Maryland Energy Bills Higher Than In Surrounding States

By FOX45
Posted on 02/14/25 | News Source: FOX45

Baltimore, MD - Feb. 14, 2025 - When it comes to energy bills, when comparing bills from residents in Maryland and surrounding states like Pennsylvania and Virginia, residents are paying more in Maryland.

Bills provided by residents in Maryland, showed bills ranging from about $400 to $900, for homes ranging from about 1,400 to 2,000 square feet.

"When I saw that bill, I was flabbergasted," said Pikesville resident Yehuda Diamond.

However, comparing those bills to bills of residents in either similar-sized or larger homes, other fees have also contributed to the higher costs. For instance, at the beginning of the year, new rate hikes from BGE went into effect, which help pay for new and updated energy infrastructure.

In a statement, a spokesperson said, "BGE’s distribution rates, which are reviewed and approved by the Maryland Public Service Commission, reflect the major investments in BGE’s energy infrastructure that are vital for the continued safe and reliable delivery of energy to our customers. This work also lays the foundation for the State of Maryland to be able to meet its goal of net-zero emissions by 2045. In addition to directly benefiting customers, BGE’s investments in the electric and natural gas systems power a vital economic engine in central Maryland."

“Many Maryland households are facing some of their highest gas bills ever this winter, largely because of a decade of massive spending on gas infrastructure,” Maryland People’s Counsel David Lapp said. “Unfortunately, today’s high bills are only the start. Without big changes, bills will continue to rise significantly.”

According to the Maryland Office of the People's counsel, and a report released Thursday, they project that the State's three largest gas utilities will spend more than $18 billon on gas infrastructure through 2043, "driving up the gas bills for Maryland households."

There are other costs BGE doesn't control, such as the Empower MD charge, which helps fund programs and incentives to meet the state's greenhouse gas reduction goals. BGE also said the price of natural gas significantly increased, which they don't control as well.

Maryland has set ambitious climate goals, including the Climate Solutions Now Act of 2022, which includes reducing greenhouse gas emissions by at least 60% by 2031 and obtaining net-zero greenhouse gas emissions by 2045. Additionally, Governor Wes Moore has set a goal of 100% clean energy by 2035, which will be challenging to reach according to officials from the Maryland Energy Administration. Additionally, there are also policies in place to encourage more electric vehicles.

With many fossil-fuel plants closing, currently, the state of Maryland does not produce enough energy to meet its needs. About 40% of the state's energy is imported from other states, like Pennsylvania, which produce energy using fossil fuels.