Van Hollen, Alsobrooks Press Utility Companies to Answer for Rise in Profits as Marylanders Face Soaring Energy Bills

Today, U.S. Senators Chris Van Hollen and Angela Alsobrooks (both D-Md.) wrote to Maryland utility companies, pressing them for answers regarding Marylanders’ rising energy costs. In their letter, the Senators ask senior executives of Baltimore Gas & Electric (BGE), Pepco, Delmarva Power (Pepco Holdings), and Columbia Gas to justify their increasing profits as they have repeatedly hiked the utility distribution rates they charge consumers and to urge them to put affordability at the forefront as they consider their future infrastructure improvement planning.

“We are writing to express our concern as we receive outreach from constituents from across the state facing soaring energy bills, due in part to increases in utility distribution rates,” the Senators began. “Since 2010, BGE, Columbia Gas, Pepco, and Delmarva Power have all been implementing increases in distribution rates that well outpace the rate of inflation. Although these increases are meant to cover the costs of improvements in gas and electric distribution infrastructure, they have also increased your corporate profits.”

They go on to request answers from the utility executives, writing, “Given the frustration and distress many Marylanders feel as a result of rising energy bills, we respectfully request that you respond to the following questions by April 16, 2025:

1. Your companies are subsidiaries of Exelon and NiSource, which have both seen profit increases in recent years. How do you reconcile these profit increases with the burden that these distribution rates place on consumers?
2. How will you ensure that any future gas and electric infrastructure investments are economical and do not pass unnecessary or unmanageable costs on to ratepayers?
3. How do you plan to help ratepayers deal with utility bill increases?”

“In considering any future plans to increase your distribution rates, we urge you to place affordability concerns at the forefront of your decision-making given the significant financial toll that skyrocketing utility bills have already placed on Marylanders across the state,” the Senators concluded.

A copy of the letter is available here and below.

President & CEO Khouzami; President & CEO Anthony; President & COO Kempic:

We are writing to express our concern as we receive outreach from constituents from across the state facing soaring energy bills, due in part to increases in utility distribution rates.?

On the federal level, we are working to ensure that critical federal programs such as the Low Income Home Energy Assistance Program (LIHEAP) – implemented through the state as the Maryland Energy Assistance Program – are funded and available for constituents most in need. However, our constituents still cannot afford these rate hikes, especially when particularly cold weather this winter and anticipated hot weather this summer requires increased energy use for home heating and cooling needs. 

We recognize that there are a variety of factors contributing to the increases Marylanders have been experiencing in their energy bills, including increases in wholesale costs of electricity and natural gas. However, the rates that Maryland utilities charge customers for distributing gas and electric service are also contributing to higher prices. Since 2010, BGE, Columbia Gas, Pepco, and Delmarva Power have all been implementing increases in distribution rates that well outpace the rate of inflation. Although these increases are meant to cover the costs of improvements in gas and electric distribution infrastructure, they have also increased your corporate profits.

Given the frustration and distress many Marylanders feel as a result of rising energy bills, we respectfully request that you respond to the following questions by April 16, 2025:

1. Your companies are subsidiaries of Exelon and NiSource, which have both seen profit increases in recent years. How do you reconcile these profit increases with the burden that these distribution rates place on consumers?
2. How will you ensure that any future gas and electric infrastructure investments are economical and do not pass unnecessary or unmanageable costs on to ratepayers?
3. How do you plan to help ratepayers deal with utility bill increases?

In considering any future plans to increase your distribution rates, we urge you to place affordability concerns at the forefront of your decision-making given the significant financial toll that skyrocketing utility bills have already placed on Marylanders across the state. 

Thank you for your attention to this matter, which impacts the day-to-day lives of Marylanders. We look forward to your prompt response.

Sincerely,