Maryland Lawmakers Propose Legislation to Curb BGE Rate Hikes
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A coalition of Maryland legislators has introduced a new bill aimed at addressing rising gas delivery rates from BGE, as homeowners and businesses voice concerns over increasing costs.
The proposed Ratepayer Protection Act seeks to compel gas companies to focus on reducing pipeline expenses rather than passing costs onto consumers. Additionally, the bill mandates that companies prioritize identifying and repairing leaks to mitigate unnecessary spending.
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The bill proposes significant changes in how gas companies submit infrastructure plans to the Public Service Commission. Under the new guidelines, companies must:
- Prioritize projects based on cost-effectiveness and public safety risks.
- Provide a comparative cost analysis of the proposed projects against alternative solutions.
- Notify affected customers at least two years before construction begins, allowing them time to consider switching to electric energy sources.
According to the Office of the People’s Counsel (OPC), BGE’s gas delivery rates have surged more than threefold since 2010. During the same period, the company’s profits skyrocketed from $147 million in 2010 to $485 million in 2023.
A coalition of state officials and advocates, including Attorney General Anthony Brown, is expected to present details of the bill in a press conference on Monday. The legislation follows mounting criticism of BGE’s ongoing pipeline replacement project.
The OPC has also warned that without intervention, BGE’s monthly winter delivery bill could double to $450 by 2035. In January, Baltimore-area BGE customers expressed frustration over unexpected bill increases. Some residents reported jumps of up to $200 between billing cycles.
A BGE spokesperson, Nick Alexopolus, acknowledged that rate hikes were expected during the first half of the year, with an estimated increase of $7.77 per month starting in January. By June, customers should anticipate an additional $26 increase in their monthly bills, with 36% attributed to BGE distribution costs and 64% driven by external factors.
The Ratepayer Protection Act is scheduled for a legislative hearing on Thursday, February 6.
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