Maryland residents are about to see higher costs on their energy bills unless federal regulators take action, state lawmakers say.
A bipartisan group of 87 Maryland senators and delegates sent a letter to the Federal Energy Regulatory Commission (FERC) demanding action before the hike takes effect on Sunday, June 1.
“This is sort of our last chance to really ask FERC to change a ruling so that our consumers don’t see a significant increase on their bills coming this summer and fall,” Del. Lorig Charkoudian told News4. She’s leading the effort.
The higher bills are the result of a federal process that involves PJM Interconnection, the electrical grid operator for Maryland, as well as D.C. and 12 other states.
In their letter, lawmakers said there were flaws with PJM’s “capacity market auction” last summer, which is driving unnecessary cost spikes.
The capacity market is designed to ensure grid reliability by paying energy generators now to be available in the future.
“Just a straight up wealth transfer from our rate payers to energy companies that do not need these funds to operate,” Charkoudian said.
The process is complicated, but state lawmakers want residents to know they’re trying to intervene to limit the higher costs — which will hit just as the weather heats up and people start using their air conditioning.
If federal regulators don’t intervene, Baltimore Gas and Electric (BGE) customers are looking at an average $16 a month increase. Pepco customers would see an average $14 a month increase, while Potomac Edison customers would pay $18 more a month, officials said.
But costs could be more depending on how much electricity residents use.
“A high energy bill can be the difference between being able to stay in your home, afford your rent, afford your groceries, afford your prescription drugs or not,” said David Lapp with the Maryland People’s Counsel, which has filed a complaint with PJM.
Lawmakers and the People’s Counsel argue the federal commission approved the cost increase based on “deeply flawed” information and under rules that were changed after the auction last summer.
“So we filed complaint in April about, saying those rules that were in place led to unjust and unreasonable, and therefore unlawful, rates,” Lapp said.
PJM pushed back in a statement to News4, saying in part: “It is not legally possible to adjust the auction results at this time. And there is no reason to do so, as all actions were in accordance with the rules.”
The People’s Counsel is asking federal regulators to make a decision before June 1 or give a refund to customers if the rates are lowered after the deadline.
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