As the weather turns colder with winter’s approach, the Maryland Public Service Commission (PSC) is exploring ways to help limited-income utility customers across the state.
“The Maryland Public Service Commission is aware that inflation and higher utility rates have caused a strain on many limited income customers and has opened a new proceeding to explore ways that could provide relief,” read a press release announcing the effort.
The PSC is seeking ideas and suggestions from stakeholders, including utility customers, consumer advocates, elected officials, utilities, and social justice organizations. In addition to suggestions about how to implement relief, comments can address eligibility criteria and energy affordability.
Maryland’s General Assembly enacted a law introduced by State Treasurer Dereck Davis (then-Chair of the House Economic Matters Committee) which authorized electric and gas utilities to adopt such mechanisms benefiting limited-income customers, providing the PSC approved. These mechanisms could take the form of a program, tariff provision, credit, rate, rider, or other means to help an eligible limited-income customer to afford their utilities.
When Frederick H. Hoover was sworn in as PSC Chair in July 2023, he echoed Gov. Wes Moore’s pledge to “leave no Marylander behind.”
“Maryland is a national leader in the energy transition, and one of the challenges is to assure that it will benefit all of our citizens. Energy affordability is a priority of the Commission, and our expectation of the public conference is that it will lead to solutions for Maryland families,” said Hoover.
United Way of Central Maryland estimates there are 899,798 households that fell below what they call the “ALICE” threshold. “ALICE” stands for “Asset Limited, Income Constrained, Employed” individuals, meaning people who are employed but still financially constrained. This is different from the Federal Poverty Index, which varies by household size and doesn’t take employment status into account.
The National Resources Defense Council (NRDC), a non-profit aiming to shape critical environmental policy wrote that low-income households are naturally more impacted by high utility bills and should be targeted for greater savings for energy efficient updates to their homes.
“By reducing and stabilizing home energy use, energy efficiency improvements enable households struggling with high monthly energy bills to manage their budget and maintain access to essential energy services. Energy efficiency also provides a wealth of other benefits, including healthier air quality and safer, more comfortable home temperatures.”
Comments for the PSC can be e-filed on the commission’s website or sent by mail to Andrew Johnston, Executive Secretary, Maryland Public Service Commission, William Donald Schaefer Tower, 6 St. Paul Street, 16th Floor, Baltimore, Maryland 21202. So that they are noted in the proper category, comments should reference ‘PC59.’
Comments are due to the Commission by Jan. 31, 2024. Once the Jan. 31 deadline is met, replies to comments can be submitted until Feb. 29, after which time the Commission will consider the next steps.
