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Renewable energy

Maryland Lawmakers Deliver Electricity Bill Refund Amid Soaring Energy Costs

Strategic Insights

— 2 min read

Maryland lawmakers have moved to provide relief to residents struggling with rising energy bills, approving a roughly $40 rebate on electricity bills. The refund, financed by tapping into a state fund for energy efficiency and renewable energy programs, is expected to be delivered to customers this month, with a second round planned for early 2026. The effort comes as energy bills in the state are set to increase due to an energy auction held by PJM in 2024, which cleared at a historically high price.

Key Takeaways:

  • The Maryland General Assembly approved a roughly $40 rebate on electricity bills to help residents struggling with rising energy costs.
  • The rebate is financed by tapping into the Strategic Energy Investment Fund, which is composed largely of proceeds from a carbon dioxide allowance auction and alternative compliance payments from electricity suppliers.
  • The refund is expected to be delivered to customers this month, with a second round planned for early 2026.
  • The rebate is part of a broader effort by lawmakers to address rising energy costs, including the Next Generation Energy Act, which aims to increase in-state power generation and curtail utility infrastructure spending.
  • The PJM energy auction held in 2024 cleared at a historically high price, resulting in expected average increases of $13 per month on energy bills for Maryland consumers.
  • The People's Counsel estimated that Baltimore Gas and Electric customers could see one of the larger increases, at $16 per month, although regulators stepped in to suspend the cost increases in the summer and winter.
  • Typical BGE customers will see an estimated $30 increase in their monthly bills this fall and spring, according to the Office of People's Counsel.

Statistics:

  • The Strategic Energy Investment Fund has ballooned in recent years due to an increase in compliance payments, reaching an estimated $200 million in funding.
  • The average increase on energy bills for Maryland consumers after the PJM energy auction is estimated to be around $13 per month.
  • Baltimore Gas and Electric customers are expected to see an average increase of $16 per month, while typical BGE customers will see an estimated $30 increase in their monthly bills this fall and spring.

Sources:

  • "Governor Wes Moore, Senate President Bill Ferguson, and House Speaker Adrienne A. Jones Roll Out $200 Million in Energy Bill Relief" (https://governor.maryland.gov/news/press/pages/governor-moore-senate-president-bill-ferguson-and-house-speaker-adrienne-a-jones-roll-out-dollar200-million-in-energy-bill-.aspx)
  • Remarks by Gov. Josh Shapiro at a PJM summit in Philadelphia on July 23, 2025 (https://www.pa.gov/governor/newsroom/2025-press-releases/gov-shapiro-s-prepared-remarks--13-state-summit-on-future-of-pjm)
  • "Energy bills likely to tick up again in 2026 after electricity auction clears at maximum price" (https://marylandmatters.org/2025/07/23/energy-bills-likely-to-tick-up-again-in-2026-after-electricity-auction-clears-at-maximum-price/)

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