'We're going to pass it': Maryland House, Senate agree on legislation to give utility bill relief

Maryland lawmakers have reached an agreement on the Utility RELIEF Act, a significant piece of legislation designed to offer relief to consumers on their utility bills. The compromise, forged between the Maryland House and Senate negotiators, aims to deliver immediate savings and make long-term investments in the state's energy infrastructure. House Speaker Joseline Peña-Melnyk stated the bill is expected to pass, providing approximately $150 in yearly savings for customers on their electric bills, with additional relief for low-income households. This is achieved by shrinking the Empower Maryland surcharge until 2036 and allocating $100 million from the Strategic Energy Investment Fund to cover the Empower program. However, Senate Minority Leader Stephen Hershey expressed concerns that the relief is insufficient and based on previous overpayments by ratepayers. The legislation also includes a one-year moratorium on "forecast test years," a practice where utilities can seek multi-year rate increases based on estimated upgrade costs. The Public Service Commission will study this issue, ensuring any under-spending by utilities is returned to consumers. Furthermore, utility executive bonuses above $285,000 must be covered by shareholders, not ratepayers. Notably for the data center industry, the bill provides incentives to expedite the permit process for data centers that utilize batteries and solar. It also builds upon an existing data center tariff, requiring these facilities to pay for grid improvements they necessitate. The compromise also prevents utilities from passing PJM membership fees onto ratepayers. The bill awaits final votes in both legislative chambers before being sent to Governor Wes Moore for signing.