POLITICS OF POWER II:

Introduction

GAS AND ELECTRIC UTILITIES distribute energy to Maryland homes under a state-granted monopoly. These companies are able to pass costs on to energy consumers without fear of losing business to competitors.

For investor-owned utilities, this means stable, consistent return on investment. In return for this advantage, regulated utilities have an obligation to serve the public good by providing safe, affordable, and reliable utility service.

Because they have no market competition for the distribution of energy to our homes, utilities are regulated by the state, with the legislature and the Maryland Public Service Commission overseeing the companies’ operations and approving the costs they charge their ratepayers as well as the authorized rates of return on their investments. This places our utilities in a unique position in which the state has direct control over how much profit they are authorized to deliver to their shareholders. This dynamic makes utilities’ political dealings more vulnerable to corruption or the perception of corruption in the public’s eye. It’s therefore of utmost importance that utility activities designed to influence the actions of decision-makers and public opinion happen with clear guidelines and with robust transparency in the decision-making and ratemaking process.

This white paper takes a look at the scale of direct lobbying by regulated utilities, as well as other activities that can be reasonably categorized as intended to shift public opinion and influence decision-makers. By understanding what kinds of activities regulated utilities engage in to directly influence policy or shape public opinion, Marylanders, regulators, and decision-makers can arm themselves with the facts that will allow them to hold regulated utilities accountable for staying focused on the public good.

Understanding Regulated Utilities in Maryland

THERE ARE FOUR MAJOR ELECTRIC UTILITIES which supply electricity to Maryland homes, as well as a set of electric cooperatives and municipal electric utilities. In addition, there are three major gas utilities, as well as smaller, for-profit and municipal gas providers. All of these utilities are regulated by the Maryland Public Service Commission. 

Three of the four largest electric utilities and the largest gas utility are subsidiaries of the Exelon Corporation–Baltimore Gas & Electric (BGE), Delmarva Power & Light, and Potomac Electric Power Company (Pepco).

The Exelon Corporation is a publicly-traded holding company with nearly $22 billion in annual operating revenue and more than 10 million customers. Its subsidiary BGE is Maryland’s largest regulated electric and gas utility, and had revenues of more than $4 billion and income of $527 million in 2024. PEPCO, Maryland’s second largest electric utility, had revenues of more than $3 billion and income of $390 million in 2024

Utility Political Spending

This white paper looks at utility political spending inteded to shift public opinion or influence decision-makers, including lobbying and lobbyist registrations, sponsored events, advertising and trade association dues.