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Distribution Service Territories |
Distribution is the process where electricity is physically delivered to end users. The Maryland Public Service Commission (PSC) regulates and recognizes electric companies’ monopoly franchises to deliver electricity to all customers within their respective service areas. As part of the monopoly franchise arrangement, the distribution companies are subject to price and other regulation by the PSC.
Three broad classes of electric distribution companies deliver power to retail customers in Maryland: investor-owned electric companies, municipal systems, and electric cooperatives. There are 13 electric distribution utilities in Maryland. Of these, four are investor-owned systems, five are municipal systems, and four are electric cooperatives. More than 90 percent of electric service in Maryland is provided by the four investor-owned utilities. The remaining 10 percent of customers are served by rural electric cooperatives and municipal systems.
I. Investor-Owned Electric Companies are organized as for-profit, tax-paying
businesses financed through a combination of equity and debt.
| Maryland Investor-Owned Electric Distribution Companies | Maryland Service Areas | Total Number of Maryland Customers |
| Allegheny Power | 2,531 sq. miles, including Allegany, Garrett, and Washington Counties, and portions of Carroll, Frederick, Howard, and Montgomery Counties | 232,000 |
| BGE | 2,300 sq. miles, including Baltimore City, Anne Arundel and Baltimore Counties, and portions of the seven counties surrounding Baltimore City | 1,184,000 |
| Delmarva Power (Subsidiary of Pepco Holdings, Inc.) | 1,740 sq. miles, including portions of the eight Eastern Shore counties and Cecil and Harford Counties | 191,000 |
| Potomac Electric Power Company (Pepco) (Subsidiary of Pepco Holdings, Inc.) | 575 sq. miles, including the most densely populated portions of Montgomery and Prince George’s Counties | 522,000 |
II. Municipally Owned Electric Systems are owned and operated by a municipality
engaged in serving residential, commercial, and/or industrial customers,
usually within the boundaries of the municipality. The towns of Berlin and
Easton use small diesel combustion generators to meet most of their electricity
demands. The remaining municipalities purchase their electricity requirements.
| Municipal Systems in Maryland | Maryland Service Areas | Total Number of Maryland Customers |
| Berlin Municipal Electric Plant | Town of Berlin in Worcester County | 2,000 |
| Easton Utilities Commission | 50 sq. miles in Talbot County, centered in the Town of Easton | 10,000 |
| City of Hagerstown, Light Department | 9 sq. miles in the City of Hagerstown in Washington County | 17,100 |
| Thrumont Municipal Light Company | Town of Thurmont in Frederick County | 5,700 |
| Williamsport Municipal Electric Light System | Town of Williamsport in Washington County | 900 |
III. Cooperatives (Cooperatively Owned Electric Utilities) are owned by, and
operated for the benefit of, those using the system. Cooperatives operate on a
non-profit basis, and the majority of financing generally comes from the federal
Rural Utility Service. Southern Maryland Electric Cooperative (SMECO),
Maryland’s largest cooperative, owns a combustion turbine at Chalk Point,
which is operated by Mirant. Maryland’s remaining cooperatives purchase their
electricity requirements at wholesale.
| Cooperative Systems in Maryland | Maryland Service Areas | Total Number of Maryland Customers |
| A&N Electric Cooperative | Smith Island in Somerset County | 350 |
| Choptank Electric Cooperative, Inc. (Subsidiary of ODEC) | Portions of 9 Eastern Shore counties | 45,000 |
| Somerset Rural Electric Cooperative | Portions of Garrett County | 780 |
| Southern Maryland Electric Cooperative, Inc. (SMECO) | 1,150 sq. miles, including all of Charles Cooperative, Inc. (SMECO) and St. Mary’s Counties and portions of Calvert and Prince George’s Counties | 133,400 |
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