BGE Bills Set to Rise in Maryland This Summer

Starting in June, Maryland residents may see a significant spike in their energy bills unless federal regulators intervene in time.

According to a spokesperson from BGE, customers are expected to face an “abnormally high increase in the price of electricity, specifically related to supply costs.” The Maryland Office of the People’s Counsel estimates this could mean an increase of about $16 to $20 for many households. However, BGE projects the cost could rise even higher during peak summer months, FOX Baltimore reports.

BGE estimates that in July, historically one of the hottest months of the year, an average household using both gas and electricity could see its bill jump to $286. That’s about $39 more than the average bill in July 2024. Heavy energy users may see their bills rise by as much as $151.

Energy bills vary depending on household factors, such as the number of residents, the appliances in use, and the home’s size. BGE says the average projected usage for July 2025 is 1,167 kilowatt-hours of electricity and 12 therms of gas. Those who consume more can expect to pay even higher rates.

This increase differs from the earlier rate hikes seen in 2024, which were tied to distribution. This time, the rising costs are due to supply-related expenses, which BGE does not control. The increase stems from capacity costs and the ongoing operation of aging power plants like Brandon Shores and Wagner, as well as higher prices from PJM—the regional electricity grid operator—following a capacity auction.

Delegate Lorig Charkoudian criticized the auction process, calling it flawed: “It’s already been determined that those rules were flawed. We ought not move forward with the prices that came out of that flawed auction.”

More than 80 Maryland lawmakers, the Office of the People’s Counsel, and the Maryland Public Service Commission have petitioned the Federal Energy Regulatory Commission (FERC) to step in before June 1. They hope to secure relief for residents, arguing that the PJM auction process was improperly executed.

In a statement, PJM defended the auction process, saying: “The operation of PJM’s capacity market has been approved by the Federal Energy Regulatory Commission, and the rules for the 2025/2026 auction were found to be just and reasonable. It is not legally possible to adjust the auction results at this time.”

PJM attributes the price hikes to a combination of supply loss and surging demand: “These higher prices are the result of a loss in electricity supply caused primarily by decarbonization policies, a rise in generator retirements, and an unprecedented spike in electricity demand due to AI-driven data centers, electric vehicle adoption, heating system electrification, and onshoring of U.S. manufacturing.”

For residents in need of support, assistance is available through the Office of Home Energy Programs and the Fuel Fund of Maryland.