Baltimore City leaders call for end of BGE's 'Operation Pipeline' program, multi-year rate hikes
The program aims to upgrade hundreds of miles of natural gas pipes and equipment across Maryland by replacing cast iron and bare steel pipes with new, more durable lines.
In 2023, the Maryland Public Service Commission approved BGE's multi-year rate hike plan, which authorized a series of rate increases between 2024 and 2026. The plan, in part, will pay for the upgrades.
But city leaders argue the program is driving up customer bills and increasing the company's profits.
This isn't the first time city leaders have called for an end to the rate hikes.
An analysis released by the Office of the People's Counsel in February found that spending on gas infrastructure is fueling the hikes, and projected even higher winter bills in the future if the company continues its current level of capital investment.
The report says gas utilities will spend about $744 million on gas infrastructure in 2025.
Shortly after the OPC's report was released, the Baltimore City Council passed a resolution calling on the PSC to stop the multi-year rate hikes, arguing that the infrastructure upgrades should not be paid for by taxpayers.
Maryland sees rising utility costs
BGE raised their rates on January 1, increasing the average residential gas bill by 9% and the electric bill by 7%. During the winter, Maryland households reported some of their highest gas bills ever.
But BGE said that while the pipeline upgrades are a part of the cost increases, a 30% rise in natural gas prices over the past year, and increased spending on energy efficiency programs mandated by the state also play a factor.
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