Why is my BGE bill so high?

If you’ve had sticker shock from your recent BGE bill, you’re not alone. Most BGE customers are seeing substantial increases in their monthly bills.

Why are bills going up?

Your energy bill is going up mostly because the costs BGE charges to deliver gas and electricity to your home have been rising significantly in recent years.  Excessive cold or hot temperatures also drive up your bill because you use more energy to heat or cool your home.

Since 2020, BGE’s gas delivery charges—to pay for the gas distribution system, not the gas itself—have increased 50 percent. Since 2010, gas rates increased from 26 cents per therm to 90 cents per therm, nearly three times the inflation rate. A therm is the unit used to measure how much gas you use in your home. Gas rates will rise to 94 cents per therm in 2026.

BGE’s electric delivery rates also have increased—30 percent since 2020. Since 2010, rates have risen from 2.5 cents per kwh to 4.8 cents per kwh, about twice the inflation rate. A kilowatt hour (kwh) is the unit used to measure how much electricity you use in your home.

Combined with increased gas or electricity use (depending on your heating source) because of especially cold temperatures, customers are experiencing much larger bills than usual this winter. Given BGE’s electric rate increases, customers could see high bills in this coming summer as well, especially with high temperatures.

The graphs above are taken from OPC’s June 2024 report, Maryland’s Utility Rates and Charges. The report has helpful charts and figures showing how rates have gone up for most—but not all—Maryland gas and electric utility customers. It explains some of the main categories of charges on your utility as well as reasons for the rate increases.

Maryland People’s Counsel’s January 25, 2025 op-ed in the Baltimore Sun responds to BGE messaging about what’s behind high energy costs for BGE customers.

Supply costs—the other major components of your gas and electric bills that are separate from distribution costs—can go up and down from year-to-year. Higher gas supply costs also are contributing to increased bills in winter 2025 compared to a year ago. For winter 2024, BGE’s gas supply costs were about 45 cents per therm; so far in 2025 they are about 56 cents per therm. BGE’s supply cost for electricity in winter 2025 is about the same as 2024.

Distribution charges generally only go up because they are based mostly on utility spending on new, long-lasting infrastructure, which increases utility profits as customers pay for the infrastructure through rate increases. Infrastructure includes, for example, gas pipes, electric wires and poles, meters, computers, trucks and other equipment. Supply costs reflected in customer bills are more volatile, going up and down depending on market conditions.

More information on gas infrastructure spending and its impacts on utility customers is available here.

Electric supply costs include costs for transmission and generation. Transmission lines are big power lines that generally carry large quantities of electricity over long distances. Generation means the output of power plants, such as fossil-fuel power plants or renewable energy such as wind and solar.

An additional increase in the electric supply cost is coming in June because of major increases in market prices for generation. In a report we issued in August 2024, we explain how the market for generation capacity results will cause an average increase in BGE customer electric bills of about $16 per month.

What about the EmPOWER program costs on my bill?

BGE customers are also seeing higher costs in their bills for EmPOWER programs. The EmPOWER surcharge funds programs that can help you reduce your energy consumption, reduce greenhouse gas emissions, and save you money. EmPOWER programs must be approved by the Maryland Public Service Commission. The Commission only approves the programs if it finds that overall they are cost-effective—meaning that the energy savings will result in an overall reduction in customers’ bills that is greater than the surcharge amounts.

The bill increases relate, in part, to legislation enacted in 2024 requiring the elimination of a large unpaid balance for EmPOWER programs and services that developed over time following a 2008 Maryland Public Service Commission order. Since that time, aside from program costs and services, customers have had to pay the utilities’ carrying charges for maintaining the unpaid balance. This unpaid balance was highly costly for customers—like carrying a credit card balance over decades without paying down the principal balance. Under the Commission order, the unpaid balance will be eliminated gradually over several years through an increase in the EmPOWER surcharge, ultimately saving customers tens of millions of dollars each year. In the 2024 legislation, the General Assembly significantly reduced the rate of return that utilities will be paid on the balance (akin to an interest rate) in future years, reducing the costs to customers of the unpaid balance while it is being paid down.

With the additional costs of paying down the unpaid balance and other EmPOWER cost changes, effective January 2025, the EmPOWER rate for BGE customers has gone from $0.00899 per kWh to $0.01028 per kWh. For an average residential electric customer using 900 kWh per month, the change amounts to an increase of $1.16 per month, going from the current charge of $8.09 per month to a new charge of $9.25 per month.

More information on these programs and how to participate is available here.

What can I do to keep my bill from increasing?

Most of your bill is calculated based on your usage. Using less electricity or gas over the month will lower your bill. You should consider reaching out to programs that can make your home more energy efficient (see immediately above). Free and low-cost programs are available to people at most income levels through the MD Department of Housing and Community Development. Visit the “Energy Bill Savings” section on our website to learn more.

If you want to start small on your energy efficiency journey, call your utility company and request a FREE home energy audit. When you call, they will schedule a time for someone to come to your home and check for quick ways you can save money by reducing your usage. They will provide you with free energy saving products for your home like LED lightbulbs, a smart thermostat, water heater pipe insulation, and more.

Where can I get help?

If you are falling behind or struggling to pay your gas and/or electric bill, there is help available. Visit the “Get Help” section on our website for resources.

Note: The distribution rates referenced above are BGE’s base rates which may vary from what you see on your bill because of additional adjustments.