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Maryland Public Service Commission fields questions on vacancies, arrearages and new supplier rules
Summary
At a House Appropriations subcommittee hearing, the Maryland Public Service Commission defended FY26 budget increases while answering lawmakers' questions about long-term staffing shortages, rising residential utility arrearages and implementation of last year’s SB 1 for third‑party retail electric suppliers.
The Maryland Public Service Commission told the House Appropriations Committee Transportation and Environment Subcommittee on Friday that its fiscal 2026 operating allowance would rise by about $1.6 million, driven largely by personnel and support for outside subject-matter experts.
The budget analyst from the Department of Legislative Services told the subcommittee the PSC’s FY26 allowance totals about $30.2 million, with personnel accounting for roughly 79% of the agency’s spending. The analyst also recommended committee narrative asking the commission to report updated data on residential terminations and arrearages.
Fred Hoover, chair of the Maryland Public Service Commission, said the agency is struggling to fill technical positions because it competes with the private sector, federal agencies and local utilities for specialized staff. "A lot of the people that we're trying to hire are in highly technical and highly competitive positions, and we're competing with the private sector, formerly with the federal government, and in some cases, the counties," Hoover said.
Hoover told legislators some vacancies date to recent expansions in PSC responsibilities and to persistently higher pay offered elsewhere: "I've actually lost two individuals from the public service commission to the WSSC because they pay better than the state does." He said the commission hopes some former federal employees will become available following personnel shifts in Washington.
Lawmakers pressed the commission about residential energy costs and protections for customers. Delegate Spiegel asked what authority the PSC has over drivers of rate increases; Hoover described the agency’s role under the state ‘‘regulatory compact,’’ in which utilities request permission to recover prudently incurred costs and are allowed a fair rate of return. Hoover said the commission reviews rate cases, pursues proceedings on storm‑related reliability spending and examines multiyear rate plans in an ongoing proceeding.
On arrearages and service terminations, Hoover said the commission is reviewing billing, collection and termination policies with a new emphasis on summer heat because loss of air conditioning during extended heat waves can cause public‑health risks similar to winter shutoff concerns. He said the PSC is considering rules that would require utilities to factor heat‑index conditions into termination decisions.
Lawmakers also questioned the PSC about third‑party retail electric suppliers. Hoover said the agency is implementing SB 1 from last year, which created new relicensing requirements and consumer protections for retail suppliers. "We're currently working through those things, and I've had numerous meetings with both the retail supply companies and their trade associations to try to work with them to make the process go smoothly," he said.
The analyst noted PSC posts data on terminations, arrearages and supplier complaints, but some datasets have not been updated since May 2024 while the commission develops a new data portal; the analyst recommended committee narrative requesting updated reporting.
The PSC presentation also summarized federal grant awards and offshore wind project milestones that PSC monitors, including federal IIJA grants to utilities and a December 2024 BOEM approval of a construction and operation plan for an offshore wind project with a targeted commercial operation date in 2029.
The subcommittee did not record a formal vote on the PSC budget during the session. DLS recommended committee narrative directing the PSC to report updated terminations and arrearages data; the commission said it would provide information and is implementing SB 1 changes.
Why it matters: The PSC oversees utility customer protections and rate proceedings that affect household energy bills. Lawmakers emphasized the local impact of rising residential electricity and natural gas prices and pressed the commission for data and stronger consumer protections as it implements new retail supplier rules.
