[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6765215,"mediaKeyId","5885693-733584c5a882905486f64606b883c47e","parentId",5885693,"title","People's Counsel urges $30M-per-utility cap and strict cost controls for geothermal pilots; staff lays out data and reporting needs","audioSeconds",2584,"startMs",3889850,"endMs",6474400,"viewUrl","/Search/View?dp=1&key=5885693-733584c5a882905486f64606b883c47e&start=3889&end=6474","thumbnailUrl","https://assets.pipeline.soar.com/5885693-733584c5a882905486f64606b883c47e/thumbnail_3889850.jpg","articleUrl","/articles/6765215/Maryland/Peoples-Counsel-urges-30M-per-utility-cap-and-strict-cost-controls-for-geothermal-pilots-staff-lays-out-data-and-reporting-needs","mediaUrl","https://secure.pipeline.soar.com/6765215-c98977617a33dbf964e77514aee090d3/orig.mp4?Expires=1775415270&Signature=cVLRBE-7pkVZ2WKJNbi-6f7fJDMRC-YielmkreMjmZI-B7gjqzPwg8UYwJnpRb1lrSKd3Qv4XcwWU7YQe-Huzxy00MxPR~hpL-hB5QqdLLBcfq6ojTaEEKFCoSxTXCVqq9h6-i1h9l2o0B-Dn7L-1hFiRz58NONxqeH~oBQlmsKuG-DA3Z1eQ33j~ihoULJx-eqERvaEuQF9OsJlRUjBjS6xai1pa7GyCMEVVqgsenkjhsiY6jSxz~ip-d9krs20Tbw8Ehpyktkf9wWRceqQ8Kv6M1i~Q~hmeFLO9hzXLfbqHc6wcyVgdSantX5rktfIVgk~rt2TMbTm0RaGTuElHg__&Key-Pair-Id=KUT5TJCACFTXG","author","Public Service Commission, MD","date","2025-10-02T07:38:46Z","article","The Office of People's Counsel told the Public Service Commission that Maryland’s proposed network geothermal pilots carry unusually large costs and should be constrained by clear budget controls and reporting requirements.

Assistant People's Counsel Diamond Hawkins introduced the OPC position and said OPC supports network geothermal learning but \"cautions that innovation must be balanced with fairness,\" including limits on ratepayer exposure. Consultant Theodore Love presented cost and per‑ton comparisons that OPC argued show Maryland pilots are expensive relative to other projects: he cited combined pilot budgets of roughly $123 million (and up to $190 million if outside funding does not materialize), and revenue-requirement scenarios ranging from approximately $261 million to $353 million in 2025 dollars.

Love told commissioners that median and average per‑ton costs in U.S. network geothermal projects are about $58,000–$65,000 per ton but that Washington Gas and BGE pilots showed substantially higher per‑ton figures (OPC cited roughly $134,000 per ton for WGL and up to $223,000 per ton for BGE in materials shown to the commission). \"These budgets are beyond the pilot level here,\" Love warned, and OPC recommended several controls to limit ratepayer risk.

OPC’s recommendations included: capping recoverable pilot spending to $30 million per utility after accounting for outside funding; limiting allowable cost overruns to no more than 10% without prior Commission authorization; rejecting BGE’s proposal to capitalize non‑capital pilot costs and rejecting Washington Gas’s request for accelerated depreciation plus a 100‑basis‑point adder to its authorized return on equity.

Senior Assistant People's Counsel Mark Scheibust further argued the statute (cited in the hearing as section 7‑1102) places primary responsibility on gas companies and that allocating large portions of these pilot costs to electric customers raises statutory and fairness concerns.

PSC technical staff joined the discussion and recommended staged approvals, stronger data reporting and a work‑group model to define \"apples‑to‑apples\" metrics: semiannual reports, clear categorization of front‑of‑meter vs. behind‑the‑meter costs, and verification of any transmission and distribution savings before allocating those savings to electric ratepayers. Staff also suggested approving one pilot per utility with explicit conditions on reporting and external review where appropriate.

Commissioners expressed concern about both large costs and the risk that strict upfront caps could stall viable pilots; they asked staff how prior‑approval protocols or semiannual reporting might provide timely oversight without unduly delaying construction. OPC and staff indicated they would be open to a process that combines budget limits with early notification and Commission approval triggers for overruns.

