BGE Bills Are Through the Roof And They Think $3 Will Make It Better?
Marylanders hit with steep electricity bills this summer, thanks to prolonged heat waves and utility rate hikes, could see a modest break next year. According to the Maryland Office of People’s Counsel, new pricing set through a recent regional electricity auction may lower monthly costs slightly for some customers.
The pricing comes from PJM Interconnection, the regional grid operator serving 65 million people across 13 states and Washington, D.C. PJM recently completed its annual capacity market auction, a process that determines the wholesale price of electricity to ensure enough power is available to meet future demand.
While the latest auction will result in a slight monthly decrease for customers of BGE, Pepco, and Southern Maryland Electric Cooperative (estimated at $2.50–$3 per month), other customers, like those served by Delmarva and Potomac Edison, are expected to see increases of more than $5 and $3, respectively.
These price changes contrast sharply with last year’s auction, which triggered a $16 monthly hike for BGE customers that took effect just last month. The Maryland Public Service Commission responded in May by ordering BGE to ease the impact by shifting recovery of some costs to the lower-usage months of fall and spring.
Why Are Prices Climbing? Look to Data Centers
According to People’s Counsel David Lapp, soaring energy demand from data centers in Northern Virginia is a key driver of rising electricity costs. He previously warned Maryland customers could end up shouldering up to $800 million in transmission upgrades needed to power these facilities, despite them being located largely out of state.
“Residential customers are not causing these excessive costs and should not be paying for them,” Lapp said in a statement Thursday.
Another factor in last year’s price spike: the delayed closure of the Brandon Shores and H.A. Wagner power plants in Anne Arundel County. Because those plants weren’t included in the previous auction, PJM had to procure additional power, pushing up auction results by $5 billion. This year, those plants were factored into the pricing, helping moderate costs.
Pushback and Reform Efforts
Lapp’s office continues advocating for reforms to the capacity market auction rules, which he says unfairly burden Maryland ratepayers.
In December, Pennsylvania Governor Josh Shapiro, backed by Maryland Governor Wes Moore and other regional leaders, filed a lawsuit against PJM over skyrocketing auction prices. Pennsylvania, the region’s largest electricity producer, argued the pricing structure was unsustainable.
A settlement reached in April capped auction prices at $325 per megawatt day, down from the initially proposed $500. The cap, approved by the Federal Energy Regulatory Commission (FERC), is expected to save ratepayers more than $21 billion over the next two years.
Still, this year’s auction set a regional record: $329 per megawatt day, up from last year’s $270, underscoring the volatility of this pricing system.
Additional Relief on the Way
Marylanders will also benefit from new state-approved relief programs. Utility customers will receive two $40 rebates, one in late summer or early fall, and another in early 2026—funded by a $200 million legislative package.
Additionally, low- to moderate-income BGE customers can apply for one-time grants ranging from $250 to $750 to help cover electricity costs.
BGE Bills Are Through the Roof And They Think $3 Will Make It Better? was originally published on 92q.com
