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Maryland committee hears HB 1 to cap executive pay recoverable in utility rates
Summary
Supporters told the Environment and Transportation Committee HB 1 would prevent ratepayers from subsidizing excessive executive bonuses; utilities warned it could hamper recruitment and shift costs into fixed rates. The PSC said it already reviews compensation in rate cases but the bill would create a clearer statutory cap.
The Environment and Transportation Committee heard testimony on House Bill 1, a bill sponsored by Delegate Brian Crosby that would bar investor‑owned utilities from charging customers for executive bonuses and would cap supervisor compensation recoverable in rates at 110% of a Public Service Commission (PSC) commissioner’s salary. "HB 1 prohibits investor owned energy companies from using customer rates to pay for executive bonuses or compensate executives over a 110% of the PSC commissioner salary," Delegate Brian Crosby said in his presentation.
Supporters framed the bill as a consumer‑protection measure aimed at easing pressure on households facing high energy costs. David Lapp of the Office of People's Counsel said the bill "codifies existing commission precedent" and would give clearer statutory authority to the PSC to limit recovery of incentive pay not tied to customer‑facing performance.…
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