OPC Releases Reports on Increases on Commodity and Distribution Portions of Customer Bills
Maryland electric customers are facing rate increases in both the commodity and distribution portions of their bills. OPC has released two reports explaining these bill increases. One report (released in August) delves into how the supply (or commodity) charges will be rising starting June 1, 2025, because of the results of a recent auction held by PJM Interconnection, LLC, the entity that administers the wholesale power market and is responsible for transmission planning in our region, which saw prices beginning next June for electric generation capacity spike by more than 800 percent, and also because of how PJM has constructed its market in ways that leave customers highly vulnerable to price swings and the decisions of generation companies. The other report (released in June), using a variety of figures and tables, reveals that most Maryland utility customers have seen their gas and electricity distribution rates increase substantially over the last 10-15 years, with some rates increasing by multiples of two or three. This report focuses on the amounts that utilities charge their customers for delivering electricity and gas to customers’ homes and businesses, as distinct from the supply (or commodity) charges.
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