Advocates, Elected Officials Call Out BGE for Excessive Spending and Profits, and Power Generation “Money Grab”
As customers face high home heating bills, lawmakers and advocates call for increased utility oversight and accountability to solve the true reasons utility bills are high.
Watch the livestream recording on Instagram HERE.
ANNAPOLIS, MD — The House Environment and Transportation Committee is holding hearings on two pieces of legislation today (HB1561 and HB1253) related to Baltimore Gas and Electric’s (BGE) “Operation Pipeline” pipe replacement program and proposal from the utility to build new power generation.
“Exelon’s attempt to build power generation is at best an attempt to distract from their role in the affordability crisis and at worst a ploy to further increase profits,” said Laurel Peltier volunteer and utility advocate with AARP Maryland. “BGE’s excessive spending on local gas distribution and regional transmission projects is driving up bills for aging Marylanders on fixed incomes. The last thing the legislature should do is let them do the same for power generation.”
HB1561/SB954 is the controversial proposal pushed by Exelon Corporation to enable a regulated utility to build generation in the state. As a state-granted monopoly, Exelon’s subsidiaries in Maryland, including Pepco, Delmarva Power, and BGE (a combined gas and electric utility), are responsible for the local energy distribution systems, including wires, substations, and, in BGE’s case, gas pipelines. Ratepayers served by Exelon utilities have faced rapidly rising delivery rates, drawing ire from the state’s consumer advocate, People’s Counsel David Lapp. Lapp and other consumer advocates argue that allowing Exelon, or any utility, to build in-state generation would put customers on the hook for the buildout and bear the risk of stranded assets.
“Our state legislators need to unleash the potential of solar power to bring down electricity costs and stop wasteful utility spending that is driving up our bills — not giving them more opportunities to profit.” said Brittany Baker, Maryland Director of the Chesapeake Climate Action Network (CCAN) Action Fund. “Whether it’s excessive new gas pipelines or new gas power plants, it makes no sense for the planet, people, or our pocketbooks.”
The Break STRIDE Act (HB1253) is a proposal by Del. Dylan Behler to repeal the STRIDE law, which provides customer-funded financial incentives to BGE and other gas utilities to replace gas pipes and equipment. Behler’s bill would push for stronger enforcement of the Next Generation Energy Act, which went into effect June 1, 2025, and required gas utilities to meet new safety and cost-effectiveness requirements and consider alternatives to pipeline replacement, including repair, relining, and non-pipeline alternatives.
“My constituents are struggling to heat their homes,” explained Del. Dylan Behler. “It shouldn’t cost a fortune to stay warm and comfortable during the cold. I’m proud to stand with advocates and legislative colleagues working to stop wasteful spending on gas pipelines and require BGE and WGL to prioritize safety over profits.”
BGE has spent $1.4 billion on “Operation Pipeline,” its pipeline replacement program. If BGE completes its proposed $4 billion in gas pipeline spending, it could cost customers $19.5 billion to pay back, largely due to BGE’s profits. BGE gas customers have seen their delivery rates triple since 2010. Today, BGE gas customers pay BGE nearly $2 in delivery charges for every $1 they spend on gas to heat their home.
“The time to end incentives for gas pipeline spending is now,” explained Maryland PIRG Senior Advisor Emily Scarr. “BGE is legally required to maintain the safety of its gas system, including making necessary repairs and replacements, without guaranteed profits or financial incentives. Maryland PIRG is proud to support Del. Behler’s work to repeal STRIDE.”
“BGE customers are bearing the brunt of the cost, both financially and in terms of safety. Those concentrated in underserved and overburdened communities are especially vulnerable to this exploitation, not only through their energy bills, but because they live in neighborhoods where these hazardous pipeline replacements are taking place,” said Iman Habib, Climate Policy Analyst with Progressive Maryland.
“STRIDE created a system where utilities profit regardless of what Maryland families can afford,” said Delegate Boafo. “This legislation ends blank checks for utilities and stands up for Maryland ratepayers.”
Hearings for the bills are scheduled for March 10 in the House Environment and Transportation Committee.
Watch the livestream recording on Instagram HERE.
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Chesapeake Climate Action Network (CCAN) Action Fund is dedicated to driving change in public policies at the local, state, and national levels to address the climate crisis. Through voter education, lobbying, and participation in the electoral process, we seek to advance our country’s leadership in the global movement toward clean energy solutions — focusing our efforts primarily in Maryland, Virginia, and Washington, DC. We know that a vibrant democracy is central to our success so we work to defend democratic integrity wherever we can.
