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Multi-Year Customer Relief and Energy Infrastructure Investment Plan (2021-2023)

 

BGE's multi-year customer relief and energy infrastructure investment plan is designed to aid in the region's recovery from the COVID-19 pandemic while continuing to improve the energy delivery systems serving 1.3 million electric customers and more than 680,000 natural gas customers in central Maryland. 

The plan details how BGE will make significant investments in the electric grid and natural gas system over the next several years. BGE filed the plan for review with the Maryland Public Service Commission in May 2020 and the Commission approved the plan with modifications in December 2020. 

Customer bills will increase effective with usage starting on February 1, 2022.  More information on the new multi-year plan rates resulting from the Commission's December 2020 order is available here.

Investing in better service for customers

Our energy infrastructure investment plan includes hundreds of projects and maintenance programs to improve the reliability and safety of the energy delivery service we provide customers—powering a smarter, stronger, cleaner energy future. That means:

  • Enhancing energy infrastructure supporting the growth of important economic development sites.
  • Installing smart automation equipment to more quickly identify and circumvent damage to the electric grid and reduce the frequency and duration of power outages.
  • Replacing outmoded technologies to improve reliability, enable greater adoption of solar energy and electric vehicle charging and to increase capacity in areas where redevelopment adds additional customer demand.
  • Preparing the grid for extreme weather with continued tree trimming and vegetation management to ensure power line clearance and improve reliability during extreme weather events.
  • Replacing outmoded natural gas pipeline segments using modern technologies and installing over-pressurization protection equipment to improve safety and reliability.

Powering the local economy

Our three-year plan is contributing to our region’s economic recovery from the COVID-19 pandemic. Here's how:

  • 26,700 jobs supported
  • $15.33 billion in economic impact
  • $2.76 billion in labor income
  • Steady employment and financial assurance for our 900+ suppliers

Supporting communities in central Maryland

In conjunction with our three-year plan, we're doing more to ensure our communities have the resources to serve those most in need. This includes:

  • Additional $1.5 million contribution to the Fuel Fund of Maryland.
  • $1 million in funding to county-administered business pandemic relief funds.
  • Pledging $15 million to establish the BGE Energizing Small Business Grants program, which will assist eligible small businesses with COVID-19 relief and recovery by providing grants of up to $20,000 each.
  • Expanding the BGE Workforce Collaborative infrastructure academy (approximately 600 local residents will be trained and assisted with job placement during the three-year plan).
  • Working with qualifying customers who contact us to structure flexible payment arrangements and connect them to energy assistance resources to help ensure the continuation of their service.

Our nonprofit contributions are made using shareholder dollars and are not reflected in customer bills.

Impact on your bill

  • In its order approving the plan, the Commission is allowing BGE to increase its rates in 2021, 2022, and 2023. 
  • However, BGE had requested that certain tax benefits and adjustments be used to offset the rate increases entirely in 2021 and 2022 and partially in 2023. The Commission's order uses these benefits and adjustments to fully offset the increase in 2021. 
  • The Commission order requires customer bills to reflect the gross delivery service rate increase and the offsetting tax credit rate being provided to customers through new riders (electric Rider 34 and gas Rider 18). 
  • The gross delivery service rate and the offsetting credit are shown on separate lines on customer bills. The offsetting credit is shown as BGE Federal Tax Credit on customer bills.  
  • In January 2021, customer bills reflected new 2021 delivery service rates as authorized by the Commission, reduced by a tax credit offset as authorized by the Commission. These credits represented tax benefits that are being provided back to customers on an accelerated basis so that there is no net increase in BGE's delivery service revenues being charged on customer bills. 
  • Therefore, BGE bills remained flat in 2021. 
  • As authorized by the Commission, customer bills beginning in January 2022 reflected increased delivery service rates, but the increased rates were fully reduced by tax benefits until February 2022, when the increased rates were partially offset by certain tax benefits for the rest of 2022. For February 2022 through December 2022, the BGE Federal Tax Credit line on customer bills reflects a 25% offset of the 2021 and 2022 electric delivery service rate increases and a 50% offset of the 2021 and 2022 gas delivery service rate increase.
  • Beginning January 2023, the increased rates for 2023 will go into effect without any offset from the acceleration of certain tax benefits. The BGE Federal Tax Credit line will no longer appear on the bill.   
  • With the rate adjustment and offsets approved by the PSC, after January 2023 the average residential electric bill will increase by $2.97 per month and the average residential natural gas bill will increase by $3.08 per month due to the increase in distribution rates. 
  • In 2021 and 2022, electric street lighting customers were billed for facilities and maintenance at the delivery service rate net of offset rate. Please refer to this table for specific 2021 street lighting rates for facilities and maintenance and this table for specific 2022 street lighting rates for facilities and maintenance. 
  • Delivery service rates for private area lighting (Schedule PL) and gas interruptible electric generation customers (Schedule EG) are not changing in 2021, 2022, or 2023 and thus are not offset by the tax credit rates in 2021 and 2022. Delivery service rates for transmission voltage service (Schedule T) are decreasing in 2021 and not changing in 2022 or 2023.  Thus, Schedule T delivery service rates are similarly not subject to the offset rates. 

Plan resources

Regulatory materials and related external documents

BGE’s energy infrastructure plan was filed under the multi-year plan pilot announced by the Maryland Public Service Commission in February 2020. Prior to the pilot, utilities were allowed to seek recovery of investments only after those investments were made, and regulators authorized future rates using those historical costs. Multi-year plans give regulators the opportunity to review and approve planned utility investments and corresponding requests for rate changes in advance—a forward-looking approach to authorizing new rates, giving customers more certainty about future changes in their gas and electric bill.


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