Advocates: Maryland utility regulators must plan for affordable clean energy future, initiate future of gas proceeding

BALTIMORE — A coalition of more than 30 public health, consumer, community, environmental justice, and climate advocates urged the Maryland Public Service Commission to protect residents from the growing costs of Maryland’s aging methane gas pipelines and unlock funding to jumpstart an equitable transition to clean, efficient electric equipment at a public hearing today.

Since 2010, Baltimore Gas & Electric and Columbia Gas customers have seen their delivery rates more than triple, far outpacing the rate of inflation thanks to excessive gas utility spending, according to a recent report from the Maryland Office of People’s Counsel. Without intervention from the state’s utility regulators, Maryland households could see their monthly bills more than double in the next 10 years.  

Maryland has set ambitious targets to achieve carbon neutrality by 2045. Rather than continue to spend billions on aging methane gas pipelines that will soon become obsolete, the Public Service Commission must begin an equitable transition toward healthier, more affordable homes by beginning a future of gas proceeding. 

The coalition of groups called on utility regulators to open up a proceeding to plan for the future of gas to smooth the transition and help Maryland residents access lower energy bills, cleaner air, and more comfortable homes: 

“The continued use of methane gas in our homes not only prevents our state from reaching its ambitious climate goals, it also places massive financial and health burdens on Maryland residents,” said Josh Tulkin, Director of Maryland Sierra Club. “A future of gas proceeding is critical to begin transitioning toward highly efficient, healthier, and cleaner electric equipment that will propel Maryland toward reaching its ambitious climate targets in the coming decades.”

“Marylanders have been forced to pay outrageous delivery rates to pay for excessive gas utility spending for too long,” said Emily Scarr, Director of Maryland PIRG Foundation. “As more and more Marylanders make the choice to switch to efficient electric heating, there’s no time to waste to stop this outsized spending and escalating costs. State regulators must act immediately to plan for short and long term needs of our gas system. If we fail to plan, we plan to fail.”

“For years, unchecked expansion of methane gas pipelines has contributed to dangerous living environments for Maryland households, especially Black, Brown, and low-income families,” said Ruth Ann Norton, President & CEO of Green & Healthy Homes Initiative. “Everyone in Maryland deserves access to a home that is healthy, safe, and nurtures their wellbeing. To make that a reality, it is imperative that utility regulators initiate a future of gas proceeding that will allow our state to make tangible strides towards cleaner, healthier living homes and justice for all communities.” 

“Without proper planning, low-income Marylanders who can least afford it will be stuck with unaffordable energy bills to pay billions for stranded gas infrastructure,” said Monica O’Connor, Co-Chair of the Maryland Legislative Coalition Climate Justice Wing. “By opening this proceeding, utility regulators have a tremendous opportunity to shift investments from outdated fossil fuel infrastructure towards upgrading our communities with clean and efficient heat and power to the benefit of our pocketbooks, our health, and our planet.”

“There is no future for gas burning in a healthy and liveable future,” said Joelle Novey of Interfaith Power & Light (DC.MD.NoVA), “and our communities know this because we’ve been measuring the pollution ourselves, including unhealthy levels of nitrogen oxide in hundreds of Montgomery County kitchens. The Public Service Commission faces a choice between those of us who breathe and those who wish to profit by continuing to sell us gas to burn. Maryland’s utility regulators must reckon with the reality that gas is the past, and begin a managed, phased transition to cleaner, more affordable energy solutions that will cut climate pollution, clean the air indoors and outdoors, and save families hundreds of dollars each year.” 

“Each of the past 13 months have ranked as the planet’s hottest since records began. This trend is just one of many worrying signs that climate change is here,” said Anne Havemann, Deputy Director of the Chesapeake Climate Action Network (CCAN). “The scientific community is clear that society must move away from fossil fuels and gas combustion as swiftly as possible to avoid the worst effects of climate change. The Maryland General Assembly likewise recognizes the urgency of moving away from fossil fuels. Yet Maryland’s gas utilities continue to seek approval of capital investments that lock in our dependency on fossil fuels. Immediate intervention by the Commission is needed to align gas utility operations with Maryland’s climate goals.”

“Currently, billions of dollars are being spent on gas infrastructure in Maryland,” said Bryan Dunning, Senior Policy Analyst at the Center for Progressive Reform. “This must be paid off by ratepayers over the lifespan of the projects, plus a utility-profit premium – typically in excess of 40 years. However, this timeline reflects neither the state’s carbon neutrality goals, nor the economic realities of Marylanders already shifting away from gas. The future of gas proceeding is necessary to ensure current and future energy investments reflect the priorities of Marylanders, and not leave them paying for decades for a “bridge to nowhere.”

“The aggressive trajectory of gas company spending on infrastructure will increase the energy burdens for struggling Marylanders,” said Olivia Wein, senior attorney at the National Consumer Law Center (a member of the Maryland Energy Affordability Coalition (MEAC)). “In this important utility commission proceeding (Case Number 9707) the Commission has the opportunity to take a comprehensive look at the gas transition in Maryland and immediately act to mitigate unaffordable and inappropriate bill increases.”

“CASA has over 100,000 rate paying members in the state of Maryland,” said Jose Coronado Flores, Research and Policy Analyst at CASA. “Our members are overwhelmingly low-income renters who occupy apartments that utilize natural gas. Our community does not support extreme investments in gas infrastructure that are recovered through higher rates on their utility bills. Additionally, living in aging, inefficient, and un-weatherized housing puts an additional cost burden for the price of gas on our members. It’s time to end investments in infrastructure that we are committed to phase out and end the disproportionate cost on low-income rate payers.”

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