BGE explains reasons for major rate hikes of gas and electric bills

CBS News

13-02-2025

BALTIMORE -- BGE customers are frustrated over the rising cost of their gas and electric bills this winter. Some told WJZ their bills are double what they were last year.
BGE spokesperson Nick Alexopulos says the average customer is using 19% to 22% more energy compared to last year.
"It was an especially cold January and it takes a lot of energy to heat your home," Alexopulos said.
However, that's not the only reason customers are paying more this winter.
Why have the rates increased?
BGE spokesperson Nick Alexopulos says three key costs go into the overall total of your bill.
The first, according to Alexopulos, is the distribution cost, which is the main part of the bill that goes directly to
BGE. That rate is regulated by the Maryland Public Service Commission.
BGE hiked up their rates starting Jan. 1. The utility company increased the average gas bill by 9% and electric bill by 7%.
But that's just part of the reason why your bill is higher.
Gas customers saw a spike in the supply section of their bill which is the cost of the actual natural gas they used, according to BGE.
"In January of this year, the actual price of natural gas was 30% higher than it was January a year ago, so if you take all of these into account, plus increased usage, it's led to bills that are high," said Alexopulos.
The third component is the increase of costs to "Empower Maryland" set by the state, which funds efficiency programs.
Baltimore leaders take action
While BGE stands by its rates and says it offers ways to help customers, like waving late fees and suspending disconnections for non-payments, that's not enough for Maryland and Baltimore lawmakers.
Baltimore's City Council recently introduced legislation to formally investigate these rising utility costs.
Baltimore City Council President Zeke Cohen highlighted that in 2023, the council adopted a resolution that called on the Public Service Commission (PSC) to reject BGE's multi-year rate plan and argued ratepayers should not have to pay for BGE's gas line replacement project.
PSC, which regulates BGE at a state level, granted the company the rate case, despite opposition from city leaders.
"The city council will stand with the ratepayers of this region, not the shareholders of the gas and electric company," Cohen said. "We stand with our people over their profits. We stand with workers, residents, restaurant owners and religious leaders, not a utility that holds a monopoly and has seen record returns."
Utility robocalls
BGE customers say they are receiving robocalls about the rising utility rates.
"This is an important message from BGE about your utility service," the call says. "Due to unanticipated high bills driven by extreme cold weather, meaningful increases in the cost of electric and gas has increased."
Exelon Corporation confirmed that they have been doing a lot of customer outreach and predictive dialer initiatives for customers. They claim to have been in touch with customers regarding many different customer needs.
Customers' utility concerns
BGE customers have had to turn up the heat a little more in their homes because of this colder winter.
Nicole Rogers, who is on disability along with her husband and lives in Section 8 housing, said her $700 bill grew to over $5,000.
"Most recently, it was $700 for one month," Baltimore resident Nicole Rogers said. "I have a one-bedroom house with a dent, that's it."
Rogers said, "And they had cut off our gas and electric when it was below 30 degrees, so we were in our home freezing, having to wear three layers of clothes and there was no assistance, like no matter how many times I called."
Matthew Oetting, the chef and owner of Marta Fine Foods and Spirits in Butcher's Hill, told WJZ his utility bills have increased by more than $1,000 over the past few months.
"Yeah, I could look at my October or November bill of 2024 and compare it to my most recent bill of February 2025, and it's over $1,000 difference," Oetting said.