Maryland customers on Pepco’s default supply saw a real change on October 1, 2026. Pepco’s residential standard offer service (SOS) rate, the price you pay for electricity if you have not picked a retail supplier, rose about 11% for the winter period. Separately, Baltimore Gas and Electric (BGE) has a delivery rate increase pending.
This article covers Pepco’s Maryland supply rates and BGE’s pending distribution case. Delmarva Power, Potomac Edison, SMECO and municipal utilities are not covered.
Quick Summary
| Item | Utility | Date | Status | Residential impact |
|---|---|---|---|---|
| Standard offer supply rate | Pepco (Maryland) | Oct. 2026 to May 2027 | In effect | About 14.677¢/kWh, up from 13.175¢ |
| Distribution rate case | BGE | Early 2027 | Requested, not approved | About +$8.58 a month at 900 kWh |
| Distribution rate case | Pepco | 2026 | PSC denied more than half the request | Not detailed here |
The October Change: Pepco Supply
Maryland utilities buy default supply through auctions and reset the price by season. An analysis of Pepco’s published rates lists:
| Period | Residential SOS rate |
|---|---|
| Summer 2025 | 12.348¢/kWh |
| Spring 2026 | 13.127¢/kWh |
| Summer 2026 | 13.175¢/kWh |
| October 2026 to May 2027 | 14.677¢/kWh |
What that means at 1,000 kWh (our math):
- Summer 2026: 1,000 × $0.13175 = $131.75
- Winter 2026-27: 1,000 × $0.14677 = $146.77
- Difference: $15.02 a month on the supply portion
This covers supply only. Delivery charges, the customer charge, surcharges and taxes are added on top.
Why it rose. The same analysis points to the regional grid operator’s capacity auction, where the 2026-27 price reached $329.17 per megawatt-day, a record, up 22% from the prior year. Capacity is what power plants are paid to be available. Growing data center demand and plant retirements pushed the price up.
BGE: Pending Delivery Increase
Maryland’s Office of People’s Counsel published a consumer guide to BGE’s request in August 2026 (Case No. 9888):
- Request: $156.1 million more in electric distribution revenue.
- Rate: the residential distribution rate would go from 4.9¢ to 5.8¢ per kWh. The fixed customer charge would go from $10 to $11 a month.
- Bills: about $8.58 a month, or $103 a year, for a customer using 900 kWh.
- Return on equity: BGE asked for 10.4%. It is now 9.5%.
- Timing: early 2027, if approved. Hearing dates had not been announced.
The guide says BGE’s distribution rates have risen 58% since 2020.
Pepco’s Delivery Rates
In 2026 the Maryland Public Service Commission said it denied more than half of Pepco’s requested distribution increase. We could not open the full release, so we do not give dollar figures.
What This Means for Homeowners With Solar
We did not verify current Maryland net metering terms for this article. In general, a higher supply price raises the value of each kWh a solar system offsets, for customers credited at the retail rate. Confirm your utility’s current rules before relying on that.
Our solar payback guide shows how the retail rate and the export credit change the math.
What to Check on Your Bill
- Whether you are on SOS or with a retail supplier. If you have a supplier, check the contract end date.
- The “price to compare” on your bill against any offer.
- The customer charge and distribution rate.
For help sorting the lines on your bill, see our guide to reading your electric bill.
Limitations
The Pepco SOS figures come from a third-party analysis of published rates, supported by a trade publication headline, and not from Pepco’s tariff, which we could not open. We did not find BGE’s SOS rates for the same period. Figures for 900 kWh and 1,000 kWh are not directly comparable.
Sources
- Maryland Office of People’s Counsel, “Consumer’s Guide to BGE’s Proposed Electric Rate Increase,” Aug. 2026
- Maryland PSC, “Maryland Public Service Commission Denies Over Half of Pepco’s Rate Increase Request,” 2026
- Honeydew Advisors, “Maryland Pepco SOS Supply Rates: Where They Stand in 2026”
- EnergyChoiceMatters, “Pepco-MD Residential, Small Commercial SOS Rates Increasing 11-13% In October,” April 22, 2026
Frequently asked questions
Did Maryland electric rates change on October 1, 2026?
Yes for Pepco's default supply. Its residential standard offer service rate for October 2026 through May 2027 is about 14.677 cents per kWh, up about 11% from summer 2026, according to an analysis of the published rates.
Does the Pepco supply increase affect everyone?
No. It affects customers on Pepco's standard offer service. Customers who buy supply from a retail supplier pay their contract price. Delivery charges are separate.
Is BGE raising rates?
BGE has asked to raise electric distribution rates by $156.1 million in Case No. 9888. It is not approved. Maryland's Office of People's Counsel says new rates would begin in early 2027 if approved.
