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April 30, 2008

Exact new BGE rates available Friday

My colleague Paul Adams and I are getting questions based on his story today, BGE bills to jump 8% this summer

Readers want to know the exact rates per kilowatt hour starting June 1. The PSC hasn't disclosed the rates, and neither has BGE. BGE rate czar Wayne Harbaugh says the state requires all utilities to disclose new rates on the same day, which will be Friday.

I wrote last week that the "price to compare" for BGE will go up about 4 percent after June 1 to 11.8 cents per kilowatt hour. This is for SUMMER only -- June -- September -- and it doesn't count BGE's additional delivery charge of about 3.4 cents. The 8 percent increase Adams refers to is an average for the 12 months beginning June compared with prices for the 12 months ending in May. It sounds like they bought some winter power this month at pretty high prices, which will crank up the average for the whole year.

PS: But it still doesn't change my opinion on whether you should buy an alternative dirty-electricity product from WGES, Commerce Energy or others. If you want green energy and are willing to pay for it, go for it. But their offers for standard electricity are still higher than what BGE will be charging in the next year. And even if you think electric prices are going even higher, the alternative vendors don't let you lock in for more than two years. So it's not much of a hedge.

Posted by Jay Hancock at 2:20 PM | | Comments (2)
Categories: BGE/electricity
        

Comments

Jay - PLEASE do a report on Commercial customers!! They are 50% of the load. The G, GS & GL II classes will be hit harder than Residential. Consumers need to know this because it will impact what we pay for goods and services in the future.

I made the poste above with the name of shocked.

If you take the time to review Commercial rates you will be shocked.

Type 2 GL customers will be paying over 20 cents for on peak, 14.5 int and 11.5 off.

It also appears they have added 2 new rate classes; Type 2 G and Type 2 GS - probably moving large G & smaller GL customers to these rate classes.

Type 2 G summer rate 15.3

Please report on this!!!

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Wednesdays and Fridays.
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