Baltimore Residents Struggle as Energy Prices Rise
Baltimore Residents Struggle as Energy Prices Rise
Aaron-Forrest Wainwright
Baltimore - residents are struggling under the escalating cost of energy as Baltimore Gas and Electric Co. (BGE) continues its multi-year rate hike initiative that began in 2020. Critics argue that the rising utility costs, sanctioned by the Maryland Public Service Commission (PSC), place an unfair financial burden on consumers while boosting corporate profits.
Since the start of BGE’s multi-year rate plan, gas delivery rates have surged nearly 50%, while electric delivery rates have increased by more than 25%. These hikes have pushed many households in Baltimore to spend more than a quarter of their income on energy bills. In 2023 alone, BGE issued 1.1 million termination notices, leading to service shutoffs for 80,000 customers who could not afford to pay.
BGE attributes the rate increases to what it calls necessary infrastructure upgrades, including a multi-billion-dollar gas pipeline replacement program. However, consumer advocacy organizations such as the Maryland Public Interest Research Group (Maryland PIRG) have criticized the initiative. They argue it contributes to rising rates and corporate profits without providing meaningful safety improvements.
Maryland PIRG points out that BG&E’s gas delivery rates have tripled since 2010, while profits soared from $147 million to $527 million in 2024. The Office of People's Counsel (OPC) has projected that BGE’s ongoing investments in gas infrastructure could more than double the average household’s utility bill by 2035, contradicting the state’s climate goals.
Maryland PIRG supports the Ratepayer Protection Act, legislation that would require utility spending to prioritize safety and cost-effectiveness. The measure aims to address the shortcomings of the Strategic Infrastructure Development and Enhancement (STRIDE) plan, implemented in 2013. STRIDE was intended to help utilities recover costs associated with infrastructure updates through customer surcharges. However, critics say the plan incentivized BGE to continuously propose costly infrastructure projects, regardless of whether safety concerns or actual infrastructure needs justified the spending.
The Baltimore City Council has taken a firm stance against the increases. In February 2025, the council passed a resolution urging the PSC to halt the planned hikes, citing the unsustainable financial pressure on residents. Council President Zeke Cohen said BGE’s actions prioritize shareholder interests over those of the community.
State leaders have also weighed in. U.S. Rep. Kweisi Mfume, state Sen. Sarah Elfreth, and former Baltimore County Executive Johnny Olszewski Jr. have called on the PSC and BGE to reverse the rate increases and suspend future hikes.
In an open letter they pleaded, “We respectfully request that the Public Service Commission take the following actions: 1. Rescind the BG&E rate increases that went into effect this year; 2. Halt any additional rate hikes scheduled for this year; and 3. Provide us with your best thoughts on why our constituents should feel that these outsized rate increases are justified.”
However, some critics view these statements as political theater coming from the same establishment that allowed the increases to happen in the first place.
