Electric Companies – Environmental Surcharges or Fees – Prohibition on Collection
HB0967 would add a new section to the Public Utilities Article governing when electric companies may collect certain environmental surcharges or fees from customers. The bill defines “environmental surcharge or fee” broadly to include charges tied to environmental initiatives, including certain existing surcharges and compliance-fee recovery mechanisms, while excluding some other specified charges. It also directs the Public Service Commission (PSC) to annually compare growth in the average residential electric bill with growth in the Consumer Price Index for All Urban Consumers (CPI-U).
If the PSC determines that residential electric bills rose faster than inflation over the prior year, the bill would prohibit electric companies from collecting environmental surcharges or fees during the following year. The PSC would be required to adopt regulations to implement the new rule, and the measure would take effect July 1, 2026. In practical terms, the bill would create a new consumer-protection mechanism that could temporarily suspend recovery of certain environmental-related costs from ratepayers when electricity prices outpace general inflation.
The bill would amend Maryland public utility law by creating a new Section 7-109 in the Public Utilities Article. It would constrain electric utilities’ ability to recover specified environmental costs from customers in years when residential electricity bill growth exceeds CPI-U growth, and it would require the PSC to perform an annual calculation and issue implementing regulations. The measure could affect utility rate design, cost recovery, and the timing of charges passed through to residential customers, while leaving certain statutorily specified environmental charges outside the new prohibition.
Based on the bill text and available context, the measure appears to be framed as a consumer-relief and affordability proposal aimed at limiting electric bill increases. The sponsor list suggests substantial support among House members, but there are no recorded votes or committee transcripts in the provided materials to show formal debate or opposition. The hearing status indicates the bill was still in committee review at the time of the available information.
The main point of contention is likely to be whether it is appropriate to tie utility environmental cost recovery to overall inflation and to bar collection of those charges in years when electric bills rise faster than CPI-U. Supporters would likely view the bill as protecting ratepayers from escalating utility costs, while opponents may argue it could undermine recovery of approved environmental compliance and initiative costs, potentially shifting expenses or affecting utility planning and implementation of environmental programs. Another likely issue is the breadth of the definition of environmental surcharges or fees and whether the PSC should have flexibility to manage those charges case by case.