Serving more than 1.24 million customers across Anne Arundel, Baltimore, Calvert, Carroll, Harford, Howard, Montgomery and Prince George’s counties, Baltimore Gas and Electric (BGE) is increasing their distribution rates for gas and electricity. This will be the utility’s second rate increase this year.

For the average BGE customer, the new rates will result in a monthly bill increase of $2.13 for electric distribution and $0.73 for gas distribution. The hikes, that were approved by the Maryland Public Service Commission (PSC), are less than half of what BGE initially requested. If the utility had been approved for everything requested, bills would have gone up about $5.87 per month as opposed to the approximated $2.86 per month.

The good news is that ElectricityRates.com has many plans available that BGE customers can switch to. Here are the top plans that can save you money on your electricity bill.

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ProviderPlan NameLengthRate Per kWhSign Up
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PlanRate Per kWh
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The PSC has also granted limited approval to BGE's proposal to add surcharges to electricity bills next year, with the proceeds paying for electricity grid upgrades. As part of a five year plan, BGE will add 8 cents per month to the average residential electricity bill next year. That surcharge will rise annually. By the year 2018, it'll reach 36 cents a month.

The Commission noted, any utility rate increase is granted reluctantly and "only when we are persuaded by the evidence that the increase is necessary to maintain a reliable and safe distribution system, a financially sound utility, and that it will improve the experience for its customers."

Unfortunately, there is little BGE customers can do to avoid distribution charges; However, customers can counteract rate hikes from BGE by switching electricity providers. Electricity providers are responsible for the supply (also called generation) of electricity. By switching providers, customers can save 10 percent or more on their monthly BGE bill.

Author: Cristina Tommasello

Cristina Tommasello

Cristina Tommasello is a content writer for ElectricityRates.com who has an avid interest in energy news and trends affecting consumers at the national, state, and local level.