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Bill

SB 756

Electric Companies, Gas Companies, Gas and Electric Companies, and Water Companies - Periodic Audits

2025 Regular Session Introduced by Alonzo Washington

Maryland bill mandates periodic independent audits of electric, gas, and water utilities to enhance regulatory oversight and operational transparency.

Hearing 2/20 at 1:00 p.m.
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Bill Summary · SB 756

Legislative bill overview

SB 756 requires electric, gas, water, and combination utility companies operating in Maryland to undergo periodic independent audits of their operations and financial practices. The bill establishes a framework for regular third-party audits to be conducted and reported to the Public Service Commission.

Why is this important

Utility companies provide essential services and are heavily regulated monopolies with significant control over consumer rates and service quality. Regular independent audits can help identify inefficiencies, cost overruns, and compliance issues that may ultimately affect consumer rates and service reliability. This transparency mechanism allows regulators and the public to better assess whether utilities are operating efficiently and ethically.

Potential points of contention

  • Cost allocation: Who pays for these audits and whether audit costs get passed to ratepayers as part of utility operating expenses
  • Audit scope and frequency: Disagreement over how comprehensive audits should be and whether "periodic" means annually or on longer cycles, affecting regulatory burden and costs
  • Competitive concerns: Utilities may argue that detailed audits expose proprietary business information to competitors or create excessive compliance burdens that smaller water companies struggle to meet

Compiled from official sources — confirm details with the bill’s official record.

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