Maryland ratepayers send holiday cards to PSC

Baltimore – Consumer and environmental advocates have launched a holiday card writing campaign to let the Maryland Public Service Commission (PSC) know their wishlist for the utility regulator in 2025. The groups’ priorities include increasing energy efficiency and clean energy investments and ending policies that they say drive up heating and cooling bills by incentivizing wasteful utility spending. 

“Marylanders are facing higher heating bills this winter due in large part to excessive spending from our gas utilities,” said Maryland PIRG senior advisor Emily Scarr. “In 2025 we need our utility regulators to make a fresh start by ending multi-year ratemaking and ensuring gas utility pipeline spending is cost effective and focused on safety.”

The Public Service Commission is currently reviewing BGE’s 2020 multi-year rate pilot program, which has been criticized by the Maryland Energy Administration, the Office of the People’s Counsel (OPC), commercial building owners, consumer advocates, and environmental groups for causing excessive rate increases and lacking accountability. According to the Office of the People’s Counsel, since approval of the BGE pilot, the utility’s electric rates have increased by 26% and gas rates have increased by 43%.

Without intervention on the multi-year rate plan from the PSC, BGE customers will have seen their rates increase by $400 million by 2026.

“The best present the PSC could give us would be increased utility accountability and more affordable rates by ending multi-year ratemaking,” said Marceline White, Executive Director of Economic Action Maryland. “Many of our supporters are struggling to provide a holiday meal and presents for their families while worrying about paying their heating bills.” 

According to the OPC, another key driver in rate increases for gas utilities has been the gas pipeline replacement program launched in 2014 by the STRIDE (Strategic Infrastructure Development and Enhancement Plan) law, which the OPC says lacks consumer protections to ensure that spending is cost effective and prioritizes safety.

“If we want to build a future with clean and healthy air and homes, we need to invest in energy efficiency and modern electric heating and cooling,” said Laurie Welch, a leader with the volunteer group Third Act Maryland which organized a card writing event in Baltimore. “Spending $40 billion more on new gas pipelines will increase bills and lock in decades’ more pollution that we can’t afford, either. It’s time for our utility regulators to step in and stop this nonsense.”

Environmental and consumer advocates have called on the PSC and state legislature to revise the program to require all STRIDE spending to prioritize safety and meet cost-effectiveness tests. The groups are also asking the PSC to engage in long-term strategic planning for the gas system to ensure safety and affordability.

“Utilities cannot continue their virtually limitless spending spree of ratepayer money on fossil fuel infrastructure that hurts the health of our communities and our environment,” said Maryland Sierra Club field organizer Zoe Layton. “To reduce our emissions and combat the climate crisis, Maryland should invest in clean energy alternatives that protect Marylanders from harmful gas emissions. We need our safety and the environment to be a priority for our utility regulators in the New Year.”

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