Baltimore’s City Council and city residents grilled and pleaded with Baltimore Gas and Electric Company officials for rate relief at a legislative investigations hearing on Thursday night, following months of outrage over rising natural gas and electric bills.

The meeting was the first of a series of hearings held by Councilman Isaac “Yitzy” Schleifer, who also chairs the legislative investigations committee, to investigate BGE rate increases and business practices.

BGE customers can expect an estimated 12.4% increase in their gas and electric bills by June.

The recent hikes are largely due to a $408 million multiyear rate plan approved by the Maryland Public Service Commission in 2023, which directly affects distribution rates. BGE originally requested an increase of $602 million over three years, citing the need to continue investing in gas and electric distribution systems.

Representatives for BGE said increases for Maryland’s EmPOWER program and the state’s climate goals are contributing factors. But above all, unusually cold weather has driven up bills, they said. The U.S. Energy Information Administration predicted in October that most households nationwide would see a 1% increase for homes heated by natural gas and a 2% increase for those using electricity.

“I’m not disagreeing that distribution bills have gone up, but the average gas bill last year is exactly the same as it was in 2008,” said Mark Case, vice president of regulatory policy and strategy at BGE.

The average BGE gas bill in 2008 was more than $1,400 for the year, or around $117 a month, according to a report from the Maryland Office of People’s Counsel. Between 2009 and 2021, natural gas bills were consistently under $1,100 every year on average. It wasn’t until 2020 that they began to rise, eventually hitting a record high in 2022.

The Office of People’s Counsel predicted the average annual bill in 2024 would be just under $1,400 and is likely continue to climb in coming years.

Council members said they’ve received numerous calls from constituents who fear what will come if they cannot pay their bills.

“I shouldn’t have to choose between oxygen and the heat,” said Alice Wright, one of the many concerned customers who spoke during the meeting. “Sometimes I turn my heat off just to keep my oxygen going because of the bill.”

A spokesperson for BGE said the company would waive late payment fees for January and February, suspend disconnections for nonpayment in February and streamline processes to get disconnected customers back in service.

But the rate increases also come as BGE’s parent company, Exelon, told its shareholders the national utility company’s financial performance in 2024 “exceeded expectations.” The company pointed to higher utility earnings “primarily due to distribution rates at BGE” as well as increased rates in other regions.

Maryland legislators like Del. Elizabeth Embry have also blamed 2013 legislation called the Strategic Infrastructure Development and Enhancement (STRIDE) law for costly monthly bills over the years. Last month, Embry reintroduced legislation to tackle BGE’s rate hikes on natural gas, with support from representatives of other districts across the state.

“The utilities would have you believe that all of these investments are necessary for safe and reliable service,” said David Lapp of the Maryland Office of People’s Counsel. “The question is whether it’s safe and reliable at the lowest possible cost.”

Dawn White, vice president of gas distribution, and Charles Washington, vice president of governmental and external affairs, also represented BGE at the hearing. Carim Khouzami, president and CEO of BGE, did not attend.

Councilman Antonio Glover was one of several council members who brought up their concerns with rising rates on behalf of low-income and elderly Baltimore residents.

“When we talk about safety and things of that nature, we gotta also think about the burden we’re putting on low-income families,” Glover said.

Watch the hearing

A recording of the Legislative Investigations Committee’s BGE hearing on Feb. 20, 2025.