Residents all across the state of Maryland could see much lower electricity bills this year, as the state's Public Service Commission announced recently that utility companies will be seeing much lower electricity prices.

The lower electricity rates stem from a bidding process that occurs twice each year in which generators offer to produce power for each of the state's utility companies for a fixed price.

The average resident in Baltimore and around central Maryland, who receive their power from utility company Baltimore Gas and Electric, could see their electricity bills drop by as much as $54 for the year.

Delmarva Power and Light and Potomac Electric Power Company will both see smaller savings, $26 and $49, respectively, but Potomac Edison customers could save as much as $120 this year.

While customers will be saving money with the standard electricity rates from their utility companies, this could mean even more dramatic savings from retail electricity providers. These companies tend to set their prices specifically to beat the prices being offered by utility companies.

At the same time, customers in Baltimore Gas and Electric's service area will also receive a $100 credit thanks to the merger between that company and Exelon.