Current Average Electricity Supply Rate in Maryland
As of September 2025, the average residential electricity price in Maryland is around 21.05¢ per kilowatt-hour (kWh). This places Maryland slightly above the national average. Because these averages include delivery costs, actual supply offers from competitive suppliers may be a few cents lower or higher depending on utility territory and plan length.
Recent Rate Trends
- June 2025: 20.4¢/kWh
- July 2025: 20.6¢/kWh
- August 2025: 20.8¢/kWh
Projected Rate Trends
- October 2025: 21.3¢/kWh
- November 2025: 21.5¢/kWh
- December 2025: 21.7¢/kWh
Where Maryland rates are today
Maryland’s electricity costs hover slightly above the national average. Customers pay roughly 21 ¢ per kWh on average, which reflects both supply and distribution charges. Because the state is part of the PJM Interconnection and offers full retail choice, its average price includes influences from regional wholesale markets as well as local distribution rates.
Why Maryland rates have been the way they are
- PJM capacity and transmission charges: Maryland participates in PJM’s capacity and transmission markets, so local supply rates reflect regional auction outcomes and investment in grid upgrades.
- Natural gas exposure: Much of the PJM generation mix relies on natural gas; fluctuations in gas prices feed directly into wholesale electricity costs.
- Policy initiatives: State programs promoting renewables and energy efficiency add costs that are recovered through supply rates.
- Competitive retail market: Dozens of licensed suppliers compete for customers, but the default service rate resets periodically and can swing prices.
Where Maryland rates are going in the next 3 months
Looking ahead to winter 2025‑26, Maryland’s electricity costs are expected to rise modestly—roughly 1–3%. Higher national wholesale prices, potential cold‑weather peaks, and PJM capacity charges will put upward pressure on supply rates. If natural gas prices remain stable and winter weather is mild, increases could be more muted.
Key takeaway for businesses
Maryland’s deregulated electricity market offers opportunities to lock in competitive rates. Businesses and residents should compare fixed‑rate plans from multiple suppliers and consider locking in a contract before winter volatility sets in.