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Baltimore Gas and Electric CEO to leave role for leadership position at parent company Excelon
Baltimore Gas and Electric CEO to leave role for leadership position at parent company Excelon

CBS News

time17-04-2025

  • Business
  • CBS News

Baltimore Gas and Electric CEO to leave role for leadership position at parent company Excelon

Carim Khouzami, CEO of Baltimore Gas and Electric, will leave his position to take a leadership position at Excelon, BGE's parent company. The leadership changes come amid ongoing criticisms of the company. In recent months, Maryland leaders and ratepayers have called for a resolution to rising energy costs. Many BGE customers reported major increases in their energy bills, with some residents noting that their bills had doubled compared to the previous year. BGE stated that the increases stem from the need to improve aging infrastructure, increases in energy use—particularly due to cold weather, and the rising cost for the Empower Maryland efficiency releases report detailing fraudulent inspections On Tuesday, the Maryland Public Service Commission released a report alleging that a former BGE employee did not conduct proper inspections of gas infrastructure work and submitted falsified records over four years. According to the PSC report, BGE did not provide a list of jobs affected by the falsified inspections nor performed targeted remediation or verification work on the pipeline segments in question. On Wednesday, Baltimore City Council President Zeke Cohen responded by calling for an oversight hearing , emphasizing concerns about resident safety and BGE's accountability. "We are extremely concerned about the way our residents have been treated in the city of Baltimore," Cohen said Wednesday. "You can't sit there and tell me and the Baltimore City Council that your top priority is safety when we then hear you have an inspector who is not doing their job." Cohen has been vocal in advocating for reduced energy costs. Last month, he joined other city council members in calling for a halt to BGE's planned 2026 rate increase . Earlier this month, lawmakers passed the Next Generation Energy Act , a bill aimed at reducing utility costs statewide. This legislation mandates specific spending on gas pipelines and directs the Public Service Commission to halt plans for multi-year rate increases that do not benefit customers. Furthermore, it prohibits utilities from charging ratepayers for certain expenses, including trade association memberships and private planes. "Yesterday, members of the City Council sent a letter to BGE demanding answers about safety concerns," Cohen said in a statement Thursday. "Today, we learned that BGE's CEO Carim Khouzami will be leaving the utility for a role at Exelon. The Council's focus remains the same: we need real rate relief for our residents."

Maryland senate advances bill aimed at reducing energy costs
Maryland senate advances bill aimed at reducing energy costs

CBS News

time28-03-2025

  • Business
  • CBS News

Maryland senate advances bill aimed at reducing energy costs

The Maryland Senate has advanced a proposed bill aimed at reducing energy costs for Maryland residents. It's a win for residents and state leaders who have been frustrated by recent energy price hikes. The bill, which combines elements of the Ratepayer Protection Act and Ratepayer Freedom Act with the Next Generation Energy Act, now heads to the full Senate for consideration. Final approval from both chambers is needed by April 7. The legislation would require the Maryland Public Service Commission to reject multi-year rate hikes that don't "demonstrate a definite cost-savings to consumers." It also prohibits utilities from charging ratepayers for certain trade association memberships and private planes. The Ratepayer Protection Act, introduced by Maryland lawmakers earlier this year, aims to address BGE rate increases that have been affecting homeowners and businesses. The bill would require gas companies to prioritize identifying and addressing leaks rather than raising customer rates for pipeline spending. BGE's gas delivery rates have more than tripled since 2010 , while the company's profits increased from $147 million in 2010 to $485 million in 2023, according to the Office of the People's Counsel. The Baltimore City Council has expressed support for the Ratepayer Protection Act and planned to hold public hearings addressing high utility costs. Marylanders have struggled with significant energy bill increases, with some reporting $200 jumps between billing cycles. BGE spokesperson Nick Alexopolus said that planned price hikes beginning January 1st should have averaged about $7.77 , with customers expected to see roughly a $26 increase in their monthly bills by June. One Baltimore woman told WJZ she received a bill of $700 for a one-bedroom home, while a restaurant owner in Butcher's Hill said he saw increases of more than $1,000 over several months. BGE said the bill increases were due to distribution costs (the portion going directly to BGE), a spike in natural gas prices, and an increase in "Empower Maryland" fees set by the state. Maryland Governor Wes Moore told CBS News Baltimore that "the General Assembly needs to provide relief to ratepayers, while also addressing long-term structural problems creating low energy supply in the state." On Thursday, Baltimore City Council President Zeke Cohen and other leaders held a community walk in East Baltimore to get feedback on the rising Baltimore Gas & Electric (BGE) utility bills. City leaders are collecting signatures on a petition that calls for the Maryland Public Service Commission (PSC) to stop BGE's planned 2026 utility rate hikes .

