Energy prices are on the rise, due to escalating costs in the energy market and this will unfortunately affect your bill. While part of the rise is linked to BGE’s essential investments in reliability and resilience, a significant portion is beyond BGE’s control and does not go to BGE.
Despite the wide variability in commercial bill design, there are key drivers of rising energy costs that is impacting all BGE customers. Those drivers are listed below:
Cost Drivers: BGE
- BGE Distribution Rates – Allows for continued strong reliability. This would include the purchase of new equipment and technologies to replace aged and outmoded technologies to allow for dependable gas and electric service for our nearly 2 million customers.
- Multi Year Plan (MYP) reconciliation - BGE is requesting the PSC approve recovery of $152 million in costs that were not recovered in 2023 due to the highest rates of inflation in 40 years and significant supply chain disruptions, among other factors. Reconciliation is part of the multi-year plan process, which is regulated and overseen by the PSC. (Note: this amount will be finalized when the PSC issues its order this spring.)
These two areas are paid to BGE as part of our operational costs to deliver your energy supply.
Cost Drivers: Not BGE
- EmPower MD – this is a line item on the bill that supports the policy toward a more cleaner and environmentally safer Maryland. Many customers take advantage of rebates which add to cost savings for qualifying energy efficient equipment and services to drive overall electric usage down. The increase in this fee is the result of the Maryland General Assembly changing the program’s goal from reducing electricity use to reducing greenhouse gas emissions and a mandated accounting change in how BGE collects and disburses the program’s funds.
- Generation – While a significant portion of residential and small business customers purchase their energy supply through BGE’s standard offer service, commercial customers often purchase their supply from a third-party vendor. Regardless of how your energy is purchased (BGE SOS or third-party supplier), the cost of electricity has significantly increased due to rising demand and decreasing supply due to the accelerated retirement of fossil-fueled power generators in the region. Your supply charges, which make up the majority of your bill is paid to electricity generators.
- Transmission Reliability Must Run (RMR) – Electric supply costs will increase due to a new RMR fee that is mandated by the regional transmission grid operator, PJM. This increase will be paid to a Maryland based generating plant (Talen Energy) to keep two generating facilities running past their planned retirement until transmission projects can be built to ensure long-term grid reliability.
What can commercial customers do and how can BGE help?
It is important for commercial customers to ensure their businesses are operating as efficiently as possible. To assist in this effort, BGE offers energy efficiency solutions to lessen your energy intake to support your energy management. You can find these solutions in our Programs and Solutions for Your Business Page:
Other ways you may be able to offset costs are to compare and shop across the many supplier options offered to you as BGE customers. Some suppliers may offer rates that are more cost friendly than others – even lower than BGE’s standard offer. You can visit MD Electric Choice and MD Gas Choice for more information.
Consider Solar Options
While BGE does not offer onsite generation such as solar or other energy producing options, you may want to consider exploring whether these technologies can offset your supply usage to reduce your cost for external generation. BGE has a solar calculator to help you assess your solar potential by combining your historical usage data with solar data in your area. We can also direct you to government incentives offered to BGE customers who choose solar. More can be learned on our Solar for Home and Business Page
Engage Your Senior Account Representative
Finally, BGE is always ready to support your concerns with a personal conversation regarding your concerns. If you would like to meet to learn more about these options or explore additional ways to better manage rising costs, please contact your Senior Account Representative.