Critical BGE transmission project receives approval to move forward from state regulator

Today, BGE received state regulatory authorization to move forward with critical transmission upgrades that are required to maintain grid reliability for millions of Marylanders and others in the region when two major power plants retire. These critical upgrades will occur along existing BGE transmission line corridors, which lowers costs for customers and impacts to the environment.

"While this approval provides clarity on the immediate steps needed to maintain reliable service for our customers, the continued loss of in-state generation makes it even more important for policymakers, industry leaders, and other stakeholders to work together on sustainable, long-term energy solutions for Maryland," said Tamla Olivier, president and CEO of BGE. "We appreciate the Maryland Public Service Commission's careful oversight, and our customers will remain at the forefront throughout each phase of this project."

PJM Interconnection, an independent, federally regulated regional grid operator and planner, directed this work to BGE in 2023 after Talen Energy announced plans to retire the Brandon Shores Generating Station in northern Anne Arundel County. Later that year, Talen also announced the retirement of the H.A. Wagner Generating Station-further affirming the need to replace vital, steady power supply with power from other sources. PJM determined that absent appropriate upgrades to the electric grid, serious violations of grid safety and reliability guidelines would put millions of customers in Maryland and the mid-Atlantic region at an unacceptable risk of losing power.

In addition to ensuring electric reliability, this project will enable the permanent removal of nearly 2,000 MW of coal-fired electricity from Maryland's energy mix - enough to power 1.5 million homes - and eliminate the resulting greenhouse gas emissions and other air pollutants from our local communities.

The transmission upgrades for this project involve a significant amount of work that must occur in a short time period, including the construction of:

• Two new substations
• Three substation expansions/rebuilds
• Eight miles of transmission line rebuild/upgrades on existing rights-of way
• 29 miles of new transmission circuits on existing transmission line rights-of-way

BGE's sister Exelon utilities PECO and Pepco were also directed by PJM to upgrade the transmission system in their service territories in order to address reliability issues resulting from power plant retirements.

Maryland already imports roughly 40% of the power it uses; when Brandon Shores and Wagner retire, that number will grow to 80% and add to the growing number of generation resources that have shut down in Maryland in recent years. This lack of adequate in-state generation coupled with rising energy demand are the primary drivers of higher energy supply costs and higher energy bills for BGE customers. In addition to inadequate power supply, the transmission grid that serves Maryland is constrained in its ability to import power to meet Maryland's needs, resulting in millions of dollars in extra costs for customers. This further underscores the need for the transmission upgrades associated with the Brandon Shores Retirement Mitigation Project. BGE continues to advocate for common sense steps to bring costs under control for our customers and to secure Maryland's energy future, including appropriate transmission upgrades and in-state generation.

The project's target completion date is December 2028. To learn more about the Brandon Shores Retirement Mitigation Project, visit goodenergyinprogress.com.