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Maryland Utility Rates

BGE Rate Increase 2026: What the $156 Million Case Means

Baltimore Gas and Electric has asked Maryland regulators for a $156.1 million electric base rate increase, with a decision expected in January 2027. Here is what is in the filing, who is fighting it, and how the numbers break down.

By the Go Solar DMV news desk · Nov 12, 2026 · 5 min read

BGE Rate Increase 2026: What the $156 Million Case Means

Key facts

What is the BGE rate increase for 2026?

The BGE rate increase now in front of state regulators is a request for $156.1 million in additional electric base rate revenue, filed with the Maryland Public Service Commission on July 6, 20263. BGE serves 1.3 million Maryland electric customers across eight counties and Baltimore City3. The company says its current rates expire at the end of 2026 and that it was required to file a rate case before 20274.

The request is for electric distribution only. Distribution rates are the part of the bill that pays for poles, wires, substations, inspections and storm repairs, not the cost of the electricity itself5. The case does not include a utility bill increase for gas customers4.

Nothing has changed on bills yet. Current rates remain unchanged until the Commission makes a decision, which is expected in January 202715. The case was filed as a historic test year case, a new requirement under the Maryland General Assembly's energy policy overhaul of 20264.

How much would the BGE rate increase cost per month?

The figures circulating publicly are all real, but they measure different things. According to the application, the increase as proposed would result in an additional $8 a month on the average customer's electric bill3. Reported another way, that works out to roughly $100 more per year7.

The Office of People's Counsel describes the distribution component on its own: residential electric distribution rates rising roughly 17 percent, from 4.9 cents per kWh to 5.8 cents per kWh8. That is the piece of the bill the case actually touches, not the whole bill.

A larger figure of about $17 more per month has also been reported for Baltimore City customers, because it folds in a second, city-only proceeding alongside the base rate case9. BGE, for its part, says the portion of the increase associated with its return on equity would amount to less than $1 per month for an average residential customer2.

Why Baltimore City is fighting it

Baltimore City Council President Zeke Cohen joined councilmembers, advocates and business owners at City Hall to urge the Public Service Commission to reject the $156 million proposal1. The council adopted a resolution sponsored by Cohen calling on the Commission to deny the request2. Council leaders also asked the Commission to lower BGE's allowed return on equity from 9.5 percent to 7.3 percent1. The resolution does not block the proposed increase2; the decision rests with the Commission.

There is a separate city-specific dispute as well. On October 20, 2026, BGE asked the Commission to approve a surcharge that would apply only to City residents, effectively raising their utility bills above those of the rest of BGE's customer base10. On November 4, 2026, the City of Baltimore filed a formal response opposing it10. The underlying issue is conduit costs and a new franchise fee replacing the 2023 agreement between the City and BGE, the largest occupant of the City's conduit system10.

What BGE says, and what the People's Counsel says

BGE has said the $156 million figure is the minimum level of investment the company believes is necessary to maintain a safe and reliable system4. The company says the money would fund critical inspections, equipment repairs, storm response and proactive work to maintain grid reliability7, that 95% of its profits are reinvested into the system, and that it has already scaled back its proposed investment strategy, warning that delaying the remaining work could lead to more outages and higher costs later2.

The Office of People's Counsel disagrees. On September 22, 2026, OPC filed expert witness testimony recommending the Commission reject the $156.1 million increase and instead reduce rates by $43.9 million8. OPC states that if the increase is approved, BGE's electric distribution rates will have increased by 58 percent since 2020 and 129 percent since Exelon Corp. acquired BGE in 20128.

On the profit question, the Commission's release notes that in BGE's most recent electric distribution rate case it approved a return on equity of 9.5%, lower than the company's requested 10.4%3. WBAL has reported the request as an increase from 9.45% to 10.4%11. Either way, the current filing seeks 10.4%3. "The burden of proof is on the company, BGE, to prove that they're correct, and that they need higher rates," said Kumar Barve, chair of the Commission11.

Dates that matter, and how to comment

The Commission changed the format of its November 18, 2026, public comment hearing from virtual to an in-person meeting beginning at 6:30 p.m., after the Office of People's Counsel requested an in-person hearing12. It takes place in the Heintz Hearing Room, Baltimore, Maryland 2120212. Residents wishing to speak must email Kimberly.schock@maryland.gov by noon on November 169.

Written comments may be submitted electronically or by first-class mail to the Commission on or before December 23, 202613. All comments must reference Case No. 988814. A decision on BGE's application is expected in January 20273.

What the Pepco outcome suggests

Maryland regulators recently finished a comparable case next door. Pepco filed an electric base rate case with the Commission on October 14, 2025, amended April 16, 2026, requesting $120 million and a 10.50% return on equity16. On August 28, 2026, the Commission issued an order awarding a total revenue requirement increase of $51 million and a 9.40% return on equity, effective August 10, 202616. The average residential customer sees a monthly bill increase of $3.94, now in effect, against the $10.24 Pepco had requested1817.

