Relief Plan Amid MD Electric Rate Hikes Announced: See Who Qualifies

ANNAPOLIS, MD — Gov. Wes Moore unveiled an initiative that will provide a total of $19 million to help some Maryland residents pay their electric bills following massive rate increases that went into effect on June 1.

Moore joined Maryland utility providers and nonprofit partners at a news conference Thursday to announce the launch of the Customer Relief Fund, which will provide relief for limited- and middle-income ratepayers in the state.

The fund is a temporary assistance program that will be administered through local nonprofit partners across the Baltimore Gas and Electric, Pepco and Delmarva Power service areas in Maryland.

"Not a day goes by without me hearing from Marylanders about their real and justified concerns over steep bill increases," Moore said. "While this is an important step forward, it will not be the last. Marylanders are counting on us to put the interests of the people first."

Officials said the one-time grants will range between $250 and $750 for BGE ratepayers, and up to $300 for Pepco and Delmarva Power ratepayers.

The United Way of Central Maryland will administer grants for BGE customers and the Salvation Army for Pepco customers. The Harford Community Action Agency, the Salvation Army and Shore UP! will administer grants for Delmarva Power customers.

Funding will be donated by utility parent company Exelon, according to the state.

Ratepayers are encouraged to visit the websites of their local energy companies to learn more about eligibility and how to secure support.

While rate increases went into effect on June 1, the exact amount differs depending on where ratepayers live.

A report from the Maryland Office of People’s Counsel, released last August, estimated that Delmarva Power households could see a $4 monthly increase, Pepco and SMECO customers could see a $14 increase and Potomac Edison customers could see an $18 increase.

BGE customers would fare the worst, with a $21 jump.

Ahead of the hike, Maryland’s utility regulator, the Public Service Commission, ordered BGE to spread out the increase to lessen the impact during the summer months, when bills typically soar due to high energy use.

As a result, the increase will be $10 to $15 less than expected on bills from June through August. But from September through November, bills will be $10 to $15 higher than expected, PSC spokesperson Kathy Fueston told Maryland Matters.

The reason behind the increase stems from PJM Interconnection, which manages the electric grid and coordinates the movement of wholesale electricity across a large portion of the eastern United States. The organization runs an annual auction called the capacity market auction, which ensures there is sufficient power during peak times.

Last year’s auction, which covers 2025, cleared at a record high price — an 800 percent increase compared to the year before, costing ratepayers a total of $14.7 billion in capacity costs, compared to $2.2 billion previously.

PJM blamed the shutdown of costly coal and oil plants, energy demands from data centers, and the electrification of homes and cars, among other factors.

Patch news partner Maryland Matters contributed reporting. Read more here.

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