Peña-Melnyk calls on utility companies to adhere to policies under Utility RELIEF Act

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House Speaker Joseline Peña-Melnyk last week called on utility companies in Maryland to adhere to the regulations under a recently enacted energy law.

“We will be watching and assessing whether the utilities decide to be cooperative or confrontational on this,” Peña-Mlenyk, D-Anne Arundel and Prince George’s, said in a statement last Friday. “Affordability issues will be a part of our ongoing agenda in the next legislative session, and we will not hesitate to take further action to protect ratepayers.” 

Peña-Melnyk’s statement echoes a call from the Maryland Office of the People’s Council asking utility companies to take immediate action to maximize the benefits to residential ratepayers of the recently enacted Utility Reducing Energy Load Inflation for Everyday Families, or RELIEF, Act.

In April, the Maryland General Assembly passed the multifaceted Utility RELIEF Act in an effort to lower Marylanders’ skyrocketing energy bills. An emergency bill, it went into effect on May 12.

Among numerous measures, utility companies are prohibited from pursuing forecast-based energy bill increases for one year. During that pause, Maryland’s Public Service Commission is to perform a study to determine if forecasted test years are in the best interest of utility customers.  

It also scales back the EmPOWER Maryland program, which requires utility companies to incentivize their consumers to save power and money through discounted energy audits, weatherization projects and efficient appliances.  Fees for EmPOWER appear as a line item on consumers’ utility bills.

Last week, the Office of the People’s Counsel asked utility companies, including Baltimore Gas and Electric, Pepco, Delmarva Power & Light, Potomac Edison, and Transource Maryland, to submit a filing to the Federal Energy Regulatory Commission to remove the extra profit incentive and avoid contested legal proceedings.

According to a June 4 news release from the Office of the People’s Counsel, a complaint against each utility company would need to be filed if companies don’t voluntarily file to remove their extra profit incentives, which could take up significant resources from the state.

Proceedings would also likely delay changes to companies’ rates, and delay financial relief for ratepayers.

“Transmission costs get a lot less attention than capacity costs, but they account for roughly 15% of a residential customer’s bill, about the same as current capacity market costs,” said Maryland People’s Counsel David S. Lapp. “The State has limited influence over these federally regulated costs, so this provision of the Utility RELIEF Act provides a unique and straightforward way to reduce this part of customers’ bills.” 

Maryland’s transmission infrastructure, which delivers electricity from power plants to local utilities, is a significant driver of high electricity costs for Maryland businesses and households, the Office of the People’s Counsel said.

In a statement to The Daily Record Thursday, Exelon, the parent company of BGE, Pepco and Delmarva Power,  said it will “follow new policy established by the Utility RELIEF Act and continue to advocate for long-term solutions to Maryland’s energy crisis on behalf of our customers.”

“We expect the utilities to be willing partners with us in the swift adoption of both the spirit and letter of the law implementing the Utility RELIEF Act,” said Peña-Melnyk. “That means following through in a timely way with voluntary filings at FERC to remove the extra profit incentive to avoid complaint proceedings from the state.”