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Calls for lower BGE bills focus on replacement of gas pipelines

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BALTIMORE — At Baltimore's City Hall, a long list of advocates and community leaders rattled off reasons for stopping BGE's delivery rate increases.

"BGE's hazardous leaks have increased from 3,000 in 2014 to over 4,000 in 2023," said Emily Scarr with Maryland PIRG.

"BGE's gas delivery rates have tripled since 2010," said David Lapp with the Office of the People's Counsel.

The group blames something called the STRIDE Act.

Aimed at providing incentives to gas companies to replace aging infrastructure.

They say it gives BGE more leeway to replace infrastructure and get paid back at a profit for doing so.

"Utility regulation might seem complicated but it's pretty simple. The more a utility spends on its infrastructure, the larger its opportunity to profit," said Scarr.

Maryland's Public Service Commission approves rate increases, BGE can't just decide to do it on its own.

We asked if the PSC has done its job to protect ratepayers from unnecessary spending.

"The Public Service Commission has a tough job I should say, but yes we think over time the Public Service Commission has not done an effective job in regulating the utilities," said Lapp.

BGE responded with a statement saying that it is required by law to replace aging infrastructure. Adding, "BGE customers are served by the oldest natural gas pipeline system in the county, and it is in need of upgrading. Legacy natural gas pipeline infrastructure is more prone to leaks, posing safety and environmental risks."

Going on to say, "Blaming the increased cost of energy on BGE's required maintenance of the gas system is misleading and does not address the impact of increased usage nor market forces caused by insufficient in-state generation."

Delegate Elizabeth Embry from Baltimore City is sponsoring a bill to increase requirements for BGE to get reimbursed for upgrading the natural gas pipeline.

The bill is set to be heard in the House Economic Matters Committee Thursday.