Background

In 2013, the Maryland General Assembly passed legislation to allow gas utilities to add a surcharge to customers’ bills as an incentive for utilities to install new pipes– the STRIDE program.  As passed, the law does not require utilities to prioritize cost effectiveness nor safety resulting in excessive and wasteful spending. Gas utilities have spent billions on new  pipes and equipment, leading to massive rate hikes. Utilities have reaped enormous profits without commensurate community benefits. For example:

In 2023 BGE spent about $160 million on its STRIDE plan. After accounting for BGE’s profits and interest, that $160 million will cost customers $576 million.

The Problem

These costs will fall hardest on those households least able to bear these rate increases. STRIDE will shift the burden of bearing these high costs from wealthy households to low-income households as higher-earning households shift to electrification.

We’ve heard from countless Marylanders struggling with skyrocketing utility bills, BGE rates have tripled since 2010 and are set to continue increasing. To lower costs, these gas providers must be regulated to ensure that they are spending prudently.

The Solution

HB419, The Ratepayer Protection Act.  Sponsored by Delegate Embry, this critical bill reforms the STRIDE program by:

• Requiring gas infrastructure spending to be cost-effective;
• Prioritizing safety by mandating modern leak detection technology;
• Adopting a “fix it first” approach to address existing infrastructure issues;
• Considering non-pipeline alternatives to gas; and
• Giving gas customers 2 years’ notice before work begins, so they have time to plan.

These reforms will ensure that ratepayer dollars are spent responsibly and that Maryland families aren’t burdened with billions in unnecessary costs.

Please contact your legislator on the House Economic Matters committee and urge them to VOTE YES on HB419?