Maryland depends on electricity generated by private power companies. When demand is high and supply is limited, it puts pressure on the system and can increase costs. This isn’t something BGE controls, but it’s something we’re working hard to change.
Today, growing electricity demand from factors like data centers and electrification is putting added pressure on the regional energy market. Because there isn’t enough supply to meet rising demand, energy prices are increasing, even when your personal energy use stays the same.
Why Is Your Electric Bill Going Up?
Your bill is made up of several components. Understanding each one can help explain where your costs are coming from:
| Bill Component | What It Covers | Who Controls It |
| PJM Supply | The cost of electricity from the energy market | Private power plant companies in the PJM energy market (e.g., Calpine, NRG, Talen Energy, Vistra, Constellation) |
| BGE Delivery | Wires, poles, and equipment that deliver electricity safely and reliably to your home | BGE (regulated by the MD Public Service Commission) |
| Taxes & Fees | State and local charges, including EmPOWER Maryland programs | State of Maryland |
Supply costs are typically the largest part of your bill, and BGE does not control or profit from electric supply prices.
What’s Driving Higher Supply Costs?
Rising energy supply costs are the primary driver of higher bills across Maryland. When demand for electricity increases and there isn’t enough supply to keep up, prices go up. Here’s why:
- Growing demand: Energy use is increasing across the region, including power needed by data centers, electric vehicles, and general electrification.
- Limited supply: Older power plants are retiring, and new generation isn’t coming online fast enough to fill the gap.
- Market dynamics: Electricity prices are set in competitive markets by private power plant companies. When supply is tight, these companies benefit from higher prices — which means less incentive to bring new energy online quickly.
- Maryland imports energy: Maryland imports a significant portion of its electricity from surrounding states, making customers more exposed to regional market conditions.
Even if your personal energy use hasn’t changed, these market-level factors can increase the supply portion of your bill.
Why Reliable Energy Supply Matters
Energy supply doesn’t just affect your bill; it also affects reliability. As demand grows and available supply tightens, maintaining a strong and stable energy system becomes even more important to ensure customers continue to receive safe, reliable service — especially during extreme weather.
How BGE Is Supporting Customers
We know rising energy costs can be challenging. That’s why we’re taking action to support customers today while advocating for solutions that address the root causes of higher costs.
- Connecting you to assistance — Including the BGE Customer Relief Fund, which has provided $17.5 million in relief to customers, along with flexible payment options and connections to state and federal programs
- Expanding energy-saving programs — That help reduce energy use and lower bills, including Quick Home Energy Check-Ups, appliance rebates, and Connected Rewards
- Advocating to help protect customers — From cost impacts tied to large energy users like data centers
- Pushing for more energy supply — Advocating for utility-generated energy to increase supply and reduce dependence on the private energy market
- Investing in technology and infrastructure — To reduce outages, improve reliability, and keep costs lower over time
