As energy bills crush household budgets and squeeze local businesses, some residents in Maryland may get a much-needed break.
Utility customers may see relief on their power bills if regulators approve a proposal to pass along $160 million in tax-related benefits.
The proposal would affect customers of Baltimore Gas and Electric, Delmarva Power, and Pepco, potentially turning into direct bill relief for households and businesses across the state.
Here's what to know
According to WMAR 2 News, BGE, Delmarva Power, and Pepco want approval to send Maryland customers $160 million in tax refund benefits. The proposal follows a Maryland court ruling involving state taxes that the utilities previously paid.
The state is expected to return tax overpayments and related interest to the utilities, and the anticipated shares are $110 million for BGE customers, $20 million for Delmarva Power customers, and $30 million for Pepco customers.
Nothing has been finalized, and before any benefits reach customers, the companies still have to coordinate with the state and go through a Public Service Commission review, the outlet reported. That review will decide the timing, structure, and allocation of the refunds.
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More background
Customers should not expect a change right away.
At the center of the court ruling were state taxes collected from the utilities, and the companies say the money returned to them should be passed on to customers, per WMAR.
Any bill relief would appear only after regulators settle on the method for distributing the refunds. For now, customers do not need to take any action.
What's being done?
The utilities are working through the regulatory process to figure out the mechanics of how the money would appear on customer bills.
Among the questions regulators still have to resolve are whether the benefits would be issued as a single round of bill credits, spread out over time, or handled through another approved format, WMAR noted. They will also review how the amounts are allocated among customers of each utility.
After that process is finished, each utility said it will share more information about when the bill benefits will roll out and how they will appear.
"We know many Maryland families and businesses are feeling pressure from higher energy costs, and we are committed to doing everything we can to help," Valencia McClure, Exelon senior vice president of governmental, regulatory, and external affairs, said, according to WMAR. (Exelon is the parent company of the three utilities.)
She continued, "Providing these tax savings to customers is another example of The Exelon Promise in action, taking practical steps today to provide relief, protect customers, and work with policymakers and regulators on long-term solutions that keep energy safe, reliable, and affordable."
Where can I learn more?
The proposed refunds are part of a debate over how utility costs and savings show up on Marylanders' bills. These stories look at surcharge fights, proposed rate hikes, oversight efforts, and other ways residents may find relief.
• Maryland officials asked FERC to stop a $20 million utility surcharge from landing on customer bills.
• BGE is seeking a monthly rate hike that could add about $8 for Maryland customers.
• A Maryland coalition is pushing clean energy and utility oversight as power bills spike.
• Maryland households could absorb extra electric bill costs tied to AI data center subsidies.
• Maryland residents can tap aid, rebates, and smart habits to lower steep power bills.
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