On Thursday, Baltimore Gas and Electric (BGE) submitted a request for a rate increase to the Maryland Public Service Commission that would impact over one million customers across the region.
The request indicates that, if fully approved, Maryland residents could see an average rise of $100 per year in their electric bills, translating to roughly an additional $8 each month.
Emily Scarr, Senior Advisor for the Maryland PIRG Foundation, commented on the implications of this announcement, stating, “For Baltimore residents facing dangerously high temperatures this holiday weekend, this may serve as the tipping point. Many are understandably concerned about how to afford keeping their homes cool after experiencing a decade of escalating BGE costs.”
In a press release, BGE articulated that the rate case aligns with a substantially reduced investment strategy that concentrates primarily on addressing the most urgent risks to the electric system.
“Affordability is the top priority for our customers right now,” asserted Tamla Olivier, president and CEO of BGE. “We have taken customer feedback into account and understand the financial strain many are under due to rising costs in various aspects of their lives. That is why we chose to postpone this filing, reassess our plans, and cut back on investments to only the essential maintenance our system requires.”
BGE emphasized that the focus of this filing is to ensure the reliability of the electric system, which encompasses the upkeep of substations and the introduction of a new customer assistance program.
Although the company has taken steps to reduce and delay investments in order to mitigate the impact on customers, it acknowledges that such reductions come with significant trade-offs.
“Our maintenance of the electric system cannot stop entirely. We have consciously decided to defer major projects and the replacement of aging infrastructure,” Olivier indicated. “As the demand for power in the region increases, coupled with more frequent and severe weather events, postponing necessary maintenance for extended periods ultimately leads to more outages, longer restoration periods, emergency repairs, and higher costs for customers in the long run.”
As part of the filing, BGE is proposing a FlexPay program that would allow eligible customers to prepay for their anticipated energy consumption.
Consumer advocates from the Office of the People’s Counsel noted that BGE’s electric delivery rates nearly doubled in 2010 and have been rising at roughly twice the pace of inflation since then.
According to data from the PIRG Foundation, BGE’s profits soared from $147 million in 2010 to an estimated $578 million by 2025, attributed to a blend of increased capital spending on gas and electric services along with a high profit margin.
Gas delivery rates, too, have tripled since 2010.
“While we intend to closely examine this latest rate hike request, we are deeply concerned that as BGE’s rates and profits continue to climb, customers are experiencing systemic failures in service and safety. We urge the Commission to scrutinize BGE’s expenditures and deny its request for an excessive profit margin,” Scarr reiterated.
The Maryland Public Service Commission will review the filing in a proceeding scheduled over the next several months, which will provide a platform for public input, according to BGE.
To implement the new rates, the commission must issue an official order, which is anticipated by early 2027.
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