Maryland lawmakers pass bill that aims to lower utility costs
Maryland lawmakers have passed a bill aimed at reducing utility costs statewide.
The Next Generation Energy Act, passed the Senate, 36-10 on the final day of the legislative session. The bill now heads to Governor Wes Moore's desk for his signature.
The bill requires gas pipeline spending to prioritize safety and cost-effectiveness, directs the Public Service Commission to reject multi-year rate hikes that don't demonstrate customer benefit, and prohibits utilities from charging ratepayers for certain expenses like trade association memberships and private planes.
What does the Next Generation Energy Act do?
Key provisions include requiring public service companies to demonstrate the reasonableness of using internal versus contractual labor and protect residential customers from financial risks associated with large load customers connecting to the electric system.
The bill authorizes multiyear rate plans under certain circumstances, while mandating that investor-owned electric companies submit plans for energy storage devices that could help stabilize the grid and potentially lower costs.
It also requires electric companies to procure zero-emission credits, promoting cleaner energy sources.
For gas companies, the legislation allows for cost recovery for eligible infrastructure replacement projects while ensuring that necessary upgrades don't lead to excessive rate increases.
Tackling Maryland's energy cost hikes
Maryland residents and leaders alike have publicly challenged BGE's energy rate hikes.
In December 2023, the Maryland Public Service Commission approved a multi-year rate increase plan, authorizing BGE to implement nearly $408 million in rate increases over three years with average year-one bill increases of $4.08.
In January 2025, BGE increased gas bills by 9% and electric bills by 7%.
However, some BGE customers said they saw extreme price increases, particularly during the winter months.
In February, the Baltimore City Council passed a resolution calling on state regulators to stop BGE's planned 2026 utility rate hikes.
Last month, City Council President Zeke Cohen led the community walk, going door to door to collect signatures on a petition that calls for the Maryland Public Service Commission (PSC) to stop BGE's planned 2026 utility rate hikes.