Maryland House Bill HB984

Maryland 2025 Regular Session

• Introduced: 1/31/25
• Refer: 1/31/25
• Report Pass: 3/10/25
• Engrossed: 3/11/25
• Refer: 3/12/25
• Report Pass: 3/28/25
• Enrolled: 4/2/25
• Chaptered: 5/13/25
• Passed: 5/13/25

Caption

Public Utilities - Electric Cooperatives - Rate Proceedings

Impact

The impact of House Bill 984 is significant, as it modifies existing laws regarding how electric cooperatives approach rate changes. By requiring them to adhere to provisions applicable to other public service companies, the bill promotes uniformity in how rates are determined. This has implications for ratepayers, who may benefit from more thorough assessments and opportunities for public input. Additionally, the requirement for public hearings aims to enhance accountability on the part of electric cooperatives, ensuring that their decisions regarding rates are justifiable and in line with the public interest.

Summary

House Bill 984 focuses on the regulation of electric cooperatives in the context of rate proceedings. This legislation aims to align the treatment of electric cooperatives with that of other public service companies when it comes to filing and approving rates. Specifically, the bill mandates that the Public Service Commission (PSC) conduct public hearings to determine whether electric cooperatives require additional revenues to meet their established fair rate of return. This approach seeks to ensure that customers are informed and have a voice in the rate-setting process, fostering greater transparency within the utility sector.

Sentiment

The sentiment surrounding HB 984 appears to be generally positive among proponents, primarily emphasizing the need for accountability and transparency in the utility sector. Supporting members argue that engaging the public in rate proceedings can lead to better outcomes for consumers and prevent arbitrary rate increases. Conversely, there may still be concerns from some stakeholders regarding the administrative burden of additional hearings and how it may affect the efficiency of rate adjustments for cooperatives.

Contention

One notable point of contention associated with this bill includes the balance between regulatory oversight and the operational flexibility of electric cooperatives. Some individuals may argue that the additional requirements for public hearings could slow down the rate adjustment process, thereby leading to challenges in financial planning for cooperatives. Furthermore, there may be debates surrounding the extent of the PSC's authority over cooperatives and how this aligns with the cooperatives' foundational principles of member control and local governance.