Baltimore officials, residents frustrated by BGE's authorized multi-year rate increase plan
BALTIMORE -- The Maryland Public Service Commission, in a unanimous vote, has authorized a rate increase over three years of just under $408 million for Baltimore Gas and Electric Company's proposed multi-year rate plan, inclusive of both gas and electric service.
In the first year of the multi-year plan, the commission authorized the use of federal tax credits to partially offset the rate increases to customers in year one.
This proposal would mean that rates will go up, which has been a controversial issue among customers, the Baltimore City Council and the utility company. City leaders and some residents shared their thoughts on the topic on Friday.
Emily Fleming has lived in Baltimore for almost a decade. So, when she learned her utility bill might look different, she had mixed feelings about it.
"This definitely is something that I would have liked to have been and felt more informed about through a community town hall or something like that," Baltimore resident Emily Fleming said. "I'd like to see a little more prudence in the timing of some of these decisions."
WJZ was there as Baltimore City Councilman Zeke Cohen sponsored a resolution calling to reject the utility company's $602 million three-year plan in July.
"Baltimoreans are already strapped. We are—many folks are already living paycheck to paycheck and any additional rise in a utility bill can be devastating," Baltimore City Councilman Zeke Cohen told WJZ on Friday.
Cohen says, however, the commission did open the door for increased accountability of BGE's spending.
"I do want to acknowledge and celebrate that BGE came in asking for over $600 million and only ended up around $400 million," Cohen said. "So. that is progress."
Last February, BGE applied for an increase of $602 million, which it said was necessary to cover continued investments in the electric and gas distribution systems in order to sustain safe and reliable service and to increase system resilience in the face of Maryland's increasing electrification goals, according to the commission.
Cohen gave credit to the Baltimoreans who spoke up and out about the proposed plan, but he says this is only a small win.
"We are going to continue to fight and continue to push and make sure our residents get the best deal because Baltimore deserves it," Cohen said.
The approved rates, according to the Commission, will result in average year-one bill increases of $4.08 a month for residential electric customers and $10.43 per month for residential gas customers in 2024. Those average increases decline substantially in subsequent years, to 34 cents a month for electricity and $2.80 a month for gas in year three.
BGE said in a statement that it appreciated the commission's "thorough consideration in the 2024-2026 Multi-Year Plan order."
"We are reviewing the details of the order, which appears to represent a balanced and reasonable outcome that will provide many benefits to our customers and the State," BGE said in its statement. "Importantly, the order ensures that BGE can continue to provide safe, reliable, and affordable services to our customers, while laying the foundation for the grid of the future. We understand the importance of balancing the needs of energy affordability with the advancement of our grid infrastructure transformation. As we assess this order, we will continue to engage with the Commission and all of our stakeholders, including our customers, to ensure transparency and clarity in implementing BGE's second multi-year plan."
The application sought rate increases of more than $313 million for electricity and just over $289 million for gas to be implemented over three years starting on Jan. 1, 2024.
"This was not a total victory," Cohen said. "We do feel proud that the PSC clearly heard us."