In other words, regulators cut that request by well over half. It is the closest recent comparison available for how the BGE ask may be treated, though nothing about the outcome is settled.

In the District, Pepco's electric base rate case filed April 13, 2023 and amended February 27, 2024 requested $186 million and a 10.50% return on equity; the D.C. Commission approved incremental revenue requirement increases of $99 million and $24 million for 2025 and 202616.

Distribution is only part of the bill

Rate cases get the headlines, but they move one line item. On a current Pepco residential bill, the Office of People's Counsel lists a volumetric distribution rate of $0.04667/kWh and a customer charge of $8.67/month as of November 2026, against a supply cost of $0.12681/kWh, transmission of $0.02101/kWh and an EmPOWER surcharge of $0.020618/kWh19. Supply is roughly two-and-a-half times distribution per kWh. Pepco states that energy supply costs continue to be the primary driver of overall bill increases, and that it does not control these costs or profit from them17.

That distinction is worth keeping in mind when you read about a proposed increase. The BGE case covers poles, wires, substations, inspections and storm repairs5 — real money, but not the largest per-kWh component of a typical bill.

If you are weighing how your own electric costs may change, it helps to start with what your roof and your usage actually look like. You can review Maryland solar incentives or see what solar can do for your home before making any decisions about the next rate cycle.

Questions people ask

When does the BGE rate increase take effect?

No date has been set, because the case has not been decided. The request remains under review and current rates will remain unchanged until the Commission makes a decision, which is expected in January 202715. BGE has said its current rates expire at the end of 2026 and that it was required to file a rate case before 20274.

Does the BGE rate increase affect gas customers?

No. The rate case does not include a utility bill increase for gas customers4. It covers electric distribution rates — poles, wires, substations, inspections and storm repairs — and not the cost of the electricity itself5.

How much have BGE rates gone up in recent years?

The Office of People's Counsel states that if the current increase is approved, BGE's electric distribution rates will have increased by 58 percent since 2020 and 129 percent since Exelon Corp. acquired BGE in 20128. OPC has recommended the Commission reject the $156.1 million request and instead reduce rates by $43.9 million8.

How do I comment on the BGE rate case?

An in-person public comment hearing is set for November 18, 2026, at 6:30 p.m. in the Heintz Hearing Room, Baltimore, Maryland 2120212. Residents who want to speak must email Kimberly.schock@maryland.gov by noon on November 169. Written comments may be submitted electronically or by first-class mail on or before December 23, 2026, referencing Case No. 98881314.

Did Maryland regulators approve Pepco's full rate request?

No. Pepco requested $120 million and a 10.50% return on equity; the Commission awarded a $51 million revenue requirement increase and a 9.40% return on equity in an August 28, 2026 order16. That works out to a $3.94 monthly increase for the average residential customer, compared with the $10.24 Pepco had requested1817.

Sources

  1. Baltimore city council urges PSC to reject $156 million BGE rate hike - foxbaltimore.com
  2. Baltimore City Council urges regulators to reject BGE’s proposed $156 million electric rate increase - wmar2news.com
  3. BGE Seeks $156 Million Electric Rate Increase - Maryland Public Service Commission - psc.maryland.gov
  4. BGE asks Maryland regulators for $156 million electric rate increase affecting 1.3 million customers - gcn.com
  5. BGE $156M Rate Hike: Bill Impact, Hearing and Next Steps - baltimorechronicle.com
  6. EXELON CORP - Form 10-Q - FY2026 - sec.gov
  7. Baltimore leaders oppose BGE's $156 million rate hike - WBAL - wbaltv.com
  8. Maryland Office of People's Counsel Home - opc.maryland.gov
  9. BGE Seeks Rate Hikes That Could Cost Customers $17 More - 92q.com
  10. City of Baltimore Files Response Opposing BGE's Surcharge on City Residents - baltimorecity.gov
  11. Maryland PSC reviews BGE rate hike proposal - Baltimore - wbaltv.com
  12. November 18 Public Comment Hearing on BGE Electric Rate Application Changed to In-Person Meeting - Maryland Public Service Commission - psc.maryland.gov
  13. Moving Smart Energy Forward - bge.com
  14. Maryland Public Service Commission to Hold Three Virtual Public Hearings on BGE Rate Case Application - einpresswire.com
  15. Maryland Commission Schedules Public Hearings on BGE Rate Request - thesentinel.com
  16. EXELON CORP - Form 10-Q - FY2026 - sec.gov
  17. Pepco’s Maryland Rate Filing - pepco.com
  18. Maryland regulators slash Pepco rate increase request by more than half - Maryland Matters - marylandmatters.org
  19. Maryland Office of People's Counsel > Consumer Learning > Utility Rates and Basics > Pepco - opc.maryland.gov
  20. BGE - Maryland Office of People's Counsel - opc.maryland.gov

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