Baltimore City resolution urges state to block proposed $156 million rate increase by BGE

A resolution by the Baltimore City Council calls on Maryland's Public Service Commission (PSC) to reject a proposed $156 million electricity rate increase by Baltimore Gas and Electric (BGE).

The measure, sponsored by Council President Zeke Cohen, aims to block the proposed rate hike that city officials have estimated would increase the electricity cost for the average Baltimore customer by about $100 a year.

Such an increase would add "to the financial strain facing Baltimore families already struggling with rising utility bills and other household expenses," said a news release issued by Baltimore City. 

"The council is urging state regulators to reject this increase and reduce BGE's allowed return on equity so customers aren't forced to shoulder the burden of excessive shareholder profits," the release added.

At a news conference on Monday, Cohen announced the resolution would be presented to the council for a vote to send a message to the PSE that the rate increase should not go forward.

"Today we ask Baltimoreans to also make your voices heard. If you're tired of continuing to see the bill go up, please sign our petition at www.highenergybillsmaryland.org."

A spokesman for BGE pushed back on Baltimore City's resolution, saying the proposed increase is necessary in order to service BGE customers effectively. 

"We still have to fix equipment that breaks. We still have to do critical inspections of the electric infrastructure that our customers depend on to keep their lights on every day," said Nick Alexopulos, senior manager of communications for BGE.  

"We still have to trim trees, we still have to respond to storms -- storm restoration is extraordinarily expensive, and it's really complicated," Alexopulos added. "This all takes resources, and that's the investment strategy we put forward to the commission." 

Baltimore's opposition to the proposed $156 million electricity rate increase is separate from its criticism of a $9 monthly surcharge sought by BGE to help pay for infrastructure linked to the city's utility conduit system.