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HB 1

Investor-Owned Electric, Gas, and Gas and Electric Companies - Cost Recovery - Limitations

2026 Regular Session Introduced by Nick Allen and 25 co-sponsors

HB 1 restricts how Maryland investor-owned utilities recover costs from ratepayers, potentially lowering bills but risking reduced infrastructure investment and shifting cost burdens between customer types.

Referred Education, Energy, and the Environment
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Bill Summary · HB 1

Legislative bill overview

HB 1 imposes limitations on how investor-owned electric, gas, and combined electric-gas companies can recover costs from ratepayers. The bill passed third reading with a 97-30 vote, indicating broad support, and is now under review by the Education, Energy, and the Environment Committee. The specific cost recovery restrictions aim to regulate utility billing practices and rate structures.

Why is this important

Utility cost recovery mechanisms directly affect consumer electricity and gas bills. Limiting how companies recover costs can reduce rate increases, protect low-income households, and influence utility investment decisions in infrastructure and renewable energy. These regulations shape the financial incentives that determine service quality, modernization speed, and energy transition investments.

Potential points of contention

  • Utility profitability and investment impact: Restricting cost recovery could reduce utility revenues and potentially delay infrastructure upgrades, grid modernization, or renewable energy investments unless alternative funding mechanisms are established
  • Rate equity concerns: Different cost recovery limitations may shift expenses between customer classes (residential vs. commercial), raising fairness questions about who ultimately bears restricted costs
  • Regulatory uncertainty: The multiple floor amendments suggest ongoing debate about implementation details; ambiguity in final language could create compliance challenges or unintended consequences in billing practices

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

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