BALTIMORE, Md., May 30, 2025 — The Maryland Public Service Commission issued two Letter Orders on Thursday to address recent rate increases affecting Baltimore Gas and Electric (BGE) and Delmarva Power customers. The actions aim to mitigate the impact of high energy costs driven by elevated wholesale market prices and potential high usage in peak months.
The first order targets BGE’s supply cost recovery. In response to historically high capacity costs in wholesale markets regulated by the Federal Energy Regulatory Commission (FERC), the Commission directed BGE to redistribute some supply costs over a six-month period. This adjustment shifts costs from high-usage summer and winter months to lower-usage fall and spring months, flattening customer bills. The measure is expected to reduce electricity bills during peak seasons, when costs are typically highest. The Commission initially reviewed this issue at its April 23, 2025, Administrative Meeting, where it requested proposals for cost-spreading intervals of four, six, and 24 months. The six-month plan was selected to balance customer relief with operational feasibility.
Additionally, the Commission is supporting efforts to address high wholesale capacity prices at the federal level. It has joined the Maryland Office of People’s Counsel and other PJM state consumer advocates in a complaint filed with FERC, challenging the elevated costs contributing to rate hikes. This follows reports of BGE rate increases tied to supply shortages, as noted in a recent article.
In a separate order, the Commission approved a refund plan for Delmarva Power & Light Company customers. Following a review of the company’s Annual Informational Filing for its multi-year rate plan, the Commission found that Delmarva Power over-recovered its revenue requirement by approximately $800,000 from January 1, 2024, to December 31, 2024. The approved plan allows Delmarva Power to return this amount to customers over a one-year period, from July 1, 2025, to June 30, 2026. For the average residential customer, this translates to a monthly bill credit of about 30 cents.
“The Commission took these actions to mitigate the impacts felt by customers as a result of higher-than-expected energy costs, coupled with potential high usage in the coming months,” said Frederick H. Hoover, Commission Chair.
The measures reflect the Commission’s response to rising energy costs affecting Maryland residents. By redistributing BGE’s supply costs and approving Delmarva Power’s refund, the Commission seeks to provide financial relief to customers facing higher bills. The BGE order addresses immediate billing concerns by smoothing costs across the year, while the Delmarva refund corrects overcharges from the prior year. Both actions align with the Commission’s broader efforts to advocate for fair pricing in wholesale energy markets through its support of the FERC complaint.
The orders come amid ongoing challenges in the energy sector, including supply shortages and fluctuating wholesale prices. The Commission’s collaboration with state advocates underscores its commitment to addressing systemic issues in the PJM Interconnection, the regional transmission organization overseeing Maryland’s wholesale markets. These efforts aim to stabilize costs for consumers in the long term while providing short-term relief through targeted billing adjustments.