BALTIMORE, MD — Advocates are pushing the Public Service Commission to deny Baltimore Gas and Electric's (BGE) $152 million reconciliation request, which would come in the form of rate increases.
The energy company is claiming financial losses from their last approved multi-year rate agreement.
When this happens, like in 2023, the energy provider can ask the State's Public Service Commission to offset the losses by reconciling the last agreement.
In turn, those costs get passed onto the customer.
BGE says their plan would lift the financial burden off customers, because their proposed rate increase would occur over a longer period of time instead of having to be paid in one lump sum.
Advocates oppose this, demanding the commission to reject BGE's $152 million request.
"Utility regulation may seem complicated but it's pretty simple," said Emily Scarr with Maryland PIRG. "The more utility companies spend on their infrastructure the more they profit. This creates a powerful incentive for wasteful spending and we rely on our utility regulators to keep a careful watch."
BGE argues they lost money because the commission previously chose a rate plan proposed by the Office of the People's Counsel's over their own.
BGE further stated the commission assured if there were any financial losses the difference would be made up to them.
People against the plan are calling it a blank check for BGE.
"We cannot continue to predicate utility company's endless profits on rate payers covering the costs," said Brittany Baker, Maryland director for Chesapeake Climate Action Network.
"Ratepayers will be paying for BGE investments plus interests and profits to utilities for decades to come," said Scarr.
BGE customers described the difficult choice of being unable to afford their bill or having their power shut off.
"We don't want to suffer the difficult added pressure of rising energy bills," said Nina Scroggins with SEIU 1199 healthcare workers east. "We have to eat, we have car payments and we even have young parents trying to put their child through school and other activities."
BGE says another reconciliation charge already in effect expires the same month the new one would start, evening out the rate hike.
"While we respect MYP opponents' concerns, we believe they have a fundamental misunderstanding of both the MYP process and its benefits to customers," said BGE. "The key difference between MYPs and the previous regulatory structure in Maryland is the difference between looking backward versus forward planning of energy infrastructure work and set rates. The traditional regulatory structure looks backward: work is only reviewed by regulators after it is completed and then rates are set."
The commission scheduled a public comment session next Wednesday. It's unclear when a decision will be made.
