what the agent says; you will be held to what is in the Contract. Check to see if it is a fixed or variable rate. Is the rate only for a few months and then it changes to something higher? Variable rates are very high risk.
Cost of supplying the gas/electricity You will still need to pay distribution charges to your local utility in addition to supply charges to your retail supplier. Some suppliers also add on administrative fees which add to the overall cost.
Statement Regarding Savings The supply price may not always provide a savings.
Incentives like gift cards, credit cards, airline miles, etc. Does the incentive have real value for you in comparison with a higher rate for gas or electricity?
Contract Start Date Describes when the Contract will begin and end.
Contract Term/Length Does the Contract automatically renew? When it renews, will the supply rate change?
Cancellation/Early Termination Fees Can you cancel at any time? Are there fees that you must pay if you cancel? If you cancel, you will go back to your local utility’s “Standard Offer” price.
For families/households with more than 8 persons, for each additional person add: Provides a description of renewal terms. Will it renew at a different price?

Make sure you review, understand, and compare all these Contract terms before you agree to sign with a supplier. A retail supplier must give you a completed Contract Summary form, like the one above. Only the utility customer (or a legal representative) can enter into a Contract with a supplier. No other person is authorized to sign for a customer.

Renewable Energy Retail Suppliers

If you are interested in supporting the growth of renewable energy resources in Maryland, there are options. All electricity supply sold to Maryland consumers must include a certain percentage of renewable energy. The MD Renewable Portfolio Standard (RPS) applies to the local utility and all licensed retail electricity suppliers.

  • 2021: 30.8 % (including 7.5 % from solar)

  • 2022: 33.1 % (including 8.5 % from solar)

  • 2023: 35.4 % (including 9.5 % from solar)

  • 2025: 40 % (including 11.5 % from solar)

  • 2026: 42.5 % (including 12.5 % from solar)

  • 2027: 45.5 % (including 13.5 % from solar)

  • 2028: 47.5 % (including 14.5 % from solar)

  • 2029: 49.5 % (including 14.5 % from solar)

  • 2030 and later: 50 % (including 14.5 % from solar)

If you want to support renewable energy above the RPS requirement or you want to support a specific type of renewable energy, there are licensed electricity suppliers that offer renewable energy options. Renewable energy generation has 2 products that you can purchase:

1

Physical electricity

2

Renewable Energy Certificates (REC)

 

Renewable energy Contract terms

In addition to all of the requirements listed already, renewable options have further contracting requirements to ensure you are getting what you believe you have asked for.

  • When you buy renewable energy, the contract must clearly say you are getting renewable energy, don’t just trust marketing phrases like “We buy wind” or “Your purchase lowers emissions.” Read the contract carefully to be sure.

  • The contract should show the Renewable Portfolio Standard (RPS) for each year. This tells you how much renewable energy you are paying for beyond what the state requires.

  • Know what type of renewable energy you are buying. Is it solar, wind, geothermal, biogas (like landfill gas), biomass, or small hydroelectric power? You can compare offers based on things like:

    Physical: size, location, fuel type

    Environmental: how it effects the environment

    Economic: Jobs and economic development

    Social: Health and safety; social equity

  • “Clean energy” doesn’t always mean the same as renewable energy. It might include renewable energy, energy efficiency, or nuclear power.

  • Your contract should also say if the supplier will buy the actual renewable energy plus Renewable Energy Credits (RECs), or just the RECs, and it should say what kind and where the energy comes from.

What is “Certified Green” electricity?

Certified Green means that an independent organization certified and verified the renewable energy resource offered by the supplier under its standards. Certified suppliers will have a Green-e logo. Green-e Energy is one independent certification and verification program for renewable energy. Check out www.green-e.org to learn more about the Green-e logo and renewable energy.

Questions to ask retail suppliers offering renewable energy options

  • What are you interested in supporting?

  • Is the percentage of renewable energy listed in the Contract incremental to the Maryland RPS requirement?

  • What exactly is the source of renewable energy you are supporting? Wind? Solar? Biomass? Renewable?

  • What is included in “biomass” resources?

  • What percentage (%) of the total supply is renewable?

  • What is the percentage of each source in a Contract term labeled “renewable”?

  • What is the location source of the supply?

  • When did the generation occur?

For more information on renewable energy, see www.epa.gov/greenpower.