Moore proposes another $40 electric bill credit for Marylanders

by Christine Condon, Maryland Matters
January 27, 2026

Gov. Wes Moore (D) unveiled a legislative energy proposal Tuesday that aims to deliver another roughly $40 electric bill refund to Marylanders, along with policy changes focused on modernizing transmission lines and bolstering clean power in the state.

Moore’s plan would pull about $725 million from a state renewable energy fund — which is fueled by the utilities, and, in turn, ratepayers. The largest part of that, $292 million, would be used to help close a $1.5 billion shortfall in the fiscal 2027 budget, and the rest would be divided among a number of energy and environmental programs.

That plan would leave about $164 million in the Strategic Energy Investment Fund, or SEIF, which has grown explosively in recent years as utilities have opted to pay into the fund rather than paying for the increasing amounts of renewable energy projects required by law.

Moore’s bill, the Lower Bills and Local Power Act, would direct $100 million from the SEIF to Maryland’s residential ratepayers, similar to a $200 million disbursement last year that sent one refund to utility customers over the summer, with a second coming soon. The payments are based on a household’s energy usage, but they average about $40.

“Our administration is stepping up to deliver real relief, focusing on driving down the cost of utility bills for Marylanders, and investing in local projects that make energy more reliable and affordable,” Moore wrote in a statement.

Moore’s proposal would also end a practice that has cost Maryland ratepayers an estimated $20 to $25 million each year. Under current law, Maryland utilities can charge ratepayers for being a part of the regional transmission grid, PJM Interconnection. The governor’s bill would require utilities to stay on the PJM grid, but would not allow them to bill ratepayers.

Moore, other PJM governors push for changes at the nation’s biggest electric grid

“This is a very common practice, and we are just ultimately removing that incentive and telling utility companies this is something you ought to do,” said Saif Ratul, a deputy legislative officer for Moore. “Maryland ratepayers are not paying you additional incentive at a time when you’re making a record … profit to do something that you’re already doing.”

That provision got support from Emily Scarr, a senior adviser at the Maryland Public Interest Research Group.

“In the face of rapidly rising utility bills, our state leaders need to scrutinize every cost that is being charged to ratepayers,” Scarr said in a statement Tuesday. “Gov. Moore’s proposal to require utility participation in regional grid planning and management will save Maryland utility customers $20 million a year.”

Republicans argued that the SEIF has ballooned because of Maryland’s renewable energy requirements, and that using it to help correct the state’s deficit or complete other programs is disingenuous.

“Marylanders are overpaying because of Democratic mandates, and instead of giving that money back or fixing the policies that caused the problem, the Governor is using it to fund government operations,” Senate Minority Leader Steve Hershey (R-Upper Shore) said in a statement Tuesday. “That is not energy relief — it’s a shell game.”

Senate President Bill Ferguson (D-Baltimore City) said his chamber will carefully scrutinize the funding pulled out of the SEIF “to make sure that those programs are as effective and the highest and best value for ratepayers.”

“We know that we need to generate more energy. Having lots of little, tiny programs that are all over the map may not be the best way to approach it, instead of being targeted with a larger investment that will get more electricity on the grid,” he said.

But Ferguson said he supports returning some of the funds to ratepayers.

“We’re trying to give immediate relief where we can with refunds and rebates,” Ferguson said. “I think you will see more coming out of the Senate to provide additional short-term relief.”

The bill also promises to fast-track permitting for upgrades to existing power transmission lines — rather than building entirely new ones.

“One, we don’t want to be unnecessarily building in new places,” said Ryan Opsal, director of energy policy at the Maryland Energy Administration. “And two, any time anything gets built by any type of utility, it goes in their rate base and they make money on it over the long term.”

Expedited consideration by the Maryland Public Service Commission of construction permits for utilities that decide to complete upgrades or grid enhancements “is the carrot for developers,” Ratul said.

It comes as one power line proposal in particular has stirred a significant pushback: The proposed Maryland Piedmont Reliability Project, currently before the PSC, would travel 67 miles through Central Maryland. Opponents say it would disturb a large amount of farmland and natural areas, and alternative grid improvements should have been considered instead.

Senate Minority Whip Justin Ready (R-Carroll and Frederick), who represents two of the counties where the power line would run, criticized the governor’s focus on power transmission in the bill, arguing the state should focus on natural gas fired power plants.

“This plan makes it clear that Maryland is being turned into a transmission state, not a generation state,” Ready said in a statement Tuesday. “The Governor is spending money ratepayers have already paid to upgrade transmission lines so we can import electricity from Pennsylvania, rather than producing reliable power here at home.”

Moore would also set aside $10 million from the SEIF for the Department of Transportation to evaluate opportunities for transmission lines and battery storage projects on state highway land. It follows a Moore executive order in December directing the department to investigate the matter.

“By leveraging existing state’s highway right-of-way, Maryland can bypass complex land acquisition and permitting processes, which will rapidly deploy the high-voltage capacity necessary to improve grid reliability across the state,” Moore’s office said in a news release Tuesday.

Moore’s plan would pull about $70 million from the SEIF for gap financing for  “shovel-ready” solar and battery storage projects, a response to the elimination of federal tax credits for solar projects under President Donald Trump’s (R) One Big, Beautiful Bill Act, the governor’s news release said.

Ratul said the “goal is not to provide financial certainty for the businesses to stay afloat. The goal really, here, is to provide financial services so that the projects are coming online as quickly as possible.”

Some environmental groups have expressed concern about Moore’s decision to pull so much money from the SEIF for unrelated purposes, such as fixing the state’s budget woes. But they applauded Moore’s decision to bolster solar and storage with the money.

“By financing shovel-ready solar plus storage projects, this legislation ensures utility accountability and prioritizes the most cost-effective, rapidly deployable energy sources making energy more affordable for all Marylanders,” League of Conservation Voters Maryland Executive Director Kim Coble said in a statement.

— Maryland Matters reporter William J. Ford contributed to this report.

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