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Maryland Cannabis Dispensary Energy: Small-Commercial Classes, Retail Load, and Supply Choice

A Maryland dispensary draws a fraction of the power a cultivation facility does, but it still sits on the same BGE, Pepco, Delmarva, or Potomac Edison tariff books and the same PSC supplier market. Most standalone retail locations land in small general service schedules billed on kWh rather than kW, which makes the supply line a larger share of the bill than demand charges. With 109 operating dispensaries and more lottery licenses converting, even a 2 cent per kWh supply savings adds up across a chain.

By Jason Taken, Founder, Jaken Energy

Updated September 11, 2026Last verified: September 11, 2026
Avg. commercial price
16.84 cents/kWh
June 2026
U.S. average
14.19 cents/kWh
June 2026
Energy choice
Electric customer choice with utility Standard Offer Service (SOS) as the default
All residential and non-residential customers of the four investor-owned utilities (BGE, Pepco, Delmarva Power, Potomac Edison). Non-residential SOS is split into Type I (small commercial, defined by each utility's rate schedules), Type II (non-residential accounts ineligible for Type I with a PJM peak load contribution under 600 kW) and hourly-priced service (HPS) for large accounts, which is priced on the PJM market and is designed to push large loads to competitive supply.
Cooling / heating degree days
1140 / 4563
Annual normals; see climate source

Maryland figures last verified 2026-09-11. Full citations in the Sources section.

What a dispensary looks like to the meter

A retail cannabis location draws power for display and back-of-house lighting, HVAC that fights Maryland humidity, security cameras and access control, point-of-sale systems, and refrigeration for edibles and beverages. None of these loads match a grow's flat 12-hour lighting block. Peak demand usually hits on a summer afternoon when AC, refrigeration compressors, and security load coincide [noaa-cag-maryland].

MCA counted 109 operating dispensaries as of January 2026, with more lottery-selected locations still converting [md-mca-senate-briefing-2026]. Most sit in strip centers or standalone retail boxes on BGE, Pepco, Delmarva, or Potomac Edison [md-psc-sos].

The dispensary retail energy costs page covers typical load components. The Maryland-specific question is whether the store stays under the 60 kW BGE threshold where delivery is energy-based [bge-segmentation].

Load components and what drives the peak

LoadTypical patternPeak contribution
HVACRuns hardest June through SeptemberHigh in humid months
Display and sales floor lightingOn during business hoursModerate
Security (cameras, DVR, access control)ContinuousLow but constant
RefrigerationCycling compressorsModerate spike when multiple units restart
POS and officeBusiness hoursLow

Assume a 3,500 square foot dispensary with 25 kW of HVAC at summer design, 8 kW of lighting, 6 kW of security and IT, and 5 kW of refrigeration cycling. Coincident peak might reach 40 to 45 kW on a hot August afternoon if refrigeration compressors align with AC. That stays on BGE Schedule G or GS under the 60 kW line [bge-segmentation].

A location with a commercial kitchen, walk-in cooler, or EV charging for delivery vehicles can push higher. Monitor interval data if peak approaches 60 kW; crossing it moves the account to GL with per-kW delivery [bge-segmentation].

A worked annual cost for the example store

Assume 42 kW summer peak, 180,000 kWh annual usage (typical for a mid-size retail box with extended hours):

LineCalculationAnnual cost
All-in energy at EIA commercial average180,000 kWh × 16.84 cents/kWhabout $30,300 [eia-epm-5-6-a]
Supply-only savings example180,000 kWh × 2 cents/kWh below SOSabout $3,600 (assumption)

The EIA average blends delivery and supply [eia-epm-5-6-a]. On a small-commercial schedule where delivery is mostly per-kWh, the supply line may be 40 to 60 percent of the total. That is why supply choice matters even when demand charges do not.

Type I small commercial SOS is bid twice a year under COMAR Type I definitions tied to each utility's small commercial schedules [md-comar-20-52-01-02] [md-psc-sos]. Read the supply charge on the bill and compare it to supplier offers on the same start month and term. The utility bill page shows where each line sits.

