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Council members opposing BGE’s plan to increase rates for consumers

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Editor's Note: This article has been updated to correct and clarify the nature of the resolution and include information on the 2013 STRIDE law.

Extensive rate increases on your gas and electric bills is what city council leaders said they are trying to block BGE from implementing.

Monday night, City council member Zeke Cohen introduced a resolution calling on the Maryland Public Service Commission to stop the rate hikes.

BGE plans to replace natural gas infrastructure in Baltimore City that's decades old. The STRIDE law, passed by the Maryland General Assembly in 2013 encourages gas utilities to replace this aging infrastructure by allowing them to include a monthly surcharge to recoup the estimated cost of those projects while they're being performed.

However, council members like Cohen said the expense of the buildout will be financed by consumers, that's why they're asking the Public Service Commission to reject this.

“I believe that this plan is costly and irresponsible at a time when our neighbors are struggling to pay the bills for their basic utilities,” Cohen said.

It's the number one reason councilman Cohen, who leads District 1, is introducing a resolution calling on the PSC to stop BGE's plan to increase gas and electric rates.

“According to the Office of the People's Council, this plan would raise BGE's gas delivery rates by 61% over the next three years,” Cohen said.

Maryland Public Utility is regulated by the Public Service Commission and Cohen said the issues of equity and climate change are part of its mission.

“I believe this plan is wrong from an environmental perspective. BGE has not been a good partner to our city residents. My constituents, frequently site disruptions to streets and sidewalks that are not repaired in a timely fashion. Sloppy workmanship and damage to homes by BGE and their subcontractors, and recently bullying our communities into excepting external gas regulators through illegal threats of gas shut off,” Cohen said.

The installment of the external gas regulators being an issue for many people across the city. Liz Bement who's a resident in the upper Fells Point area, being one of them.

“They're installing many of these things in places that cars can easily crash into them and then telling us it's not their problem,” Bement said.

The issue caused such a big problem in communities that a group of community members filed a class action law suit pushing back against BGE for installing what they're calling dangerous gas regulars.

“BGE has been bullying its way across the neighborhoods in Baltimore to install unsafe, unsightly, unnecessary gas regulator equipment on the front of our historic homes,” Bement said.

The city council will vote Monday night on this resolution calling on the PSC to reject BGE's multi-year rate plan. Councilman Cohen said he believes he will have support from his constituents.

They’re hopeful the public service commission will take a thorough look before they make their final decision at the end of August.

BGE responded to the council members claims that bills will increase by 61% over the next three years. BGE officials said that’s inaccurate and that if the multi-year plan is approved in full by the public service commission, there will be a 5% average increase in residential bills for combination electric and gas customers in each of the three years.

BGE officials also said in terms of dollars, monthly bills would increase by an average of $10.36 in each of the three plan years.