AARP Maryland Responds to BGE Rate Increases

Statement of AARP Maryland regarding recent utility rate hikes in Maryland:

AARP Maryland is deeply concerned about the latest utility rate increases and to urge the Commission to undertake a thorough review of these decisions.

The recent rate hikes are adding to the many previous policies that have left many Maryland residents, particularly older individuals on fixed incomes, struggling to cope with unaffordable utility bills.

This situation demands immediate attention and action.

In 2023, the Commission approved a three-year, $408 million rate hike, a significant burden on residents already facing rising living costs.

Despite this substantial increase, BGE subsequently sought an additional $150 million in rate hikes just months later. Such requests, in both their scale and frequency, are highly irregular and cause alarm for those who rely on affordable utilities to sustain their daily lives.

As Delegates Boafo and Amprey aptly stated, "The magnitude of these price hikes can only be characterized as highly irregular, if not unprecedented."

AARP Maryland has consistently opposed the implementation of the multiyear rate pilot program approved by the PSC that’s clearly had a detrimental impact on consumers.

AARP Maryland voiced our opposition when the Multi-Year Rate Plan issue was presented before the Maryland Legislature and again in 2023 when BGE’s attempt to secure multi-year rates was rejected by lawmakers.
Despite this legislative outcome, BGE pursued approval through the Commission and was granted what it sought—a decision that has now placed an undue financial strain on Maryland households.

In addition to electricity increases, the STRIDE, the gas infrastructure spending spree — which AARP Maryland strongly opposed — is now crushing families who heat with gas furnaces.

These rate hikes have far outpaced inflation, a troubling reality for a commodity as essential as gas and electricity. For many Marylanders, especially older residents living on fixed incomes, these utility costs represent a vital lifeline.

The increasing burden is not just a financial inconvenience—it is a threat to their well-being and quality of life.

We, therefore, call upon the Maryland Public Service Commission to reassess the current rate structures and consider the following actions:

• Immediate Review of Approved Increases: Conduct a comprehensive review of the $408 million rate hike and the additional $150 million increase request to determine whether they are justified and sustainable for consumers.
• Evaluation of Multi-Year Rate PLAN PILOT Impacts: Assess the long-term effects of multi-year rates on Maryland consumers and reconsider their continued approval.
• Consumer Protection Measures: Implement safeguards to protect vulnerable populations, including older residents and those living on fixed incomes, from disproportionate rate hikes.
• Enhanced Transparency: Ensure that utility rate-setting processes remain transparent and include ample opportunities for public input, particularly from those directly affected.

Affordable utilities are not a luxury—but a necessity. We urge the Commission to act in the best interest of Maryland consumers by addressing these unsustainable rate increases and implementing measures to prevent future hardships.

We trust that the Commission will take the necessary steps to prioritize the well-being of Maryland residents. Thank you for your consideration of this critical issue.