Our work
Ratepayer Protection Act:
Stride Reform
Sen. Mary Washington / Del. Elizabeth Embry HB419
The Ratepayer Protection Act codifies recommendations from the Maryland Commission on Climate Change and is supported by the Maryland Energy Administration and Office of the People’s Counsel.
Without intervention, Maryland gas customers are projected to pay $40 billion for the STRIDE program over the next twenty years, driven in large part by utility profits.
BGE gas customers have seen their delivery rates triple since 2010, due in large part to STRIDE. At the same time, BGE’s profits tripled from $147 million in 2010 to $485 million in 2023.
There’s still time to protect Washington Gas customers from these massive rate hikes. But without intervention, all Maryland gas customers’ rates will continue to rise, making home heating increasingly unaffordable.
A pipe replacement program that properly prioritizes leaks would cost less, meaning smaller bill increases, while actually making us safer.
The Ratepayer Protection Act gives the Maryland Public Service Commission new tools to ensure that ratepayer dollars are spent responsibly by codifying requirements on safety and cost effectiveness.
The bill requires gas utilities to:
· Ensure gas infrastructure spending is cost effective;
· Prioritize safety by using modern leak detection technology;
· Use a “fix it first” approach;
· Consider non-pipeline alternatives to gas; and
Give gas customers 2 years notice before work so they have time to plan.
Regulators at the Maryland Public Service Commission have a responsibility to ensure Maryland’s electric and gas utilities provide reliable and affordable energy and help meet our state’s goals of reducing pollution that harms our health and climate
Our coalition is paying attention to several key conversations at the Public Service Commission including:
The Future of Gas Proceeding
We're calling on utility regulators to protect consumers by engaging in strategic planning for the future of our gas system
By joining the 12 other states engaging in strategic gas system planning, Maryland utility regulators can direct investments wisely in the projects that will lower energy bills, keep Marylandes safe, clean up our air, deliver more comfortable homes and reduce climate pollution from our buildings.
We’re working to educate the public about the proceeding and making sure the PSC hears from community voices including consumer advocates, environmentalists, public health professionals and faith leaders as they engage in strategic planning with gas utilities.
The Public Service Commission accepted Public Comments on the proposal and held hearings in July.
BGE’s Multi-Year Rate Case Pilot Program
In 2020 BGE, the largest utility in Maryland, was approved to raise rates through the multi-year rate plan (MYRP) pilot program. Multi-year rate plans allow for annual rate hikes over the course of the plan. Consumer advocates have raised concerns that the pilot program incentivized excessive infrastructure spending, shifted financial risk from utilities to ratepayers, lacked accountability, and increased rates overall.
Now that the first multi-year rate plan has concluded, the Commission has asked for feedback on the proposal from stakeholders and the public as they decide if and how to continue with Multi-Year Rate Plans.
The Public Service Commission accepted Public Comments on the proposal and held hearings on October 15th. The hearing on BGE’s 2023 reconciliation was held on October 8th and October 9th.
EmPOWER Maryland
In 2024 Gov. Moore signed a new law to update and improve EmPOWER Maryland, the state’s energy efficiency program. Under the new program utilities and the Department of Housing will continue to promote incentives and rebates to improve the efficiency of Maryland homes including home energy audits, weatherization, and efficient appliances.
Under the new law Marylanders who want to make the switch from gas to highly efficient electric heating and appliances can access incentives, just like folks who already use electricity to power their full home. The new law also adds new goals to reduce pollution inside and outside the home.
We’re working to ensure the utilities adjust their programs to meet the requirement of the new law by providing new incentives for the cleanest, most efficient technology and stopping incentives for inefficient and polluting equipment. We’re also calling on the utilities to conduct independent audits of their programs to ensure they are meeting the goals in a cost effective way and keeping costs to ratepayers as low as possible.
Public comments were due on October 15th with a hearing scheduled for October 22, 23 and 24th in the Frank O. Heintz Hearing Room, 16th Floor, William Donald Schaefer Tower, 6 St. Paul Street, Baltimore, Maryland.
PSC Public Conference (PC) 59
Residential low-income affordability design
Maryland’s Public Services Commission (PSC) is considering implementing a new rate design for limited-income families. The PSC is addressing high energy burdens based on HB606 (Electricity and Gas - Limited-Income Mechanisms and Assistance) which passed in 2021.
In Maryland, there are roughly 450,000 low-income accounts, defined as households living at or below 200% of the federal poverty level. HB606 made it legal for regulated utilities to charge different rates to different classes of residential accounts. The PSC hosted two days of hearings with stakeholders who explained why energy burdens are high and growing, along with solutions. We are now waiting to see if the PSC opens a Working Group and issues clear guidelines and definitive timelines to address this issue.