BGE Files Request to Raise Residential Electric Delivery Rates
Baltimore Gas and Electric has filed a request to increase electric delivery rates beginning next year, a proposal that could add about $8 to the monthly bill of a residential customer with average electricity usage.
In an email sent to customers, BGE CEO Tamla Olivier announced the proposed increase in a message to customers following severe storms that knocked out power to more than 100,000 customers across the region.
Olivier acknowledged that the request comes as Maryland families continue to face higher costs for groceries, housing, childcare, healthcare and other necessities.
According to the utility company, the proposed rate increase is not intended to fund business expansion or new projects. BGE said it has reduced its planned investments and is focusing on work it considers necessary to maintain safe and reliable electric service for its more than 1.3 million customers.
Much of the equipment used to deliver electricity to homes and businesses was installed decades ago, according to the company. BGE said delaying maintenance and replacement work could lead to more frequent or longer outages, along with emergency repairs that may cost more than planned upgrades.
“This is not a wish list,” Olivier wrote. “This is the minimum amount of work we believe must be done to continue providing the reliable service our customers expect.”
The company pointed to the recent severe storms as an example of why continued investments in workers, equipment and emergency-response resources are needed.
The proposal must be reviewed by the Maryland Public Service Commission before any increase can take effect. The commission will evaluate the utility’s request, and customers, consumer advocates and other stakeholders will have opportunities to participate in the review process.
BGE also encouraged customers experiencing financial difficulties to contact the company before falling behind on payments. Assistance may be available through payment arrangements, energy-assistance programs and energy-saving resources.
Olivier said the company plans to remain transparent throughout the regulatory process and explain how the requested money would be used.
The exact rate increase customers could see will depend on the Maryland Public Service Commission’s final decision and individual electricity usage.
Check out the full statement below:
