Maryland advocates lambast latest BGE rate hike, call on state leaders to intervene
Upgrade Maryland Statement, January 13, 2025
Upgrade Maryland coalition reiterates calls on PSC to end costly Multi-Year Ratemaking, urges General Assembly to pass Ratepayer Protection Act
BALTIMORE — BGE customers, who already face some of the highest energy burdens in the country, will see their energy bills rise by $26 per month in the first half of 2025 due in large part to controversial multi-year pilot programs and the multi-billion dollar gas pipeline replacement program. Advocates call on the state legislature and utility regulators to end policies that are leading to excessive utility profits and massive rate hikes.
In response, Maryland PIRG Senior Advisor Emily Scarr released the following statement on behalf of the Upgrade Maryland coalition:
“Baltimore Gas & Electric is showing its true colors by raising rates just as Baltimore residents are forced to crank up the heat amid weeks of freezing temperatures. What BGE doesn’t want customers to know is that the major cause of the rate hikes is the utility’s highly profitable multi-billion dollar “operation pipeline” program and other profit-driven spending that is delivering big for shareholders.
“BGE gas customers have already seen their rates triple since 2010 along with BGE profits, which more than tripled from $147 million in 2010 to $485 million in 2023. If utility regulators and state leaders in Annapolis don’t act now, we’ll be seeing higher utility bills again in 2026.
“Maryland’s decision makers and utility regulators should immediately end programs that have supercharged the utilities’ incentive to spend wastefully and boost its profits. With energy cost increases looming, now is the time to add cost controls on gas infrastructure spending and other wasteful capital spending.”
Background:
Baltimore Gas and Electric, a subsidiary of the Chicago-based Exelon Corporation, serves 1.3 million electric customers and 700,000 gas customers in the central Maryland area.
Since 2020, BGE has raised electric delivery rates by 26% and gas delivery rates by 43%. Since 2010, delivery rates for BGE gas customers have more than tripled, far outpacing the rate of inflation. BGE’s profits more than tripled from $147 million in 2010 to $485 million in 2023. These skyrocketing gas and electric rates have led to 25% of Baltimore households spending more than a quarter of their income on energy bills alone in 2022. In 2023 BGE sent 1.1 million termination notices, ultimately shutting off service for 80,000 ratepayers who couldn’t afford their bills.
Consumer advocates have joined the Maryland Office of People’s Counsel and Maryland Energy Administration in raising concerns that the multi-year rate making program and gas pipeline replacement program (STRIDE) have led to excessive rate hikes and diminished utility accountability.
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