Maryland Public Service Commission Terminates Multi-Year Rate Plan Pilot Program for Utilities
The Maryland Public Service Commission (PSC) has officially ended its Multi-Year Rate Plan (MRP) pilot program, citing a failure to achieve its intended goals and a lack of clear customer benefits. The program, initially established for Baltimore Gas and Electric (BGE), and later adopted by Potomac Electric Power Company (Pepco) and Delmarva Power & Light Company, allowed utility rates to be set based on forecasted projects and anticipated spending rather than on actual, proven investments. According to Maryland People’s Counsel David S. Lapp, MRPs led to increased complexity in rate cases, higher administrative burdens, and frustrated regulatory oversight, ultimately resulting in customers paying more compared to standard ratemaking. The PSC's order, issued after multiple rounds of stakeholder comments and a legislative-style hearing, concluded that the framework, while shortening cost-recovery periods for utilities, did not produce measurable benefits for ratepayers, nor did it advance the state's energy...