Maryland lawmakers introduce legislation to address BGE price increases
ANNAPOLIS – A group of Maryland lawmakers introduced legislation to address BGE rate increases as homeowners and businesses raise concerns about their gas bills.
The Ratepayer Protection Act would require gas companies to prioritize lowering spending on pipelines instead of raising rates for customers by identifying and addressing leaks.
BGE's gas delivery rates have more than tripled since 2010, according to the Office of the People's Counsel (OPC). The company's profits have also more than tripled from $147 million in 2010 to $485 million in 2023, according to the OPC.
A group of state leaders and advocates, including Attorney General Anthony Brown, is expected to share information about the proposed bill during a news conference on Wednesday, Feb. 5.
According to a news release, the legislation comes as BGE's pipeline replacement project draws criticism.
The bill would change the information required in plans submitted by gas companies to the Public Service Commission for proposed infrastructure replacement projects.
Under the proposed bill, plans would need to show that the gas company prioritized projects based on cost-effectiveness and risk to the public.
Plans would further need to include an analysis that compares the cost of the project with alternatives and a plan to notify customers impacted by the project at least two years before construction, allowing them a chance to switch to electric.
The Office of the People's Counsel projects that BGE's monthly winter delivery bill could double by 2035, reaching $450 per month.
The Ratepayer Protection Act will have a hearing on Thursday, Feb. 6.
BGE customers raise concerns
BGE customer Kate Fossett told WJZ she was bill for more than $700 for a home that she and her family haven't even moved into yet.
"I just thought it was a mistake, and then I made a post on Facebook, and it seems everyone in the community has bills pretty much similar, a similar situation," Fossett said.
Fossett said she called several times, but hasn't gotten any answers.
"It's just been really crazy and they just want you to pay the bill," Fossett said.
In mid-January, WJZ spoke to some Baltimore-area BGE customers who raised concerns about increases in their bills. Some said they saw an estimated $200 increase between billing cycles.
Churchville resident Laura Kump said her December bill was $274.69, which was pretty standard, but her bill went up to $481 during the following cycle.
"That kind of increase, yes, was a surprise, and we're a single-income family, so those kinds of increases, especially unexpectedly, really take a big hit on us," Kump said.
A BGE spokesperson said rate increases are to be expected during the first six months of the year as there are price hikes that began in January. Those price hikes should have been about $7.77 on average, according to BGE spokesperson Nick Alexopolus.
Alexopolus said that by June, customers should expect a $26 increase in their monthly, with 36% going to BGE distribution costs, and the other 64% being driven by other factors.
Cause of the price hikes
Brittany Baker, with the Chesapeake Climate Action Network joined in with city leaders, accusing BGE of building unnecessary gas infrastructure for their own profit.
"What we would like to see is that this program would be rightsized in that they would use the most efficient technologies to identify gas leaks and patch those areas because that's less expensive than just putting in a new line, which they can rate base," Baker said.
Alexopulos, a BGE spokesperson, says that's simply not true.
"BGE and other energy utilities that maintain a natural gas system that serves customers are required under federal law to not only maintain that system, but look for ways to improve the safety and reliability," Alexopulos said. "That's what we do with Operation Pipeline."
BGE blames a cold January for the exorbitant price increases. They say a small portion of recent bills is due to a planned price hike, but overall it has to do with people heating their homes.
But Fossett says her thermostat has been set at 60 degrees since December.
"I think people are going to wonder how they are going to pay the bill," Fossett said. "You have childcare, you have everything else. Car insurance is going up, gas is going up, and then BGE, on top of that, is half the payment of your house."
BGE is waiving late fees for January and February, and suspending disconnections for nonpayment.
