BGE seeks to raise customers' monthly electric bills by average of $8

Baltimore Gas and Electric (BGE) is asking state regulators to raise customers' electricity bills by an average of $8 per month.

Amid an extreme heat wave, with temperatures soaring to 100 degrees, BGE sent the request to the Maryland Public Service Commission (PSC) on Thursday, stating that it needs to "sustain a safe and reliable electric service."

The PSC will review the request, and the new rates will take effect after an order, which is expected in early 2027. There will be opportunities for public input.

BGE's investment strategy 

BGE's filing includes an investment strategy aimed at limiting cost impacts to its customers.

The utility company said the filing reflects the minimum investment necessary for customers to safely keep the lights on; a FlexPay proposal to give customers more control over energy expenses; and further reductions to system investments that would increase outage risks and drive higher costs to customers.

BGE said it had previously delayed filing the request, reduced planned investments, deferred larger projects, and spent on essential work.

"Nothing matters more to our customers right now than affordability," Tamla Olivier, the president and CEO of BGE, said. "We heard clearly that customers are feeling pressure from rising costs across every aspect of their lives. That's why we delayed this filing, took a hard look at our plans, and reduced investments to only the bare-bones maintenance the system needs." 

BGE says the rate increase will help with maintaining the electric system, maintaining substations, and introducing a new customer assistance program.

The company stated that while BGE reduced and delayed investments to help limit customer impacts, "there is a clear tradeoff to continued reductions."

"There is no scenario where we can stop maintaining the electric system altogether," Oliver said. "We made deliberate decisions to postpone large bodies of work, future-focused projects, and the replacement of aging equipment."

Oliver continued, "As the region's power needs grow, and weather-related impacts become more frequent and severe, delaying essential maintenance for too long ultimately leads to more outages, longer restoration times, more emergency repairs, and higher costs for customers in the future."

The request includes a proposed BGE FlexPay program that would allow eligible customers to prepay for their anticipated energy use and help them better manage their household budgets and energy expenses.