Gov. Wes Moore (D), in Annapolis Thursday, touts a $19 million donation from Exelon to help low- and middle-income ratepayers hit by steadily rising power bills. (Photo by Christine Condon/Maryland Matters)
The parent company of BGE, Pepco and Delmarva Power will distribute $19 million to help its low- and middle-income customers in Maryland pay their bills, as rates continue to rise, it announced Thursday.
Exelon’s one-time donation to its Customer Relief Fund will be split between local nonprofits to actually distribute to customers in need. It’s part of a larger $50 million Exelon donation spread out between the states the company serves.
During an event Thursday at the Salvation Army of Annapolis, Maryland Gov. Wes Moore (D) cheered the Exelon program and added that he hopes to take future steps regarding climbing energy costs.
“This is not a final step, but it’s an important continuation of the work that we are doing to provide relief to Marylanders who need it the most,” Moore said. “Maryland is ready to lead the country in what it means to put our people first.”
Consumer advocates welcomed the announcement, but put it in perspective.
“It’s welcome news that the Exelon Corp. is donating $19 million to direct relief for Maryland ratepayers. But let’s not forget that Exelon and its subsidiaries have been driving affordability problems in the first place through relentless rate hikes,” said Emily Scarr, a senior advisor for the nonprofit Maryland PIRG, which advocates for ratepayers.
She argued that Exelon’s rate hikes, outpacing inflation, have led to “massive profits and unaffordable home heating and cooling.”
In a news release announcing the program, Exelon President and CEO Calvin Butler blamed the high energy bills on “increased supply costs.”
“The Customer Relief Fund, in addition to our existing year-round programs supporting customers with energy assistance, once again demonstrates Exelon’s commitment to our communities,” Butler’s statement said. “We continue to work with federal, state and local officials to develop long-term solutions that ensure customers affordable, reliable and sustainable energy.”
The moves come as Maryland ratepayers brace for the latest blow to their monthly utility bills.
In the coming months, customers will feel the effects of a record-setting energy capacity auction at PJM Interconnection, which operates the electricity grid serving Maryland, Washington D.C. and a dozen other states.
As a result of the auction, in the year beginning June 1, utilities and retail suppliers of energy will pay $14.7 billion for electric capacity, a jump from the $2.2 billion the previous year — which will flow down to consumers.
Some are blaming PJM for botching the auction by failing to accurately evaluate the amount of power already available, driging up costs. They also say its policies have constrained supply at a time of increasing demand, by preventing renewable energy from coming online quickly.
Moore, standing beside BGE and Pepco officials during his remarks, zeroed in on PJM.
“It is unacceptable that inefficient and outdated processes at PJM are leading to bill increases — not just in Maryland, but across all 13 states and D.C.,” he said.
But ratepayer advocates argue that utility companies, including Exelon, have contributed to the energy affordability crisis as well, in part because of overzealous infrastructure spending.
They point to the “distribution” charges on electric bills, which fund substations, poles, wires, trucks and other equipment for their local utility. Between 2010 and 2024, the distribution rates for Exelon utilities Delmarva Power and Pepco more than doubled, well outpacing the rate of inflation; by comparison, Potomac Edison rates increased with inflation, according to a June report from the Maryland Office of People’s Counsel.
Whatever the cause, prices keep rising, and customers keep falling farther behind: At BGE, for example, residential customers were recently $171 million in arrears, compared to $97 million just last June.
At Thursday’s event in Annapolis, BGE CEO Tamla Olivier said that addressing the high energy burden in Maryland will require participation from a number of stakeholders.
“We’re not going to be able to solve this as a utility, the state alone or competitive markets alone. It will take all of us together to make sure we are serving the needs of our customers,” Olivier said.
United Way of Central Maryland will administer $15 million of Exelon’s Customer Relief Fund for BGE customers, and the Salvation Army will administer $2.5 million for Pepco customers. Delmarva Power customers will receive $1.5 million, distributed by the Harford Community Action Agency, Shore UP! and the Salvation Army.
Eligibility requirements and distribution methods will differ from utility to utility, said Exelon’s news release, which encouraged customers to visit their local utility’s website for more details. It said eligible customers “may see as much as several hundred dollars in relief.”
Franklyn Baker, president and CEO of the United Way of Central Maryland, said energy bills have been a frequent source of calls to its 211 hotline for assistance with food, health care, rent or mortgage, utility or other bills, and child care.
“We continue to see a rise in the number of calls to 211 related to energy assistance,” Baker said. “And especially as summer heat intensifies everyday costs rise, and the cost of utilities will be a burden that many in our community will not be able to carry, including some — listen to this — who have never applied for assistance before.”
Maryland electric customers can expect to pay anywhere from an extra $4 to $18 a month, according to the Office of People’s Counsel report. It said SMECO customers will see increases starting June 1, while Pepco and Delmarva Power customers will see bills go up in August and Potomac Edison customers will get hit in their October bills.
The Exelon fund is not the only effort to shave costs for customers. The Maryland Public Service Commission recently ordered BGE to spread its costs increases over several months to blunt the impact.
And state lawmakers in the last legislative session tapped a renewable energy fund for $200 million, which will be used top give credit directly to ratepayers. The one-time payments are expected to average $80, split between a bill in the summer and another in the winter.
The rebate was part of a larger package of energy reforms, which also created a “fast-track” permit process at the PSC for new power generation and battery energy storage technology.
Moore, who who signed the bill in May, said that the newly announced $19 million “goes hand in hand” with the legislature’s rebate.
But in response to a question from a reporter, Moore said that lawmakers “didn’t go far enough” to incentivize new power generation, noting that a bill that his administration introduced, to boost nuclear power in the state, did not advance.
“We introduced legislation this year that would have allowed more nuclear into the state, that would have allowed nuclear to be seen as a clean energy source, which it is,” Moore said. “I’m proud of the work we did in partnership with the legislature, but I want to be crystal clear: It did not go far enough.”
by Christine Condon, Maryland Matters
June 13, 2025
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