Blame Maryland’s grid operator for rising utility bills
Commentary, Baltimore Sun, June 29, 2025
Yes, your utility bill will go up this summer, but not for the reasons BGE and others are telling you. The key drivers are BGE’s soaring spending and profits and poor management by PJM Interconnection, the private entity that operates our electric grid.
Your utility bill combines two primary components: delivery and supply rates. Delivery rates cover utility infrastructure like poles, wires and pipes and include fixed monthly fees and a charge based on the amount of energy you use. Supply rates cover the cost of the energy itself, either electricity or gas, charged based on how much energy you use. Electric supply rates also cover the cost of electric transmission.
BGE and other Exelon-owned utilities in Maryland have substantially increased delivery rates in recent years. Since 2010, BGE’s gas delivery rates have increased a whopping 246% and electric delivery rates have increased 92% — both far outpacing the inflation rate. At the same time, BGE profits have more than tripled, ballooning to $527 million in 2024.