Your utility bills are skyrocketing, and it’s not just your imagination. Baltimore Gas and Electric (BGE) customers are feeling the heat more than ever, with rates climbing to unprecedented levels. But here’s where it gets even more alarming: this trend shows no signs of slowing down. Since Exelon’s acquisition of BGE in 2012, gas rates have more than tripled, and electric rates have nearly doubled, according to the Maryland Office of People’s Counsel. And this is the part most people miss—these increases aren’t just random; they’re tied to a complex web of supply costs, infrastructure upgrades, and regulatory approvals that keep pushing bills higher.
Winter is here, and the timing couldn’t be worse. As temperatures drop, Marylanders—already burdened with the highest natural gas costs in the region—are facing even steeper bills. But how much will your bill go up? That depends on your household’s utility usage. Now’s the perfect time to pull out your bill and do some quick math. Beyond the electric and gas supply charges (the actual energy you use), there’s the delivery cost (how it gets to your home), plus additional fees like monthly customer charges and taxes. It’s a lot to unpack, but understanding these components is key to grasping why your bills keep rising.
Here’s the breakdown you need to know: Within the first three months of this year, BGE customers will face three separate delivery rate increases. The first, already in effect, stems from a multiyear rate plan approved in 2023 to fund infrastructure improvements for the electrical grid and aging gas pipes. Starting February 1, bills will rise again as BGE recoups $77.2 million in overspending from 2023—though the company initially asked for nearly double that. And on March 1, electric bills will see another hike due to a regulatory shift moving supply-side increases from peak seasons to off-peak months like fall and spring.
Let’s talk numbers. For gas customers, delivery rates jumped to 94 cents per therm in January, up from 90 cents last year. (A therm is the unit utilities use to measure natural gas.) By February, this will rise to nearly 98 cents per therm. To put that in perspective, if your winter gas usage averages 160 therms per month, your bill will jump from around $144 to $156.80—just for delivery. Controversially, these increases have sparked outrage among ratepayer advocates and lawmakers, who argue that the Public Service Commission (PSC) and Maryland General Assembly need to intervene to curb these costs.
Electric customers aren’t faring much better. Supply-side costs for 2025-26 have ballooned to $14.7 billion, adding $16 per month to the average electric bill. While 2026-27 costs are expected to remain stable, relief will be minimal—just $3 per month. And starting June 1, 2027, supply charges will surge again. Meanwhile, electric delivery rates have nearly doubled since 2012, with BGE customers seeing two small increases by February, adding 72 cents to the average monthly bill.
Here’s a thought-provoking question: Are Exelon’s profit margins part of the problem? Before acquiring BGE, the company’s annual profits never exceeded $150 million. In 2024, they hit $527 million, while Exelon’s parent company surpassed $2.46 billion. With 80% of Marylanders relying on Exelon’s utilities (BGE, Pepco, and Delmarva Power), it’s hard not to wonder if these profits come at the expense of consumers. In contrast, Potomac Edison, serving Western Maryland, has raised rates just twice in 25 years—compared to BGE’s 10 increases since 2012.
Looking ahead, BGE’s three-year rate cases for 2027-29 are under scrutiny. The PSC is debating whether to continue, modify, or end this multiyear rate-setting approach. What do you think? Is this system fair, or does it favor utility companies over consumers? Let’s keep the conversation going—share your thoughts in the comments below.
