Updates from the Governor
March 28: Securing Our Energy Future
When Lt. Governor Brown and I took office some 14 months ago, we made a commitment to protect our quality of life, secure Maryland’s energy future, and stand up for the middle class families of our State.
In keeping with this commitment, we reached an agreement yesterday with Constellation Energy - the parent company of Baltimore Gas & Electric – which will secure immediate rate relief for Maryland families who are struggling to make ends meet and eliminate $1.5 billion in future costs for ratepayers.
Under the terms of the agreement, Baltimore Gas & Electric residential ratepayers will receive a one-time “rate rebate” of approximately $170 by the end of the year. This refund amounts to $187 million in rate relief for Maryland’s families and represents a more than 10% reduction in this year’s total bill for more than 50% of all BGE customers – over 580,000 ratepayers.
The proposed agreement, which must be approved by the Maryland General Assembly, also ends Maryland ratepayers’ obligations for decommissioning nuclear power facilities at Calvert Cliffs, saving Maryland ratepayers $1.5 billion in future costs. Ratepayers were projected to begin payments of $33 million annually from 2016 through 2036. As a result of this settlement, Constellation Energy Group will be liable for these costs.
In addition, 90% of credits due to Maryland ratepayers – totaling $346 million for our families – will continue to be paid by BGE.
Lt. Governor Brown and I pledged to restore competent, professional leadership at the PSC when we took office, and this settlement represents the result of this new leadership at the Public Service Commission.
We know there is more work to be done to ensure that the State we leave our children will have a secure energy future. But this agreement is an important – and we believe significant – step in the right direction for Maryland.