The hearing record now moves to deliberations over whether to approve one or more pilots and, if approved, what specific cost‑control, reporting and customer‑protection conditions should be imposed.","mediaType","Video","parentTitle","WARMTH Geothermal Hearing 9749 - 10/1/2025","oneSentenceSummary","The Office of People's Counsel urged the Public Service Commission to limit ratepayer exposure on Maryland’s network geothermal pilots to about $30 million per utility and to require close reporting and prior authorizations for cost overruns.","taxTitle","Public Service Commission, Independent Agencies, Organizations, Executive, Maryland","taxId",80344,"location","Maryland","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6765220,"Delegate Laura Charkudian urges careful design of Maryland geothermal pilots and opposes in-home resistance backup",965,745929,1711890,"/Search/View?dp=1&key=5885693-733584c5a882905486f64606b883c47e&start=745&end=1711","https://assets.pipeline.soar.com/5885693-733584c5a882905486f64606b883c47e/thumbnail_745929.jpg","/articles/6765220/Maryland/Delegate-Laura-Charkudian-urges-careful-design-of-Maryland-geothermal-pilots-and-opposes-in-home-resistance-backup","https://secure.pipeline.soar.com/6765220-7970fad5bc74409da88b7db5734795a2/orig.mp4?Expires=1775415270&Signature=RbddSSV54gFOQhF9cKYC7FJr0G1Pq2KUj-KwQkIm0-fdtpRKbaG7YpqzgUJmi-ROVbYt211mbvw1DMi1gvUfCV0Anqj9mTSTkIfuI3nbhxG0Db6IqH0iAsTBmZ58YbmLbH7VJH8Ki6XOZHTG3Hx4GKotL~7338hTAcFmlqMaMNLYanbvub4DNUUCiElvxI7Be8uMTwFmJLUo5OzOLrBtJWT63a1AegTezn9c2Ht1TzApEeeeBwALMhA0BtBMcb1RC2nIVA4koysS8YNxHjsPSJK2E6VKgRgivYdhNK3btIeM6~DcL7s~OV7edjZKQx4HwRCMdpu4MiGfhMRkZOnL~w__&Key-Pair-Id=KUT5TJCACFTXG","Delegate Laura Charkudian told the Public Service Commission on the record that Maryland’s network geothermal pilots hold “so much potential” but that current cost estimates are ‘‘a little bit higher’’ than they should be for a pilot and must be driven down through design, outside review and use of tax credits.

\"I think it's totally inappropriate to have backup resistance heat on these systems,\" Charkudian said, arguing such in-home resistance backup defeats the grid benefits the projects seek to deliver. Instead she suggested any necessary redundancy be located at the pump house, which she said would be less costly and easier to remove if it proves unnecessary.

Charkudian said federal tax credits and other outside funding make the pilots more feasible and urged the commission to require incremental design steps — for example approving reimbursement to reach 30% or 60% design and then asking outside experts (she referenced HEAT) to review those designs before further approvals. \"Let's bring these costs down, let's work on... ask them to take the next step to get to 30% design with an understanding that they're going to be reimbursed for the cost to get to the 30% design,\" she said.

She also highlighted operational benefits that network geothermal can deliver beyond simple fuel switching, including demand-response potential from preheating and precooling loops and the possibility of capturing waste heat from facilities such as ice rinks or data centers for local heating. On workforce, Charkudian urged that utilities and contractors plan for maintenance training and certifications and incorporate community benefit agreements with prevailing wage and apprenticeship requirements.

Commissioners followed Charkudian with detailed technical questions about segregating the cost of backup systems to allow apples-to-apples comparisons, whether backup on pump houses could better isolate costs, and how air-source heat-pump appliances (stoves, water heaters) would change building panel upgrade needs. Charkudian repeatedly recommended more granular design and reporting: run comparative analyses to show the impacts of air-source versus ground-source approaches, require utilities to model scenarios, and insist on strong community engagement.

The delegate also urged utilities to begin MIHA (low‑income multifamily) energy-efficiency processes now for buildings under consideration, saying those upgrades deliver benefits to residents regardless of whether a pilot proceeds.

The hearing moved next to local and institutional testimony and a technical presentation from the Office of People's Counsel and PSC staff on budgets and cost controls. The commission closed the session after a staff discussion of reporting, staged approvals and regulatory options for managing budget risk.","During a Public Service Commission hearing on the WARMTH Act pilots, Delegate Laura Charkudian said pilot costs are high but reducible with better design, recommended backup heating be sited at pump houses rather than inside homes, and urged workforce training, community benefit agreements and rigorous data collection.","actionData","errors"]

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People's Counsel urges $30M-per-utility cap and strict cost controls for geothermal pilots; staff lays out data and reporting needs

Delegate Laura Charkudian urges careful design of Maryland geothermal pilots and opposes in-home resistance backup