Avoid the Upcoming Electricity Rate Increase in Maryland
What is the Clean Energy Jobs bill?
This bill increases the State’s Renewable Energy Portfolio Standard (RPS) from 25% by 2020 to 50% by 2030 and makes other related changes. Both Tier 1 and solar (which is a carve-out of Tier 1) compliance percentages will increase effective October 1, 2019. All new electricity contracts signed on or after that date will be priced at these new RPS compliance rates.
When does this all take place?
The date to keep in mind is October 1, 2019, which is when the bill will go into effect. However, there is a “grandfather” clause for electricity contracts. If customers execute a new contract prior to October 1, 2019, they are able to lock-in current RPS levels before they increase.
What should you do?
Review your contract and contact your APPI Energy consultant to collaborate about opportunities to sign a new contract before October 1. Executing a new contract prior to October 1, 2019 will lock-in current RPS levels and provide you with the best solution to keeping your energy costs down. Many clients are locking in a new contract that may start well beyond the October 1, 2019, however they are grandfathered in because the new contract was signed prior to that date. For example, even though you may be in a current contract that expires in 2020 or beyond, APPI Energy can negotiate a new contract to begin when your current contract expires and you can fix a price at the lower current RPS levels until the new agreement expires, effectively avoiding the increase for several years.
Who will this effect?
Since green energy sources are more costly, the policy is expected to make Marylander’s electricity bills more expensive for industrial, commercial and residential accounts. The new Maryland RPS requirements will increase associated costs incrementally through 2030 as illustrated below.
Potential surcharges are good-faith estimates but subject to change.