Differences emerge between House and Senate energy bills, with clock ticking

Key differences have emerged between the Maryland House and Senate versions of the Utility RELIEF Act, a significant energy bill nearing a legislative deadline. The bill addresses crucial issues including utility rate-setting, the regulation of data centers, and the future of the EmPOWER Maryland program, which promotes energy efficiency. House Speaker Joseline Peña-Melnyk (D- Prince George’s and Anne Arundel) and the House version propose to prohibit "forecast test years," a rate-setting practice where utilities request increases based on future spending forecasts. Peña-Melnyk argues this practice allows utilities to inflate costs, citing an Office of People’s Counsel analysis showing higher rate increases under forecasting for Baltimore Gas & Electric (BGE) and Pepco customers. Senate President Bill Ferguson (D-Baltimore City) defends forecasts, emphasizing the importance of understanding utility investment plans and trusting the Public Service Commission's expertise. Regarding data centers, Senator Katie Fry Hester (D-Howard and Montgomery) introduced amendments to the Senate version of the bill. These amendments aim to include more data centers under a special tariff for large load customers by lowering the consumption threshold from 100 megawatts to 25 megawatts and reducing the capacity factor from 80% to 60%. Both chambers propose a new data center registry at the Maryland Public Service Commission, shifting regulatory oversight from local to state authorities. Hester's amendments also create a tiered benefit system for data centers that build energy storage, use clean power, or participate in demand reduction programs, offering incentives like prioritized permit processing by the Maryland Department of the Environment and faster interconnection. Meanwhile, contractors like Advanced Green Home Solutions and environmental groups, including Maryland PIRG and the Chesapeake Climate Action Network, are actively opposing proposed cuts to the EmPOWER Maryland program. They argue that reducing greenhouse gas emission goals and implementing new cost-effectiveness tests based on utility projections could lead to job losses and increased power demand, ultimately hurting ratepayers. The debate reflects differing priorities between consumer protection, utility investment, and environmental goals as the state prepares to finalize its energy policy.