Our say: Conservation may be only real way to cut electric bills | Maryland Gazette (HometownGlenBurnie.com)

This time it was the welcomed news that a rebate negotiated by the General Assembly last year meant a one-time savings of $170 per customer of Baltimore Gas and Electric. Before consumers could count their money, BGE announced a rate hike that will cost its 1.1 million ratepayers an average of $96 more a year.

Without the rebate, the damage would have been worse. Still, the rising electric costs are causing some mean hurt on the pocketbook.

The rebate was a settlement with Constellation Energy, BGE's parent company, and ends the lawsuits between it and the state. About $1.5 million has been eliminated in decommissioning costs and $347 million in consumer credits will be preserved. As a result of a complaint filed with the Public Service Commission, ratepayers will save another $225 million in payments between June 2011 and May 2012.

The federal and state governments have been successful in holding the electric supplier accountable for their pricing - but their aggressive action doesn't prevent BGE from hiking its rate every year. For that we have deregulation to blame. Electric customers enjoyed low rates for years because the industry was regulated by the state. Once those regulations were removed in 2006, BGE raised their rates 72 percent - an average of $743 a household - just to catch up. So much for deregulation.

But the rate increases didn't stop with that catch-up rate. This year BGE announced rates would increase another 7.6 percent in June, a higher amount than anticipated because of rising costs for oil, natural gas and nuclear power.

Gas prices are closing in on $4 a gallon. Milk, eggs and other grocery items are rising - a global shortage of grains is even pushing up prices of bread and other products too.

Government can't solve this problem with tax rebates and subsidies, but it can look for ways to make the electric industry more competitive. In the long run, for instance, auctioning the state's electric business may help to manage prices. But there is no short answer - despite the posturing of politicians - to contain these escalating prices.

The best recourse for consumers is better conservation. Lowering the thermostat and reducing the use of air-conditioning and lights will make a difference - however small.

We suspect people are driving less because of rising gas prices. It is about time we respond to rising electric rates the same way.