Maryland Bill Explanation of Terms

How Bills are Determined

Electricity is measured and priced in kilowatt-hours (kWh). You are billed according to the number of kilowatt-hours you use as measured by your electric meter.

When you pay for a kWh of electricity, you are buying 1,000 watts of electricity used continuously for one hour. As an example, one kWh is the amount of electricity a 100-watt light bulb will use in ten hours.

Bill Due Dates

Your electric bill is due on or before the due date. To avoid late payment charges, pay your bill on or before the due date shown on your bill.

Late Payment

Unfortunately, at times customers might be late in paying their electric bills. When this happens, we urge our customers to contact us to avoid a disconnection of electric service. We consider disconnecting electric service for nonpayment a last resort and would rather work out payment arrangements.

If you need to speak to a Cutomer Service Representative regarding a late payment, please contact us.

Why Bills are Estimated

Our meter readers have assigned routes and schedules. At times, severe weather conditions or other unforeseen problems might keep them from reading all the meters on their routes. When this happens, we estimate your electricity usage during that billing period based on your previous electric bills. Any difference between your estimated usage and actual usage is automatically adjusted the next time your meter is read.

Your bill may be estimated if a dog on or near your property was blocking the meter reader's path to your electric meter. To help ensure their safety, meter readers will not attempt to read an electric meter if there is a dog in the vicinity of the meter. We ask your cooperation in keeping your dog leashed or confined to prevent our employees from being exposed to unnecessary risk.

You can avoid estimated bills by submitting your meter reading online. Or, if you would rather submit a meter reading card by mail, contact us to request the appropriate form.

Bill Terms & Definitions

A. Billing Period – Time period for which your current charges were calculated.

B. Customer Name and Address

C. Account Number, Amount Due and Due Date - This is your 12-digit Potomac Edison account number.

D. Messages – Important information about your account. You’ll also find your Standard Offer Service Pricing here.

E. Account Summary – Your previous balance, payments and current charges are displayed.

F. Usage Information – Your electricity usage during the billing period. This also lets you know if your usage was based on an actual or estimated meter reading.

G. Charges – Detailed information on Potomac Edison’s charges can be found here. If you have chosen an alternate supplier, your supplier charges will appear in Section H.

  • Generation Charge – Charge for the production of electricity.
  • Transmission Charge – Charge for moving high voltage electricity from a generation facility to distribution lines.
  • CoGeneration PURPA Project Termination Agreement Surcharge - Pursuant to the Public Service Commission of Maryland’s order, dated June 21, 2023, the termination of the Warrior Run PURPA contract was approved. This surcharge recovers costs associated with the Termination Agreement between Potomac Edison and AES WR Limited Partnership to terminate the parties’ former CoGeneration PURPA Project Agreement.
  • Customer Distribution Charge – Charge for distribution costs that are due to the presence of a customer on the distribution system, such as meter reading, billing, service line maintenance and equipment.
  • Distribution Charge – Charge to recover the balance of distribution costs not recovered in the Customer Distribution Charge and for the cost of using local wires, transformers, substations and other equipment needed to deliver electricity to a premise.
  • Electric Distribution Investment Surcharge - Recovers costs associated with investments and enhancements to Potomac Edison’s Electric Distribution system approved by the Commission.
  • Electric Universal Service Fee - Charge associated with the funding of a state program to assist low-income customers.
  • Energy Cost Adjustment – Charge or credit for the difference between billed Transmission and Generation Charges against payments by Potomac Edison to PJM and wholesale electricity suppliers.
  • Administrative Credit – Credit for amounts collected in excess of Potomac Edison’s incremental cost for providing Standard Offer Service generation.
  • Cogeneration PURPA Surcharge – Charge associated with the purchase of power from the AES/Warrior Run power station.
  • Franchise Tax - A state tax based on the amount of electricity delivered to customers.
  • EmPower MD Surcharge – Charge for costs associated with Potomac Edison-sponsored programs which promote energy efficiency and conservation.
  • MD Environmental Surcharge – Charge for costs associated with the funding of the state Power Plant Research Program.

H. Charges from your Alternate Supplier – If you choose an alternate supplier, these charges appear here.

I. Detailed Payment and Adjustment Information – Any payments applied or adjustments made since your last bill was issued will appear here.

J. Usage History – To help you better monitor your electricity usage, this bar graph details your usage history over the past 13 months. There is also detailed information such as your Average Daily and Monthly Use, Average Daily Temperature and the number of Days in the Billing Period.

K. Payment Stub – Detach and return with your payment. This section includes your Account Number, Amount Paid, Amount Due and the Due Date.

L. Explanation of Terms – This section defines some of the key terms that appear on your electric bill.

M. Important Information – Find key information here, such as phone numbers, website address, mailing address and other important information.

N. Meter Reading Information – Use these dials or boxes to record and submit your meter reading online, or call 1-800-686-0011. Do not use this to mail in your reading.

Back to the Top