Baltimore's city county passed a resolution on Monday calling on the Public Service Commission to stop BGE's planned 2026 utility rate hikes.

The council unanimously voted on the resolution after residents voiced their concerns at last week's public hearing , arguing their gas and electric bills are unmanageable.

The Public Service Commission, which regulates BGE at the state level, approved these proposed multi-year delivery rate hikes in 2023.

City council president Zeke Cohen plans to speak with state regulators on the proposed rate hike in a few weeks.

Cohen says the plan the state negotiated with BGE would allow a pause on the next round of rate hikes which would come this summer.

Last week, the state found massive spending on gas infrastructure upgrades is fueling the hikes. However, the city council says these upgrades shouldn't be made on the backs of ratepayers.

"We are not saying that BGE, or any other utility, should not repair where there are broken pipes," Cohen said. "But what we heard in that meeting is that they are responding to their shareholders and not to the ratepayers."

Cohen says he hopes to bring some short-term relief to BGE customers. Long-term solutions to add more energy supply to the state are being discussed in the Maryland General Assembly .

Why have the rates increased?

BGE spokesperson Nick Alexopulos says three key costs go into the overall total of your bill.

The first, according to Alexopulos, is the distribution cost, which is the main part of the bill that goes directly to
BGE. That rate is regulated by the Maryland Public Service Commission.

BGE hiked up their rates starting Jan. 1. The utility company increased the average gas bill by 9% and electric bill by 7%.

But that's just part of the reason why your bill is higher.

Gas customers saw a spike in the supply section of their bill which is the cost of the actual natural gas they used, according to BGE.

"In January of this year, the actual price of natural gas was 30% higher than it was January a year ago, so if you take all of these into account, plus increased usage, it's led to bills that are high," said Alexopulos.

The third component is the increase of costs to "Empower Maryland" set by the state, which funds efficiency programs.

Baltimore leaders investigate utility hikes

While BGE stands by its rates and says it offers ways to help customers, like waiving late fees and suspending disconnections for non-payments, that's not enough for Maryland and Baltimore lawmakers.

Baltimore's City Council recently introduced legislation to formally investigate these rising utility costs .

Baltimore City Council President Zeke Cohen highlighted that in 2023, the council adopted a resolution that called on the Public Service Commission (PSC) to reject BGE's multi-year rate plan and argued ratepayers should not have to pay for BGE's gas line replacement project.

PSC, which regulates BGE at a state level, granted the company the rate case, despite opposition from city leaders.

"The city council will stand with the ratepayers of this region, not the shareholders of the gas and electric company," Cohen said. "We stand with our people over their profits. We stand with workers, residents, restaurant owners and religious leaders, not a utility that holds a monopoly and has seen record returns."

Maryland lawmakers take action

A group of Maryland lawmakers proposed legislation to address BGE rate increases.

The Ratepayer Protection Act would require gas companies to prioritize lowering spending on pipelines instead of raising rates for customers by identifying and addressing leaks.

The bill would change the information required in plans submitted by gas companies to the Public Service Commission for proposed infrastructure replacement projects.

Under the proposed bill, plans would need to show that the gas company prioritized projects based on cost-effectiveness and risk to the public.

Plans would further need to include an analysis that compares the cost of the project with alternatives and a plan to notify customers impacted by the project at least two years before construction, allowing them a chance to switch to electric.

BGE's gas delivery rates have more than tripled since 2010, according to the Office of the People's Counsel (OPC). The company's profits have also more than tripled from $147 million in 2010 to $485 million in 2023, according to the OPC.