Some Baltimore County residents are scrambling to switch to a new energy supplier in time to save as much as 11 percent on their electric bills next month, a move companies are expecting consumers across the state to make in light of the impending Baltimore Gas & Electric Co. rate increases.
Members of the Reisterstown-Owings Mills-Glyndon community have negotiated a fixed price with New York-based ConEdison Solutions that equates to 11 percent in savings compared to BGE rates that will take effect in June 2007. The group?s contract with the company, the country?s eight-largest electric retailer, will end in December, when the group will re-bid for another yearlong contract.
“At least it?s something,” said organizer Calvin Reter. “Some people who have swimming pools and hot tubs, this could save them $50 a month.”
The General Assembly overrode Gov. Robert Ehrlich?s veto of a bill that blocks an immediate 72 percent rate increase last Friday. Under the legislation, BGE customers will see a 15 percent rate hike beginningSaturday, plus a $2.19 surcharge each month. Next June, consumers will choose between market rates or a graduated increase up to market rates.
Reter said ConEdison?s offer is available to anyone inside BGE?s Maryland territory, but energy officials said consumers have been too confused by the legislative changes to take action. They said they expect more BGE customers to switch to other electric suppliers very soon.
“Because of the uncertainty, people thought there would be a better offer with more savings to them then competitive supply,” said Kimberly August, spokeswoman for Washington Gas Energy Services Inc. “Customers need to understand all of those proposals allow for them to save in addition to the rate deferral plan. That message has been lost coming to Annapolis.”
Washington and Pepco Energy Services Inc. are offering reduced electricity prices to BGE?s Maryland customers compared to existing market rates. Savings during the non-summer months for all three companies are around 3 percent.
But Stephen Rosenstein, an energy consultant hired to help Reisterstown-Owings Mills-Glyndon consumers switch suppliers, said he hopes to lower prices more by creating a residential cooperative. His company, Baltimore-based Energy Services Management LLC, will monitor the communities? electricity use over the next six months and try to negotiate a lower price next year by buying in bulk.
Other community organizations, including the Columbia Association in Howard County, are also trying to establish electric cooperatives for residents. Association spokeswoman Shelia Green said the group is still analyzing the new legislation to determine a course of action.
Summer savings compared to BGE rates
(percentages under current market rates)
» Washington Gas Energy Services: 10 percent
» ConEdison: 11 percent
» Pepco Energy Services Inc.: 12 percent
