When Baltimore Gas and Electric first informed Maryland legislators that a 72 percent rate hike was in the future for its customers with the expiration of rate caps, panic buttons went off.
“The idea that poor and working families would have to choose between food or lights is totally unacceptable,” said delegate and mayoral candidate Jill Carter. Carter?s sentiments echoed through the homes of all BGE customers facing an additional strain on their budgets.
Though the utility had originally forecast a 72 percent rate hike, the market dropped and now the increase is around 48 percent. A number that may be more palatable to Maryland consumers with just 21 days left to make a decision on whether to remain with BGE or choose another electric supplier.
“We encourage people to shop around and compare,” said BGE Director of Corporate Communications Rob Gould. “We offer a good product and service, but consumers should find that out for themselves.”
“We will be sending out letters to our customers explaining the timelines and how they can make a change before the deadline,” BGE attorney Daniel Gahagan said during PSC hearings.
Customers who don?t make a decision will be defaulted to BGE.
According to Gould beginning June 1, 90 percent of BGE customers will be paying $0.10713 per kilowatt hour for electricity generation cost. Those on specialized “time-of-use” meters, about 10 percent of their customers will pay a slightly reduced rate of $0.10517 per kilowatt hour.
The ratequoted is the actual price of electricity and does not include distribution costs, taxes and other fees. Regardless of whether a consumer remains with BGE or chooses another electricity provider, distribution fees and taxes will be added to their bill.
BGE does not offer multiyear contracts; however, their rates will remain in effect for one year, Gould said.
Over the next two weeks, customers will be receiving letters from BGE about their options.
