Maryland utilities including Baltimore Gas and Electric Co. say that electric bills will be decreasing starting in June based on this week's wholesale electric supply contract auction.
The average decline over the year for BGE customers will be about 8.4 percent, with the biggest impact expected on winter bills.
That's good news for those who have been struggling with utility costs through the economic downturn. The utilities buy chunks of their electricity supply in rolling contracts to protect against price spikes, but that also means it takes longer for bills to reflect lower wholesale prices in the market.
You don't have to wait until June or the winter to take advantage of low rates, as Sun columnist Jay Hancock wrote last month. Marylanders can shop for electricity right now from an alternative supplier and sign up for a contract to lock in at these prices for 12 months or longer. Here's more info from Jay about shopping for electricity.
There's something else to keep in mind, with all the focus on Earth Day yesterday: energy efficiency and conservation.
Mark Case, BGE's senior vice president of regulatory affairs, added yesterday that a customer's bill is a function of two things: the rate, and how much is used. And customers have direct control over consumption.
Customers can take advantage of appliance rebates (although that does require upfront cash). But you could also switch your light bulbs to compact fluorescents, which would have a significant impact on bills --- particularly in your most-used fixtures.
For homes with central air conditioning, there's also programs like Peak Rewards. Under that program, BGE installs either air conditioning switches or programmable thermostats and consumers allow the power company to cycle their air conditioner during peak periods of demand, when it costs the most for the company to purchase electricity.