Baltimore, Maryland, December 23, 2025
The Maryland Public Service Commission has sanctioned a partial rate hike of $77.2 million for Baltimore Gas and Electric Company (BGE), responding to the utility’s request aimed at recovering under-collected costs from previous expenditures. The decision is designed to balance BGE’s financial requirements against consumer affordability, resulting in a small increase in monthly bills for residential customers starting February 2026.
Maryland Regulators Greenlight Partial Rate Increase for BGE
Baltimore, Maryland
The Maryland Public Service Commission (PSC) has approved a partial rate increase for Baltimore Gas and Electric Company (BGE), granting the utility $77.2 million of the $152.3 million it requested to recover under-collected costs from 2023. This decision aims to balance the utility’s financial needs with consumer affordability concerns.
Details of the Decision
The PSC’s approval represents less than half of BGE’s requested amount. The commission stated that granting the full reconciliation amount would risk increased utility unaffordability for many customers. The approved funds are intended to cover spending that BGE claims was not fully recovered through existing rates in 2023. As a result, average residential electric customers will see a monthly bill increase of $0.72, and average residential gas customers will experience a $1.95 increase, effective February 2026 through the end of 2027.
Background on BGE’s Request
BGE had sought the additional funds to recover expenditures from 2023 that it under-collected through existing rates. The utility emphasized the necessity of these funds to maintain reliable and safe power system operations, which require ongoing maintenance work. The PSC’s decision reflects a cautious approach, considering the financial impact on consumers while acknowledging the utility’s operational needs.
Implications for Consumers
The PSC’s decision to approve a partial rate increase underscores the ongoing challenge of balancing utility companies’ financial requirements with the economic well-being of consumers. While the approved increase is lower than BGE’s request, it still represents a financial adjustment for Maryland residents, highlighting the importance of regulatory oversight in utility rate decisions.
Conclusion
The Maryland PSC’s partial approval of BGE’s rate increase request reflects a measured response to the utility’s financial needs and consumer affordability concerns. This decision is part of the broader regulatory process aimed at ensuring fair and reasonable utility rates for Maryland residents.
FAQ
What is the Maryland Public Service Commission’s role in utility rate decisions?
The Maryland Public Service Commission (PSC) regulates utility rates to ensure they are fair and reasonable for consumers while allowing utility companies to recover their costs and earn a reasonable return on investment.
How does the PSC determine the amount of a rate increase?
The PSC evaluates utility companies’ financial needs, operational costs, and the potential impact on consumers to determine the appropriate amount of a rate increase, aiming to balance these factors effectively.
When will the approved rate increases take effect?
The approved rate increases for BGE will take effect in February 2026 and continue through the end of 2027, impacting monthly bills for residential electric and gas customers.
How does this decision affect BGE’s financial stability?
The partial approval of BGE’s rate increase request provides the utility with additional funds to cover under-collected costs from 2023, supporting its financial stability while considering consumer affordability.
What are the next steps for BGE following this decision?
BGE will implement the approved rate increases as directed by the PSC and continue to monitor its financial performance, ensuring compliance with regulatory requirements and maintaining service reliability for customers.
Key Features
| Feature | Details |
|---|---|
| Approved Rate Increase | $77.2 million of the $152.3 million requested by BGE |
| Impact on Residential Customers | Monthly bill increase of $0.72 for electric and $1.95 for gas, effective February 2026 through end of 2027 |
| PSC’s Rationale | To balance utility financial needs with consumer affordability concerns |
| Next Steps for BGE | Implement approved rate increases and monitor financial performance |
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