BGE customer saw lowest number of service interruptions in history in 2024
BGE customer saw lowest number of service interruptions in history in 2024

CBS News

time10-03-2025

  • Business
  • CBS News

BGE customer saw lowest number of service interruptions in history in 2024

BGE says its customers experienced the fewest electric service interruptions in company history in 2024, the company said Monday. The average customer experienced just 0.63 interruptions in 2024, the lowest rate on record, BGE said. Since 2011, the company has reduced the number of electric outages by 45 percent and outage duration by 58 percent. During a windstorm on February 16, BGE said it restored 100,0000 out of 130,000 customers who had lost power. 56 hours after the storm, 99% of outages had been restored. Smart grid technologies prevented an additional 230,000 potential outages during that event, BGE said. BGE said it's infrastructure investments align with Maryland's goal of achieving net-zero carbon emissions by 2045, which will require increased electrification. The company is installing smart automation equipment, replacing outdated technologies to accommodate solar energy and electric vehicle charging, and conducting vegetation management to protect power lines. BGE and rate hikes BGE rate hikes have been a recent complaint among customers in the Baltimore area, with some Baltimore City residents noting monthly increases of more than $200. Last month, the Baltimore City Council passed a resolution last month urging the Maryland Public Service Commission (MPSC) to halt BGE's planned 2026 utility rate hikes. BGE spokesperson Nick Alexopulos attributed rising costs to multiple factors, including increased usage from colder weather, and a 30% spike in natural gas prices. The company also raised its distribution rates by 9% for gas and 7% for electricity, changes approved by state regulators. BGE said its improvements support Maryland's goal of achieving net-zero carbon emissions by 2045, though the state's "Empower Maryland" energy efficiency program has also contributed to higher bills - according to Alexopulos.

Baltimore non-profit offers free solar panel installation to homes of low-income families
Baltimore non-profit offers free solar panel installation to homes of low-income families

CBS News

time04-03-2025

  • Business
  • CBS News

Baltimore non-profit offers free solar panel installation to homes of low-income families

Civic Works, a Baltimore-based non-profit, is offering 170 free solar panel installations for homes of low-income families. The program is part of Civic Works' Baltimore Shines program, which aims to make the city greener while lowering residents' electric costs. Through the program, Civic Works will take responsibility for installing and maintaining the installed panels over the next 20 years. Civic Works estimates that the 170 solar panels they plan to install could save residents $200,000 annually on their utility bills and reduce carbon emissions by 700 metric tons, according to The Baltimore Banner. Civic Works reportedly received upwards of $4.6 million in grants to carry out the Baltimore Shines program. Maryland residents grapple with rising utility costs. Alternative energy has been a topic of conversation as Marylanders have expressed frustration about rising utility costs. Just last week, three Baltimore-area congressional representatives joined Baltimore City Council members in seeking to halt Baltimore Gas and Electric's (BGE) rate hikes. In a letter, U.S. Representatives Kweisi Mfume, Sarah Elfreth, and Johnny Olszewski urge the state utility regulator to rescind the rate hike that took effect on Jan. 1, 2025, and halt future increases. "In the simplest terms, people cannot afford the rate hikes thrust upon them," the letter to the Public Service Commission reads. "Local government budgets are stretched thin, Maryland's state budget is facing a deficit and many nonprofit entities are bringing in less money than ever before." In Baltimore City, many residents have seen extreme rate hikes, with some residents reporting monthly bill increases of more than $200. Last month, the Baltimore City Council passed a resolution urging the Maryland Public Service Commission (MPSC) to halt BGE's planned 2026 utility rate hikes. Why are BGE utility prices increasing? BGE attributed the rising costs to several factors. According to BGE spokesperson Nick Alexopulos, increased energy usage due to colder weather, and a 30% spike in the price of natural gas are major contributors. Alexopulos also stated that the energy bill increases scheduled for June are related to the retirement of two power plants, and not BGE rate increases. Additionally, BGE increased its distribution rates, the main portion of the bill that goes directly to BGE, by 9% for gas and 7% for electricity. Distribution rates are regulated by the MPSC. Increases set by the state for its "Empower Maryland" energy efficiency program have also been attributed to the increased costs. Is solar power a cost-effective solution? While some homeowners say solar panels have helped them save on electricity costs, others say the installation costs aren't worth it. An investigation by CBS News Texas in May 2024 highlighted the success story of a Texas man who said installing solar panels saved him hundreds annually. Contrasting reports detailed what consumers say are deceptive financing practices from the solar industry. One homeowner in Garland, Texas said she was billed for solar panels she never purchased. CBS News Texas reported similar accounts from other homeowners.

