Editor’s note: A previous version of this article and its headline inaccurately described “rate hikes” on BGE customers. “Rates” are what customers pay for energy delivery, while the increases they will see on their bills are due to the Sept. 1 increase to the energy supply line (i.e. the cost of the actual electricity customers use). Baltimore Fishbowl regrets this error.
Consumer, environmental, and low-income advocates are calling for action as the energy supply line on customers’ bills is set to increase Sept. 1.
Costs are estimated to increase for the average energy customer by $16 per month, according to the Maryland Office of the People’s Counsel.
The increase stems from the capacity auction held last year by PJM Interconnection, the regional electricity grid manager. Advocates blame mismanagement by PJM and wasteful spending by BGE for creating an affordability crisis. They are calling on state leaders to hold the utility and grid operator accountable.
“BGE has been raising rates steadily over time,” said Brittany Baker, Maryland director for the Chesapeake Climate Action Coalition. “Their profit maximizing behavior along with PJM’s ratepayer unfriendly behavior is crushing Maryland households. Faster deployment of clean energy projects would save the average household over $500 a year in lower energy costs. We need bold action to free us from BGE and PJM’s grip on our wallets.”
But BGE says the Sept. 1 energy supply increase for customers on standard offer service is in accordance with a May 30 order from the Public Service Commission.
In that order, the comission wrote, “This means customers will pay less for supply costs in the summer and winter when bills are typically highest but will see an increase in the fall and spring months when bills are typically lower.”
Still, advocates argue that PJM failed to approve clean energy generation to power the grid in Maryland, creating a backlog of projects. A recent report showed that if PJM added clean energy to the grid, it would save customers $505 per year in energy costs and lower bills for businesses and industrial energy consumers by 23%. As it is, BGE customers have seen their electric utility charges increase an average of 4.9% per year since 2010.
“Mismanagement by BGE and PJM has left customers facing relentless rate hikes while utilities and power plants rake in massive profits,” said Emily Scarr, senior advisor with Maryland PIRG Foundation. “The best thing Maryland leaders can do is call on PJM to move quickly to bring on clean energy like solar and battery storage to the grid and stop BGE’s endless rate hikes.”
Gov. Wes Moore and the state legislature have taken several steps to address these issues. They have passed bipartisan legislation to control utility spending, made investments in energy storage, and worked with other states to pressure PJM to change their decision-making practices. They’ve also passed legislation to send rebates to utility customers, who have already begun to receive the first of two credits on their bills. The second rebate will arrive during the winter heating season, with the average energy rebate amounting to $81per customer.
“On September 1, the average Maryland electricity ratepayer will be paying about $1,000 more a year than they were in 2021,” said Laurel Peltier, chair of Maryland Energy Advocates Coalition. “Big tech, AI, crypto and utilities are driving up costs for average Marylanders. Someone reasonable needs to say, ‘hold up, this ain’t gonna fly,’ and find real solutions to our energy crisis.”
