Maryland electricity bills rise again as supply costs climb

Maryland residents will see higher electricity bills this month because of changes in supply costs, according to Baltimore Gas and Electric.

The increase, which went into effect September 1, stems from a capacity auction run by PJM Interconnection, which operates the regional power grid. 

In a May 30 order, the Maryland Public Service Commission directed BGE to spread recovery of certain supply costs over six months. 

That shift means customers will pay more during typically lower-usage months such as spring and fall, helping offset sharper spikes in summer and winter.

BGE said the hike applies only to the electricity supply rate, not the delivery rate.

"Supply price is determined by energy markets; it is outside of BGE's control, and supply costs customers pay through their BGE bill are passed on to energy generators," the utility said in a statement. "Delivery rates, not what we're talking about today, reflect the investments BGE makes in energy infrastructure."

According to a report by the Maryland Office of People's Counsel, consumers can expect to pay an additional $16 monthly due to the supply rate increases. 

Regional auction impact

This latest increase follows a June 1 jump in electricity costs, caused by a spike in capacity auction prices and the Talen Energy reliability-must-run fee.

A capacity market auction is a bidding process where power companies commit to making their generation available in the future. Legislators criticized PJM Interconnection for what they called an energy supply undercount at its most recent auction. They said the undercount drove the PJM region's total electricity cost from $2.2 billion to $14.7 billion.

PJM supplies energy to 13 states, including Maryland and Pennsylvania, as well as the District of Columbia.

Maryland ratepayers frustrated

Many BGE customers have voiced frustration over rising rates.

"It just increases the burden with the rest of inflation," BGE customer Peter Bearden told WJZ.

BGE last raised rates Jan. 1, increasing the average residential gas bill by 9% and the electric bill by 7%. 

Some households saw winter bills rise by more than $200. The utility cited higher distribution costs approved by the PSC, a 30% jump in natural gas prices over the past year, and increased spending on state-mandated energy efficiency programs. It also pointed to major investments in gas infrastructure.

In May, Baltimore City Councilman Zeke Cohen called for more transparency around BGE's proposed multi-year rate increases for 2026.