Posted on 02/10/25
| News Source: WBAL TV
Baltimore, MD - Feb. 10, 2025 - Leadership at Baltimore Gas and Electric acknowledged frustration felt amongst ratepayers amid increasing bills.
WBAL-TV has reported extensively about BGE's rate hikes and the assistance being offered for some customers regarding their bills.
On Friday, 11 News spoke exclusively with BGE's president and CEO, Carim Khouzami, who said he understands people are concerned about utility costs, especially with prices rising across other necessities. He said the cold months in December and January led to higher demand for heat and higher costs.
"The reason the usage is so important is the usage directly impacts three portions of the bill," Khouzami explained. "It impacts the distribution portion of the bill, that's the piece of the bill that BGE controls. This is for our investments to ensure that safe and reliable service is had by our customers. It impacts the supply portion of the bill. This is the portion of the bill that even though it's on the BGE bill, it's dollars that go to the people who produce the electricity and natural gas. And, in fact, not only was the quantity up, but the price for those was up for those also about 30% this year versus last because it was a much higher demand for their product."
BGE said it's taking steps to help customers who may have trouble paying their bills. The utility is pausing service disconnections this month and is waiving late payment fees and giving customers the option to move their utility due date.
BGE also offers a service called budget billing, which Khouzami explained how it works.
"The usage of natural gas is highest in January and February and is lowest in July and August because you use less heat. So, this is a tool that takes those payments and helps spread it evenly over the 12 months, and that's a great tool to help spread out those peaks so you don't see this rate shock," Khouzami told 11 News.
Khouzami also talked about replacing old infrastructure costs and his reaction to the Maryland Attorney General pushing the Ratepayer Protection Act in response to BGE's rising rates.
The attorney general joined several Baltimore City leaders in supporting the act, which would allows utility companies to recover money spend on gas infrastructure and replacement projects.
"All of our rates go through a very thorough process, 10 months. Anyone that is interested can participate in that process. They ask lots of questions, they get lots of information about what we're doing, why we're doing it, why it benefits customers, and so, I think we have a very robust process that ultimately is governed by the Maryland Public Service Commission," Khouzami told 11 News.