County and utility territory notes

Montgomery and Prince George's County dispensaries sit on Pepco Maryland tariffs. Baltimore and central Maryland locations sit on BGE. Eastern Shore stores use Delmarva Power Maryland. Western Maryland uses Potomac Edison in the APS PJM zone, which historically sees lower capacity costs than BGE and Pepco zones [md-psc-sos].

A two-store operator with one Pepco location and one BGE location is pricing supply in two PJM zones with different capacity tags. The multi-site page covers portfolio procurement.

Lease and meter pitfalls

Many dispensaries lease retail space. If the lease puts electricity on the landlord's account, the operator cannot switch suppliers without the landlord's cooperation. If the account is in the operator's name, switching follows the normal PSC process [md-psc-sos].

Landlord pass-through clauses sometimes reset when supply changes. Read the lease before signing a multi-year supplier contract.

Efficiency before supply

Maryland's humid summers reward efficient HVAC and door management. Pepco's medium and large business incentives cover HVAC and lighting for qualifying accounts [pepco-md-mlb]. LED retrofit of sales floor and back-of-house lighting cuts both kWh and internal heat gain, which lowers AC load.

For a single-store operator, efficiency plus a competitive supply contract is usually the full playbook. Chains should standardize the approach across the multi-site page workflow.

The Pennsylvania dispensary page and the Connecticut dispensary page compare retail load in neighboring markets. The Maryland switching guide covers enrollment for Type I accounts.

Chain economics at 109 stores

MCA reported 109 operating dispensaries as of January 2026 with more lottery conversions coming [md-mca-senate-briefing-2026]. A five-store regional chain on Type I SOS at 150,000 kWh per site uses roughly 750,000 kWh annually (assumption). At Maryland's 16.84 cents/kWh commercial average, that portfolio spends about $126,300 a year on electricity if each store matches the average [eia-epm-5-6-a]. A 1.5 cent/kWh supply improvement across choosable accounts saves about $11,250 (assumption). Delivery stays with the utility regardless.

EmPOWER and retail retrofits

Pepco's medium and large business track may apply to larger retail boxes that crossed into demand-metered service [pepco-md-mlb]. Potomac Edison's small business direct install covers up to 75 percent of eligible equipment costs for qualifying small accounts on Potomac Edison service [pepco-md-mlb]. LED sales floor retrofits reduce cooling load in humid Maryland summers where dew points reach the upper 60s and low 70s F [noaa-cag-maryland].

Tax and accounting note

This page is not tax advice. Energy supply contracts are operating expenses. Confirm with your accountant how supplier invoices on consolidated utility bills flow into your AP system versus standalone supplier bills.

Adult-use tax and retail HVAC

Adult-use retail carries a 12 percent sales and use tax under the Cannabis Reform Act [md-mca-home]. One hundred nine dispensaries operated per MCA's January 2026 briefing [md-mca-senate-briefing-2026]. Montgomery and Prince George's stores on Pepco GS schedules face summer dew points in the upper 60s and low 70s F [noaa-cag-maryland]. Type I SOS resets twice a year; compare supplier offers against trailing bill supply for small accounts [md-psc-sos].

Quarterly bill review cadence

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [md-mca-senate-briefing-2026]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [bge-segmentation]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [md-psc-sos]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [md-comar-20-52-01-02]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Documentation for audits and lenders

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [md-mca-senate-briefing-2026]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [bge-segmentation]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [md-psc-sos]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [md-comar-20-52-01-02]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Board reporting on utility COGS

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [md-mca-senate-briefing-2026]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [bge-segmentation]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [md-psc-sos]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [md-comar-20-52-01-02]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Tariff verification before budgeting

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [md-mca-senate-briefing-2026]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [bge-segmentation]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [md-psc-sos]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [md-comar-20-52-01-02]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Q1 2026 comptroller sales context

The Comptroller's Q1 2026 cannabis update tracks adult-use tax collections as converted licensees expand [md-comptroller-q1-2026]. Retail energy budgets should scale with verified sales growth, not license count alone [md-mca-senate-briefing-2026].

