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Maryland consumer advocates move to challenge BGE plan to raise electric bills by $8 a month

"What we've seen in recent years for BGE is just rapidly growing profits."

A row of red-brick houses with front porches and greenery lining the sidewalk on a cloudy day.

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Baltimore Gas and Electric is seeking another increase in what Maryland households pay for electricity, setting up a new clash with consumer advocates over whether the added cost is warranted.

As WYPR reported, for a typical residential electric account, the filing would mean roughly $8 more per month, adding strain for families already stretched by basic bills.

What's happening?

If regulators approve the request, BGE would collect an additional $156 million from electric customers beginning next year. 

The station noted the case is now before the Maryland Public Service Commission. It applies to electricity rather than gas service, and is expected to receive a final decision in January 2027.

The Maryland Office of People's Counsel, the independent agency that represents utility customers, said it is still analyzing the filing but expects to contest parts of it, including BGE's proposed 10.4% return on equity.

David Lapp of Maryland's People's Counsel told WYPR the request comes as BGE's earnings have climbed sharply.

"What we've seen in recent years for BGE is just rapidly growing profits," Lapp said. "Their profits in 2025 were $578 million. They've about doubled over the last 10 years and gone up even much higher than that since Exelon's acquisition in 2012.

BGE, which is owned by Exelon, said in a press release that the filing reflects what it views as the minimum investment needed to keep the electric system "safe and reliable," the station said.

Why does it matter?

Opponents say the case exhibits the power a monopoly utility has to seek more money from customers who have no alternative provider for their electricity.

Lapp focused particular criticism on the company's profit request, arguing that BGE is aiming for returns beyond what competitive businesses typically pursue.

"BGE is a monopoly with captive customers and certainly not subject to competition, and competitive companies earn returns that are substantially lower than BGE's current 9.5%," he explained to WYPR. "So 10.4% is really reaching for the stars."

Critics also say customers are being asked to pay more while concerns about service have not been fully resolved.

Emily Scarr, senior advisor for the Maryland PIRG Foundation, said her group intends to closely examine the filing.

"We plan to review this latest rate hike request in detail, but have serious concerns that as BGE rates and profits skyrocket, customers are facing systematic failures of customer service and safety," Scarr said, per WYPR.

Families trying to balance household budgets are also contending with rising costs tied to extreme weather, grid upgrades, and utility spending.

What's being done?

WYPR noted the case will go through Public Service Commission hearings in the months ahead, and current rates will stay in place until regulators rule. 

During that process, the Office of People's Counsel says it plans to challenge both the proposed profit rate and other parts of the filing that it believes could reduce pressure on BGE to contain costs.

Among the items drawing scrutiny is BGE's proposed storm restoration expense rider.

"Essentially that means that BGE will be able to collect storm expenses as they occur without any incentive to minimize those costs," Lapp asserted to the station.

BGE rejected that criticism, saying it prepares ahead of storms but that both weather intensity and restoration costs have become difficult to predict.

The dispute is unfolding soon after Maryland enacted the Utility RELIEF Act, which restricts some practices critics said helped utilities raise rates more easily. 

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