The DC and Maryland energy market is currently taking ratepayers on a wild ride and it is important for property owners and managers to stay informed. The warm winter has had a major impact on natural gas wholesale prices, with prices dropping to their lowest point since September 2020, during the pandemic slowdown. This decline in natural gas prices is a significant driver of electric supply prices and is affecting electric standard offer service rates in both DC and Maryland. See the 1 year NYMEX whole sale natural gas price chart below for reference.
Pepco Standard Offer Service rates for electric remain low at the moment, but are expected to increase significantly in May. With this in mind, we recommend that our clients lock in electric rates now to avoid a potential rush in demand as May approaches. In Maryland, the small business rate class (MGT LV-ND) has already seen a huge increase in utility standard offer rates, surging from the 9¢ range last summer to over 19% currently. It would not be surprising to see something similar happen in Washington, DC, and it is important to be prepared.
However, natural gas standard offer service rates in DC, Maryland, and Virginia are already very high, typically 30% above competitive third party flat rates. This makes it an ideal time to lock in natural gas rates for long terms of 48 to 60 months. At Honeydew Energy Advisors, we have an extensive network of energy suppliers who are eager to bid on your business, giving you the opportunity to get a very low rate.
One final notification for Washington DC electric rate payers. The DC Council has increased the solar alternative compliance payment fee for energy suppliers in the District. This change is expected to have modest, yet significant and predictable, increases to electric supply rates. In 2024, 2025, and 2026, expect between an additional 2% to 5% increase in supply rates across the board. These fees can be avoided if you lock in a fixed rate agreement before March 17th of this year.
In addition to the aforementioned considerations, flat rates for both electricity and natural gas can help protect you from unpredictable rate hikes and the uncertainty in the global energy market. It is important to make informed decisions about your where you source your energy rates. By working with Honeydew Energy Advisors, you can have peace of mind knowing that you are getting the best deal for your energy needs. Our team of experts has years of experience in the energy market and can help you navigate the current state of the DC, Maryland, and Virginia energy markets.In conclusion, the DC and Maryland energy market is undergoing some changes and it is important for property owners and managers to stay informed and make informed decisions about their energy consumption and supply. By working with Honeydew Energy Advisors, you can ensure that you are getting the best deal for your energy needs and protecting yourself from unpredictable rate hikes. To contact us, please fill out the form below or shoot us an email at info@honeydewadvisors.com. Or give us a call at 202-670-9625.