What's Happening?
As of January 1, 2026, Baltimore Gas and Electric (BGE) customers in Maryland are facing increased energy bills due to a rise in gas and electric distribution rates. Gas rates have increased by 4.2 cents,
while electric distribution rates have risen by 0.1 cents. This change is part of a broader trend of rising rates since BGE was acquired by Exelon Corporation in 2012, with an overall increase of 10% in that period. The Maryland Office of the People's Counsel (OPC), an independent state agency representing utility customers, has expressed concerns about these hikes. They argue that BGE customers should not be responsible for rate increases aimed at meeting Exelon's shareholder growth targets. BGE, however, attributes the rate increases to necessary system maintenance and upgrades to ensure safety and reliability for its 1.3 million electric and 700,000 gas customers.
Why It's Important?
The rate increases have significant implications for Maryland residents and businesses, potentially leading to higher operational costs and financial strain. The OPC's concerns highlight the tension between corporate profit motives and consumer protection, emphasizing the need for regulatory oversight to balance these interests. The increases also reflect broader trends in utility pricing and corporate acquisitions, where large conglomerates like Exelon influence local utility rates. This situation underscores the importance of transparent and fair rate-setting processes to protect consumers from undue financial burdens while ensuring the reliability of essential services.
What's Next?
BGE's current rates are set to expire at the end of 2026, necessitating a new rate case filing before 2027 if the company plans to implement a third multi-year rate plan. The Maryland Public Service Commission (PSC) has already approved a partial reconciliation increase, which will further raise rates in February 2026. As these changes unfold, stakeholders, including the OPC and consumer advocacy groups, are likely to continue monitoring and challenging rate adjustments to ensure they align with public interest. Consumers are encouraged to use energy wisely to mitigate the impact of rising costs.
