BGE Seeks $156 Million Rate Increase, Drawing Consumer Advocate Concerns
Baltimore Gas & Electric (BGE) is pursuing regulatory approval for a $156 million rate increase, a move that has drawn significant concern from the Maryland Office of People’s Counsel (OPC). The OPC, an independent state agency representing residential utility customers, argues that this proposal continues a trend of rate hikes by BGE that have substantially outpaced inflation over several years. According to the OPC's analysis, if approved in full, the average BGE customer could see their annual bill increase by approximately $100. The proposed increase includes a 17% rise in electric distribution rates, which would make these rates 58% higher than in 2020 and 129% higher than in 2012, the year Exelon acquired BGE. While BGE asserts the increase is necessary to maintain a safe and reliable system, the OPC contends that a portion of the requested funds is intended to boost the utility's allowed return on equity for shareholders, from 9.5% to 10.4%, rather than solely for system maintenance.