Customers urged state regulators Thursday to reject a rate hike sought by Baltimore Gas and Electric Co., saying the proposal is primarily designed to cover the cost of a smart-meter program that customers didn't want and that isn't saving them money.

BGE asked the Public Service Commission in November for the rate increases, which are expected to boost the average customer's bill by about $15 a month. The utility says they are driven primarily by costs incurred during the installation of its new smart-meter system.

It is BGE's fifth request to raise rates since 2010 — and one many customers cannot afford, said the Rev. Alvin Gwynn Sr., president of the Interdenominational Ministerial Alliance.

“People can't even afford to pay the bills that they have,” he said. “Why they're asking for another rate hike is beyond me.”

BGE won approval in 2010 to create a smart grid, replacing analog gas and electric meters with wireless ones. The company has told the PSC it has spent about $344 million on the system so far, after taking into account a government grant.

The utility says the wireless system means BGE can measure usage more efficiently while enabling customers to monitor their habits and find ways to cut back. The company has estimated that for every $1 spent on deploying the smart grid, customers save about $2.50 through programs such as Energy Savings Days, when customers can receive bill credits if they reduce their usage.

Ratepayers who spoke at the hearing said they are skeptical about BGE's claims. They also said they are worried about the health and security risks of using a smart grid.

“I think that this is an outrage,” said Theodora Scarato. “Why is the public being charged $15 to subsidize a meter program that no one ever said they wanted?”

The Office of the People's Counsel, a state agency that represents residential consumers of utilities, has also challenged the proposed rate increases, saying the costs of the deployment are greater than the benefits to customers over a 10-year period. The office recommended smaller increases in the gas and electric rates.

Thursday's hearing was the fifth and final public comment session. The PSC, which has received thousands of pages of testimony on the subject, is expected to decide on the request in June.

Some who spoke Thursday said they supported the request. Charles Tildon, speaking on behalf of United Way of Central Maryland, said the organization backed the increase, citing BGE's charitable giving.

Charles R. Owens, president of the Baltimore City Chamber of Commerce, also spoke in favor of the rate increases.

“If businesses are to locate in Baltimore, grow and thrive in Baltimore, they must have reliable infrastructure to support their businesses, including dependable gas and electric services,” he said.

Before the hearing, about a dozen people gathered at the corner of St. Paul and Baltimore streets, chanting, “Hey ho, hey ho, utility greed has got to go!” as they distributed bright-orange fliers about the rate increase request to drivers.

“No way!” exclaimed one man in a pickup truck.

BGE provides electric service to more than 1.25 million customers and gas service to 650,000 in Baltimore and 10 counties in Maryland. The company generated $275 million in profits for shareholders in 2015, up 38 percent from the previous year as expenses declined, according to a federal filing by parent company Exelon.

nsherman@baltsun.com