Community leaders speak out against BGE’s proposed $156 million rate hike

Coalition of advocates call for utility regulators to lower utility profits amid failures in customer service, safety, and affordability

BALTIMORE –  City Council President Zeke Cohen stood alongside community members and  consumer, environmental and labor leaders gathered before the Public Service Commission’s (PSC) first hearing on Baltimore Gas and Electric’s (BGE) proposed $156 million electric rate hike. The request is 40% larger than BGE’s last request when the company requested a $313 million electric rate hike over the course of 3 years. The coalition of groups criticized the rate hike and encouraged residents to sign a newly launched petition to the PSC to stop the rate hike.

Because BGE is a state granted monopoly with no competition, its rates are reviewed and approved by the PSC. The coalition called on the PSC to reject BGE’s rate hike, lower the utilities’ profit rate and hold the utility accountable to customer benefits.

“Every year, BGE comes back with another rate hike that forces families to pay more and more on their energy bills, while the utility enjoys record-breaking profits,” said Baltimore City Council President Zeke Cohen. “Utiltiy regulators must stop this corporate greed and deliver lower energy costs for Maryland residents. I was proud to join advocates today rallying against BGE’s latest electric rate hike and calling on the PSC to hold the utility accountable.”

One of the major drivers in increased rates is BGE’s request to increase its profit rate from 9.45% to 10.4%. Critics argue that the 9.45% is already too high, given utilities are one of the least risky industries. BGE profits have increased from $147 million in 2010 to $578 million in 2025, and are on track to reach another record high in 2026. Profits have grown due to increased gas and electric capital spending and a high profit rate approved by the PSC.

“I’m disappointed that BGE is requesting to increase its profit rate while customers face systematic failures of customer service and safety,” said Maryland PIRG senior advisor Emily Scarr. “Enough is enough. The PSC should reject BGE’s rate hike and lower BGE’s already excessive profit rate. BGE doesn’t need higher profits.”

BGE electric delivery rates have nearly doubled since 2010, increasing at about twice the rate of inflation. The company says the rate hike would increase electric bills by an average $100 a year ($8 a month) if the Commission approves the increase in full.

“BGE costs are no longer sustainable for working-class families, and like many others in our community, the healthcare workers of 1199SEIU are feeling the strain. The Public Service Commission has the power to shut down BGE’s request to take more and more money out of Baltimore residents’ pockets, and we’re asking them to do that right now,” said

BGE is not currently proposing to change gas delivery rates, which have tripled since 2010 due in large part to the company’s aggressive gas pipeline replacement program, “Operation Pipeline.” The company is still under investigation for failures of their pipeline inspection program and a recent federal investigation found that a fatal explosion in Bel Air was caused by BGE’s ineffective response to the gas leak caused by housing electric lines and plastic gas service lines too close together.

“Make no mistake, BGE continues to spend excessively on gas pipeline replacements and they will demand more money from gas customers soon too,” said Scarr. 

Nearly 290,000 BGE customers are behind on their energy bills and data shows arrears totalling $224.2 million as of March 2026. In July utility regulators lifted the moratorium on BGE terminations initiated in response to systematic failures of their customer service center. As customers face mounting energy costs, BGE is seeking to expand its ability to immediately deny service to customers that fall behind on their bills through it’s new “FlexPay” program. The program would enable the utility to shut off service as soon as one business day after a customer does not pay.

“At a time when households are forgoing other necessities like food and medicine to keep the power on, BGE is pushing a prepaid service product, FlexPay, that would make it easier and faster for BGE to disconnect customers’ power,” said Olivia Wein, senior attorney at the National Consumer Law Center.

In addition, the company is seeking a way to recover costs related to storm damage more quickly, serving to reduce the company’s financial risk and ensure profits.The company has faced criticism for its speed in responding to recent severe storms and power outages.

“Many households in the Baltimore region are going to suffer if this rate increase happens, especially seniors living on fixed incomes who simply cannot afford their energy bills,” said Laurel Peltier, Chair of the Maryland Energy Advocates Coalition.