Maryland residents are facing an urgent rate spike in electricity costs this September, triggering widespread concern and demands for action from consumer, low-income, and environmental advocates. The surge, which particularly impacts Baltimore Gas and Electric (BGE) customers, is attributed to the 2024 energy capacity auction conducted by PJM Interconnection, the regional power grid operator. This increase adds to the financial strain already felt by many Maryland households, prompting calls for immediate intervention from state officials and a re-evaluation of energy policies.
The September Electricity Rate Hikes
Effective September 1, 2025, Maryland electricity rates have increased, primarily affecting the electricity supply rate. According to the Maryland Office of the People’s Counsel, the average BGE customer can expect to see an additional $16 added to their monthly bill. This rise exacerbates an existing trend, with estimates suggesting that the average energy customer in Maryland is already spending an additional $1,000 per year on electricity. While the spotlight is on BGE, Delmarva Power customers are also experiencing a change, with revised retail transmission rates resulting in a modest $1.24 increase for a typical residential customer, also effective September 1, 2025.
Who is Affected?
The rate hikes impact a broad range of stakeholders, most notably Maryland residents served by BGE and Delmarva Power. Consumer advocates, including the Maryland Office of the People’s Counsel, Maryland PIRG Foundation, Chesapeake Climate Action Coalition, Maryland Energy Advocates Coalition, and the Randallstown NAACP, are actively voicing their opposition to the increases. State officials, including the Maryland Public Service Commission (PSC), are facing mounting pressure to address the issue. Legislators such as Delegates Adrian Boafo, Marlon Amprey, Elizabeth Embry, and Senator Mary Washington are also urging action to protect ratepayers. PJM Interconnection, as the regional power grid operator, plays a central role in the factors driving the rate increases.
Timeline of the Increases
The recent spike took effect on September 1, 2025, following a previous increase on June 1, 2025. The root cause, the 2024 energy capacity auction by PJM Interconnection, occurred last year. BGE customers are scheduled to bear the brunt of these increased costs over a period of three months in the fall of 2025 and an additional three months in the spring of 2026. This phased approach to cost recovery is intended to mitigate the impact on consumers during peak energy consumption seasons.
The Root Causes of the Spike
The primary driver behind the September rate spike is the 2024 energy capacity auction conducted by PJM Interconnection. Advocates have criticized what they describe as “mismanagement by BGE and PJM” and “wasteful spending by BGE,” contributing to an “affordability crisis.” According to reports, supply costs have been steadily climbing, and legislators have raised concerns about an alleged “energy supply undercount” by PJM during its most recent auction, which purportedly inflated the region’s total electricity cost from $2.2 billion to $14.7 billion. Other contributing factors include the retirement of power plants, evolving demand forecasts, and PJM’s decisions to mandate higher reserve margins and impose more stringent requirements for energy generators.
A May 30 order from the Maryland Public Service Commission directed BGE to spread the recovery of certain supply costs over six months, leading to increases in both the fall and spring seasons. This decision was intended to balance out the typically higher energy bills experienced during the summer and winter months.
Advocates Demand Action on Affordability Crisis
The immediate consequence of the rate increases is a greater financial burden on Maryland households, particularly those with lower incomes. This comes at a time when many families are already grappling with the effects of inflation on other essential goods and services. In response, consumer, low-income, and environmental advocates are intensifying their calls for state leaders to hold both BGE and PJM Interconnection accountable for their respective roles in the rate increases.
Legislative and Regulatory Responses
Legislators are actively criticizing PJM’s actions and exploring potential avenues for intervention to mitigate the rising costs. Some advocates are promoting the faster deployment of clean energy projects as a viable solution, arguing that it could lead to substantial savings for households in the long run. While BGE has implemented measures such as pausing service disconnections and waiving late payment fees, these are largely viewed by advocates as insufficient to address the fundamental issue of escalating electricity costs.
Consumer Advocates of the PJM States and RMI’s Carbon-Free Electricity program also suggest long term investments in renewable energy sources.
The Broader Implications
The electricity rate increases in Maryland highlight the complexities of energy markets and the challenges of ensuring affordable and reliable power for consumers. The situation underscores the need for greater transparency and accountability in the energy sector, as well as a comprehensive approach to addressing the underlying factors that contribute to rising costs. As Delegate Adrian Boafo noted, decisive action is needed to prevent further financial strain on Maryland families.
Conclusion
The recent electricity rate spike in Maryland represents a significant challenge for residents and policymakers alike. The surge, driven by factors including PJM Interconnection’s energy capacity auction and rising supply costs, has prompted demands for immediate action and a re-evaluation of energy policies. Addressing this issue will require a multi-faceted approach involving regulatory oversight, legislative intervention, and a commitment to investing in sustainable energy solutions to ensure affordable and reliable power for all Marylanders.
