Maryland Division proposes phased rate increases for gas customers across multiple companies

The recent Administrative Meeting held by the Public Service Commission of Maryland on April 16, 2025, addressed significant changes in utility rates that will impact customers across various regions. The discussions centered around a consolidated tariff filing that introduces separate volumetric rates for different gas service providers, including Sandpiper, Maryland Division, and Elkton Gas. This means that customers of each company will see different rates on their bills.

One of the key updates in the tariff filing is the adjustment of system improvement rates for Sandpiper customers. This rate, which helps recover costs associated with replacing bare steel, upgrading distribution systems, and converting from propane to natural gas, will decrease significantly from approximately 54 cents to just 10 cents per therm. This reduction is expected to provide some relief to Sandpiper customers amid broader rate changes.

The meeting also highlighted the phased implementation of rate increases for Elkton's residential and small general service classes. These classes, identified as under-earning, will see the largest percentage increases in revenue. To ease the financial burden on customers, the rate adjustments will be rolled out over two years. Specifically, an average residential customer in Maryland Division will face a 7% increase in their bills, while Sandpiper customers will see a 12% increase. Elkton residential customers will experience a 13% increase in the first year, followed by a 7% increase in the second year. Notably, these increases encompass the cost of the commodity itself.

Overall, the discussions during the meeting reflect ongoing efforts to balance the financial needs of utility providers with the economic realities faced by consumers. As these changes take effect, customers will need to prepare for the adjustments in their monthly bills, which could have broader implications for household budgets across the state. The Public Service Commission's decisions will continue to shape the landscape of utility services in Maryland, making it essential for residents to stay informed about these developments.