Maryland law still says residents can pick their own electricity supplier, but for many households that option has mostly vanished, replaced by a simple choice: stick with a more expensive utility rate or have no alternative at all. Many retail companies that used to pitch fixed-rate or renewable plans have stepped back from the market, and winter bills are climbing, driven largely by utility delivery and distribution charges rather than the supply line. The shakeup has advocates, lawmakers, and industry groups split over whether the state’s recent overhaul truly shielded consumers or quietly strangled competition.
How SB1 reshaped the market
Senate Bill 1, passed by the General Assembly in 2024 and signed into law, put a tight new frame around what third-party retail suppliers can offer. The measure tied retail prices to a trailing 12-month average of the standard-offer service rate, capped most residential contracts at 12 months, blocked certain automatic renewals, and layered on tougher licensing and marketing rules for sales agents. The Maryland Public Service Commission followed up with a series of orders that, among other things, ended the purchase-of-receivables system and temporarily required separate utility and supplier bills while regulators and companies sort out a longer-term billing fix. On its consumer shopping pages, the PSC now tells residents that these rule changes are a big reason they are seeing fewer supplier offers, a point also laid out by MD Gas Choice. The official legislative history of SB1 and the related PSC directives is recorded by the Maryland General Assembly.
Why suppliers pulled back
Supplier groups say the mix of price caps, shorter contracts, and the loss of purchase-of-receivables has turned residential customers into a money-losing proposition, so many companies have simply stopped marketing to homeowners. The Retail Energy Advancement League argues the PSC’s rollout of SB1 has effectively shut down the competitive market and is sending customers back to default utility service. At the same time, the state’s official shopping portal, MD Electric Choice, now warns would-be shoppers that they may “see fewer offers” in the wake of the new law.
Small savings vanished for some customers
For some residents, the shift showed up as a very real line-item loss. Marc Gluck told WMAR-2 News that he had been on a three-year Constellation deal that priced power at about 2.5 cents per kilowatt-hour below his utility’s rate. When that contract expired, he could not renew it. Senate President Pro Tem Malcolm Augustine, who sponsored SB1, countered that the law “has saved hard working Marylanders over $220 Million across over 200,000 accounts since its passage” and said it was designed to close loopholes that allowed some suppliers to profit at customers’ expense.
Delivery fees are the bigger problem
Consumer advocates point out that even if retail choice has withered, the part of the bill that hurts the most is still firmly in utility hands: delivery and distribution charges. The Maryland Office of People’s Counsel has warned that these distribution fees now make up the largest share of many customers’ monthly bills, a concern highlighted on the Office of People’s Counsel site. People’s Counsel David Lapp told WMAR-2 News that “the inability to shop does not change the costs that are really driving up customer bills, which are the delivery costs.”
Legal fights and politics ahead
The fallout is now playing out in courtrooms and hearing rooms. Supplier coalitions warn that SB1 will drive companies out of Maryland altogether, and at least one industry group has already sued over provisions that limit how suppliers can market renewable energy products. The Retail Energy Advancement League is pursuing litigation that targets key parts of the law, while the RESA trade group has publicly urged state leaders to roll back SB1 and has circulated polling that shows strong voter support for retail choice. On the other side, organizations such as AARP Maryland have defended the law as a much-needed set of consumer protections.
Where to go with billing problems
Residents who think they were signed up with a supplier without permission or who see unexplained spikes in their bills are not stuck shouting into the void. They can file a formal complaint with the Consumer Affairs Division of the Maryland Public Service Commission or reach out to the Office of People’s Counsel for help. Both agencies offer online complaint forms and consumer guides that spell out residents’ rights under the new rules and the steps to take if a household believes it was switched without consent.
