Maryland Energy Customers May See Savings from $250 Million Sales Tax Refund to Utilities
Maryland’s energy companies are set to receive a $250 million sales tax refund following a Supreme Court of Maryland ruling in their favor. The state comptroller, Brooke Lierman, has urged these utilities to pass the 'windfall' directly to their customers. The case was initiated by Potomac Edison, which argued that sales taxes on energy utilities' purchases of transmission and distribution equipment should be exempt under a production exemption. The Supreme Court of Maryland agreed with this argument in July. As a result, the state will make a one-time payment of $280 million, including interest, to Potomac Edison and other Maryland electric utilities. Rob Leming, Vice President of Regulatory Policy and Strategy for Pepco, confirmed that the three Exelon utilities in Maryland—BGE, Pepco, and Delmarva Power—are aligned with the comptroller's view and intend to pass these savings to their customers. Specifically, BGE customers could see $110 million in savings, Pepco customers $30 million, and Delmarva Power...
