Total bill down by nearly 17 percent since 2009
BALTIMORE, April 26, 2011 – Baltimore Gas and Electric Company (BGE), today announced that residential customers who purchase their power from the utility, under Standard Offer Service (SOS) rates, can expect to see a year-over-year decrease of approximately 14 percent in the commodity portion of their bill beginning June 1, 2011, based on new supply contracts approved by the Maryland Public Service Commission on Friday, April 22, 2011. The projected decline follows a similar decrease in June 2010 and collectively results in a 24 percent reduction in the commodity cost of electricity, from 12.0 cents per kilowatt hour (kWh) in June 2009 to 9.2 cents per kWh, beginning in June 2011. For the typical residential customer, this equates to a savings of $28 per month or $336 per year. These annual rates are a blend of summer and non-summer rates. Combined with delivery costs, BGE’s residential customers will see a decline in their total bill of approximately 17 percent.
“For nearly three years, wholesale energy prices have been trending downward and BGE customers continue to reap the benefits of those significantly lower market prices,” said Kenneth W. DeFontes, Jr., president of BGE. “These lower prices not only benefit BGE customers who purchase their power from the utility, but BGE customers who alternatively choose to purchase power from a third-party supplier may be able to save even more. Third-party suppliers may also offer opportunities to purchase “green” energy supply. Regardless of whether customers participate in electric choice or remain with BGE for their electricity supply, today’s announcement is more evidence that competition is working in Maryland.”
Customers who choose to purchase their power from competitive retail energy suppliers are also likely to benefit from the continuing decline in wholesale energy prices. More than 224,000 BGE residential customers are shopping for electric suppliers.
BGE purchases power for its residential customers in multiple auctions to help minimize price volatility. BGE conducted its latest auction for wholesale electric supply last week, and has now secured 100 percent of its electric supply for the period June 1, 2011 through May 31, 2012. As a result, BGE residential customers can expect their total electric bill to decrease by about 11 percent, effective June 2011. This decrease is on top of the decline in rates which occurred in June 2010, for a cumulative bill decrease of approximately 17 percent since 2009.
Customers have the additional opportunity to further reduce their energy bills by taking advantage of BGE’s Smart Energy Savers Program®. This program includes bill credits for participation in PeakRewardsSM; rebates and price mark-downs on energy efficient appliances and lighting; and Quick Home Energy Check-ups and Home Performance with ENERGY STAR® - services that help customers identify opportunities for making their homes more energy efficient. In the past several years, BGE customers have reduced their average energy consumption by more than 6 percent.
“Customers are taking full advantage of these programs and recognize the significant savings they offer,” said Mark D. Case, senior vice president of strategy and regulatory affairs for BGE. “More than 440,000 peak energy conservation devices have been installed in customers’ homes and more than 7 million reduced-price compact fluorescent light bulbs have been sold at participating retailers. Additionally, more than 17,000 customers have taken advantage of BGE’s Quick Home Energy Check-ups or Home Performance with ENERGY STAR programs and discovered new opportunities for making their homes more energy efficient. These programs also support EmPOWER Maryland’s goal of reducing energy consumption 15 percent by 2015.”
Non-residential customers are also benefiting from lower commodity prices. BGE projects small commercial customers - typically businesses similar in size to a convenience store – will see a decline of approximately 20 percent in June 2011 compared to June 2009.
BGE, www.bge.com, headquartered in Baltimore, is Maryland’s largest gas and electric utility, delivering power to more than 1.2 million electric customers and more than 640,000 natural gas customers in Central Maryland. The company’s approximately 3,000 employees are committed to the safe and reliable delivery of gas and electricity, as well as enhanced energy management, conservation, environmental stewardship and community assistance. BGE is a subsidiary of Constellation Energy, www.constellation.com, a FORTUNE 500 company also headquartered in Baltimore, with subsidiaries that generate, sell and provide other energy-related services to customers throughout North America.