Harford County proposes 5-year rate increase for sewer, water customers
Harford County proposes 5-year rate increase for sewer, water customers

CBS News

time03-03-2025

  • Business
  • CBS News

Harford County proposes 5-year rate increase for sewer, water customers

Harford County is considering a five-year rate increase for water and sewer customers. In legislation introduced last week, county leaders proposed a 4.2% annual rate increase over five years. For the past five years, rates have increased by 4.5% for most residents. Leaders said the proposed rates were decided through a cost-of-service analysis by global consulting firm Arcadis, which has expertise in analyzing water and sewer rates. Harford County's water and sewer system operates as a "non-profit enterprise fund activity," leaders said. This means the services are paid for by users and not taxpayers. Therefore, the rates have to cover all system expenses. According to leaders, rates for Harford County water customers are ranked the third lowest among 12 neighboring water systems. Under the proposed rates, the cost of delivering water to customers is less than 1 cent per gallon, and the total cost of delivery and treatment of wastewater is about 2 cents per gallon, according to county officials. The system's main costs include energy, chemicals, increased regulation and worker costs, which officials said have risen faster than inflation. The cost of maintaining old infrastructure also plays a role. According to officials, the system's efficiency and the county's fiscal management have allowed for the reduced five-year rate increase. The county council is expected to hold hearings on the legislation before voting to finalize the new rate increase schedule. If approved, the new schedule would take effect on July 1, 2025. Rising utility costs The rising costs of utilities have been a major concern for Baltimore-area residents in recent weeks. In January, Baltimore City's spending board approved a three-year rate increase for water and sewer bills. On February 1, 2025, city residents saw a 3% increase in their monthly water bill and a 15% increase in sewer rates. In Fiscal Years 2026 and 2027, the rates will increase by 9%. Baltimore's Department of Public Works (DPW) said the increase was necessary to help maintain the city's financial stability and allow for updated infrastructure projects for the water and wastewater systems. At the beginning of the year, many Marylanders also experienced an increase in their gas and electric bills, with some reporting a jump of $200. In early February, BGE halted service disconnections and waived late payment fees to address the "unanticipated high bills." Company officials attributed the high bills to distribution costs, the cost of natural gas and an increase in costs for the state's Empower Maryland program. The skyrocketing energy prices prompted action from some Maryland lawmakers. Since the start of the 2025 legislative session, several bills have been introduced to address the rising costs. The Ratepayer Protection Act would require gas companies to focus on lowering spending on pipelines instead of raising rates for customers. Members of the Maryland Freedom Caucus called attention to the Climate Solutions Affordability Act, which would dictate that certain climate requirements only be met if it is economically practical. The group of GOP lawmakers also called for the Empower Maryland Energy Efficiency Act to be repealed. The legislation was passed in 2008 to offer residents a way to save money on utilities.

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