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Bill

HB 960

Investor-Owned Electric, Gas, and Gas and Electric Companies - Cost Recovery - Limitations and Reporting Requirements (Ratepayer Freedom Act)

2025 Regular Session Introduced by Lorig Charkoudian and 7 co-sponsors

Maryland bill limits how electric and gas utilities recover costs from ratepayers and adds reporting requirements to reduce consumer rates.

Motion Special Order until 03/17 (Delegate Grammer) Adopted
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Bill Summary · HB 960

Legislative bill overview

HB 960 restricts how investor-owned electric and gas utilities can recover costs from ratepayers, particularly limiting cost-recovery mechanisms for infrastructure investments and operational expenses. The bill adds reporting requirements and places limitations on what utilities can pass through to consumers, framed as protecting ratepayer interests under the "Ratepayer Freedom Act" branding.

Why is this important

Utility cost-recovery mechanisms directly affect monthly electric and gas bills for Maryland residents and businesses. These policies balance utility financial viability (needed to maintain infrastructure and service reliability) against consumer affordability. Changes here can influence whether utilities invest in grid modernization, renewable energy transition, and infrastructure maintenance—or reduce service quality and investment.

Potential points of contention

  • Utility investment impact: Limiting cost recovery may discourage utilities from upgrading aging infrastructure or investing in grid modernization and renewable energy integration, potentially shifting costs to future ratepayers or reducing service reliability
  • Consumer bill predictability: Restrictions on cost-recovery mechanisms could either lower bills (the stated goal) or create uncertainty in utility finances, potentially leading to less predictable rate structures
  • Regulatory balance: The bill constrains the Public Service Commission's traditional authority to approve reasonable utility cost-recovery, raising questions about whether legislative micromanagement of utility finance serves consumers better than regulatory oversight

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

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