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    Baltimore Gas & Electric (BGE) is requesting rate hikes for both electricity and natural gas distribution. BGE says the hikes which add up to $175 million in the first 12 months are necessary for infrastructure improvements that would increase the reliability of distribution and transmission.

    If approved, the distribution rate increases translate to an extra $80 per year for average electric customers ($6.62 per month) and $50 per year for average natural gas customers ($4.26 per month). Customers using both electric and natural gas will be charged both rates. Business customers will see rate hikes as well, but will vary by contract and rate schedule.

    The Maryland Public Service Commission (PSC) has been holding the hearings, and has even invited BGE customers to contribute to the discussion. Unfortunately, few customers have turned out for the hearings, likely owing to the complexity and length of the filings that leave most BGE customers puzzled on whether or not the rates should change in sake of better infrastructure.

    So far, the panel that is handling the case has agreed that rate increases are necessary, but have suggested rates that are 60% of what BGE is requesting. The entity that represents residential utility customer in the state, the Maryland Office of People's Council (OPC), has suggested a much more conservative 30% of what BGE is requesting.

    The most previous rate increase for BGE customers was more than two years ago. At less than what BGE requested, those hikes amounted to a mere increase of $1.34 per month for average electric customers and $0.85 for average natural gas customers much lower than the current requested hikes.

    It is unclear when the Maryland PSC will decide the outcome of the hearings. The public has four more chances to weigh in on the discussion, with each meeting beginning at 7pm:

    • 1/09 – War Memorial Building, 202 N. Gay St., Baltimore
    • 1/10 – Goucher College, 1020 Dulaney Valley Rd., Townson
    • 1/15 – Town Hall Rotunda, 39 Hickory Ave., Bel Air
    • 1/16 – George Howard Building, 3420 Court House Drive, Ellicott City

    All BGE customers whether they are receiving their electric or natural gas supply from a retail provider or BGE are subject to the hikes. Customers can still save by shopping around for the supply side of their electricity or natural gas by choosing a retail provider that offers lower supply rates.

    Read more about how to compare retail electricity providers in Maryland and how to switch.