Advocates: EmPOWER Maryland energy efficiency program provides savings to consumers

BALTIMORE — A coalition of consumer, public health, community, environmental justice and climate advocates today applauded the latest evidence demonstrating how EmPOWER Maryland continues to cost-effectively deliver meaningful savings for residents at a hearing before the Maryland Public Service Commission (PSC). According to semi-annual filings, the EmPOWER Maryland program has helped Marylanders reduce energy waste and lower their monthly bills, with the majority of utilities hitting their goal of 2% energy savings in 2024. The  EmPOWER program saved enough energy to power more than 128,900 homes for a year, with greater benefits for households expected once the program is strengthened under the EmPOWER Maryland Energy Efficiency Act of 2024.

The expanded adoption of heat pumps for home heating and cooling has proven to be a cost effective way to reduce energy waste and lower monthly bills. As demonstrated by the semi-annual reports, heat pumps contributed 59% of the energy savings from HVAC rebates while central air conditioners only contributed 10%. In order to comply with the 2024 law, the utilities are rolling out new, stronger incentives for home weatherization, heat pumps, and other efficient electric equipment to help customers, and especially those who have gas heat, to lower bills, reducing energy waste and pollution. As the program moves to a GHG goal, there is even less reason to continue central AC rebates since there will be greater opportunity to achieve savings goals through fuel switching to heat pumps.

According to reports submitted to the PSC, Maryland utilities largely overperformed their 2024 MWh savings targets at a fraction of the projected cost, ranging from 104% of target goals for Delmarva, 115% of target goals for Baltimore Gas & Electric (BGE), and 147% of target goals for Washington Gas Light (WGL). Utilities delivered these savings despite spending far less than their projected program costs, ranging from 55% of the forecast for Potomac Edison to 76% of the projected cost for WGL. 

As an efficiency program, EmPOWER continues to reduce Maryland’s peak energy demand by improving building efficiency, providing rebates for the highest efficiency appliances, and incentivizing energy saving behaviors on the days when electricity is most expensive. Utilities and DHCD reported that its EmPOWER programs reduced peak electrical demand in the summer by 1,000 MW in 2024, equal to up to three gas peaker plants. This saves all ratepayers from the costs of building new transmission lines and using the most expensive power plants.

In order to ensure EmPOWER Maryland continues to maximize benefits to consumers at a minimum cost, advocates filed comments calling on the Commission to pursue an independent cost review of utility programs to allow informed decisions about appropriate program spending going forward. 

In reaction to today’s hearing, the Upgrade Maryland coalition released the following statements: 

“It’s promising to see utilities deliver energy savings to Maryland residents well over their targets, resulting in healthier, more affordable communities,” said Ruth Ann Norton, President & CEO of Green & Healthy Homes Initiative. “It is important that EmPOWER Maryland continues to maximize savings for consumers. The Public Service Commission must take common sense steps to establish independent oversight of program spending to ensure utilities pursue the most cost-effective strategies to not just improve efficiency, but help residents secure healthier homes.” 

“The EmPOWER Maryland energy efficiency program continues to be worth its weight in gold. That value will only increase as utilities are incentivized to provide more support for customers who use gas heat, including incentives for weatherization and for heat pumps and heat pump water heaters,” said Emily Scarr, Director of Maryland PIRG Foundation. “Going forward, the Commission can ensure the utilities are delivering even more savings at lower costs by stepping up its oversight and utility accountability.” 

“Since its inception in 2008, EmPOWER Maryland has saved ratepayers $4 billion on their energy bills through measures to improve energy efficiency, and the most recent utility filings demonstrate the program continues to be a smart investment,” said Josh Tulkin, Director of the Maryland Sierra Club. “Thanks to the passage of critical reforms to EmPOWER Maryland in 2024, residents will now have access to even greater incentives for home energy audits and upgrades to efficient electric equipment like heat pumps that improve home comfort and help Maryland reduce greenhouse gas emissions.”

“The data makes it clear: EmPOWER is working,” said Monica O’Connor, Co-Chair of the Maryland Legislative Coalition Climate Justice Wing. “By modernizing homes with highly efficient electric equipment such as heat pumps, Maryland is making incredible strides to cut down on climate pollution while reducing energy costs at the same time. The program’s impact, which will only grow thanks to recent legislation, will especially pay dividends for environmental justice communities where residents disproportionately suffer from high energy burdens and unhealthy air quality.”  

“Burning gas indoors is making it harder for Maryland families to breathe,” said Joelle Novey of Interfaith Power & Light (DC.MD.NoVA). “We know gas-burning equipment is harmful because we’re measuring its pollution ourselves. We’re encouraged to see in the latest utility filings that the EmPOWER program is helping Marylanders shift to highly efficient electric heat pumps, and it’s time to double down. For all that has breath, let’s work together to make sure every Maryland family can breathe clean air at home.”

“Despite utilities failing to fully back EmPOWER, the program is paying dividends for Maryland, helping slash climate pollution by upgrading homes with highly efficient heat pumps,” said Anne Havemann, Deputy Director of the Chesapeake Climate Action Network (CCAN). “With the climate crisis already affecting Maryland—from stronger storms to extreme heat—it’s encouraging to see that EmPOWER’s impact will only grow thanks to recently passed legislation. Stronger incentives for heat pumps and other efficient electric equipment will help accelerate adoption of clean energy technology, helping our state further address climate emissions and build household resilience to extreme weather threats.” 

“Businesses and investors supported the 2024 reforms to the EmPOWER program because they know that efficiency upgrades are the best and most cost-effective way to deliver more affordable and reliable power across the state,” said Jeff Mauk, Director of Eastern State Policy at Ceres. “We are heartened — but not surprised — to see that this program is delivering real financial benefits for Maryland residents, businesses, and the entire state economy.”