BGE customers push back in Baltimore against proposed rate hike
Groups gathered in downtown Baltimore on Tuesday to protest a proposed rate increase for customers of Baltimore Gas and Electric (BGE).
A rally was led by Baltimore City Council President Zeke Cohen, who was joined by community, consumer, environmental and labor leaders. The protesters are opposing BGE's proposed $156 million rate hike, which would increase consumer electric bills by $8 per month.
The rally took place ahead of a procedural hearing by BGE to consider the proposed rate increase. BGE has said the proposed hike is necessary to invest in new infrastructure to minimize the frequency and duration of outages.
At a press conference, Cohen called BGE "a predatory monopoly" that only answers to its shareholders.
"Baltimore is a city standing on the precipice of a renaissance. We've seen record declines in violent crime and a resurgence of art and culture," Cohen said. "But there is no Baltimore comeback story if people can't afford to pay their electricity bills."
The council president said Baltimore residents are already paying high electric rates and many are forced to choose between paying utility bills and buying groceries or covering rent.
"In this city, we take care of our neighbors. We'll always chip in to lift each other up. But not to pad the pockets of an extractive monopoly whose sole goal is shareholder gain," Cohen said.
Protesters argue BGE's service doesn't constitute a rate hike, noting the company's lack of gas pipeline safety.
"To be clear, I don't have a problem with BG&E's making a reasonable profit, but when customer service fails and profits increase, something is terribly wrong," said Maryland PIRG Senior Advisor Emily Scarr.
"They tried to make us feel better about this increase by saying 'It's only $8 on your bill,'" said Ricarra Jones, the SEIU, 1199 Healthcare Workers East Political Director. "At the end of the month, $8 might make or break somebody who is struggling to make ends meet."
BGE explains rate increase proposal
BGE's proposal states the rate hike is needed to "sustain a safe and reliable electric service."
"We are facing cost pressures just like every other organization," said BGE Spokesperson Nick Alexopulos. "It pays for the salaries of the women and men who are out there right now doing storm restoration."
Alexopulos said it will also fund resources to effectively respond to powerful and frequent storms in the region. He adds this is the bare minimum increase to "keep the lights on" and the company wanted to keep in mind their biggest concern -- affordability.
"We hear from customers all the time," he said. "Their number one priority right now is affordability. They are facing increased costs of all life essentials, energy is one of them."
Many customers currently behind on energy bills
Ahead of the demonstration, Cohen's office noted that between 2010 and 2025, electric delivery rates for BGE customers nearly doubled. In addition, about 290,000 BGE customers are currently behind on their energy bills.
In July, BGE sent a request to the Maryland Public Service Commission (PSC), stating that it needed to implement the increase to "sustain a safe and reliable electric service." The PSC needs to review the request, and the new rates would take effect after an order, which is expected in early 2027. In the meantime, there will be opportunities for public input.
BGE's request included an investment strategy that it says aims to limit cost impacts to its customers.
The utility company said the request 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 funds on essential work.