MD regulators approve low-income utility discount program

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Maryland utility regulators have approved a program to provide discounted rates to low-income customers, aiming to ease the financial burden of energy costs on struggling families.

The Maryland Public Service Commission‘s decision allows utilities to develop systems that will automatically reduce bills for customers eligible for state energy assistance, according to a news release. The goal is to cap energy costs at an average of 6% of annual household income.

Utilities must now update their billing systems and submit proposed tariffs to the commission for approval before implementing the program by Jan. 1, 2027.

“Although it does not take effect immediately, it is a significant step towards eventually easing the energy burden on Maryland families,” commission Chair Kumar P. Barve said in a statement. “The primary goal of this mechanism is to ensure that households already strained by the rising costs of everything, won’t have to pay more than they can afford for vital utility services.”

Residential customers who qualify for energy assistance from the Maryland Department of Human Services Office of Home Energy Programs will automatically receive the bill credit without needing to apply separately.

The commission plans to review the 6% threshold later this year based on program costs.

Baltimore Gas & Electric and Exelon‘s other utilities in Maryland released a statement following the PSC’s order.

“Addressing Maryland’s complex energy affordability challenges takes partnership on short-term and long-term solutions that have a meaningful impact on those who need it most,” BGE spokesperson Nick Alexopulos said in the statement. “BGE, Delmarva Power, and Pepco are committed to this work and were instrumental in the collaborative development of a discounted rate mechanism for limited-income customers.

“Today’s order from the Commission reflects continued progress in that ongoing effort, and we appreciate the leadership of Gov. [Wes] Moore, the Maryland General Assembly, and the Public Service Commission to advance this program. We are reviewing the Commission’s order and look forward to implementing this important step toward a more affordable energy future for our customers.”

This article was generated using an artificial intelligence platform and was reviewed by The Daily Record editorial staff.