Al Ritter
BGE has been saying that increases are coming, but
NOBODY expected the massive increases that came on their January 2025 bill.
According to the Maryland Republican Party:
“Marylanders all across
the state are reporting utility bills that are 2x, 3x, or even 4x higher than usual. This has left them all asking the
same question: WHY?
The reason will anger you, but it will probably
not surprise you. Our soaring energy bills are a direct result of years of irresponsible, misguided, and
maybe even purposely destructive laws passed by Democrats in the Maryland
General Assembly.
Through fees and surcharges, mandates and reforms,
fossil fuel facility shutdowns, and competition reduction, this energy price
crisis has been nearly two decades in the making in Annapolis:
SURCHARGES FROM THE STATE: The emPOWER
Maryland Energy Efficiency Act of 2008 added substantial surcharges to customer
bills by mandating expensive efficiency upgrades that have
required huge investments by utility companies. Additional
legislation passed last year will triple this surcharge on energy customers.
COSTLY MANDATES AND
REGULATIONS: The Renewable Energy Portfolio
Standard of 2004 required utility companies to get a growing
percentage of their energy from more expensive renewable sources, and the Clean
Energy Jobs Act of 2019 accelerated these mandates. Utility
companies are spending hundreds of millions of dollars a year to comply with
these regulations, and that cost is being passed down
to customers.
SHUTTING DOWN RELIABLE ENERGY
PRODUCTION: The Greenhouse Gas Emissions Reduction
Act of 2009, and its more recent amendments, have required drastic reductions in emissions statewide. This
legislation also recently forced the premature closure
of fossil fuel plants while failing to replace them with
sufficient alternative energy sources.
STRIPPING MARYLANDERS OF THEIR
ADVOCATE: The Office of
People’s Counsel Environmental Reform Act of 2021 stripped the power of a government agency that was
established to defend the public from unreasonable energy rate increases, and turned it into a “climate
counsel” that represents the state’s environmental
interests.
REDUCING COMPETITION IN THE
ENERGY MARKET: Senate Bill 1 of 2024 created regulations that are threatening to drive almost
every third-party energy supplier out of Maryland, essentially leaving utility
companies with a monopoly on energy supply in their respective regions.
It is a perfect storm of laws, reforms, and
regulations that have driven Marylanders energy bills through the
roof. This winter, it has all come to a head and Maryland families are suffering because
of it.”
As a result I asked Grok 3 beta if the Maryland Public
Service Commission has ever denied a BGE request for a rate increase and this
was the response:
Yes, the Maryland Public Service Commission (PSC) has denied
Baltimore Gas and Electric Company (BGE) a rate increase in the past, though
specific instances of outright denial are rare and typically involve partial
rejections or significant modifications rather than a complete refusal. The
PSC’s role is to review utility rate increase requests to ensure they are
justified, reasonable, and in the public interest, often leading to adjustments
rather than full approvals or denials.
One notable example of the PSC pushing back against BGE’s requests
occurred in November 2024. The PSC paused proceedings on BGE’s request for a
$150 million surcharge—part of its multi-year rate plan reconciliation
process—because BGE failed to adequately demonstrate that its project
investments and costs were prudently incurred. While this wasn’t a final
denial, the PSC ordered BGE to provide additional evidence, effectively halting
the approval process until further justification was provided. This action
reflects the PSC’s willingness to challenge BGE’s proposals when they lack
sufficient support, even if it doesn’t constitute a full rejection.
Historically, the PSC has more commonly modified or reduced BGE’s
rate increase requests rather than denying them outright. For instance, in
December 2023, BGE sought a $602 million rate increase over three years
(2024–2026). The PSC approved a lesser amount, just under $408 million, cutting
the proposal by about one-third. Similarly, in earlier cases, such as the 2020
multi-year plan (2021–2023), the PSC approved the plan but adjusted it to
mitigate immediate customer impact by accelerating the use of federal tax
credits. These examples show the PSC’s tendency to scrutinize and scale back
BGE’s requests rather than reject them entirely.
Complete denials are less
documented in public records, as the regulatory process often involves
negotiation and revision before a final ruling. However, the PSC’s authority to
reject unjustified increases is clear, and its history of trimming BGE’s
proposals—sometimes significantly—demonstrates that it has effectively denied
portions of requested rate hikes when evidence or public interest didn’t
support them. For a definitive case of a full denial, detailed PSC archives
would need to be consulted beyond what’s readily available, but the 2024
surcharge pause is a strong indicator of the PSC’s readiness to block
unsupported increases.
As
shown in the two bills below, one from December 2024 and the following bill
from January 2025, one can see how much things actually increased especially in
“delivery charge,” whereas the delivery charge was more than the product! Sure
makes one wonder what the negotiated increase was from the November 2024 request
doesn’t it?
Add
these things to the Maryland Piedmont Reliability Project which intends to add
additional high tension lines over a 70 mile pathway intended to feed
Governmental data centers. Criticism has been high on this project especially
on farmers whose farms may be cut in half by the proposed route. Questions has
also arisen as to if the State will use eminent domain to grab land from those
who are unwilling to sell along the route. Even if these issues can be settled
the question remains…”Who is going to foot this bill for electrical
infrastructure that is not needed for the benefit of the direct neighbors?” Of
course we know the answer, “we the public” will be paying for it on top of
$1000 a month BGE bills!
The
already unpopular Gov. Wes Moore seems to be at the center of this outrage over
the increase of many other taxes and fees in his tax and spend agenda. Now he
has THIS situation to deal with!
Due
to Maryland’s Climate Policy the Brandon Shores coal fired power plant is
scheduled to shut down in 2025, following two other coal powered plants that
shutdown within the state in 2024, leaving the state to claim they are coal
fired free, but requiring the power needs to be imported from coal fired power
plants out of the state, just to appear as if they have the moral high ground.
The state will now rely on solar and wind (the least reliable system) but
continually deny a permit for a Nuclear Power Plant to be built (the most
reliable and least costly.)
Ok I’ve
gone on long enough read more here:
MD
Piedmont Reliability Project
https://marylandmatters.org/2024/10/18/proposed-northern-maryland-route-unveiled-for-controversial-piedmont-power-line/
Anger
over increased gas and electric bills:
https://www.cbsnews.com/baltimore/news/bge-utility-baltimore-energy-gas-customers/
https://www.youtube.com/watch?v=6iADuEIxrYo&list=RDNS6W1M7RgP5cA&index=2
Brandon
Shores Power Plant shutdown scheduled:
https://justthenews.com/politics-policy/energy/announcement-plant-shutdown-date-will-leave-maryland-coal-power-free-2025
The
program that started it all signed into law 2008 by Gov. Martin O’Malley:
https://www.psc.state.md.us/electricity/empower-maryland/
