The sticker shock on BGE bills has hit Maryland homes and businesses hard in 2025. Electric and gas charges are climbing faster than paychecks or inflation. For many, it feels like flipping on a light or turning up the heat drains the wallet just a bit more each month
BGE customers across Baltimore and the surrounding counties are raising sharp questions: Why are Baltimore Gas and Electric (BGE) prices rising? How long will the hikes last? What can they do right now to take control?
The three primary reasons that BGE rate hikes are hitting homes and businesses are rising costs of updating and maintaining infrastructure, intense fluctuations in the market, and legislative actions.
BGE spends billions to maintain and upgrade the vast system of pipes, wires, transformers, and meters that delivers power and gas to customers. Much of your monthly utility bill isn’t even for the energy itself but for distribution. Since 2010, BGE’s natural gas delivery rates have nearly tripled, and electricity distribution rates have almost doubled.
The big drivers here are the 2013 STRIDE Law and BGE’s Multi-Year Rate Plan. The 2013 Strategic Infrastructure Development and Enhancement Plan law encourages years of gas infrastructure upgrades. These updates cost utility companies money… which they then pass on to their electric customers. The multi-year plan allows BGE to lock in steady, planned rate increases over several years, ballooning profits and delivery charges.
Takeaway: Even before you use a single kilowatt or therm, these network upgrades show up on your energy bill.
Wholesale energy prices rarely sit still, and electricity and natural gas supply costs have bounced up sharply since 2021.
Winter this last year, for example, saw gas rates increase from about 45 cents to 56 cents per therm, according to the Maryland Office of People’s Counsel (OPC). OPC also anticipates that electricity rates, despite being mostly stable in 2024, will jump by an average of $16 per month starting June 2025.
The reason behind these rising energy costs? PJM Interconnection, the regional transmission grid that serves Maryland, holds capacity auctions to ensure there’s enough power to meet demand. Those auctions recently sent prices soaring over 800% due to a wave of old power plant closures (like Brandon Shores and H.A. Wagner), which severely impacted electric supply.
Every time these auction or supply prices spike, expect a business or home energy bill increase.
Policy changes also bring new charges. Some of the most recent legislative actions and programs that affect BGE rates include:
- EmPOWER Maryland. This long-running efficiency program is funded by a small per-kWh charge on every bill. A 2025 reform restructured these costs, raising average monthly bills by about $1.16.
- Maryland PSC Adjustments. The state’s utility regulator required BGE to spread some supply cost increases across lower-use months to blunt seasonal sticker shock.
- Retail Reform (SB1). Eliminated variable-rate third-party supplier contracts, which used to surprise customers with sudden rate jumps, saving ratepayers over $200 million in 2025 alone.
The bottom line? Infrastructure investments, market dynamics, and new state policies are all swirling together, pushing BGE prices higher for Marylanders.
Here’s how to cut your BGE bill without sacrificing comfort or safety.
Some businesses may not realize Maryland‘s market is deregulated. That means you can choose your energy supplier. This doesn’t change the wires or reliability—BGE still delivers your power—but it lets you shop for better rates from energy suppliers.
Here’s where having a trusted energy consultant is game-changing:
- Avoid Variable-rate Traps. Consultants like 5 Digital Energy help you avoid contracts that start low but spike later.
- Find Competitive Fixed Rates. They compare offers from multiple suppliers and lock in the lowest fixed rates available.
- Get Top-tier Support. The right consultant answers your questions, manages renewals, and keeps you informed about market trends.
A mistake with your energy supply contract can cost hundreds a year. Rely on consultants like 5 Digital Energy, who work independently and advocate for your best interests.
Cutting energy use isn’t about shivering in the winter or sweating through summer.
5 smart steps that can trim costs without pain are:
- Schedule a Free Energy Audit. Take advantage of EmPOWER Maryland programs that identify where your home or business loses heat or wastes power.
- Upgrade with Rebates. Use insulation, LED lighting, or smart thermostats. Most upgrades pay for themselves and come with incentives.
- Time Your Use. Shift running appliances to off-peak hours if your plan rewards it.
- Seal Air Leaks. Weatherstrip doors and windows to keep heated or cooled air inside.
- Adjust Thermostats. For every degree you lower your heat in winter, you can save up to 3% on heating.
For businesses, even small efforts to manage usage can yield big savings.
Other ways you can get relief on your gas or electric bill include:
- Seeking Assistance Programs. Low-income households can get utility payment help—don’t leave money on the table.
- Reviewing Bills Each Month. Mistakes happen. Scan your statements for spikes or unexplained charges.
- Staying Updated on Policy Changes. Legislative reforms may open new ways to save, rebates, or protections from unfair supplier practices.
BGE price increases are driven by a variety of infrastructure spending, volatile supply markets, and evolving Maryland policies. Maryland‘s ratepayers face higher charges… but that doesn’t mean Maryland business owners are without power.
Start with energy efficiency at home or work. Shop for the best supply price using a trusted broker like 5 Digital Energy. Track your energy usage, explore assistance programs, and stay alert for new ways to take control. Each action brings you closer to peace of mind and a more predictable, manageable monthly cost.