On Jan. 1, 2026, Baltimore Gas and Electric's (BGE) gas rates increased by 4.2 cents, and its electric distribution increased by 0.1 cents, impacting energy bills for homeowners and business owners in Maryland. 

According to the Maryland Office of the People's Counsel (OPC), the latest rate increase adds to the 10% overall increase that Marylanders have experienced since BGE was acquired by Exelon Corporation in 2012. 

The OPC is an independent state agency that represents electric, gas, telecommunications and private water customers in Maryland. 

"BGE customers cannot afford and should not pay for distribution rate hikes that are needed to meet Exelon's shareholder growth targets," Maryland People's Counsel member David Lapp said in a statement. 

BGE told WJZ that the increased distribution rates are because of "critical work on our system to keep it safe and up-to-date for our 1.3 million electric and 700,000 gas customers."

"We take our responsibility to our customers seriously and carefully weigh cost with any necessary investments required to maintain or upgrade our system," a BGE spokesperson stated.

BGE said its current rates expire at the end of 2026, and that they are required to file a rate case before 2027.

BGE rate increases

The latest rate increase was the final one under BGE's second multi-year rate plan (MRP), which was approved by the Maryland Public Service Commission (PSC) in 2023. 

BGE said customer bills increased effective with usage beginning on Jan. 1, 2026. The utility company said the average residential electric bill will increase by $1.07 per month, and the average residential natural gas bill will increase by $2.65 per month.

According to the OPC, BGE's electric supply rates will remain lower this winter compared to the fall, due to a decision by the PSC that will add the costs to customers' bills in the fall and spring, when energy bills are generally lower. 

According to the People's Counsel, electric supply rates will increase again on March 1, 2026. 

BGE rates will also increase in February after the PSC approved a reconciliation increase in December 2025. The PSC approved half of BGE's requested reconciliation funding, nearly $75.1 million of the $152.3 million request, after BGE said it overspent during its first MRP in 2023. 

The decision will result in a 3.5-cent increase to gas rates and a 0.1-cent increase to electric rates. The increase will remain in effect until the approved amount is accrued, which, according to the PSC, is about two years. 

BGE will have to file another rate case before 2027 if it plans to conduct a third MRP. 

"Customers should make every effort to use energy wisely to keep down their bills," Lapp said in a statement. "Meanwhile, the state must make every effort to advance the public's overwhelming interest in affordable energy by effectively regulating the spending of our profit-seeking utilities." 

Utility prices up across Maryland 

According to the People's Counsel, BGE's base gas distribution rates have tripled, and its electric distribution rates have almost doubled since the company was acquired by Exelon in 2012. 

"Before Exelon's acquisition, BGE's annual profits were less than $150 million; in 2024, its profits totaled $527 million. Exelon's 2024 profits totaled $2.46 billion," the OPC said in a statement. 

Pepco and Delmarva Power — the other Maryland utility companies owned by Exelon — have also seen steady rate increases since Exelon acquired their owner in 2016, according to the OPC.    

BGE, Pepco and Delmarva Power serve nearly 80% of Maryland customers, according to the People's Counsel. 

The agency compared BGE's gas distribution rates to Washington Gas, a company not owned by Exelon. 

According to the People's Counsel, both companies had rates of 42 cents in 2015. After BGE's Feb. 1, 2026, rate increase, its gas distribution rate will reach 97 cents, more than double Washington Gas's 46-cent rate.