Blackout Prevention ... Here's the Cure
April 28, 2010
A very-real threat exists here in Maryland, and the mid-Atlantic in general. It has to do with electricity, and how the current infrastructure handles all of the power we need and use for both residential and commercial purposes.
Electric Advisors' President Russell Lacey is a big proponent of making sure we all have enough electricity for not only today, but the future as well. In a recent letter to the Gazette of Politics and Business, he wrote:
Today, less than 6 percent of Maryland's electricity comes from renewable sources: wind, solar, geothermal, hydroelectric, biomass, etc. We have far to go to reach the state's goal that 20 percent of our electricity will come from renewable resources by 2022. Incentives, technical assistance, competitive energy markets and funding will be necessary to encourage the development of diverse renewable sources and make power from them more available to Maryland consumers. But, as these sources are being developed, we must pay equal attention to making sure the electricity produced from them can reach users.
The grid that supplies Maryland's electricity, and all or parts of 12 other states and the District of Columbia, is near capacity and cannot transmit additional energy — from any source — without expansion. Maryland's electricity consumers pay a premium for electricity transmitted through this congested system.
Our grid operator, PJM Interconnection, with authority from the Federal Energy Regulatory Commission, has called for grid enhancements to be in place by 2014, or Maryland and other energy destinations on the grid will begin to experience power interruptions and possibly blackouts.
The Maryland Public Service Commission is is expected to consider two transmission line projects during the next year. Lacey says these lines will prevent predicted power shortages, only if they're approved and completed on schedule. And with the expected growth in our area, we need to be sure we're ready from an infrastructure standpoint.
You can read his entire letter here. If you want to write to the Maryland Public Service Commission, here's their Web site.
For business owners in Maryland, Washington, DC, and Virginia —right here in our backyard —energy costs are more than just a line item: they are a significant variable that can impact quarterly profitability and long-term operational planning. In recent years, the natural gas market has been characterized by notable volatility. From global supply chain disruptions to shifting domestic production levels, the price you pay for the blue flame in your furnace or the heat in your commercial kitchen has likely felt like a moving target. At Electric Advisors, Inc. , we believe that data-driven decision-making is the only way to effectively manage utility expenses. To help you understand where the market has been and where it is going, we have analyzed the historical procurement costs for Washington Gas (WGL) and compared them to the current opportunities available through competitive suppliers across Maryland, Washington, DC, and Virginia. The results are clear: across the WGL service territory in MD, DC, and VA , the cost of sticking with the utility’s default Purchased Gas Charge (PGC) may be significantly higher than many business owners realize. The Benchmark: Washington Gas Historical PGC Rates in Maryland, DC, and Virginia Every month, Washington Gas updates its Purchased Gas Charge (PGC) . This is the rate at which the utility passes through the cost of the natural gas it buys on the wholesale market to its customers. By law, the utility does not make a profit on the gas itself; they make their money on the delivery and infrastructure. However, the price they pay—and the price you eventually see on your bill—is subject to the fluctuations of the monthly wholesale market. For businesses in the broader WGL footprint, the important takeaway is this: Washington Gas default supply pricing and competitive market opportunities are consistent across its service territory in Maryland, Washington, DC, and Virginia. In other words, the same benchmark applies whether your business is in suburban Maryland, downtown DC, or Northern Virginia. Looking back at the last 24 months across the WGL service territory in MD, DC, and VA , we see a story of dramatic shifts: 24-Month Average WGL PGC: Approximately $0.68 per therm . The 2025 Spike: In April 2025, rates peaked at a staggering $0.8085 per therm . The 2026 Moderation: As of April 2026, the WGL rate has settled to $0.6382 per therm . While the 2026 rate is a welcome decrease from the highs of the previous year, it remains significantly higher than the rates seen a decade ago. For context, in 2010, the rate hovered around $0.32 per therm. We have seen a steady, long-term upward trend that necessitates a more proactive approach to commercial natural gas rates .
Helping Washington D.C. businesses take advantage of their sales tax exemption opportunities. Did you know that restaurants don't have to pay sales tax?
What’s Behind the Spike in Electricity Use—and Why It Matters