BALTIMORE — BGE ratepayers should prepare for higher electricity bills as electricity rates are set to increase by about 0.75 cent per kilowatt hour this summer, which doesn't seem like a lot but adds up to about six dollars a month for the average bill with more increases in the fall.
"It goes up every year, I feel like we've never seen a change," said Tramaine Washington, a BGE customer.
The rate hikes come just as warm weather arrives, a common pattern for utility bills that has many customers concerned about affordability.
Watch BGE customers voice their concern as electricity rates continue to rise
"They're almost 50% more than they were five years ago. It has become a kitchen table topic because they're very expensive now, and I don't really see them going down unless you take action," said Laurel Peltier, an energy assistance advocate.
The situation will worsen this fall when rates reach 16.58 cents per kilowatt hour, representing more than a 30% increase from current levels.
"It's a lot, it's just increasing costs and we have been able to be sustainable but it's just a little overwhelming," Washington said.
The increase stems from the supply side, which BGE doesn't control. Instead, rates are determined by capacity auctions conducted by PJM, a regional transmission organization.
"I'd say the increase in supply rates stems from PJM's failure to connect clean energy to the grid over the last five years," said Emily Scarr from Maryland PIRG.
"If PJM had connected the 250 gigawatts of power that was proposed in clean energy, we would be seeing much lower rates. That's enough to power millions of homes, but unfortunately they haven't, which has created almost a supply crisis," Scarr added.
Experts suggest several ways customers can lower their bills. The average home uses 11,000 kilowatt hours, so households using significantly more should consider energy efficiency measures.
"If you have a really old refrigerator clunker sitting out in the garage, the cold garage, if you're running a lot of pools and space heaters are the worst for people with really old heaters, don't run space heaters," Peltier said.
BGE offers programs to help customers make their homes more energy efficient.
Hear how the Maryland Public Service Commission is trying to make energy bills less stressful
"BGESmartenergy.com, one of the offerings on there is an HVAC tune up at no additional cost. Someone will come out to your house, check your heating and cooling system, make sure it's running efficiently. When you have a cooling system that's running efficiently, it's going to take less energy to cool your home," said Nick Alexopolous, a BGE spokesperson.
For those who can't cover their bills, assistance programs are available, particularly for people with limited incomes.
"If you live in the BGE territory and you have a turnoff notice, the fuel fund is a nonprofit that helps families, you pay part of the grant, you pay part of the portion of your past due and they pay a grant," Peltier said.
Links to these assistance programs from Laurel Peltier:
- Know Your Numbers: The average home uses 11,000 kWh a year and 940 therms of gas. Your home’s yearly usage is printed on Page 2 of your BGE bill in teeny font, right hand, lower third down. It reads “Adj. Annual Usage.”
- Schedule a BGE Quick Home Energy Check Up [bgesmartenergy.com]. It’s a no-cost 45-minute contractor visit where you learn about ideas to make your home energy efficient and also get some good energy “swag.”
- Subscribe to offsite Community Solar and save at least 10% off electricity. This is a shopping site for local solar farms. https://www.energysage.com/shop/community-solar/ [energysage.com]
- Maryland’s EmPOWER energy efficiency program is excellent: You already fund it and who else pays you to save money other than a 401K? https://bgesmartenergy.com/residential/help-me-save/home-performance [bgesmartenergy.com].
- 5. Limited Income? Visit here to see if your households qualifies for Maryland energy assistance: https://dhs.maryland.gov/office-of-home-energy-programs/ [dhs.maryland.gov]
6. Also, if you’re a limited-income homeowner, your home can be weatherized by Maryland’s DHCD agency for no-cost under the EmPOWER program. https://dhcd.maryland.gov/Energy-Home-Repair/Pages/Homeowner-Grants/EmPOWER.aspx [dhcd.maryland.gov]
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