Maryland Passes Utility Reform Bill to Protect BGE Customers

Maryland lawmakers have approved a sweeping utility reform bill aimed at protecting consumers from rising gas and electric bills. The Next Generation Energy Act, passed on the final day of the General Assembly session, is being praised by advocates as a major win for Maryland residents.

The legislation comes after months of public backlash over unexpectedly high utility bills tied to increased supply and delivery rates, along with colder winter weather. If signed by Governor Wes Moore, the new law will go into effect June 1, 2025.

Key provisions of the bill include:

• $81 rebate per household for utility customers
• Stricter oversight of gas pipeline infrastructure projects
• Tougher regulations on multiyear rate plans proposed by utility companies
• Greater accountability from utility companies seeking approval from the Maryland Public Service Commission

The legislation is designed to curb the financial impact of the 2013 STRIDE law, which allowed utilities like BGE (Baltimore Gas and Electric) to charge customers for expensive infrastructure replacement projects. Critics say STRIDE encouraged utilities to replace rather than repair aging pipelines, inflating costs for ratepayers.

Under the new law, utility companies must justify pipeline projects by outlining costs, benefits, and public safety risks. They must also compare those projects to lower-cost alternatives like leak detection or targeted repairs. Additionally, utilities must explain when they use contracted labor instead of in-house workers.

One standout feature of the bill bans investor-owned utilities like Exelon—BGE’s parent company—from using ratepayer money to fund private planes, lobbying efforts, or trade association fees. The move came after concerns that utility customers were unknowingly subsidizing corporate perks.

Supporters of the bill include Attorney General Anthony Brown, Maryland People’s Counsel David Lapp, and numerous environmental, labor, and consumer advocacy groups.

This legislation marks a significant shift in Maryland’s approach to utility regulation, aiming to make energy costs more transparent and affordable for residents across the state.