Rider G FAQ

Do you want to purchase 100 percent renewable energy? SMECO now has Rider G available for residential and commercial accounts.

SMECO will purchase renewable energy credits to cover the total amount of energy used by the members who sign up for Rider G. Since SMECO is already obtaining 32 percent of its energy from renewables, members who sign up for Rider G will be charged an additional rate for the REC purchases required to cover the remaining 68 percent f the energy they use each month.

As of January 1, 2022, the Rider G rate is $0.01213 per kilowatt-hour (kWh). The Rider G rate will be updated on or about January 1 of each year and whenever significant market pricing changes occur.

Am I eligible?

Residential and commercial accounts that are billed under SMECO’s Standard Offer Service (SOS) or Time of Use rate for energy may choose Rider G. SMECO members who purchase energy through an alternate supplier are not eligible for SMECO’s Rider G, but there are alternate suppliers who may also provide a 100 percent renewable option or contracts with various levels of renewable energy. Alternate suppliers can be found under the link “Shop for Electricity” on the Maryland PSC’s website.

How does it work?

SMECO will purchase renewable energy credits to cover the total amount of energy used by the members who sign up for Rider G. When you sign up, the charge for green energy will be included on your bill as an additional line item.

SMECO is already obtaining RECs to cover 32% of its energy sales, so residential and commercial members who sign up for Rider G will be charged an additional rate for the REC purchases required to cover the remaining 68% of the energy they use each month.

Doesn’t SMECO already provide renewable energy?

Yes, SMECO purchases renewable energy from wind and solar farms. SMECO also purchases renewable energy credits (RECs) to fulfill state-mandated requirements. For 2022, SMECO must purchase RECs to cover 32% of the energy SMECO provides to members.

What are renewable energy credits (RECs)?

RECs certify that a certain amount of energy was produced by a renewable power source, such as a solar farm or a wind turbine. For 2022, SMECO is obtaining enough RECs to prove that renewable energy sources generated and provided energy equal to 32% of SMECO’s sales. No other entity can claim that renewable energy for their customers. SMECO will obtain increasing amounts of RECs in future years.

How much will green energy cost under Rider G?

As of January 1, 2022, the rate is $0.01213 per kilowatt-hour (kWh). Because SMECO’s rates already cover the cost of providing renewable energy for 32% of the energy members use, the charge for Rider G will cover the cost of RECs for the remaining 68% of the monthly kWh on your bill—so you will receive 100% green coverage.

The Rider G rate will be updated each year on or about January 1 for changes in REC prices and purchase percentages. The rate may also be adjusted whenever significant market pricing changes occur.

Below is a sample calculation for 1,200 kWh.

  • Energy Charge: 1200 kWh × $0.0833 = $99.96
  • Power Cost Adjustment - Energy: 1200 kWh × $0.005 = $6
  • Rider G: 1200 kWh × $0.01213 = $14.56
Enrollment and Cancellation

You may opt in or opt out at any time; however, the Rider G option must start and stop with the customer’s billing period. Please allow SMECO five days to process your request.

To sign up for Rider G, go to the Rider G Enrollment form.