In the long run, 91,000 Baltimore Gas and Electric customers in Montgomery and Prince George’s counties could lose more than they’re gaining from the 11-month rate hike cap hike approved late Wednesday by the state legislature.
Beginning July 1, customers must stay with the utility for 11 months, during which time rate increases are capped at 15 percent. BGE had been seeking a 72 percent hike.
But exactly how it will go after those 11 months remained a little unclear Thursday.
Robert Gould, spokesman for BGE parent company Constellation Energy Group, says a new Public Service Commission will set market pricing, which likely will be higher than the 15 percent cap.
“People can either pay the full market price or there will be some type of rate deferral program,” he said.
Gould said the legislature’s plan also allows BGE to charge customers a $5 monthly fee over the next decade to bolster the company’s finances, but much of that sum will be rebated.
While BGE was not thrilled with the entire bill, Gould said it goes a long way in helping residents.
“We’ve said from the start that the top priority was a plan that helped BGE customers while at the same time assured the company’s financial situation,” Gould said.
One figure less pleased with the bill has been Gov. Robert Ehrlich.
On Thursday, members of the governor’s office expressed Ehrlich’s “grave reservations,” saying lawmakers did not protect citizens.
“Their proposal imposes $109 million in interest charges on BGE customers; the governor’s plan was interest-free. They’re forcing every BGE customer into a mandatory financing scheme whereas the governor’s was optional,” spokesman Henry Fawell said.
However, Ehrlich won’t take any action on the bill until he holds a public forum onthe issue next week. If he does veto the plan, as he has hinted, there is more than enough support in the legislature to overturn him. The bill was approved 109-26 in the House and 36-11 in the Senate.
