BGE Rate Hike Would Cover Past Work
Money from a rate increase will not be used for new work, but BGE will continue to update infrastructure, spokesman said.
A rate adjustment requested by BGE will mostly cover work that the utility company has already performed, according to a spokesman.
"In Maryland, that’s the way it works," BGE Spokesman Bob Gould said. "You spend the money and then you go back to the [Public Service] Commission and you ask them for recovery of the costs that you incurred."
BGE announced Friday evening that it had filed a request with the Public Service Commission (PSC) for a rate hike that, according to the utility, would add an additional $7.22 to the “typical” customer’s electric bill.
There are a few places where BGE will use some of the money going forward, Gould said, including vegetation maintenance.
"BGE customer bills will still be lower in total than then were in 2009, because we’ve seen a decline in the cost of the fuel." Gould said. "The price of natural gas has dropped 25 percent since 2009."
The rate increase announcement came two days after a hearing at which residents of several of Ellicott City’s older neighborhoods testified about what they described as unreliable electric service in front of a public utilities law judge.
The hearing was part of a PSC investigation into reliability issues in some of the older Ellicott City neighborhoods. Residents testified that outages led to expenses, frustration and, in some cases, serious health hazards. Many requested that additional lines be buried underground and that BGE trim more trees in their neighborhoods.
"This is only the second request for an electric distribution rate adjustment in 20 years," Gould said, "And the reality is that much of our infrastructure dates back to the 40s and 50s, and some of it even before that."
The utility will receive money via "bill stabilization" to cover some of the lost revenue from the derecho-related power outages. That one-time fee will amount to less than a dollar, Gould said.
"We urge that if BGE is permitted to increase their rates, that 100% of all revenue generated from such an increase be ordered by the PSC to go directly towards upgrading their infrastructure," Rubin wrote, "to include burying lines and investing in 21st century technology."
Gould noted that BGE has been working on a reliability plan in the Ellicott City neighborhoods that are part of the investigation. Some lines have already been buried and BGE has adjusted its tree-trimming schedule, doing maintenance ahead of its previous schedule. That plan, he said, is still moving forward.
"Any monies we get in the adjustment is largely reinvested back into the infrastructure,” Gould said.
The PSC has also scheduled a public hearing to investigate BGE's performance during the derecho storm that swept through Howard County and the region in late June after officials across the state criticized the utility's openness with its data.
Dave
6:01 pm on Tuesday, July 31, 2012
Just curious, but what did the something like 80% increase (may have been more, I can't remember) in our rates pay for after deregulation passed through the general assembly. Was it for fur coats for Mayo and Bob Gould's wives? Deregulation, what a blessing!!!
MS
11:13 am on Thursday, August 2, 2012
BGE's request for a rate increase is for distribution charges. BGE already raised the price for the electricity and natural gas that they deliver. BGE's price for residential electricity supply is now 21 percent above market and their price for natural gas supply, which BGE raised on Aug 1, is now 7.5% above market.
You can choose the energy company that supplies electricity and natural gas to you through BGE and get your energy at a lower price. BGE delivers it, but you pay less for it.
Here are the numbers -
BGE now charges residential (schedule R) customers 9.862 cents per kWh for the electricity supply portion of their service. Washington Gas Energy Services (WGES) will supply electricity through BGE to you for 7.8 cents per kWh.
The same for natural gas - BGE's current price for natural gas supply is 56.22 cents per therm. WGES will supply natural gas through BGE to you for 51 cents per therm.
To see your price options, go to www.wges.com . To get WGES' promotional pricing, you need to enter a promotional code. Here it is. Where it asks "New to WGES? Enter your promo code here" enter code " EAHOME-EA1016 ". The code will get you WGES' promotional pricing.
If you enroll your BGE accounts with WGES, BGE will continue to deliver your electricity and natural gas as always, respond to issues, and handle the billing as before. But you will pay less for it. There is no service interruption. Nothing is connected or disconnected.