PSC staff: Maryland utilities exceeded supplier diversity goals overall despite a dip tied to two MOU withdrawals

The Maryland Public Service Commission convened its annual supplier diversity conference (PC 52) on July 13, where staff and utility representatives reviewed 2025 results and steps to expand opportunities for minority, women, veteran and other certified diverse suppliers.

PSC technical staff presented the 2025 supplier diversity annual report, saying joint participants in the Memorandum of Understanding (MOU) reached a 36.98% diverse‑spend ratio (DSR) for 2025. Brett Babay, PSC technical staff, said that figure fell from 42.27% in 2024 primarily because two MOU participants withdrew, and he explained the DSR calculation: total diverse supplier procurement divided by total utility procurement. Babay said 10 of 14 utilities that filed reports met or exceeded the commission’s 25% aspirational goal for diverse spending.

“After removing the two companies that left the MOU, normalized totals show the percent change moderates,” Babay said, describing staff work to improve apples‑to‑apples comparisons and data collection going forward. The staff presentation reported $4,140,000,000 in total utility procurement in 2025 and about $1,530,000,000 in diverse spending that underpins the 36.98% figure.

Utility representatives described a range of supplier development efforts. Vernice Lewis, speaking about the Maryland Utility Forum (MUF), said the forum has been reconvened to share best practices and surface supplier voices. Exelon representatives said BGE, Pepco and Delmarva Power together spent more than $2 billion with small and local businesses in 2025 and highlighted empowerment academies and supplier development curricula to build capacity.

Several utilities described investments in tier‑2 reporting, mentoring and outreach events. Washington Gas representatives presented an economic‑impact methodology that estimated hundreds of millions in indirect and induced spend and cited initiatives including a Strive for 35 access‑to‑capital program and a business pitch event aimed at connecting small suppliers to prime contractors. NiSource/Columbia Gas outlined a new supplier development program and a Maryland‑focused dashboard to improve visibility. SMECO and other smaller utilities reported progress in tier‑2 reporting and said timing of capital projects can depress year‑to‑year percentages even as absolute dollars rise.

Public comment amplified the stakes for workforce and generation policy. Wayne Frazier, president of the Maryland Washington Minority Companies Association, congratulated the program’s long record but urged the Commission and state leaders to remove barriers to new generation and transmission so utilities and their suppliers can expand opportunities and diverse spending into professional services and finance.

Commissioners pressed staff and utilities on data transparency and methodology. Commissioner Linton asked staff to provide the specific NAICS codes used to categorize spend in the filed reports; staff said it would supply the NAICS list for the record. Commissioners emphasized that, even as some utilities face legal and regulatory constraints, continued data sharing and forum engagement will inform the Commission’s public determination about the program’s future.

The conference produced no formal votes. Commissioners asked staff for additional data from Washington Gas and others; Chair Barbet said the Commission will use those responses to inform a public determination in coming months. The proceeding recessed after closing remarks urging continued collaboration among utilities, community partners and the Commission.