Understand Your Utility Bill
Your Bill is the Starting Point for Saving Money
Understanding what you’re actually paying for on your energy bill is one of the most practical steps you can take toward reducing your costs. Maryland utility bills include multiple charges covering different services. This page breaks down what those charges mean, how pricing works, and where to find resources from your specific utility.
Your local utility provides electricity, natural gas, and water to your home. In Maryland’s electricity market, the utility distributes power, but you can often choose your supplier and energy sources. The Maryland Public Service Commission (PSC) regulates these utilities to ensure safe, reliable, and economic service. Maryland’s major electric utilities include BGE, Pepco, Delmarva Power, Potomac Edison, and SMECO.
Understanding your utility bill is key to managing energy use. Look for three main charges: Energy Usage, which is the cost of the energy you consume; Delivery Fees, which are fixed charges for maintaining the grid; and Additional Charges, which are variable taxes and fees. Analyzing your bill for usage patterns can help you identify where to reduce consumption. Many utilities offer online account tools that track monthly usage trends and potential savings.
Utility rates can be confusing. Some rates change depending on the time of year, known as variable rates. Other rates stay the same all year, called fixed rates. Knowing the difference can help you choose the best plan for your budget. Visit Retail Choice to learn how to compare suppliers and find the rate structure that works best for your household.
The cost of electricity can vary depending on the time of day if you are on Time-of-Use (TOU) pricing. During peak hours, when demand is high, rates are higher. Off-peak hours, like late at night or early in the morning, are cheaper. Running major appliances like dishwashers and washing machines during off-peak hours can help you save money. There are currently four participating utilities offering residential TOU rates: BGE, Pepco, Delmarva, and SMECO.
Maryland has several electric and gas utilities serving different regions of the state. Contact your utility directly for billing information, payment assistance programs, and rebates available in your area. Maryland’s major electric utilities include Baltimore Gas and Electric (BGE), Chesapeake Utilities Cooperative (CUC), Delmarva Power & Light Company (DPL), The Potomac Edison Company (PE), and Southern Maryland Electric Company (SMECO).
Want to Lower What You Pay?
Understanding your bill is the first step. Explore practical ways to reduce your energy use and cut your monthly costs.
Need Help Paying Your Bill?
Assistance programs are available for income-eligible Maryland residents who need help covering their energy costs.