Maryland Governor Moore Proposes Legislation to Lower Utility Bills and Boost Local Energy Production

Governor Wes Moore has unveiled the “Lower Bills and Local Power Act,” a significant legislative initiative aimed at addressing rising utility costs for Maryland residents and fostering a more affordable and reliable energy future for the state. The proposed act, part of the administration’s 2026 legislative agenda, seeks to secure financing for local clean energy projects, modernize the state’s electric grid, and provide additional direct rebates to families struggling with energy expenses. This legislation signals a proactive approach to energy policy, directly linking it to the ability of Maryland families to afford their homes.

The Lower Bills and Local Power Act is designed to leverage nearly $200 million from the Strategic Energy Investment Fund, a pool of money generated from utility Alternative Compliance Payments. This funding is strategically allocated across three key areas: direct financial relief for Marylanders, infrastructure modernization, and the development of local energy generation. A substantial portion, approximately half of the total funding, will be dedicated to providing direct relief. This includes an allocation of $100 million for a new round of utility bill rebates, set to be administered in the fall. These rebates are in addition to previous energy bill relief measures, such as the $200 million in direct electricity bill rebates distributed under the Next Generation Energy Act.

In an effort to enhance the state’s energy infrastructure, the proposed legislation mandates that utility companies prioritize advanced transmission and grid-enhancing technologies when expanding their capacity. These modern technologies are intended to increase the efficiency and capacity of existing transmission lines, thereby improving the reliability of the power grid for consumers without the necessity of constructing new infrastructure. Under the new requirements, utilities seeking approval for new transmission line construction will be required to present plans for the implementation of these advanced technologies before their proposals can be considered by the Public Service Commission.

Furthermore, the legislation earmarks $10 million from the Strategic Energy Investment Fund for the Maryland Department of Transportation. This funding will support the identification of opportunities for the development of high-voltage transmission lines and battery storage projects along state and interstate highways. By utilizing existing state highway rights-of-way, Maryland aims to streamline land acquisition and permitting processes, which are often complex and time-consuming, thereby accelerating the deployment of crucial high-voltage capacity to bolster grid reliability statewide.

To encourage the growth of local energy production, the Lower Bills and Local Power Act establishes the Solar and Energy Storage Gap Financing Program. This program, to be managed by the Maryland Energy Administration, will invest $70 million from the Strategic Energy Investment Fund into clean energy projects. This investment is specifically intended to stimulate local, clean energy output by addressing financial uncertainties that have arisen from changes to federal tax credits.

The proposed legislation also includes provisions designed to increase accountability and reduce costs for consumers. It eliminates a current 0.5% incentive that allows utilities to accrue additional profits and mandates that utility companies participate in Maryland’s regional transmission organization, PJM Interconnection. This mandate is expected to promote greater accountability among utilities and could result in annual savings for Maryland families in the tens of millions of dollars.

This legislative proposal builds upon previous actions taken by the Moore-Miller Administration to alleviate energy costs for Marylanders. In addition to executive orders and substantial energy rebates, the governor has allocated over $130 million in the past year to clean energy and modernization initiatives, including programs focused on county government energy upgrades and the decarbonization of public schools.

Article by Mel Anara, based upon information from The Office of Governor Wes Moore.

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