BGE customers across Maryland can expect a price increase on June 1. Here's why.

Baltimore Gas and Electric (BGE) customers in Maryland will see another significant increase in the price of electricity starting June 1.

The increase comes amid frustrations from BGE customers who have been grappling with high energy costs throughout the year.

Why will BGE's electricity costs go up on June 1?

According to BGE, the increase is the result of an unexpected spike in capacity auction prices and the Talen Energy reliability-must-run (RMR) fee. 

A capacity market auction is a competitive bidding process where power companies promise to make their electricity generation available in the future.

"There's an acute misalignment between supply and demand for electricity in Maryland," said BGE spokesperson Nick Alexopulos. "In short, we don't have enough power plants to meet the energy demand."

Plus, Alexopulos said some plants are retiring.

"PJM Interconnection, the regional grid operator, has determined that those power plants have to run past their retirement date to maintain reliability of the entire electric grid in the region," Alexopulos said.

Last week, legislators criticized PJM Interconnection, saying that the company was responsible for an energy supply undercount at the most recent auction, causing the total cost of electricity across the PJM region to go from $2.2 billion to $14.7 billion.

BGE said Tuesday that the increase was not due to the company raising its distribution rate, but an increase in the price of "electricity itself."

Alexopulos said, based on historical averages for those paying for gas and electricity through BGE, you could see an estimated $40 increase in their highest bill.

"That said, if July, which is typically the hottest month where customers use the most energy, is much hotter than expected, those bills are going to be higher because you're going to be using more energy," Alexopulos said.

BGE customers express frustration

BGE customers said the price hike is another high bill that will be added to their plates.

"Not pleased," said customer Kyla Cools. "Not thoroughly surprised either."

"Not happy," Peter Bearden, another customer, said. "Just increases the burden with the rest of inflation."

While some have accepted the upcoming change.

"Am I going to feel bad about it?" Jim Considine said. "Sure, but you can't stop them."

They said they will adjust their home practices to save a bit of cash.

"I'm paying a lot of attention to the usage metrics," Cools said.

"Usually, we don't put in our air conditioners until middle or late July, and I'm sure we'll do the same thing this year," Bearden said. "So, we hold off as long as we can."

What is the Talen Energy RMR fee?

The Talen Energy RMR fee refers to the fixed payments made to Talen Energy for continuing to operate its Brandon Shores and H.A. Wagner power plants in Maryland, beyond their planned retirement dates. 

PJM Interconnection, the regional grid operator, pays a fee of $312 per megawatt per day for the Brandon Shores plant, amounting to approximately $145 million annually, along with a $5 million performance incentive. For the H.A. Wagner plant, PJM pays a fee of $137 per megawatt per day, which totals about $35 million per year, plus a $2.5 million performance incentive.

The details are outlined in a settlement agreement reached in January 2025.

Energy-saving tips for the summer 

BGE said there are several things you can do to lower your bill:

• Schedule service for your HVAC system to keep it operating efficiently.
• Lower your water heater temperature and set it to 120 degrees.
• Raise your thermostat to a level that is still safe and comfortable.
• Monitor your energy usage in your BGE My Account or in the BGE mobile app.

Maryland struggles with ongoing energy rate increases

BGE raised rates on January 1, increasing the average residential gas bill by 9% and the electric bill by 7%. Some customers saw even larger jumps, with winter bills climbing by more than $200.

The utility cited several reasons for the hikes, including higher distribution costs regulated by the Maryland Public Service Commission (PSC), a 30% rise in natural gas prices over the past year, and increased spending on energy efficiency programs mandated by the state. 

BGE also pointed to major investments in gas infrastructure upgrades.

Baltimore City Council President Zeke Cohen has raised questions about the company's long-term plans.

Earlier this month, Cohen called for transparency around BGE's proposed multi-year rate increases for 2026.

In 2023, the PSC approved BGE's multi-year delivery rate increases, enabling the company to raise rates by approximately $408 million over three years for both gas and electric services.