Maryland Public Service Commission cites staffing gaps and rising arrearages as electricity, gas prices climb

The Public Service Commission’s operating allowance for fiscal 2026 rises by $1.6 million, but agency leaders told the House Appropriations Committee Transportation and the Environment Subcommittee that staffing shortages, a backlog of data on residential terminations and arrearages, and implementation of new rules for retail energy suppliers are pressing concerns.

Legislative analyst: The Department of Legislative Services reported that the PSC’s fiscal 2026 operating budget totals $30.2 million, a 5.5% increase from the prior year. Personnel expenses are the largest share, about $23.9 million (79% of the allowance), and the allowance adds funding to support 10 new regular positions. The analyst noted that “as of December 31, 2024, 33 positions were vacant,” and that four of those vacancies had persisted more than a year; 17 vacancies reflect positions created in fiscal 2025 that had not yet been filled.

Why it matters: The PSC regulates utility distribution and customer protections in Maryland. Commissioners and legislators said prolonged vacancies and delayed data reporting limit the agency’s ability to monitor utility terminations and arrearages and to oversee implementation of recent consumer-protection reforms for third‑party retail electric suppliers.

The commission’s chair, Fred Hoover, said recruitment has been difficult for technical positions because the state competes with the private sector and other employers. “A lot of the people that we’re trying to hire are in highly technical and highly competitive positions,” Hoover said, adding that “I’ve actually lost two individuals from the Public Service Commission to the WSSC because they pay better than the state does.”

On arrearages and terminations, the DLS analyst said residential electricity prices in Maryland have risen, noting that the average residential electricity price in September 2024 was 18.4¢ per kilowatt-hour — about 8.4% higher than September 2023 — and that natural gas prices reached seasonal highs in mid-2024. The analyst also said PSC posts monthly termination and arrearage data by utility but that its new data portal has not been updated since May 2024; DLS recommended committee narrative asking PSC to report updated termination and arrearage data.

Hoover described policy work the commission is undertaking to address terminations in very hot weather, saying the panel is “undertaking a complete review of the billing collection and termination policies of all the utilities in the state with a particular focus on what happens during the summertime.” He said the commission is considering requiring utilities to factor heat‑index impacts into termination decisions to protect customers during heat waves.

Third‑party suppliers and SB 1: Committee members pressed the commission about enforcement actions against third‑party retail energy suppliers. Hoover said the legislature passed SB 1 last year to impose stricter consumer protections and a relicensing requirement for suppliers; PSC staff are implementing that law and a relicensing process that Hoover said he expects will remove some suppliers from the market and create a new compliance baseline for consumer protections.

Federal infrastructure funding and projects: The analyst briefed the subcommittee on PSC public conference 56 (PC 56), which requires utilities to file monthly reports describing federal Infrastructure Investment and Jobs Act (IIJA) projects. The analyst noted that the first GRIP award round included $32.5 million to SMECO and that later awards under the GRIP program included grants to Baltimore Gas and Electric, FirstEnergy (Potomac Edison), and Exelon for multi‑state projects. The analyst also noted that the Bureau of Ocean Energy Management approved the first offshore wind project construction and operations plan in December 2024 with an estimated initial commercial operation date in 2029.

What was requested: DLS recommended adopting committee narrative directing PSC to provide updated termination and arrearage data, and legislators asked for a public schedule for when the PSC’s new portal will be live and current. Committee members also asked PSC to explain efforts to fill long‑term vacancies and to provide figures on enforcement recoveries from retail supplier actions; Hoover said he would provide the revenue totals later.

Ending: Lawmakers signaled interest in the PSC’s proposals for targeted protections for customers at higher risk during heat waves, and they requested updated evidence on terminations and arrearages before concluding oversight of the allowance.