Consumer Reports has launched a campaign calling on the Maryland Public Service Commission to reject Baltimore Gas and Electric’s proposed $156 million rate increase, warning that the plan could add nearly $100 annually to the average residential customer’s electricity bill.
The consumer advocacy organisation also criticised BGE’s request to increase the return it earns for shareholders, arguing that customers are already struggling with rising energy costs.
Consumer Reports said more than 290,000 BGE customers are currently behind on their electricity bills and could face service disconnections.
“Maryland families are already paying more to keep the lights on, and BGE is asking them to pay even more—including to provide a bigger return to shareholders,” said Sara Enright, senior director for safety and sustainability at Consumer Reports.
She stressed that BGE’s position as a regulated monopoly means customers cannot simply switch to another electricity provider when rates become unaffordable.
“BGE is a regulated monopoly. Its customers can’t simply switch to another company if the price gets too high. That makes strong oversight by the Public Service Commission essential. BGE should have to demonstrate that every dollar it wants customers to pay is necessary, prudent, and in the public interest,” Enright added.
A Consumer Reports fact sheet released alongside the campaign said Maryland electricity bills, including those paid by BGE customers, have increased by more than 30 per cent over the past three years.
The organisation also highlighted BGE’s rising profits, noting that the company recorded $578 million in net income last year, compared with $527 million in 2024 and $485 million in 2023.
Its parent company, Exelon, reportedly made $2.7 billion in profit, while its chief executive earned $15.6 million in 2025.
Consumer Reports said it supports utilities receiving a reasonable return for providing safe and dependable electricity but argued that consumers should not bear the cost of excessive profits.
“We aren’t opposed to utilities earning a fair return for providing safe and reliable service,” Enright said. “But customers should not be required to support excessive profits, particularly when households are already struggling with rapidly rising energy costs. Regulators should put affordability and reliable service ahead of unnecessarily high shareholder returns.”
A major point of contention is BGE’s proposed return on equity, which the company wants to increase from 9.5 per cent to 10.4 per cent.
Return on equity represents the profit rate a regulated utility is permitted to earn on infrastructure investments. Maryland’s ratepayer advocate, David Lapp of the Office of People’s Counsel, has criticised BGE’s request, saying it “represents a level of profits that competitive companies don’t seek or don’t obtain.”
Consumer Reports said about $16 of a typical $150 monthly BGE bill, or roughly 11 per cent, currently represents profit for the utility.
The organisation warned that approving a higher return could encourage BGE to pursue expensive capital projects that increase profits instead of adopting cheaper solutions capable of maintaining reliable service while reducing customers’ bills.
As part of its campaign, Consumer Reports is encouraging BGE customers to sign a petition asking the Maryland Public Service Commission to reject what it considers an excessive increase, prevent electricity rates from rising faster than inflation and ensure large energy users, including data centres, contribute their fair share.
The organisation is also inviting customers to share their experiences with rising electricity costs and submit comments to the commission’s docket, case number 9888.
The campaign forms part of Consumer Reports’ wider national effort to address energy affordability as utilities seek approval for major infrastructure investments across the United States. The organisation said it plans to work with consumers, policymakers and advocates to promote affordable electricity, fair allocation of costs and greater accountability in utility regulation.
