29-03-2025
Lawmakers' touted electric bill refund would average $81 per household
Linemen work on a power line in Puerto Rico, in this file photo from the U.S. Army Corps of Engineers. (Photo by Dave Palmer/U.S. Army Corps of Engineers)
That potential electric bill refund being touted by legislative leaders as part of a larger energy reform package? It could amount to an average of $81 per household, according to legislative analysts.
The provision is one of a laundry list of energy reforms included in legislation that passed unanimously in a Senate committee this week, including language that would expedite the construction of new nuclear energy and — possibly — natural gas power plants in Maryland.
Senate President Bill Ferguson (D-Baltimore City) held up the rebate as the quickest remedy legislators can provide for Marylanders' utility bill sticker shock.
'The goal was to have a short-term impact, a mid-term impact and a long-term impact and that's what this energy leadership package really represents,' Ferguson said Friday.
The plan is to use about $200 million from the Maryland Energy Administration's Strategic Energy Investment Fund, which is typically used for energy efficiency projects, Ferguson said.
Each household's exact refund would depend on their energy usage, and the payment would arrive in two parts in fiscal 2026: Once during the peak summer season and again during winter.
Sen. Cheryl C. Kagan (D-Montgomery) said Friday, after voting in favor of the bill in committee, that she remains concerned that there is no 'litmus test' determining which Marylanders ought to be compensated.
'My concern is that someone in a megamansion is going to get a whole lot of money, and someone who's trying to pinch their pennies will get a paltry amount, but have a greater need,' Kagan said.
But Ferguson said that offering the refund across the board, and basing it on energy usage, was seen as the best way to reach not just low-income ratepayers — who can take advantage of other programs to help with electric bills — but also the middle class.
'We're really concerned for those who are not eligible for the lowest-income funds, but were not wealthy, and that middle gap is really feeling the pinch,' Ferguson said.
The SEIF funds actually come from the utilities themselves, which can make 'alternative compliance payments' when they haven't purchased enough renewable energy to comply with state mandates.
In fiscal 2024, utilities contributed $318 million to the SEIF fund. It was a large amount relative to prior years, because the alternative compliance fees became less expensive than actual renewable energy credits.
Normally, the funding would go to projects meant to fill in the gap, such as HVAC replacements, lighting upgrades and solar panel installations.
If approved, the refunds would appear on Marylanders' utility bills as a 'Legislative Energy Hardship Credit.' But some legislators want to go back to the drawing board.
Sen. Ronald L. Watson (D-Prince George's) said Thursday that the name ought to be changed to 'consumer relief payment,' or something similar.
'It's not a legislative hardship,' Watson said. 'No, we are reimbursing ratepayers who have paid too much for far too long, and trying to give them something back twice in one year.'
