BGE wants to increase 3.5% electricity price and 8.6% gas price. The problem is that oil price is at 12 year low. Public hearing will be on March 9.

There will be a Public Hearing by the MD Public Service Comm On Case  9406 where BGE is requesting both a gas and electric rate increase.  The hearing will be held at the Geo Howard Building in Ellicott City at 7 PM on March 9.  Anyone can testify.  The following is from the BGE request:

“the requested distribution rate relief results on average in a 3.5% increase in total electric bills and a 8.6% increase in total gas bills, but the impact will vary somewhat from rate schedule to rate schedule and from customer to customer. The average residential electric bill is proposed to increase by $7.64 per month and the average residential gas bill by $7.56 per month.1 However,

these figures do not reflect the bill credits, reduced energy consumption and energy price savings that customers will realize from the Smart Grid Initiative. Furthermore, even with the increases proposed in this case, the total bill for the average combination (gas and electric) residential customer will be lower than it was in 2008.

TWELVE: This Application is supported by the prepared direct testimony and exhibits of Mark D. Case, Vice President for Regulatory Policy and Strategy of BGE; David M. Vahos, Vice President, Chief Financial Officer and Treasurer for BGE; Adrien M. McKenzie, Vice President of FINCAP, Inc.; William B. Pino, Director of Energy Acquisition and Demand Response Market Operations for BGE; Michael B. Butts, Director of AMI Business

1 The average residential electric customer bill impact is based on an average monthly usage of 930 kwh per month on a weather-normalized basis for the twelve-month test period ending November 30, 2015, while the average residential gas customer bill impact is based on an average monthly usage of 57 therms per month also on a weather normalized basis over……..”

A major part of the proposed increase is based on the benefit to ratepayers of the Smart Meters that have been deployed by BGE.

Background on Case 9406 can be found at the MD PSC web site and inserting 9406 and selecting Case on the right side of the page.