BGE Electric Rates: How Much Are Prices Rising in 2027?

Baltimore Gas and Electric (BGE) wants Maryland regulators to approve a $156 million electric rate increase. For the average residential customer, that is about $8 more per month beginning no sooner than January 2027.

What BGE is asking for

BGE filed the request with the Maryland Public Service Commission (PSC) in early July as Case No. 9888. The company says the money is the minimum needed to keep its grid “safe and reliable.” The request applies to electric service only, raising the distribution portion of the bill, which pays for poles, wires and substations, by about 17%.

BGE also asks to raise its allowed return on equity, the profit rate regulators let it earn on its investments, from 9.5% to 10.4%. The filing includes a storm restoration expense rider as well. The Office of People’s Counsel (OPC), the state’s consumer advocate, opposes both the higher return and the rider.

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How much bills could rise

The numbers depend on who wins the argument.

Scenario	Return on equity	Effect on rates
BGE’s request	10.4%	+$156 million; about +$8 a month for the average residential customer
OPC’s recommendation	7.3%	−$44 million, a rate reduction
Status quo	9.5%	No change

OPC estimates the request would cost the average customer about $100 more per year. BGE’s filing also proposes a $9 monthly conduit surcharge for Baltimore City customers. Regulators don’t always grant a utility’s full request, so the final increase may land between the two positions.

BGE reported net income of $527 million in 2024 and $578 million in 2025. Critics at the first public hearing cited those profits and growing overdue residential balances, which BGE expects to reach $204 million by June.

When higher rates could land on your power bill

BGE originally asked for an August 1 start. The PSC said the case needs months of review, so rates stay where they are until the commission rules. The decision is expected in January 2027, and customers would begin seeing higher bills after that.

The public can still weigh in:

• Nov. 2: Deadline to register to speak at the Nov. 4 hearing.
• Nov. 4: Second public hearing.
• Nov. 16: Deadline to register to speak at the Nov. 18 hearing.
• Nov. 18: Third public hearing.
• Dec. 23: Written comments close.

The first hearing was held Monday, Oct. 26. Baltimore City Council President Zeke Cohen and other advocates urged the PSC to reject the increase.

Solar and storage as a hedge against energy inflation

Homeowners can’t stop a rate increase, but they can buy less of the electricity it applies to. Every kilowatt-hour a rooftop system produces is one BGE doesn’t bill at the new, higher rate, and Maryland is a rather friendly state for solar.

Maryland requires net metering credits at the full retail rate, so a rate hike makes each solar kilowatt-hour more valuable. A home battery stores midday solar for the evening, which cuts what you draw from the grid when you would otherwise rely on it most. It also keeps essentials running through the storm outages that BGE’s reliability spending is meant to reduce.

There are also several incentives for installing solar and battery storage in Maryland that reduce project costs and pad your overall savings.

Maryland incentives for solar and solar + storage

• Net metering. As mentioned above, utilities in Maryland buy your excess solar electricity at the same price you purchase grid electricity. This is known as 1-1 net metering, and it’s worth locking in before this policy changes.
• SRECs. Registered systems earn one Solar Renewable Energy Certificate per 1,000 kWh produced and sell it through a broker. These are currently around $50 each on the SolSystems brokerage platform. A typical 7 kW system would earn ~$450 in its first year at the current SREC value.
• Federal tax credits. The 30% residential credit (Section 25D) ended for systems installed after Dec. 31, 2025. Third-party-owned systems, such as Prepaid Leases, can still benefit from a business-claimed tax credit (Section 48E) through the end of 2027.
• Maryland Solar Access Program. Income-eligible homeowners (up to 150% of area median income) can get up to $7,500, or $750 per kW, on a first-come basis. Learn more here.
• Energy storage grant. The Maryland Energy Administration’s grant covers the lesser of 30% of installed cost or $5,000 for a home battery. Applications were set to close June 5, 2026, and FY2026 funds appear to be reserved, so ask the Maryland Energy Administration whether a new round is planned.
• Tax exemptions. Solar equipment is exempt from the roughly 6% state sales tax, and the added home value is exempt from property tax. Some counties, including Anne Arundel, Baltimore, Harford and Prince George’s, offer one-time property tax credits.

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