Measure to reduce energy costs passes in Maryland legislature ahead of Sine Die deadline

Maryland lawmakers passed a package of bills that aims to save money for residents amid soaring energy costs. 

The Utility RELIEF Act passage on Monday came as the State House and Senate faced a midnight Sine Die deadline to pass any key bills before the end of the 2026 legislative session. 

Addressing rising energy costs

The package of bills was introduced by Gov. Wes Moore, Senate President Bill Ferguson and House Speaker Joseline Peña-Melnyk as a joint effort to address rising gas and electric bills. 

The measure came as state and local leaders, along with neighbors and business owners, have raised concerns about soaring bills in the past few years. 

"Over the past year, energy prices have soared, and people are getting crushed," Gov. Moore said Monday. "Since just last year, and this new federal administration came on board, energy prices are up 13% in the state of Maryland."

Baltimore Gas and Electric (BGE) reacted to the measure in a statement, saying it includes "several meaningful steps that will help customers in the near term," including increased financial support for some households. 

The company went on to emphasize the importance of ensuring policies do not create long-term consequences for customers. 

"Policies that limit how utilities plan, invest, and recover costs can make it more challenging to maintain the safe, reliable energy system that customers depend on every day and may ultimately increase costs or delay critical infrastructure investments," a spokesperson for BGE said. 

Utility RELIEF Act 

The Utility RELIEF Act takes several actions to save Marylanders money and hold utility companies accountable. According to lawmakers, the measure will save Maryland families hundreds of dollars. 

Under the measure, utility companies are prohibited from passing employee salaries down to ratepayers. The act also closes a loophole that allowed utility companies to collect extra incentives for volunteering to join a regional grid.

"...A grid that they are already a part of. So they're getting paid for work that they're already obligated to do. And our people are the ones who are paying for it," the governor noted. 

According to Ferguson, the measure makes several policy changes, including requiring data centers to pay their "fair share" of the energy they use and infrastructure upgrades that they require. 

"Maryland is at the national forefront of data center policy, and this is very important," Ferguson said. "We are ensuring that we are addressing concerns around phantom load through a registry to be administered by the Public Service Commission in a thoughtful and purposeful way." 

The measure also addresses projects that are approved by the federal government. Under the legislation, the state will ensure projects are required to improve reliability and are completed at a reasonable cost. 

"Over these last 20 years, supplemental projects have cost or are projected to cost Maryland ratepayers $3.5 billion," Ferguson said. "$3.5 billion of projects that have not gone under review. The Utility RELIEF Act holds our regulated utilities accountable to the customers that they serve by ensuring that this PSC oversight applies to all transmission projects, whether above ground or below."

The legislation would further force utility companies to base their rates on actual historic costs, not on forecasts of future costs. 

The Utility RELIEF Act creates a policy to fund a limited-income program that would cap monthly bills for vulnerable residents. Lawmakers said this has the potential to save some Marylanders up to $1,4000 each year. The measure also streamlines assistance programs, making them easier to access.