To end relentless rate hikes, Maryland legislature must stop wasteful utility spending

Maryland’s STRIDE program and multi-year ratemaking incentivize overspending by utilities, boosting corporate profits and raising costs for consumers

BALTIMORE — Today the Maryland General Assembly Economic Matters and Education, Energy, and the Environment Committees held a joint briefing on rising utility prices. 

The Ratepayer Protection Act (HB419/SB998) will be heard in the Senate on Thursday, March 13. The bill aims to improve pipeline safety and protect gas customers from excessive utility bills. Capital spending has caused BGE gas delivery rates to nearly triple since 2010; customers are now paying BGE $2 for delivery for every $1 spent on gas to heat their homes, and twice as much in delivery than customers in Washington Gas territory.

In response to this briefing, Maryland PIRG Senior Advisor Emily Scarr released the following statement on behalf of the Upgrade Maryland coalition: 

“Marylanders are struggling with unaffordable bills after years of utilities’ wasteful capital spending. Unlike most other Maryland utilities, Exelon-owned utilities BGE, Pepco and Delmarva Power have seen their delivery rates rise faster than the rate of inflation over the past decade, while Exelon profits in Maryland escalated to over $900 million in 2024. 

“If our state leaders want to end these relentless rate hikes, they must stop profit driven utility spending that is needlessly increasing our bills.

“The Ratepayer Protection Act will reform STRIDE, helping to stop wasteful spending and prevent future rate increases for all Maryland gas customers. The legislature should pass the Ratepayer Protection Act and end muli-year ratemaking. Both of these programs have exacerbated the utilities’ incentive to overspend by virtually guaranteeing utility profits.

“Now is the time for the state legislature to intervene.”