(WBFF) — The Maryland Public Service Commission (PSC) recently released a decision denying Baltimore Gas and Electric (BGE) about half of the money they were trying to recoup from projects. Now, many Baltimore leaders and advocates are applauding that decision.

“We thought that they did exactly what they’re there for, to ensure that BGE shows true transparency, and when they’re not transparent with their information, that they’re not going to get a recovery on their costs,” said Brian Terwilliger, the Assistant Business Manager for IBEW LU 410.

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While BGE requested $152.3 million, the Commission’s order instead only granted them $77.2 million. That will result in a a monthly bill impact of about 72 cents for the average residential electric customer and $1.95 for the average residential gas customer beginning in February 2026 and extending through the end of 2027. However, those rates could have been higher had the PSC approved the full amount.

“Although we are disappointed that the Commission did not deny the request in full, we are relieved that the Commission took a hard look and denied a substantial portion of BGE’s request, relying in many cases on evidence we presented,” said David Lapp, the Maryland People’s Counsel.

While the order acknowledged rising energy costs and the increased burdens on customers, the order also said BGE’s request was twice as much as what they were granted for the 2021 and 2022 multi-year rate plans combined.

“BGE’s requested 2023 reconciliation amount, when combined with the previously approved reconciliations for Year 2021 and Year 2022, is egregiously excessive and would result in the type of rate shock to ratepayers that the Commission wanted to avoid,” the order said.

BGE spokesman Nick Alexopulos said there were many reasons why BGE’s request was much higher than in previous years, including inflation and supply chain issues.

“That’s what the commission determined, this is how the process works. When we made this filing we were absolutely confident and we maintain our confidence that this work was done prudently and that it was necessary,” Alexopulos said.

The Commissioners also scrutinized some of BGE’s work on gas main replacements, saying, “The Commission finds that the Company did not clearly demonstrate whether it explored other avenues of cost containment to stay within budget while maintaining quality of service, nor did it show that without this exceedance of the budgeted amount that the Company would jeopardize its delivery of safe and reliable service.”

“There’s no price you can put on safety, and while we absolutely have an obligation to manage our costs, which we do, we have an equally important obligation to invest in the system where it is riskiest, and that’s what we are doing,” Alexopulos said.

However, Baltimore City Council President Zeke Cohen applauded the decision. He said he would continue to push for the PSC to freeze rates.