Baltimore Gas and Electric Co. wanted to raise its customers’ electricity rates starting Aug. 1. But state regulators blocked it until at least January 2027.
The utility company filed a $156.1 million rate case with the Maryland Public Service Commission last week — a move that would increase residential customers’ electric bills by an estimated average of $8 per month.
In its filing, BGE said this rate increase was necessary to “sustain a safe and reliable system.” Without the funds, the region was at risk of longer, more frequent and more expensive power outages.
BGE requested that the increase go into effect next month, but the commission said a decision would be made next year. Until then, “the current rates for BGE’s customers are frozen and will not change,” according to a Monday press release.
Ratepayer and consumer advocates have said that BGE is incentivized to increase its spending because the more money it spends, the greater the company’s profits.
The investor-owned utility said last week that it deliberately delayed its rate case to evaluate alternatives, which included not raising rates. But it ultimately decided against that and said its current rates were “neither just nor reasonable.”
BGE made a $578 million profit last year, according to the company’s financial filings. As part of its latest request, the company asked to increase the amount of profits its shareholders will earn from future infrastructure spending.
When the commission weighs the request from BGE over the next five months, it will have to consider how much more profit the company is allowed to make.
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