Coalition applauds Maryland Senate’s vote to advance Ratepayer Protection Act and rate hike protections

Measures by General Assembly can rein in utilities’ wasteful spending, protect consumers from future rate spikes

Annapolis — On Thursday the Maryland Senate Energy, Education and Environment Committee advanced bipartisan legislation to lower energy costs for Maryland residents and increase utility accountability by making much-needed reforms to both costly gas pipeline spending and flawed multi-year rate plans. The bill now heads to a full vote in the Senate and it will need to have final approval by both chambers on or before April 7th. 

“Adding safety and consumer protection guardrails on gas pipeline spending and rate hike proposals is a victory for Maryland gas and electric customers,” said Emily Scarr, Senior Advisor at Maryland PIRG. “While we continue to question the need and consumer impact of fast tracking gas and nuclear power, we urge the legislature to send these consumer protection provisions to Gov. Moore as soon as possible and keep up the work to stop wasteful utility spending that is driving up our bills.” 

Provisions of the Ratepayer Protection Act (SB998/HB0419) and Ratepayer Freedom Act (HB960) were amended into the Next Generation Energy Act (SB937/HB1035), along with rebates to provide direct relief on energy bills. When the committee reviewed the bill earlier in the week, they discussed language to direct the Maryland Public Service Commission (PSC) to reject multi-year rate hikes if they do not “demonstrate a definite cost-savings to consumers,” but it appears that language was removed before the final committee vote. The proposal prohibits utilities from seeking surcharges for overspending that have functioned as a profit guarantee. The amended bill also stops utilities from charging ratepayers for some trade association memberships and private planes.

“As their bills continue to rise, working Baltimore residents deserve to know that their BGE payments are going towards infrastructure improvements,” said Ricarra Jones, Political Director for 1199SEIU UHWE in Maryland and Washington DC. “We applaud our state leaders for advancing the Ratepayer Protection Act to ensure that BGE remains accountable to our city’s residents.”

The Ratepayer Protection Act requires utilities to prioritize identifying and addressing gas leaks and be cost effective in their spending. According to federal data, BGE’s hazardous leaks per year have increased in the last decade, escalating from 2,400 in 2011 to over 4,000 in 2023.

“By prioritizing pipeline safety over gas system expansion, the Ratepayer Protect Act addresses the energy affordability and climate crises,” said Brittany Baker, Maryland Director of the Chesapeake Climate Action Network. “These reforms mean gas pipeline spending will cost less, make us safer, and facilitate the transition to clean energy. These reasonable boundaries are a big win for Marylanders.”

In 2023, a record-breaking 80,000 BGE customers had their power shut off after falling behind on utility bills. BGE gas delivery rates have tripled in the last decade, due in large part to the company’s multi-billion dollar pipeline replacement program, which consumer advocates argue has prioritized system expansion over safety. 

According to the Office of the People’s Counsel, multi-year ratemaking, which began as a pilot program in 2019, has resulted in increases in electric delivery rates that outpace inflation for participating utilities. Between 2019 and 2025:

• BGE electric delivery rates increased from 3.6 cents/kWh to 4.8 cents/kWh (33% increase).
• Pepco electric delivery rates increased from 4.5 cents/kWh to 6.2 cents/kWh (38% increase).
• Delmarva Power electric delivery rates increased from 5.6 cents/kWh to 7.1 cents/kWh (27% increase).

“AARP Maryland celebrates the advancement of the Ratepayer Protection Act and other consumer protections because it ensures that any approved infrastructure upgrades are necessary and beneficial and should protect ratepayers from unchecked rate hikes,” concluded AARP Maryland’s Tammy Bresnahan. “This bill strikes a balance between safety and affordability, making it an essential step toward supporting Maryland’s aging population and ensuring that natural gas services remain within reach for all.”

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