Maryland residents may soon get some relief from the state's sweeping utility reform law, though regulators say it won't stop power companies from pursuing higher rates.
That means many households could still see larger monthly bills even as state officials work to curb those increases and place tighter limits on what utilities can charge customers.
Here's what to know
At a House Environment and Transportation briefing, regulators said parts of the Utility RELIEF Act are now taking hold, but they also cautioned lawmakers to expect more requests for higher rates.
According to Maryland Matters, the law lowers the monthly fee that supports the EmPOWER home energy-efficiency program and also changes how utilities forecast rates, limits ratepayer funding for executive compensation, and subjects transmission line proposals and other projects to added review.
Niki Wiggins, director of legislative affairs and policy adviser for the Maryland Public Service Commission, told lawmakers the commission has already pared back some utility requests it viewed as too large.
"Rates have to be just and reasonable — that's a constitutional standard," Wiggins said.
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That includes Pepco: Regulators approved $50.9 million of the company's $119.8 million request. For customers in Montgomery and Prince George's counties, that means a monthly increase of a little less than $4 instead of the roughly $10.24 per month Pepco initially sought.
More background
Washington Gas also had its proposed increase reduced, from $82.5 million to $38 million.
Commission decisions are still pending on a $156.1 million request from Baltimore Gas & Electric and a $52.8 million request from Potomac Edison.
Officials said most of the savings associated with the RELIEF Act will arrive later, largely in 2027 and beyond.
David Lapp of the Maryland Office of People's Counsel said expanding demand from data centers is a major factor behind higher electricity prices, Maryland Matters reported. He added that gas rates could keep climbing as more households stop using gas appliances.
"More recently, capacity and energy costs have been significantly impacted by data centers," Lapp said. "These fluctuating supply costs means it's risky to adopt policies that require captive utility customers to take on long-term cost commitments for generations, especially at a time when costs are at a high point."
What's being done?
Regulators said their main check on rising rates is to closely examine each utility filing. Wiggins said the commission is working to ensure companies recover only necessary and reasonable costs.
"We always make sure we look carefully at everything the parties put forward so that we are only approving what is reasonable and necessary for the utility (company) to earn what they need to earn," she said, according to Maryland Matters.
Lawmakers said the RELIEF Act is intended to provide broader, longer-term protections for consumers by increasing oversight of utility spending and infrastructure plans while preserving support for EmPOWER efficiency improvements.
"Each of these bills have value in addressing the overall energy challenges we face in the state," said Del. Marc Korman, chair of the committee. "Of course we know our work is still not done. Rates are high and our constituents are feeling it. That's not just limited in Maryland … but also regionally, in the country and actually globally"
Where can I learn more?
These stories look at Maryland utility rate disputes and other factors driving power bills higher.
• In Maryland, customers could pay $8 more monthly as BGE seeks another increase.
• Maryland officials went to FERC to end a $20 million utility surcharge.
• Utilities nationwide are seeking $9.4 billion in hikes as data centers raise electricity costs.
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