Hundreds of Baltimore Area Residents Submit Comments Opposing BGE Rate Hike

BALTIMORE – Today marks the final day the Maryland Public Service Commission (PSC) accepted comments from the public on Baltimore Gas and Electric’s (BGE) proposed $602.4 million multi-year rate hike. BGE is a state granted monopoly with no market competition, so their rates are reviewed and approved by the PSC.  

1199SEIU Health Care Workers East, 350.org, Economic Action Maryland, and Maryland PIRG delivered more than 600 comments from their members and energy customers that demonstrate a wide array of concern for the harmful impacts if the proposed rate hike is approved by the PSC. Among the concerns is the significant cost burden residents will shoulder if the multi-year rate hike is approved, instead of a traditional one time rate adjustment. Customers also flagged excessive profits, and increased pollution as top concerns.

According to an analysis by the Office of the People’s Counsel, an independent state agency charged with protecting consumers, BGE’s customers would pay an average of $810 more per year on gas and electric bills in 2026. Economic Action Maryland says this will harm vulnerable populations like seniors living on fixed incomes. Their clients say utility bills are often their highest or second highest monthly expense, and can force painful choices between heating, groceries, and prescriptions. 

Economic Action Maryland’s Executive Director, Marceline White, said “BGE’s multi-year rate plan is poor public policy. The evaluation of the pilot program hasn’t even been completed yet BGE is asking struggling households to subsidize its investment in gas infrastructure instead of cleaner, greener energy while BGE receives all the profits. This is a bad deal for consumers and for our climate. The PSC should reject BGE’s multi-year proposal.” 

The groups are critical of the multi-rate plan structure which they say shifts costs to ratepayers and allows for excessive utility profits. In Exelon’s August filings to the United States Securities and Exchange Commission, the company credits the multi-year plan for an increase in BGE profits (page 8). 

They also raise concerns that the multiyear rate plan lacks accountability and incentives for utility managers to keep costs down.

“Since the 2020 BGE multi-year rate pilot plan was approved, BGE has not demonstrated that they are using ratepayers money to provide more reliable, safe or cost effective service,” explained Emily Scarr, Maryland PIRG Foundation Director. “We hope that the Public Service Commission will help BGE get its priorities straight by terminating the pilot program and ensuring the company truly prioritizes maintenance and reliability.”

According to BGE’s official filing (page 6), a key driver in the rate increase is BGE’s proposed $1.8 billion in spending on new gas infrastructure. Advocates warn this spending goes well beyond promoting the reliability and safety of the system, and say the financing mechanism does not make sense at a time the state is actively working to phase out fossil fuel use in buildings. The 2022 Maryland Climate Solutions Now Act directs the state to reduce global-warming emissions by shifting away from fossil fuels to power our homes and buildings. Many residents expressed concern for BGE’s seeming disregard with the urgency of utilizing cleaner energy sources, and the health consequences of increased pollution from the ongoing burning of gas.

“Ratepayers have strongly rejected BGE’s outrageous plan to raise our rates to fund more planet-burning fossil fuel infrastructure. Now it’s up to the PSC to put people and the planet ahead of BGE’s profits,” said Taylor Smith-Hams, US Senior Organizer with 350.org. 

The PSC will make a ruling on the proposed rate hike by the end of the year. 

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