HUGHESVILLE, Md. – Southern Maryland Electric Cooperative (SMECO) received approval from the Maryland Public Service Commission (PSC) to adjust its energy charges on January 26, 2022. New Standard Offer Service (SOS) rates will go into effect with February 2022 bills. 

SMECO’s residential SOS rate is made up of the energy charge and the Power Cost Adjustment (PCA). SMECO has adjusted the residential winter energy charge from 6.56 cents per kilowatt-hour (kWh) to 8.33 cents per kWh. A residential bill issued in February for 1,000 kWh will be about $15 higher than a bill issued in January of about $141 for 1,000 kWh. The summer energy rate will increase from 6.11 cents per kWh to 7.8 cents per kWh.

Since people have been commuting to work and traveling again, energy use is rising and increased demand has resulted in higher prices for fossil fuels. In addition, SMECO’s transmission costs have increased.

“Higher costs for oil and natural gas, which are the fuels used by electric generating plants, have spurred increases in wholesale energy costs since last fall,” explained Sonja M. Cox, SMECO president and CEO. She added, “The co-op does not make a profit on SOS energy charges. We work to keep our rates as low as possible by using a portfolio approach to purchasing power, with contracts for base load and peak load, structured as long-term and short-term contracts. Because of previous rate reductions, SMECO’s new adjusted rates will be similar to where they were in 2017.”

A decrease in the PCA will help to offset the increase in the energy charge. The PCA decreased from 0.9222 cents per kWh in January to 0.6622 cents per kWh in February. According to Cox, “SMECO’s PCA adjusts monthly to reduce the impact of market fluctuations on the cost of energy to members. When the PCA is more than five percent of the energy charge for three months in a row, the energy charge is adjusted.”

The cold weather in January will have an effect on most bills because the use of heating systems has increased. For members who want to reduce their bill, the most effective way to save is to reduce energy use. For tips on how to save, go to

Monthly bills fluctuate because energy use usually goes up in summer and winter and down in spring and fall. To reduce the impact of these variations, budget billing allows customers to pay the same amount each month. Residential customers can sign up for SMECO’s budget billing plan by going to

Residential customers who need financial assistance to pay their SMECO bill may apply at Maryland’s Department of Human Services through the Office of Home Energy Programs (OHEP). Apply online at or call 1-800-332-6347. If customers need an extension on paying their bill, they may also contact SMECO at 1-888-440-3311 or log in to Account Manager and click on the “payment arrangements” link.

SMECO – The Cooperative Difference –

SMECO was incorporated in 1937 and is one of the 15 largest electric cooperatives in the United States with more than 169,000 member accounts in Charles County, St. Mary’s County, southern Prince George’s County, and most of Calvert County.

Electric cooperatives are shaped by the communities they serve, because co-ops are owned by their customers.  Co-op members elect the men and women who serve on the Board of Directors. Members share the responsibility of ownership by financing the cooperative’s operations, but they also share its rewards.

At the end of each year, SMECO’s margins (profits) are allocated to members’ capital credit accounts. SMECO uses its profits to invest in new construction, system improvements, and facility upgrades. The Board of Directors regularly evaluates the financial condition of the co-op and determines when members will receive a refund. Since 1937, SMECO has refunded more than $110 million.

As a cooperative, SMECO will always put its members first and be responsive, reliable, and resourceful—the power you can count on.

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The SMECO 24/7 mobile app is available at

Join the Conversation


    “SOS” is the right word! You call it “adjusting”, I call it PRICE GOUGING because you’ve done this since day one, even before the democrats caused this energy problem! The difference is that, now, you can blame Biden for the increase in oil prices.
    Then you say the “PCA” will offset some of it? A $15 increase is coming in February and the “PCA” will offset that by 3/10 of a percent. Sounds like a real offset, right? You’ve always known that people use more electricity in the Winter & Summer and, yet, you’ve always raised their rates! FASCISTS!

  2. So, all the solar panels we have seen go up are not actually offsetting any electricity production? Huh…

  3. Funny how they gave a rate decrease a year ago and bam they jacked it up by another avg $15/mo.
    What the hell is the solar field in Hughesville providing us? Thought it would help lower our costs not increase it.

    1. I’m thinking, with so many homes with individual panel systems installed, revenue has decreased more than anticipated…causing SMECO to not be able to cover operating costs. ‘For every action, there is a reaction’.

  4. its a co-op. I would like to see more co- ops, I would like to see a co- op economy. everything, it takes willing + able providers. Right now, we have credit unions, food , but the not- for- profit model could apply to everything in the economy. Lets not confuse affordable with co-op, they’re not the same thing. Lets not confuse “for the poor” with co-op, they’re not the same thing.

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