Federal lawmakers call on Public Service Commission to address high BGE energy bills
In the midst of surging energy bills, several U.S. Representatives are now joining the conversation, calling on the Public Service Commission to stop Baltimore Gas and Electric Company (BGE) rate hikes.
In a letter to the Public Service Commission (PSC), sent by U.S. Rep. Kweisi Mfume, Rep. Sarah Elfreth and Rep. Johnny Olszewski, they express their “extreme concern” over “skyrocketing” BGE costs following the rate increases approved by the PSC.
The multi-year rate plan approved by the PSC in 2023, allows BGE to increase their distribution rates to replace aging infrastructure to comply with state and federal policies.
The letter continued to say, “many of our constituents are unable to afford the rate hikes thrust upon them.
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.”
The Representatives asked the PSC to rescind the BGE rate increases that went into effect this year, halt any additional rate hikes scheduled and provide additional information as to why the rate increases are justified.
“I would hope that the Public Service Commission realizes that and are prepared to kind of pause things where they are, so that a larger dialog can take place, and that relief, real relief, in some sort of way, can come to people throughout this area,” said Rep Kweisi Mfume.
While the PSC is working on it’s response, in a statement BGE President and CEO Carim Khouzami said, “We know some customers are struggling to afford their winter energy bills, and we welcome all constructive dialogue on providing customers relief. BGE has taken a number of actions to support our customers including waiving late payment fees, offering flexible payment terms, and suspending disconnections. We will also continue to engage with all stakeholders to work with them collaboratively in addressing the full breadth of factors driving up the cost of energy for all Marylanders. That includes looking for solutions to the challenges facing the country and our region from the dual issues of insufficient in-state electricity generation and increasing energy demand that will apply further pressure to the price of electricity as we move to the summer season.”
”BGE continues to strengthen our energy infrastructure because we are driven to deliver the safest and most reliable service to our customers while supporting Maryland’s decarbonization goals,” Khouzami continued to say. “Our regulators have deep expertise in our industry and an understanding of our business that allows us to work constructively with them in addressing our responsibilities. BGE, our regulators, and other policymakers in Congress all share the same goal: ensuring the safety, reliability, and affordability of the energy service we provide customers. We look forward to continuing our partnerships with federal, state, and local elected officials, the Public Service Commission, community organizations, and other stakeholders to address this complex issue.”
Under the approved rate plan, BGE’s distribution fee will increase again next year.
In June, residents will also see an increased cost of electricity due to supply-related issues from the state not generating enough energy. Ratepayers will also have to pay a mandated fee to keep two generating facilities running past their planned retirement date. A spokesperson from BGE said they do not have control over those fees, or other fees imposed by the state, other than the distribution fees, which they do control.
This issue is part of a larger statewide issue Maryland lawmakers are working to address.
As the state works toward ambitious climate goals and electrification, more energy generation is needed in-state, and lawmakers are debating numerous pieces of legislation this session to find long term solutions.