The Maryland Public Service Commission (PSC) convened on October 1, 2025, to discuss the WARMTH Geothermal Hearing, focusing on pilot projects aimed at advancing geothermal energy solutions in the state. The meeting highlighted the importance of these projects in addressing Maryland's carbon footprint and transitioning to cleaner energy sources.
Key discussions centered around the high costs associated with the pilot projects, which are projected to range from $123 million to $190 million, depending on external funding. Stakeholders expressed concerns about the financial burden these costs could impose on ratepayers, with estimates suggesting total revenue requirements could soar between $261 million and $353 million. The Office of People's Counsel (OPC) emphasized the need for significant modifications to the proposals to ensure fairness and cost-effectiveness.
Several recommendations were made to the PSC, including capping the total budget for each pilot at $30 million after accounting for outside funding and limiting cost overruns to 10% without prior authorization. The OPC also urged the Commission to approve only one pilot project from BGE to manage expenses better.
The meeting underscored the potential of geothermal energy as a clean heating and cooling solution, with comparisons drawn to similar projects in other states, such as New York, where costs have escalated significantly. The discussions revealed a consensus on the necessity of learning from existing projects to enhance future cost efficiency.
As Maryland moves forward with these geothermal initiatives, the PSC's decisions will play a crucial role in shaping the state's energy landscape and ensuring that the transition to renewable energy is both sustainable and equitable for all residents. The PSC is expected to deliberate on the proposals further, with stakeholders eagerly awaiting the outcomes that will impact the future of energy in Maryland.