BGE Rate Hike Plan: Public Hearings Scheduled Amid Rising Consumer Concerns

BALTIMORE COUNTY - The Maryland Public Service Commission has announced two public comment sessions regarding the proposed rate hike plan submitted by Baltimore Gas and Electric Company (BGE).

The virtual hearings are scheduled for August 9 and 23, 2023, at 7 p.m. The third session will be scheduled at a later date.

The proposed rate hike plan, released in February, covers 2024-2026 and would take effect on January 1, 2024. Under the plan, BGE would raise customers' delivery rates by ~5% annually, amounting to an additional ~$31.08 per monthly bill after three years.

According to BGE, "With this increase, the average residential customer's total BGE bill growth rate since 2008 would be 1.4% per year, which is significantly below the rate of inflation."

Despite BGE's assurances of remaining below the rate of inflation, a consumer guide released by the Office of People's Counsel of Maryland (OPC) indicates that if BGE's proposed second multi-year plan is approved, it could raise a typical gas customer's monthly winter bill by 70% and a typical electric customer's monthly bill by 44% by 2026.

"They incentivize utilities to shoot for the moon with massive spending proposals, then accelerate customer payments of anticipated costs with little accountability as to how the utility actually spends those customer dollars," said People's Counsel David S. Lapp.

Rate Hikes are never pleasant, but BGE says the proposed multi-year rate plan would allow the utility to invest almost $2.3 billion annually between 2024 and 2026 to improve network reliability and safety. The company said another $40 million would be allocated to programs and incentives to promote electric vehicle use and building efficiency.

Carim Khouzami, BGE's President and CEO, says the investments are necessary to combat the increased strain on electrical infrastructure caused by cyber intrusions and climate change.

"The energy infrastructure investments we make now will ensure we can continue to meet our customers' needs and begin to lay the foundation for the State of Maryland to reach its goal of net zero emissions by 2045," Khouzami said in a news release.

The plan includes over 300 projects and maintenance programs, targeting four initiatives to enhance grid resiliency, modernize technologies, prepare the grid for extreme weather and threat-actor actions, and upgrade natural gas pipelines.

For those interested in speaking at a hearing, emails should be sent to kimberly.schock@maryland.gov by August 7 at noon. The hearings will also be live-streamed on the Commission's YouTube channel.

Written comments, which can be mailed or submitted online, will be accepted until September 29, 2023.

For proper case reference, all comments should mention Case No. 9692. Further details on submitting comments can be found at https://www.psc.state.md.us/make-a-public-comment/.

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