How to Switch Electricity Providers in Maryland (2026 Rules Explained)

Maryland still allows residential electric choice: you can keep your utility (such as BGE, Pepco, Delmarva Power or Potomac Edison) for delivery and buy supply from a licensed retail supplier instead of the utility's Standard Offer Service (SOS). However, Maryland now has some of the tightest rules in the country. A 2024 law capped residential supplier prices relative to SOS and limited contract length, and many suppliers pulled back as a result. A 2026 law loosened those limits somewhat.

Here is how switching works in Maryland today, what the law allows suppliers to offer, and a checklist for comparing an offer with your utility's SOS price.

Who regulates electricity suppliers in Maryland?

The Maryland Public Service Commission (PSC) licenses retail electricity suppliers and oversees the utilities. The PSC runs the state's official shopping site, Maryland Electric Choice, at psc.state.md.us/electricchoice. When the PSC launched the site in 2020, it described it as a place where consumers can shop for and sort supply offers, with estimated monthly supply costs (including supplier fees), filters for renewable energy and no-fee offers, a list of licensed suppliers with PSC license numbers, and a link to the PSC complaint portal (Maryland Energy Administration announcement).

The Office of People's Counsel (OPC) represents residential utility customers and publishes plain-language guidance on recent legislation.

How switching works in Maryland

• Your utility still delivers. Delivery, meter reading and outage response stay with your utility. Only the supply portion of your bill changes.
• SOS is the default. If you do not choose a supplier, the utility provides Standard Offer Service. The PSC's Compare Offers page explains that utilities must publish their SOS price so you can compare it with supplier offers.
• Timing. According to the PSC's switching process page, your new supplier starts serving you at your next meter-reading date. If the enrollment request arrives 12 days or fewer before that reading, the switch moves to the following meter-reading date.
• Confirmation. You should receive an enrollment notice from both your utility and the new supplier. The supplier name and switch date should match. If they do not, or if you never signed up, contact the supplier right away.
• Going back. The PSC says, "You always have the ability to return to the utility for electricity supply if you wish."

Maryland's supplier rules: the 2024 law

Maryland's 2024 retail energy law (Chapter 537 of 2024, Senate Bill 1) changed what suppliers may offer to residential customers. The Department of Legislative Services summarized the rules in its fiscal and policy note for HB 974 (2026):

• Price limit: Electricity other than green power may be offered only at a price that does not exceed the trailing 12-month average of the utility's SOS rate.
• Term limit: Residential contracts may run for up to 12 months at a time.
• Renewal: Non-green supply may auto-renew only if the supplier sends notice 90 days before renewal, plus a second notice 30 days before. Green power may not auto-renew.
• Variable rates: Suppliers may not offer a variable rate beyond one that adjusts for seasonal variation up to two times in a year. Time-of-use rates are not barred.
• Green power: Green power offers must meet a renewable share threshold, and the PSC must approve the price.
• Sales pay: Suppliers may not pay salespeople commissions or other incentive-based compensation for enrolling customers.

Suppliers were not banned, but reporting by Maryland Matters describes competitive suppliers as having "largely abandoned" the residential market after the rules took effect. In practice, you may find few residential offers in your area.

What changed in 2026: the Utility RELIEF Act

Governor Wes Moore signed the Utility RELIEF Act on May 12, 2026 (Office of People's Counsel). According to the OPC's Utility RELIEF Act FAQs, the act made what OPC calls "modest changes" to the supplier rules:

Contract length	Maximum price (non-green supply)
23 months or less	Up to 100% of the SOS price
24 to 35 months	Up to 105% of the SOS price
36 months	Up to 110% of the SOS price

OPC says the maximum contract length rises from 12 to 36 months, and the price cap is now measured against the SOS price as of the date you agree to the contract, rather than a trailing 12-month average. Variable rates are allowed for certain products, such as time-of-use rates, rates that adjust for seasons no more than twice a year, or rates that never exceed SOS. OPC also notes that it is up to suppliers whether they re-enter the market. OPC did not list an effective date for these specific changes, so confirm with the PSC or your supplier which rules apply to an offer you receive.

Note what the caps mean: a longer contract may legally be priced above today's SOS rate. A higher fixed price can still make sense to some households who value stability, but it is not a savings guarantee.

Step-by-step checklist: switching electricity providers in Maryland

1. Find your SOS price and usage. Your utility publishes its SOS price, and your bill shows your monthly kWh. Check our Maryland electricity rates page for context.
2. Search official offers. Use the PSC's Maryland Electric Choice site to see which licensed suppliers are serving your utility area.
3. Confirm the license. Make sure the supplier appears on the PSC's licensed supplier list.
4. Read the contract term and price. Note the length, the price per kWh, whether it is fixed, and any monthly or cancellation fees.
5. Compare with SOS for your usage. Plug both prices into our electric bill calculator to see the monthly difference.
6. Enroll directly with the supplier. By phone or on its website, not through an unsolicited caller.
7. Check both enrollment notices. Confirm the supplier name and start date match.
8. Track renewal notices. Keep the notices your supplier sends before the contract ends and decide whether to renew, switch, or return to SOS.

Red flags

• An offer priced above SOS on a contract of 23 months or less. Under the OPC summary of the 2026 law, that would exceed the cap for non-green supply.
• An agent who says the salesperson earns a bonus for signing you up. Maryland bars incentive-based pay for enrolling customers.
• A "variable" rate that can change monthly with no link to seasons, time of use, or the SOS ceiling.
• Enrollment notices you did not expect, or that name a supplier you never chose.
• Requests for your utility account number before you have decided to switch.
• Marketing that implies the utility endorses or requires the switch.

Is switching worth it in Maryland?

Maryland's rules are designed so that short residential contracts cannot exceed the SOS price, which limits the downside. The trade-off is that fewer suppliers may be offering residential plans. If you do find an offer, compare it carefully against SOS for your actual usage, and remember that SOS prices change. For a wider view of state prices, see the EIA Maryland electricity profile and our average electric bill by state page.

How to estimate savings before you switch in Maryland

Supply offers are quoted in cents per kilowatt-hour (kWh), so the quickest test is simple arithmetic. Take the difference between the offer and your SOS price, then multiply it by the kWh you use in a typical month. As an illustration only: an offer 1 cent per kWh below the default price, on a home using 700 kWh a month, would lower the supply part of the bill by about $7 that month. An offer 1 cent higher would add about $7.

Repeat the math for a high-use month (winter heating or summer cooling) and a low-use month, because the dollar difference grows with usage. Then add any monthly fee the supplier charges, and subtract any sign-up credit spread across the term. If the offer only wins in some months, or only before the SOS price next changes, the overall result may be close to zero. Our kWh calculator can help if you need to work out usage for specific appliances, and our state rates page shows how prices in Maryland compare with other states.

Next steps

Grab your latest bill and run your usage through our electric bill calculator at the SOS price and any supplier price you are considering. Then check the PSC's Maryland Electric Choice site and our Maryland electricity rates page before you decide.