Maryland Lawmakers Restore Utility Regulation to Protect Electric Customers
Marylanders Who Signed Up with Retail Suppliers Since the State Deregulated Have Paid an Extra $1.2 Billion
WASHINGTON, May 9, 2024 /PRNewswire/ -- Today, Maryland Governor Wes Moore signed into law Senate Bill 1 (SB1). This legislation provides reasonable oversight of electricity markets and protects customers by restricting the amount retail suppliers can charge. This brings an end to the most harmful component of Maryland's deregulation experiment, which began in 1999 under the Electric Choice Act and promised energy savings for consumers. In the 25 years following the Electric Choice Act, Maryland customers collectively have paid an extra $1.2 billion to retail energy suppliers, compared to regulated electricity and gas prices.
Maryland ends their failed electric deregulation experiment.
"For far too long, Maryland residents have been overpaying for their energy and have been left to fend against retail electric suppliers," said Gary Meltz, executive director of Power for Tomorrow (PFT), an organization that advocates for sensible regulation of electric utilities. "Today's achievement took courage and dedication from members of the General Assembly, Governor Moore, consumer advocates and concerned citizens, who stood up against an aggressive lobbying campaign led by bad actors who were committed to taking advantage of Marylanders. Electric deregulation doesn't mean lower power bills. Before Senate Bill 1, retail electric suppliers were free to raise their rates higher than the regulated utilities, and they always did. This important legislation ensures retail suppliers are only able to participate in the market if they are offering real cost savings."
Earlier this year, PFT expert and former Maryland Governor Parris Glendenning, who signed the Electric Choice Act legislation in 1999, wrote an op-ed in Maryland Matters in favor of SB1. Glendenning noted that he regrets backing deregulation because it did not lower power bills, but rather, let retail electric suppliers target vulnerable populations "with the most common bait-and-switch scam; offering customers a teaser rate that is below what the regulated utility offers. Then, over time, retail suppliers raise the energy rate dramatically higher than the price customers would pay for power if they stayed with the existing utility."
PFT applauds the work done in Maryland and continues to advocate for customers, particularly in Massachusetts, where the state senate has passed legislation to ban retail electric suppliers from enrolling new residential customers. The legislation is now with the Massachusetts state house before going to Governor Maura Healey for her signature. The legislative pushback is in response to Bay State power utility customers being overcharged a total of a $525 million by retail electric suppliers between 2017 and 2023.
PFT encourages Virginia, Louisiana, South Carolina, and all other states that are considering deregulating their electric utilities to learn from the mistake made in Maryland and to strongly reconsider their efforts to deregulate their energy markets.
About Power for Tomorrow
Power for Tomorrow is a nonpartisan 501 (c)(6) organization and is the nation's leading resource for providing practical research, commentary, and information regarding how the regulated electric utility model protects consumers and supports environmental and public policy goals. To learn more, visit www.powerfortomorrow.org.