Baltimore leaders, customers confront BGE over rising utility bills

CBS News

21-02-2025

Baltimore leaders and BGE customers confronted the utility company on Thursday over their increasing energy and gas bills.
City Council members called on the Public Service Commission to end the multi-year rate pilot and stop BGE's planned 2026 rate increase.
"Today, the city council says enough is enough," City Council President Zeke Cohen said.
The Public Service Commission, which regulates BGE at a state level, approved the rate increase in 2023, despite opposition from city leaders who argued ratepayers should not have to foot the bill for BGE's gas infrastructure projects.
"Those rate increases seem to be far worse than anticipated," Cohen said.
Last week, an analysis by the Office of People's Council found massive spending on gas infrastructure is fueling rate hikes, and projected even higher winter bills in the future, if BGE continues its current level of capital investment.
"$240 per month in 2022-2024 to $402 per month in 2035," Cohen added.
BGE representatives said they h ave to address aging infrastructure, such as cast-iron pipes. The utility company also blames factors outside of its control, including supply, Empower Maryland, which funds efficiency programs, and overall increase in energy use for driving up the bills.
"We really are focused on those riskiest assets and safety first," said Dawn White, from BGE.
The Office of People's Counsel filed a petition with the Public Service Commission to end certain punitive utility payment practices and give customers more time to seek assistance when they are having trouble paying their bills.
"No one can afford this"
Baltimore resident Zattura Sims-El tells WJZ she feels like "I'm being held hostage" by the rising rates for energy and gas.
The 75-year-old widow, who is on social security and lives alone, saw her BGE bill climb from $390 in November to $780 in December. She said her most recent bill was even higher.
"Is $975 and 22 cents," Sims-El said. "There is no way I can afford to pay these bills."
Many other BGE customers are also feeling the squeeze in their budget due to higher rates.
"No one can afford this," Baltimore resident Kelly Richmond said.
Proposed bill addresses BGE price increases
A group of Maryland lawmakers proposed legislation to address BGE rate increases.
The Ratepayer Protection Act would require gas companies to prioritize lowering spending on pipelines instead of raising rates for customers by identifying and addressing leaks.
The bill would change the information required in plans submitted by gas companies to the Public Service Commission for proposed infrastructure replacement projects.
Under the proposed bill, plans would need to show that the gas company prioritized projects based on cost-effectiveness and risk to the public.
Plans would further need to include an analysis that compares the cost of the project with alternatives and a plan to notify customers impacted by the project at least two years before construction, allowing them a chance to switch to electric.
BGE's gas delivery rates have more than tripled since 2010, according to the Office of the People's Counsel (OPC). The company's profits have also more than tripled from $147 million in 2010 to $485 million in 2023, according to the OPC.