Why is my winter BGE bill so high?
If you’ve had sticker shock from your recent BGE bills, you’re not alone. Most BGE customers have seen substantial increases in their monthly bills in recent years—an experience that can be exacerbated by high energy usage amid cold temperatures.
Why are bills going up?
Your energy bill is going up in part because the costs BGE charges to deliver gas and electricity to your home have been rising significantly in recent years, including another increase effective January 1, 2026, and an additional increase coming February 1, 2026. Excessive cold or hot temperatures also drive up your bill because you use more energy to heat or cool your home.
Since 2010, gas delivery charges—to pay for the gas distribution system, not the gas itself—have increased from 26 cents per therm to 94 cents per therm (97 cents per therm as of February 1, 2026), nearly three times the inflation rate. Since 2020 alone, BGE’s gas distribution rates have increased 58 percent. A therm is the unit used to measure how much gas you use in your home.
BGE’s electric delivery rates have also increased in recent years. Since 2010, rates have risen from 2.5 cents per kwh to 4.8 cents per kWh (4.9 cents per kWh as of February 1, 2026), about twice the inflation rate. Since 2020 alone, BGE’s electric delivery rates have increased 33 percent. A kilowatt hour (kWh) is the unit used to measure how much electricity you use in your home.
When combined with increased gas or electricity use (depending on your heating source) because of cold temperatures, increased distribution rates will cause much larger bills than usual. Given BGE’s electric rate increases, customers could see high bills this coming summer as well, especially with high temperatures.
OPC’s June 2024 report, updated March 2025, Maryland’s Utility Rates and Charges, contains 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 bill as well as reasons for the rate increases.
Generally, distribution charges have gone up in recent years because of a high rate of utility spending on new, long-lasting infrastructure, such as electric wires and poles, substations, meters, computers, trucks and other equipment. More spending increases utility profits as customers pay for the infrastructure through rate increases.
Supply costs—the other major components of your gas and electric bills that are separate from distribution or “delivery” costs—can go up and down from year-to-year, depending on market conditions. Continued higher gas supply costs contributed to increased bills in winter 2025 compared to prior years. For winter 2024, BGE’s gas supply costs were about 45 cents per therm; in winter 2025 they were about 58 cents per therm, and so far in winter 2026 they are about 62 cents per therm. BGE’s supply cost for electricity in winter 2026 is slightly higher than it was in 2025, at 11 cents per kWh in winter 2026 vs 10.4 cents per kWh in winter 2025. BGE’s electric supply rates are lower this winter than in the fall due to a Commission decision that placed all the recent increases in capacity market costs on BGE customer bills in the fall and spring months when energy bills tend to be lower. Electric supply rates will again increase for service starting March 1, 2026.
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. Supply costs are going up in part because transmission costs have been steadily increasing and because of recent increases in “capacity market” prices, attributable largely to actual and expected power demands resulting from data centers. For more on the capacity market increases, visit our “FERC and PJM Issues” webpage. More information on gas infrastructure spending and its impacts on utility customers is available here.
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 money. EmPOWER programs must be approved by the Maryland Public Service Commission. The Commission only approves the programs if it finds that they are cost-effective overall—meaning that the benefits they provide are greater than the costs.
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 2026, the EmPOWER rate for BGE electric customers has gone from $0.01028 per kWh to $0.01310 per kWh. For an average residential electric customer using 900 kWh per month, the change amounts to an increase of $2.54 per month, going from the current charge of $9.25 per month to a new charge of $11.79 per month. For BGE gas customers, effective January 2026, the EmPOWER rate decreased from 0.1087 per therm to 0.0712 per therm.
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 Maryland 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, the company will schedule a time for someone to come to your home and check for quick ways you can save money by reducing your usage. The company can suggest ways to make your home more energy efficient and may provide you with free energy saving products for your home.
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.
What has OPC been doing to push back costs?
OPC continues to push back on rising costs. You can read about some of our recent work below or check out our press releases for a full list.
Statement from People’s Counsel on the Public Service Commission’s order on Baltimore Gas and Electric Company’s reconciliation request for year 3 of its first multiyear rate plan (12/22/2025)
Multi-year rate plans harm customers with or without Exelon’s proposed tweaks, OPC tells regulators (9/9/2025)
OPC asks federal regulators to deny BGE financial incentives to build $634 million of transmission projects driven by Virginia data centers (8/25/2025)
Regulators should reject Exelon utilities’ accounting maneuver that would deny customer refunds, OPC filing says (5/29/2025)
Regulators should reject BGE’s $152 million addition to previous rate hike, OPC filing says (2/26/2025)
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, such as adjustments made for weather and changes in electricity usage.