Understanding Rising Power Bills in Maryland: A Comprehensive FAQ

What is the main reason for rising power bills in Maryland?

The main reason is the steady increase in transmission and delivery costs by BG&E, which has doubled since 2010, significantly outpacing inflation.

Why are BG&E’s delivery costs increasing so much?

BG&E’s parent company, Exelon, has committed to delivering annualized earnings growth of 5% to 7% to its investors, leading to increased infrastructure spending that benefits investors more than ratepayers.

How does BG&E’s profit model affect ratepayers?

BG&E earns a guaranteed profit of 9.5 cents for every dollar spent on the electric grid, incentivizing unnecessary projects that ratepayers must fund, regardless of the benefit to them.

What are some examples of unnecessary spending by BG&E?

Examples include a $130 million substation for a stalled development and charging customers $17.5 million for a Ford F-150 truck, both of which ratepayers must repay with profit.

How do BG&E’s rate increases compare to other utilities in Maryland?

While BG&E’s rates have increased by an average of 5% annually since 2010, Potomac Edison, serving Western Maryland, raised rates by only 2.1% annually over the same period.

What has been the response to these rising costs?

There has been public frustration and scrutiny, with BG&E defending the costs as necessary for reliability, while critics argue they prioritize investor profits over customer needs.

Where can I find more information about BG&E’s rate increases?

More information can be found in studies by the Maryland Office of the People’s Counsel and reports from the Electric Power Supply Association, as well as guest commentaries from BG&E and Maryland Energy Administration officials.

What can Marylanders do about rising power bills?

Marylanders can seek more information, engage with the Maryland Office of the People’s Counsel, and advocate for policies that prioritize ratepayer benefits over investor profits.