Maryland Commercial Electricity & Natural Gas

Maryland Commercial Energy Market

Maryland commercial electricity averaged about 16.41¢/kWh in April 2026 (EIA) — well above the U.S. average of 13.51¢. Maryland has an active retail choice market for both electricity and gas: businesses shop competitive licensed suppliers while utilities like BGE, Pepco, Delmarva Power, and Washington Gas handle delivery. With rates above the national average, competitive procurement is worth pursuing. Compare MD in our electricity rates by state table.

The PJM Capacity Squeeze

Maryland is part of PJM Interconnection, where capacity auctions have exploded. The 2027/2028 PJM capacity auction cleared at the price cap of $333.44/MW-day, up from $329.17 the prior year. Those costs pass through to Maryland commercial bills and are a major reason MD rates sit above the national average. Locking a fixed competitive supply rate hedges this exposure. See our PJM capacity auction analysis, capacity charges on your bill, and why bills rose in 2026.

How Maryland Energy Choice Works

Your utility delivers power and gas and handles outages; you choose a competitive licensed supplier for the supply portion. If you don't shop, you pay the utility's default Standard Offer Service, which passes through PJM capacity and wholesale costs. A competitive fixed rate can lock in below a rising default. See the Maryland electricity deregulation guide and Maryland natural gas deregulation guide.

How to Lower Your Maryland Energy Costs

• Solicit competitive bids and lock a fixed rate. See comparing supplier offers and switching suppliers step by step.
• Hedge PJM capacity with a 24-36 month term. See choosing contract length and the 2027 forecast.
• Manage demand charges — above-average rates make peaks costly. Use the demand charge calculator.
• Lock gas before winter. See the Winter 2026-2027 gas outlook.

Frequently Asked Questions

What is the average commercial electricity rate in Maryland? About 16.41¢/kWh (EIA, April 2026), above the U.S. average — driven largely by PJM capacity costs. Your rate depends on your utility (BGE, Pepco, Delmarva), rate class, load profile, and whether you're on the default or a competitive fixed rate.

Can Maryland businesses choose their energy supplier? Yes. Commercial customers shop competitive licensed suppliers for both electricity and natural gas supply, while BGE, Pepco, Delmarva Power, and Washington Gas continue delivery.

Why are Maryland electricity prices above average? Primarily PJM capacity costs — the 2027/2028 auction cleared at a record $333.44/MW-day — plus delivery rate cases. A fixed competitive rate hedges the capacity portion.

Get a free Maryland commercial rate review. Contact us or call 833-264-7776.