Why are my BGE bills so high?

January bills are particularly alarming because BGE has substantially increased its delivery rates.

Rianna Eckel | Used by permission

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BGE gas delivery rates

January bills are particularly alarming because BGE has substantially increased its delivery rates.

Your BGE bill combines the costs of gas and electricity, plus charges for the delivery costs for each. BGE delivery rates are directly tied to increased spending by BGE which increases your bills and its profits.

Gas delivery rate increases hurt us most in winter, when we use gas for heat, but that’s no excuse for outrageous rates.

BGE has an obligation to provide safe, affordable, and reliable energy to all its customers.

  • Since 2010 gas delivery rates increased by 246% – about triple the inflation rate.
  • Since 2010 BGE profits have tripled from $147 million to $485 million in 2023.

Upgrade MD Coalition | Used by permission

BGE Spending and Profits Rising

The more BGE spends, the larger its opportunity to profit. This creates a powerful incentive for wasteful spending and it’s up to our legislators and utility regulators to keep a careful watch.

BGE has spent $1.4 billion on its gas pipeline replacement program in the last decade. Customers pay for all of that spending plus utility profits.

This spending has not improved safety.

BGE’s hazardous leaks per year have increased from 3,000 in 2014 to over 4,000 in 2023.

Washington Gas’ rates have grown at about the rate of inflation since 2010, and today its customers pay 46 cents/therm — less than half of BGE’s rates (90 cents/therm) — for essentially the same service.

Upgrade MD Coalition | Used by permission

A few more notes

  1. The EmPOWER surcharge has increased this year. The EmPOWER program funds energy efficiency programs that help lower energy use and bills. BGE customers can access EmPOWER rebates and incentives for home weatherization and efficient appliances.
  2. Since 2010, electric delivery rates have increased by 92% – about twice the inflation rate. There are similar concerns about BGE overspending driving those increases and we need our state leaders to intervene.
  3. Gas supply costs have gone up 24% since last winter, but are still far less than delivery, and fluctuation is common. Electric supply rates have stayed the same, but will rise this summer. 
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Authors

Emily Scarr

Senior Advisor, Maryland PIRG

Emily is a senior advisor for Maryland PIRG. Recently, Emily helped win small donor public financing in Montgomery and Howard counties, and the Maryland Keep Antibiotics Effective Act to protect public health by restricting the use of antibiotics on Maryland farms. Emily also serves on the Executive Committees of the Maryland Fair Elections Coalition and the Maryland Campaign to Keep Antibiotics Working, and the Steering Committees for the Maryland Pesticide Action Network and Marylanders for Open Government. Emily lives in Baltimore with her husband and dog.