BALTIMORE (WBFF) — With the frigid temperatures and concern about rising energy bills, while supply costs play a big role, so do BGE’s distribution rates.
During the colder months, residents will use more energy, resulting in higher costs. Even if the thermostat doesn’t move, it takes more energy to heat your home than it does to cool it. Supply costs are also increasing due to growing energy demand, with data centers driving a lot of the demand, along with electrification. Retiring power plants are also contributing to this supply and demand imbalance. Lawmakers and officials have pointed to a “flawed” capacity auction at PJM, the regional grid operator, which resulted in significantly higher prices. BGE does not control or set the supply price. Based on cost estimates provided by BGE, for a residential electric customer who used 500 kWh, the supply cost would make up roughly $67, of a roughly $108 total.
However, Baltimore Gas and Electric does control the distribution rates, which are impacted by infrastructure spending. With recent rate increases, residents have voiced frustration about the high cost of gas delivery. Based on the cost estimates provided by BGE, for a residential gas customer who uses roughly 100 therms, the gas delivery charge is nearly $94 of a roughly $180 total. The supply cost is just short of $62…