BGE seeks another rate hike as consumer advocates question need amid rising profits

MARYLAND (WBFF) — Just months after Maryland lawmakers approved a utility relief package aimed at lowering energy costs, Baltimore Gas and Electric (BGE) is seeking another increase that would raise the average residential customer’s bill by about $8 a month.

The utility has asked the Maryland Public Service Commission to approve the increase as part of its latest rate case, saying the additional revenue is needed “to sustain a safe and reliable system,” not to fund new programs or services.

If approved, the increase would cost the average customer about $96 a year, offsetting a significant portion of the estimated annual savings many customers are expected to receive under Maryland’s recently passed Utility Relief Act.

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The request comes as many Marylanders continue to struggle with high energy bills. Over the past year, FOX45 has spoken with numerous residents who said rising utility costs have forced difficult financial decisions, including choosing between paying electric bills and buying groceries.

BGE also reported growing profits in recent years. The company posted $578 million in net income in 2025, up from $527 million in 2024 and $485 million in 2023—an increase of about 19% over two years.

The filing also asks regulators to increase the authorized return on equity (the rate of return shareholders can earn on certain utility investments) from 9.5% to 10.4%. Meanwhile, state ratepayer advocates argue that profit margin is already too high.

“We think it should be as much as 2% lower, if not even lower than that,” said David Lapp, who leads the Maryland Office of People’s Counsel.

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Lapp says because BGE dominates much of the market, in leu of competition, it’s up to state regulators to closely scrutinize the company’s spending, making sure customers only pay for what’s truly necessary.

“A utility makes more money by spending more money on capital investments,” Lapp said, “If it’s not properly regulated, it’s going to spend more on those capital investments.”

The Maryland Public Service Commission has deferred a decision on BGE’s request until next year. Regulators are expected to spend the coming months reviewing the proposal and holding public hearings before deciding whether the rate increase, and the higher shareholder return, is warranted.

On Tuesday, FOX45 asked BGE to clarify why a rate hike is needed when the company is reporting growing profits. A spokesperson sent the following response:

Customers want to know where their hard-earned dollars are going. Household budgets are strained. We reinvest over 90% of our profits back into the energy systems that serve our customers as part of our work to keep energy bills as low as possible. Our profits represent a small percentage of the average residential electric customer’s bill–and less than state-mandated costs on your bill. Over 60% of the average residential electric customer’s bill is PJM supply costs, paid to power plant owners (not BGE). Power plant owners like Talen Energy (profits up 690% over the last five years) and Constellation Energy (profits up 529% over the last five years). Important to note here that PJM supply costs increased more over the last two summers than BGE’s volumetric electric distribution rate has increased in the last 15 years.