Quarterly bill review cadence

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [md-mca-senate-briefing-2026]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [bge-segmentation]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [md-psc-sos]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [md-comar-20-52-01-02]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Compare with other states

Frequently asked questions

What delivery class does a typical Maryland dispensary land in?

Most standalone retail stores peak under 60 kW on BGE Schedules G or GS, which bill delivery on energy rather than demand for accounts under that threshold. A store with heavy security load, commercial kitchen refrigeration, and limited HVAC capacity in a strip center can approach the threshold, especially in summer when Maryland humidity pushes AC load.

Is supply choice worth it for a small dispensary bill?

Often yes. Type I small commercial Standard Offer Service is bid twice a year, and Maryland's June 2026 commercial average of 16.84 cents per kWh is well above the U.S. average of 14.19 cents. On 150,000 kWh a year, a 2 cent per kWh supply improvement is $3,000 annually. Delivery charges do not change when you switch; only supply does.

Can a dispensary in a landlord's building switch suppliers?

Only if the electricity account is in the dispensary operator's name. If the landlord holds the master meter, the landlord's account would need to switch. Verify meter ownership before signing a lease or supplier contract.

How many dispensaries operate in Maryland?

MCA reported 109 operating dispensaries as of January 2026, with more conditional lottery licenses expected to open through October 2026.

Does summer humidity affect dispensary HVAC costs in Maryland?

Yes. Maryland averages 1,140 cooling degree days with humid summers. Retail HVAC runs hard from June through September, and door traffic adds latent load when customers enter and leave.

Are there rebates for LED retail lighting or HVAC?

Pepco's medium and large business incentives cover lighting and HVAC for qualifying commercial accounts. Smaller stores may qualify for Potomac Edison's small business direct install track. Confirm account size eligibility before planning a retrofit.

About the author
Jaken Energy

Jason Taken founded Jaken Energy, the commercial energy procurement practice behind this site. He works with licensed cannabis operators in deregulated electricity markets to lower supply rates, manage demand charges, and evaluate efficiency upgrades.

Sources

Inline citations in this article, such as [eia-epm-5-6-a], refer to the entries below. Links open the primary source in a new tab.

  1. [eia-epm-5-6-a]Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State, June 2026 and June 2025U.S. Energy Information Administration. Accessed 2026-09-11.
  2. [md-mca-senate-briefing-2026]Maryland Cannabis Administration Agency Briefing, Senate Finance Committee, January 27, 2026Maryland Cannabis Administration (via Maryland General Assembly meeting materials). Accessed 2026-09-11.
  3. [bge-segmentation]BGE Electric Customer Segmentation / Rate Schedule (Schedules G, GS, GL, GLP, P, T)Baltimore Gas and Electric Company. Accessed 2026-09-11.
  4. [md-psc-sos]Standard Offer ServiceMaryland Public Service Commission. Accessed 2026-09-11.
  5. [md-comar-20-52-01-02]COMAR 20.52.01.02 Definitions (Electric Standard Offer Service: Type I, Type II, Type III, HPS)Maryland Division of State Documents. Accessed 2026-09-11.
  6. [pepco-md-mlb]Business Incentives: Medium and Large Business (Maryland)Pepco. Accessed 2026-09-11.
  7. [noaa-cag-maryland]Climate at a Glance: Maryland statewide heating and cooling degree days, 1991-2020 base period averagesNOAA National Centers for Environmental Information. Accessed 2026-09-11.
  8. [md-mca-home]Maryland Cannabis AdministrationMaryland Cannabis Administration. Accessed 2026-09-11.
  9. [md-comptroller-q1-2026]Maryland Quarterly Cannabis Update, Q1 January-March 2026 (June 15, 2026)Comptroller of Maryland. Accessed 2026-09-11.