Price to Compare Formula Changing in Maryland
July 6, 2010
The State of Maryland's Public Service Commission (PSC) has finally ordered utility customers to change the way they compute their "Price to Compare" (sometimes called "Cost to Compare") figure they use on their bills.
The idea behind Price to Compare was to make it easy for consumers to come up with one simple figure to compare the rate charged by their utility for electricity to what alternative suppliers (like the one we sell to our residential customers) charge, rate-wise. You can see the Price to Compare on your monthly bill, usually in the same area as your usage statistics, but the location varies among utilities.
In theory, you are supposed to have one simple number, to conduct an apples-to-apples comparison. In reality, as our friend Jay Hancock of the Baltimore Sun says:
Yet the (Price to Compare number) was often months old, and confusingly blended seasonal costs into an annual mishmash.
That's being polite. The Gazette said:
The (PSC) found that the "price to compare" — which it ordered utilities to post on customers' bills seven years ago so that consumers could examine supply costs — does not provide enough useful pricing information to consumers and could mislead them.
How so? Well, here's what Pepco's Web site said about how Price to Compare is computed:
The Price to Compare is calculated by taking the total kilowatt-hour usage for all customers within a specific rate class for a 12-month period and multiplying that amount by the actual generation and transmission rates. This total amount is then divided by the total 12-month kilowatt-hour usage which provides an average per kilowatt-hour rate for generation and transmission for the rate class, which is the Price to Compare.
Congratulations if you are still awake. Going forward, though, here's how Price to Compare will work (from The Gazette):
The PSC ordered utilities to replace that single comparison point — both on bills and their company Websites — with detailed prices for their standard-offer service, including their current charge per kilowatt-hour and the end date for that price; the charge per kilowatt-hour thereafter and its end date; and a notice that the price beyond that date has not been set. The end dates were required because prices change with contracts, which are bid twice annually, and typically are higher in the summer.
Utilities also were ordered to post a weighted average price for their standard offer service as well as the date through which that average applies.
This does mean more information, and a bit more of a challenge for the utilities (and companies like ours) to explain rates and billing more completely. But it's either that or rely on a system that could provide misleading information.
I know that in my own dealings with customers, I don't even rely on the Price to Compare anymore. I just use their current rates compared to our rate offerings (which still beat the utilities, by the way). The new system will be much closer to that, which is good for the customer.
Utility Choice is a concept that's still pretty new to Maryland residential utility account holders, and there's still a lot of questions about how it works. The Price to Compare figure did them no favors, and only added confusion to the mix, making our jobs harder. This latest action by the PSC should help consumers make a more-informed decision about their rates.
Every golfer has a round they remember. It might be a personal best, a long putt that somehow found the cup, or a perfect drive down the middle of the fairway. For me, the most meaningful round has less to do with my score and more to do with the people gathered around the first tee. That round is the Purple Tee Classic. On Thursday, September 17, 2026 , Metro Bethesda Rotary will host the 20th Annual Purple Tee Classic at Whiskey Creek , with a 10:00 a.m. shotgun start. This will be my third year leading the tournament, and my final year in that leadership role. That makes this year especially meaningful to me. More Than a Golf Tournament The Purple Tee Classic is a day of golf, but it is really about much more than a day on the course. It brings together business owners, community members, Rotarians, friends, families, veterans, and first responders around a shared purpose. The fundraiser supports veterans and first responders, people who have served, protected, and supported our communities in ways most of us will never fully understand. Golf gives us the setting. Service gives the day its meaning. That is what I value most about Rotary. The organization creates opportunities for people to put relationships, resources, and time to work for something larger than themselves. The Rotary principle of “Service Above Self” is not just a phrase. It is something we are asked to live out by showing up, contributing, and following through. The Purple Tee Classic is one of the clearest examples of that principle in action. Why This Final Year Matters Leading a tournament like this takes more than setting a tee time and asking people to come out and play. It takes planning, coordination, communication, fundraising, and a team willing to handle the many details most participants will never see. That is one of the biggest things I want to say clearly this year: this event is absolutely a team effort. The Metro Bethesda Rotary members involved in this committee do a tremendous amount behind the scenes. They help plan, coordinate, communicate, recruit sponsors and players, and keep things moving in all the ways that make an event like this possible. A lot of that work is not flashy. It is steady, thoughtful, behind-the-scenes effort that helps turn a good idea into a real event that serves real people. I have been fortunate to work alongside fellow Rotary members who care deeply about Rotary’s mission and the causes the tournament supports. I am genuinely grateful for their time, commitment, and willingness to do the work that needs to get done. Events like this do not come together because of one person. They come together because a group of committed people keeps showing up and doing their part. It also takes the support of a broader community. Over the past three years, I have seen how a simple invitation, to play a round of golf or contribute an auction item, can become part of a much larger effort. As I prepare for my final year leading the Purple Tee, I am thinking less about the fact that my leadership role is ending and more about what I hope continues. I hope the tournament continues to bring people together. I hope new sponsors and players discover the value of supporting a community event with a clear purpose. And I hope every participant leaves Whiskey Creek remembering that the best part of the day was never just the golf. It was the difference we helped make by showing up. How You Can Help There are several ways to support this milestone event: Become a tournament sponsor. Help strengthen the event while putting your organization in front of an engaged local community. Register a foursome . Bring colleagues, friends, clients, or family members for a meaningful day on the course. Sponsor a veteran or first responder. Help someone enjoy a round of golf and participate in the Purple Tee experience. Donate an item or experience. Raffle and auction contributions add energy to the day and help expand the event’s fundraising potential. Every form of participation matters. Not everyone can sponsor at the same level, and not everyone plays golf. But everyone can consider whether they, or someone they know, might be able to help. Key Takeaways The 20th Annual Purple Tee Classic will take place at Whiskey Creek on September 17, 2026. This is my third year leading the tournament and my final year in that leadership role. The fundraiser supports veterans and first responders. Sponsors, foursomes, individual player support, and donated auction or raffle items are all important. Rotary has given me the opportunity to serve with people who care about their community and are willing to turn good intentions into action. I am grateful for that opportunity, grateful for the people I get to work alongside, and determined to make this final year leading the Purple Tee Classic a memorable one. If you would like to support the event, please visit purpletee.fundraiser.bid . You can also message me directly if you are interested or know someone who may want to help. One last round in this leadership role. One more opportunity to bring people together. And one more chance to support the veterans and first responders who deserve our gratitude.
Your guide to Energy Incentives for Maryland is here
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