Maryland lawmakers in Annapolis were set to take up the Affordable Energy Act on Tuesday, a proposal that would let the state’s regulated electric utilities build and own clean, renewable power projects. Backers say the shift could help keep the lights on during periods of peak demand and eventually shave costs off electricity bills for households across the state.
House Bill 1561, sponsored by Delegate Pamela Queen, would require the Public Service Commission to order one or more electric companies to submit a resource adequacy plan whenever regulators find there is not enough capacity or when a so-called "price stability event" occurs. The bill also allows investor-owned electric companies to construct, acquire, own, or lease generating facilities and to recover what the measure describes as "prudently incurred" costs, including through a nonbypassable surcharge and an allowed rate of return, according to the Maryland General Assembly.
The proposal is cross-filed in the Senate as SB0954 and was scheduled for a hearing on Tuesday at 1 p.m. before the House Environment and Transportation Committee, according to published legislative calendars. That hearing is the first formal chance for utilities, unions, and consumer advocates to weigh in on the measure and for lawmakers to consider potential amendments before any floor action.
Exelon, the parent company of BGE, Pepco, and Delmarva Power, has publicly lined up behind the bill. Valencia McClure, a senior vice president at Exelon, told WBAL on the "C4 and Bryan Nehman" program that "we have contractors, we have LIUNA" among supporters, and said business chambers and county executives have submitted letters backing the proposal.
Critics Say The Costs Could Fall To Customers
Opponents counter that letting utilities own more generation will not necessarily make energy cheaper. Maryland People's Counsel David Lapp labeled the Exelon-supported bill "anything but affordable," according to Maryland Matters. Consumer watchdogs warn that speeding up approval for utility-owned projects can leave ratepayers exposed if investments become stranded. Food & Water Watch has criticized similar efforts for steering policy toward large, centralized facilities and has argued that those priorities can undercut goals for community-scale clean energy.
How This Fits In The State's Energy Agenda
The Affordable Energy Act arrives as the Moore administration pushes a broader package aimed at lowering bills and expanding local power, including the governor's Lower Bills and Local Power Act and last year's Next Generation Energy Act. The governor's office has described those initiatives as focused on rebates, grid modernization, and targeted financing to roll out local solar, storage, and other projects, a framework the administration says is meant to boost both reliability and affordability, as outlined in its announcement.
From here, the process turns procedural but still carries high stakes. After Tuesday's testimony, committee members can revise the bill and then decide whether to send it to the full House, while the Senate companion bill waits across the hall. If lawmakers pass the measure without changes to the effective date, the Maryland General Assembly's bill record states that the new utility authority and cost recovery rules would take effect on October 1.
