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Fuel Fund asks PSC for clarification on $5 million quasi-endowment; commission takes request under advisement
Summary
The Fuel Fund of Maryland sought guidance on whether and how it could modify and expend a $5 million quasi-endowment established by prior commission orders. Staff recommended preserving the corpus and authorizing limited annual expenditures; the commission took the request under advisement and asked the fund to file clarifying materials.
The Fuel Fund of Maryland told the Public Service Commission on Feb. 19 that it seeks clarification about whether its $5 million quasi-endowment (a community investment fund established under prior PSC orders) may be modified to permit spending the corpus, and under what conditions.
Staff summarized the agency’s history and the commission’s prior orders (Order No. 85167, Nov. 8, 2012, and subsequent orders in 2017–2019) that required the community investment fund be maintained unless the commission approved a modification. Staff recommended the Fuel Fund be required to retain the $5 million quasi-endowment and, if spending is necessary, be allowed to expend up to 10% per year from the endowment with replenishment during the same fiscal year.
Why it matters: the Fuel Fund provides utility assistance to low-income customers and has seen increased demand amid higher utility prices; the charity asked for clarified “rules of the game” for when it could access the corpus while preserving donor support and the endowment’s purpose.
Fuel Fund representatives, including Executive Director Debbie Brown and board members John Pastelow and Dale Lineweaver, said the fund is not requesting to spend the corpus now and that the current balance has remained at the $5 million threshold. They said the organization has built an income-accumulation bucket (about $500,000) from earnings that they have used for assistance while preserving the corpus.
Commissioners asked operational questions: how the fund invests, whether it files annual reports, and how it would replenish withdrawals. Fuel Fund representatives said a third-party manager (Brown Advisory) manages investments; fees are rebated in many cases and the portfolio is relatively conservatively allocated. The fund confirmed it would resume providing annual reports to the commission if the commission preferred.
Action and next steps: the commission took the Fuel Fund’s letter under advisement and said staff would issue a written order clarifying what the commission will require going forward, including whether a formal filing would be necessary to access the corpus. The Office of People’s Counsel asked for the opportunity to comment if the fund later files for a drawdown.
Ending: The commission did not change the prior orders on Feb. 19 but signaled a willingness to issue written guidance to clarify the process and reporting requirements if the Fuel Fund wishes to access the quasi-endowment in the future.
