Posted on 11/06/25
| News Source: FOX45
Baltimore, MD - Nov. 6, 2025 - As energy bills make headlines, an audit has revealed Baltimore City was overcharged by Baltimore Gas and Electric.
During a Wednesday Board of Estimates meeting, it was stated the $670,000 in erroneous payments, is the overpayment the City will be receiving back from BGE.
While the problem was initially going to be solved through a series of credits, for some accounts it would take decades, in one case even 195 years, to use the credits. So instead, City officials said they worked out an agreement and will now recoup those costs.
"There was a strong desire to slam BGE for a ridiculous policy that would have put us in a position of having to wait 195 years to get our money back," said Comptroller Bill Henry.
While he acknowledged the City has similar policies related to overpayments being credited to accounts, he said, "the real test is when an error is pointed out, how long does it take them to say 'okay our normal policy isn't appropriate here, this is how we will work with you.' July through November is a lot longer than I've ever had to work with our finance department to get somebody paid back for an overpayment."
According to the Department of General Services audit, Baltimore City has 176 electric accounts associated with an agreement related to the Perryman Generating Station, which is located in Harford County.
"For these accounts, the City pays the Perryman Generating Station owner for the electricity supply (solar generation), and BGE charges a minimal fee for delivery on each account," the audit said. "When the electric account uses more electricity than supplied by the Perryman Station generation, then BGE charges energy supply as well as delivery fees."
"From May 2024 to July 2025, BGE had a database problem that prohibited them from sending account level data to the City on these accounts. Accordingly, BGE notified the City that they would not bill the City for electric delivery fees for the duration of the error. This amount is typically a marginal amount of the cost of the bill ($15-$30 a month). However, during this time, BGE also erroneously charged the City for BGE supply at times when the City was being supplied by the Perryman account, which is a double charge," the audit continued to say.
"I've seen the way this company treats our constituents and our customers. It's often been a challenge, so I just wonder when we get into situations, and I understand this is one where there's a little bit a fault on both sides, I would say, but I think holding them to account for accuracy is also really important as well," said Baltimore City Council President Zeke Cohen.
In a statement, a BGE spokesperson said, "BGE identified a billing issue and proactively kept the City informed throughout the resolution process. We’ve worked closely with the City to address the matter, and the issue has now been resolved."
During the hearing, city officials said they should received the payments by the end of November.