All residential electric customers with active accounts on 8/29/08 will receive a one-time credit of $170 on their September bill. There is no need to speak with a representative to obtain the credit. It will automatically appear on your bill. For more details, read the information below.
Benefit to BGE's Customers
BGE and its parent, Constellation Energy, have reached a settlement with Governor Martin O'Malley, the State of Maryland and the Maryland Public Service Commission, approved by the General Assembly, that will enable all parties to focus on the State's energy future. The comprehensive settlement will provide substantial benefits to our customers and the State of Maryland.
How the Settlement Impacts BGE Customers:
- The total value of the benefits for our customers has been estimated at $2 billion.
- Residential electric customers will receive a one-time credit of $170 on their September bill, which adds up to at least $187 million in total bill credits.
- Both residential and business electric customers will be relieved of liability for the decommissioning of the Calvert Cliffs Nuclear Power Plant, which has a value of about $1.5 billion according to the Maryland Public Service Commission.
- Residential electric customers will receive about 90% of the cumulative $386 million in bill credits that were ordered by the legislature in 2006 and subject to litigation.
- All customers will benefit from limitations on electric distribution rate case filings. BGE will not file an electric distribution rate case in 2008. Any electric distribution rate increase filed in 2009 will not be effective prior to October 2009 and will be capped at no more than five percent (equal to about 1.5% of the total electric bill). BGE will not file a subsequent electric distribution rate case before August 2010.
- The settlement will not impact rate changes relating to the cost of electric supply or Standard Offer Service (SOS), except that BGE will recover the return component of the SOS administrative fee for a two-year period beginning in June 2008. Presently, SOS rates reflect the lowest prices paid by BGE for wholesale power, which is obtained through competitive bids, and BGE does not earn a return on SOS to residential customers. Effective June 1, 2008 through May 31, 2010, residential SOS rates will include a return of 15/100 of a cent per kilowatt-hour, after which the charge will be eliminated from June 1, 2010 through December 31, 2016 as a result of the settlement.
One-Time Bill Credit for BGE Residential Electric Customers
Residential electric distribution customers with active accounts on August 29, 2008 will receive a one-time bill credit of $170 on the September bill. For more than 50 percent of BGE's residential electric customers, the credit is expected to result in a greater than 10 percent reduction in electricity bills this year. If your bill is less than $170, the unused portion of the credit will carry over to reduce future bills. Also, during the period from now until August 29th, BGE will make a special allowance for our certified low-income customers to ensure that service is not interrupted due solely to the fact that the bill credit has not yet been issued.
View the Press Release
