BGE Offers Solutions to Modernize and Strengthen the Electric Grid

Click here to view the news release in: Spanish,Russian

BGE has submitted a new proposal under the 2024 Distributed Renewable Integration and Vehicle Electrification (DRIVE) Act to help modernize Maryland's electric grid. The plan makes use of technology like home battery storage, electric vehicles (EVs), and other smart devices to strategically support BGE's distribution grid. By joining the program, customers can earn incentives for allowing BGE to temporarily adjust how these devices use electricity during times of high energy use. This helps keep the grid running smoothly and lowers energy costs. The DRIVE Act proposal is a key part of The Exelon Promise : working for long-term solutions that keep energy affordable for Maryland families and businesses.

BGE's proposal is in response to the DRIVE Act and includes the next-generation implementation of load management programs for the purpose of reducing electricity use and increasing customer affordability. Energy markets have changed; BGE's proposal would innovate operations working to reduce capacity by utilizing dispatchable flexible resources. This would reduce strain on the electric grid and help keep energy costs affordable for customers.

In addition to the expanded capabilities offered in BGE's proposal, the DRIVE Act presents the opportunity to align with BGE's existing load management programs (currently filed under EmPOWER Maryland) by bringing them into the DRIVE Act. This will allow for more cohesive program implementation, more transparent evaluation and oversight, and a streamlined customer experience.

With supply costs continuing to rise, the DRIVE Act allows utilities to create a virtual power plant (VPP) that connects customer-owned devices, like whole-home battery storage systems and EVs, to help balance the grid during high-demand periods, which ultimately lowers costs on consumers' bills. VPPs in California and Puerto Rico have shown to maintain system reliability and avoid outages by engaging directly with customers to optimize their usage in a way that benefits grid operations.

BGE's primary goal is to help ensure all the communities it serves benefit from these grid modernization efforts. By investing in the future of Maryland's energy infrastructure, BGE is committed to delivering reliable, affordable, and sustainable energy solutions.

"BGE's proposed solutions give customers more tools to manage their energy use, save money, and support a cleaner, more resilient grid," said John Frain, vice president of Regulatory Policy and Strategy at BGE. "Advancing time-of-use options, on-site renewables, and virtual power plant technology can strengthen reliability while expanding customer choice - key priorities for BGE as we support Maryland's energy future."

Benefits for Maryland customers:

• Lower Peak Energy Costs: The program helps control long-term energy costs by reducing strain on the grid during high-demand periods.

• Customer Incentives: Incentives will be available for both residential and commercial customers who participate.

• More Ways to Participate: Customers can enroll with whole-home battery storage systems, EVs, and other flexible energy resources.

Benefits beyond energy savings:

• A More Resilient Grid: Up to 188 MW (enough to power about 125,000 homes) of flexible load resources from participating customer devices will be directed to reduce system peaks and, in limited scenarios, even export power from customer batteries and EVs to the distribution grid. Flexible load resources also support grid stability during extreme weather events.

• Cleaner Energy Future: By participating in BGE's VPP, customers will be incentivized to reduce usage and provide benefits to the grid, which can help encourage more customers to purchase these devices.

If BGE's proposal is approved, customers may enroll and earn incentives during the two-year pilot. Results from the pilot will inform future permanent programs and support Maryland's long-term goals for reliability, affordability, resilience, and clean energy. A hearing to review BGE's proposal with the PSC is scheduled for April 7 and 8, 2026.