How to Avoid Rising Energy Rates
A Q&A On the New Clean Energy Jobs Act
Aug 05, 2019
By Melissa Anderson
What is the Clean Energy Jobs Act?
The bill helps create solar, wind and renewable energy jobs in Maryland; foster the development of off-shore wind projects in Maryland; and increases the Renewable Energy Portfolio Standard to 50% by 2030. The legislation was passed by both houses of the Maryland Legislature. The bill will go into effect on Oct. 1, 2019.
What is the Renewable Energy Portfolio Standard (RPS)?
This is an industry term that requires suppliers to provide a portion of the electricity to their customers from qualified renewable energy resources such as solar and wind. The current percentage is 20.7%. The new bill increases the percentage to 50% by 2030.
What could be the impact on commercial and residential customers in Maryland?
Based on similar legislation passed in other northeast states over the past two years, electricity rates have increased simultaneously with the Renewable Energy Portfolio Standard increase. The most recent was in the District of Columbia where the rates have increased 14% to 18%.
Why is the October 1, 2019 date important to me?
A contract signed prior October 1, 2019, will be exempt from the RPS increase, until the contract ends. Customers on the Utility Standard offer Service (SOS) rates would be subject to adjustments after Oct. 1, 2019, if a new contract is not signed.
What are third-party suppliers saying?
Third-party suppliers, serving customers in Maryland, are forecasting rate increases of 12-14%, for contracts being signed after
Oct. 1, 2019. The grandfathering cutoff date for new MD RPS is contracts must be signed prior to Oct. 1, 2019. It is estimated that signing before this Oct. 1, 2019 deadline can avoid a $3 to $4 MWH increase over the next two years. We are offering customers the ability to lock into a supply contract out to December 2027 to avoid a cost increase after Oct. 1, 2019.
What should I do?
Review your current electricity contract – know your rate and contract end date. If your end date is after Oct. 1, 2019, you are exempt from the RPS rate increase until the contract ends. Contact CQI for a renewal or new contract, ranging from 12 to 60 months. Do NOT terminate your current contract. CQI will evaluate current price offers to begin when your current contract ends.
Please contact CQI for an energy evaluation, and next steps to minimize your risk of a rate increase. Melissa Anderson: 443-677-8870 email@example.com
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