BGE’s proposal would increase distribution rates by 17 percent, OPC Consumer’s Guide explains
BALTIMORE – The Office of People’s Counsel released this week a Consumer’s Guide to BGE’s Proposed Electric Rate Increase showing that Baltimore Gas and Electric’s proposed rate hike would increase electric distribution rates for residential customers by roughly 17 percent—from 4.9 cents per kilowatt-hour (kWh) to 5.8 cents per kWh.
BGE’s request to collect an additional $156.1 million from customers would, if approved, push the utility’s electric distribution rates 58 percent higher than they were in 2020 and 129 percent higher since Illinois-based Exelon Corp. acquired BGE in 2012—significantly outpacing inflation, the Consumer’s Guide shows.
“BGE says it is focused on investments that are ‘essential to continued safe and reliable service,’” said People’s Counsel David S. Lapp. “But the rate case includes a request to substantially increase BGE’s profits to levels that far exceed those of companies subject to competition, as well as other requests that raise costs for residential customers without corresponding investments to meet customer needs.”
The Consumer’s Guide illustrates how BGE rates have changed over time and explains the categories of costs at issue in the rate case, the average residential customer bill impact, how utilities generate profits, and how customers can get involved.
“BGE’s requested rate increase continues a long line of nearly consecutive annual rate increases since Exelon’s acquisition of BGE in 2012,” Lapp said. “BGE’s requests might be necessary to meet Exelon’s investor goals of growing returns and profits, but they are causing unnecessary burdens for BGE’s customers.”
The Maryland Office of People’s Counsel is an independent state agency that represents Maryland’s residential consumers in electric, natural gas, telecommunications, private water and certain transportation matters before the Public Service Commission, federal regulatory agencies, and the courts.
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