BGE Cuts Jobs in Workforce Reduction—Maryland Utility Shrinks Staff Amid Rising Costs

As winter chills grip Maryland, Baltimore Gas and Electric (BGE) announced layoffs on December 10, 2025, just as families brace for peak heating demands. The utility, serving 1.3 million electric and 700,000 gas customers, plans to scale back certain workstreams to manage costs, leaving workers and regulators on edge amid service complaints and record profits.

Layoff Announcement Hits Workforce

BGE confirmed the cuts without specifying numbers, timelines, or savings. President and CEO Tamla Olivier, who took the role in May 2025, described the move as difficult but necessary for efficiency. The company aims to operate responsibly while bolstering long-term affordability and reliability. A spokesperson tied the decision to reduced workloads from paused projects. No line crews, gas mechanics, or emergency responders face elimination, per company statements. BGE employs about 3,100 people, making it a major regional employer.

Union sources, including International Brotherhood of Electrical Workers Local 410, indicate at least 67 positions could go, targeting gas construction, maintenance workers, mechanics, and trainees. Negotiations continue, with final details pending. The pre-holiday timing has sparked backlash over family hardships.

Regulatory Pressures Fuel Cuts

BGE points to regulatory uncertainty as a key driver. Maryland’s General Assembly passed the Next Generation Energy Act in April 2025, scrapping reconciliation processes for recovering cost or revenue variances from ratepayers. It also restricts gas infrastructure projects and bars multi-year rate plan reconciliations for filings after January 2025. These shifts limit expense recovery.

Union officials challenge the rationale, noting ongoing workloads despite a hiring freeze since June 2025 for linemen, cable splicers, and gas mechanics. They highlight BGE’s 2024 net income of $527 million, up from $485 million in 2023 and $380 million in 2022. Third-quarter 2025 adjusted operating earnings hit $82 million, nearly double the prior year’s $45 million, fueled by rate hikes.

Service Strains Mount in Winter

The announcement coincides with Maryland’s busiest heating season, raising alarms over response times. Union leaders warn that thinner staffing could delay outage fixes and force reliance on costly contractors for storms and maintenance. This comes amid a call center crisis: from July to December 8, 2025, the Public Service Commission logged over 600 complaints about long waits and inaccessibility for billing and shut-off issues. BGE paused its hold queue due to volume and pledged 30 new hires, though onboarding takes six to eight weeks.

Regulators are probing these failures. Commissioner Odogwu Obi Linton questioned short-term fixes, while the Office of People’s Counsel criticized missing data on calls and costs. Baltimore City Council, led by President Zeke Cohen, demands transparency in rate proceedings, opposing hikes without proven public benefit.

Operation Pipeline and Rate Burdens

BGE’s Operation Pipeline, a $15 billion gas replacement program from 2014 to 2043, drives much spending at $160 million annually, recovered via rates. Critics like Maryland PIRG say it prioritizes infrastructure over affordability. Customers have seen gas rates rise 50 percent and electric rates 30 percent since 2020. January 1, 2025, hikes added 9 percent to average gas bills and 7 percent to electric ones, part of a $408 million three-year plan approved in December 2023.

These moves mirror industry trends: Portland General Electric cut 330 jobs in July 2025, amid broader reductions at Verizon, UPS, General Motors, and ConocoPhillips.

Broader Implications for Utilities

BGE’s actions underscore tensions in the sector: regulatory limits, infrastructure mandates, and profit pressures often lead to workforce trims over other cuts. Unions predict contractor dependence will inflate costs passed to customers, undermining affordability pledges. As scrutiny from the Public Service Commission, advocates, and local leaders intensifies, the stakes grow for service reliability during harsh weather. Maryland families relying on BGE for heat face uncertainty, with debates over balancing shareholder returns, worker stability, and bill burdens set to shape future energy policy.