CUSTOMER CHOICE
Change has come to the electric industry. Most customers in Maryland have the power to choose their supplier of your electricity. This literature is a brief introduction to customer choice.
What is
customer choice?Customer choice allows Marylanders to choose the supplier - or generator - of their power. This process is also called deregulation or restructuring. In Maryland, customer choice for many consumers began in July 2000. Customer choice means companies other than your local utility compete to sell you electricity. It is believed this competitive marketplace will eventually lead to innovations in products, services, and pricing for residential consumers as well as business consumers.
SMECO only sells electricity to customers in its service area. If you live outside SMECO’s service area, you cannot purchase electricity from SMECO.
What will change?The way you buy your electricity will change. Currently, the cost of your electric service is "bundled" into a rate that includes costs for generating the power and delivering it to your home or business. Under customer choice, these costs will be separated. You will then be able to shop for power in the generation portion of your service. This is where deregulation is occurring. The illustration below shows how the industry is structured.
The way your electric bill looks will also change. The bill will be divided into sections that show how each charge is calculated. This will help you compare costs for electric supply.
What will remain the same?You won’t even notice a difference in your electric service. Your local utility will continue to deliver your power just as it does now. The transmission of electricity over long distances and the distribution of power to your home or business will remain regulated by the Maryland Public Service Commission (PSC). This will ensure that the reliability of your service will not be affected.
Though you may choose another power supplier, the lines and equipment serving your home or business will not change. Your local utility will still maintain this equipment and respond to your call for service.
Do
I have to choose another supplier?No. For those who wish not to choose-or in the event that a supplier fails to deliver power-a "standard offer" service will be available. Initially, this standard offer service will be provided by your local utility.
Will consumers be protected?Yes. Maryland’s customer choice law contains a variety of consumer protections against fraud, deceptive practices, and unfair discrimination. The law authorizes the PSC to license all power suppliers. If violations occur, the PSC may also punish or revoke the license of suppliers. Customer information cannot be disclosed without customer consent except for bill collection and credit rating purposes.
For more information on Maryland’s customer choice law, visit SMECO’s Fact Sheet on Electric Industry Restructuring.