New utility rate cases mean Marylanders could still see higher energy bills even after lawmakers approved a sweeping relief package meant to lower monthly costs.
For households already grappling with rising costs for housing, groceries, and transportation, that means the promised relief may take longer to arrive and may not go as far as expected.
Here's what to know
Several parts of Maryland's Utility RELIEF Act are intended to reduce what residents pay for energy, WYPR reported.
One change temporarily reduces the EmPOWER surcharge, the monthly fee that supports conservation and efficiency programs including energy audits, weatherization, and efficient appliances.
The law also suspended utilities' use of "forecast test years," which let companies pursue rate increases based on projected future spending instead of past costs. Separately, WYPR reported the EmPOWER surcharge stopped for gas customers on Aug. 21, and electric customers are expected to save about $9 a month beginning in 2027.
Pepco's case offers an early example of that change. After moving to historic spending, the utility cut $8.6 million from its original request for a 23% increase, though the Maryland Public Service Commission still approved a rise of roughly $4 per month.
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Niki Wiggins, director of legislative affairs for the Public Service Commission, said, "The proposed bill impacts from the increase in the Pepco rate case are estimated to be below the rate of inflation for an average residential user, so hopefully not exacerbating an affordability issue for any of them."
More background
Even with those revisions, other increases are still under review.
WYPR reported that Washington Gas and Electric also received approval for a $4 increase, and the Public Service Commission is still weighing proposals from BGE and Potomac Edison that could add about $8 to monthly bills.
A separate fight involves a provision that could save Maryland ratepayers another $20 million annually.
Beginning July 1, utilities operating in Maryland were required to join a Regional Transmission Organization, or RTO. In this region, that organization is PJM.
Because the state's utilities were already in PJM, making membership mandatory put a 0.5% return on equity boost at risk. They had been collecting it through a charge known as the "RTO adder."
Regulators told the utilities to stop billing customers for that charge, but the companies kept collecting it.
What's being done?
In response, the Maryland Energy Administration, the Public Service Commission, and the Office of People's Counsel filed a complaint with the Federal Energy Regulatory Commission, asking to remove the extra charge from customer bills.
Exelon's Maryland utilities — BGE, Pepco, and Delmarva Power — joined four other utilities in moving to dismiss the complaint. Maryland energy agencies responded on Sept. 3 and are now awaiting a FERC decision.
David Lapp, Maryland People's Counsel, told WYPR he is confident the state agencies' litigation can reach the same result, though he said the process may take some time.
Ohio enacted a similar law, and utilities there challenged it through the appellate courts. The court ultimately upheld the state's authority and ended the utilities' ability to keep collecting the voluntary incentive.
Maryland is also weighing broader changes to utility costs. Those include large-load tariffs for data centers and limits on how much utilities can charge customers to cover executive compensation.
The Maryland Energy Administration plans to release a new State Energy Plan in 2027.
"We really appreciate MEA taking on significant work and the PSC's support in that litigation. It's resource intensive, and with the utilities' opposition, it could take years to resolve," said Lapp.
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