72% rate increase. That sounds high to me. Really high.
I'm new to Maryland. In fact, I moved here during the exact time period that this new rate was supposed to take place. I never had a bill that wasn't part of the 72% rate increase. When I called to sign up, they have me option after option for making automatic payments, deferring payments, paying in home-grown produce etc etc. I told them to just bill me the whole amount, every month. No Shenanigans please.
A few weeks later, they changed their minds. Well, actually the Maryland legislature changed BGE's minds by passing a bill that limits BGE's rate increase to 15% for the next 11 months, and compelling all BGE users to enroll in a plan that postpones the remaining 57% of the rate increase. At the end of the 11 months, the rate will reflect the full 72% increase as well as a "recovery fee" to collect the 57% not collected over the past 11 month. BGE will collect this fee for 10 years.
How confusing is that? Ok, not really that confusing. But, I really hate the idea that I'll have a manditory loan from BGE. I called them today get more info. There is NO opt out option here. Everyone will pay the deferred rate no matter what. If you pay the FULL amount, they'll just hang on the difference as a credit on your account. At the end of the 11 months, if you've paid the FULL amount each month, you'll end up with a large credit. But still...they won't take it. You still pay the recovery fee over 10 years. Of course, if you cancel your service within those ten years, you pay the difference right away, in full.
Here is an example.
My bill this month:
Total Evergy Charges: $168.78
Deferred Rate Amount: $47.19
Total Due: $121.59
If I pay the $168.78, I'll end up with a 47.19 credit on my account that will last for 10 years. Over 11 months, that might come to about $550 that BGE will "hold" for me, over 10 years. The good news is...there is no extra fee included in the recovery fee. They're just charging me for the deferred rate amount, and nothing more.
So, looks like they have me over a barrel here. Either I let them have my $550 to invest and become rich from, or I take their manditory loan.
The only thing to do is to pay their $121.59, and put the rest in an investment account. At least I could earn 5 or 6 percent on that money that way.
One thing that still bothers me though, is the huge amount of the increase. I know it's part of a long past deregulation bill, but still. Am I to believe that the company has been unprofitable for all these years? No. They have not.
Check out this article about the rate increase:
A Deregulation Bill Comes DueScroll down about a quarter of the way. You'll see it. Here are the main points:
"This July 1, seven years after state lawmakers voted to deregulate the state power industry, customers of BGE will see a 72 percent hike in their electric bills, for an annual extra cost of $743 per household."
"Maryland energy consumers are having a hard time understanding why BGE needs all those extra dollars. Last year, BGE cleared a $150 million profit. BGE’s parent company, Constellation Energy, saw its profits soar an amazing 45 percent in last year's final quarter.""With profit rates already so high, why did top execs at Constellation go ahead with a 72 percent rate hike sure to create a firestorm of ratepayer fury? The answer, charged an editorial last week in the Annapolis daily that serves the Maryland state capital, sits in the $11 billion merger with Florida Power & Light that Constellation executives spent last year negotiating.""The merger with Florida Power & Light, still not final, will leave Constellation Energy CEO Mayo Shattuck and four other top company executives with $78 million in bonuses."Like I said. Shenanigans. Shenanigans that I'm paying for.
