Major Infrastructure Investments in 2025
BGE ramped up capital spending to $2 billion in 2025, focusing on underground fiber optic deployment and grid enhancements. The company is building 69.9 miles of middle-mile fiber by 2027, designed with redundancy to withstand severe weather like storms and high winds, benefiting unserved communities.
These efforts align with climate resilience, including underground electric lines and ring network designs. BGE also replaced aging gas mains, contributing to the best electric reliability in company history during 2024, with benefits carrying into 2025.
EmPOWER Maryland programs saw BGE exceed 2024 targets, achieving 114% of energy savings (735,758 MWh) and 115% of summer demand reduction (600 MW), setting the stage for 2025 greenhouse gas reductions.
2025 Rate Hikes and Regulatory Scrutiny
Customers faced bill increases in 2025 due to distribution rates, MYP reconciliations, and EmPOWER fees. Gas rates rose 50% since 2020 and electric 30%, outpacing inflation, prompting PSC interventions like shifting supply cost recoveries to off-peak seasons.
The PSC's December 2023 order on the Multi-Year Plan approved key recoveries, but new 2025 legislation ended future MYP reconciliations. Total non-controllable increases averaged $16.74 monthly for residential customers.
While no major lawsuits emerged, scrutiny over affordability grew, balanced by BGE's claims of tangible reliability gains from investments.
Financial Performance and Future Outlook
BGE's net income growth reflected successful navigation of regulations, with revenue decoupling insulating against usage fluctuations. S&P revised outlook positively amid higher capex plans through 2027.
Broader trends like PJM capacity charges pressured prices, but BGE's focus on modernization supports long-term stability and cleaner energy transitions.