Utility seeks boost in rates Average power, gas bill would increase $8.12

September 25, 1992|By Ross Hetrick | Ross Hetrick,Staff Writer

Baltimore Gas and Electric Co. today filed a request with the Maryland Public Service Commission seeking a $169.4 million rate increase for electric and gas service, which would add $8.12 to the average customer's monthly bill.

The rate request would boost the company's electric revenues by $163.8 million, or 8.6 percent, and natural gas sales by $5.6 million, or 1.5 percent. For an average household using 600 kilowatts of electricity and 90 therms of gas monthly, the proposed changes would increase the electric bill by $6.79 to $62.95 and the gas bill by $1.33 to $54.75.

BG&E received its last base rate increase in December 1990, when the commission approved a $149 million boost.

The major portion of the new request is to cover $106 million for higher capital investment and increased operating expenses that result from inflation and new regulation, BG&E said. The company also cited a $10 million expense for property taxes paid its Brandon Shores Unit 2 power plant in July and $8 million for expenses connected with the proposed expansion of its Perryman generating facility in Harford County.

Two other expenses, totaling $45 million, are for accounting changes that do not involve actual expenditures of cash. These changes involve revamping the BG&E's depreciation methods and implementing a new accounting standard that requires the company to account for post-retirement health benefits before they are actually paid.

The company said it is earning below its authorized 9.94 percent rate of return.

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