A reprieve from a dramatic electric rate increase appears set for 91,000 Baltimore Gas and Electric Co. customers in Montgomery and Prince George’s counties.
State lawmakers late Wednesday were expected to approve the controversial bill, which limits BGE’s rate increases to 15 percent for 11 months beginning July 1. The bill also would fire the current Public Service Commission and replace its members with a new group partially chosen by legislative leaders.
The bill came out of committee late Wednesday afternoon and went to the floor for discussion and a vote. BGE was set to raise its rates by 72 percent starting in July when legislators intervened with the proposal. During Wednesday’s special session of the General Assembly, the biggest change made to the bill by members of the House Economic Matters Committee and the Senate Finance Committee was to set up a second phase immediately following the 11-month relief period when customers will be able to opt in or out of electrical service with BGE.
Del. Dereck Davis, D-Prince George’s, chairman of the House Economic Matters Committee, said that in Phase 2, residents can take the full market rate for their electrical service or an intermediate level — somewhere between 15 percent and the market rate, which will be set in January 2008.
“There are those who want to bite the bullet,” Davis said. “We want to provide them an opportunity to do that.”
The opt in/out option also prevents BGE from getting a lower credit rating, Davis said, a concern leveled by bill opponents who said the company might have to borrow more money and pass on those added charges to customers.
Some members of Davis’ committee pointed out Wednesday that customers still would face higher service fees, just later rather than sooner. The PSC still must set these future rates, but at least there’s a range now, said Del. Brian McHale, D-Baltimore City.
“You really are getting true rate relief with this,” he said.
