Saint Agnes Hospital seeks 75 percent fine waiver after gas interruption failures

During the recent Public Service Commission meeting on August 6, 2025, a significant discussion unfolded regarding the reliability of Saint Agnes Hospital's participation in the interruptible gas service program. The hospital's leadership faced scrutiny after a failure to comply with a gas interruption test, raising concerns about their ability to support the gas distribution system during peak demand.

Saint Agnes operates three gas-fed boilers designed primarily for backup power to ensure patient comfort and safety. However, the hospital's recent experience with a $700,000 investment in new software and boiler systems has prompted them to reconsider their participation in the interruptible service program. While they expressed confidence in their equipment, hospital representatives acknowledged the need to evaluate whether remaining on the interruptible rate is in their best interest moving forward.

Commissioners voiced concerns that the hospital's failure to respond effectively during a recent interruption could jeopardize the integrity of the gas system. One commissioner emphasized that if Saint Agnes cannot be relied upon to back up the system, other customers may face gas shortages. The hospital's leadership defended their track record, citing 15 years of successful voluntary disruptions, but acknowledged that the recent failure was a significant concern.

The financial implications of moving off the interruptible rate were also discussed, with hospital representatives indicating that a shift could result in a loss of approximately $480,000 in annual savings. They proposed a 75% waiver of penalties related to their recent failure, arguing that this would be a reasonable compromise given their long-standing participation in the program.

As the meeting concluded, the commission decided to take the matter under advisement, indicating that further deliberation would be necessary to address the various concerns raised. The outcome of this discussion could have lasting implications for both Saint Agnes Hospital and the broader gas distribution system in Maryland.