Maryland regulators end multi-year electric rate pilot program

The Maryland Public Service Commission has ended a pilot program known as Multi-Year Rate Plans (MRPs), which allowed electric utilities to project future spending and request rate increases accordingly. While the program aimed to increase transparency and make rates more predictable, regulators concluded that the goals were ‘largely unachieved’ and failed to produce measurable benefits for ratepayers.

Commissioners noted that under the MRP model, utility companies were able to recover costs more quickly, but the process requires a ‘major rehaul or a complete elimination’ rather than minor adjustments. A working group has been ordered to recommend a substantially reformed procedure by June 30. Maryland’s consumer advocate, People’s Counsel David Lapp, stated the order confirms that MRPs failed to deliver for customers.

In a related regulatory action, the Commission utilized an ‘adjustment approach’ to manage a significant rate request. Instead of fully litigating a proposed $188.4 million increase—which could have resulted in a 13 percent monthly increase—the Commission implemented moderate adjustments. This approach limited the total impact to 4.25 percent, spreading the increase over two years to ease the financial burden on ratepayers.