Maryland House Bill HB781

Maryland 2022 Regular Session

• Introduced: 2/3/22
• Refer: 2/3/22
• Report Pass: 3/8/22

Caption

Gas and Electric Companies - Deposit Charges and Termination of Service

Impact

The new provisions also include restrictions on the termination of service for customers who meet the specified criteria. This means gas and electric companies will be prohibited from disconnecting services during the heating season due to nonpayment, enhancing protections for elderly and low-income residents during critical months. The implications for state law include a formalization of practices that could help prevent utility shut-offs, thereby aiming to maintain essential services for those in need while also aiming to align the operations of utility companies with a new standard that prioritizes customer well-being.

Summary

House Bill 781 is proposed legislation aimed at altering how gas and electric companies operate in relation to customer service terms, particularly for vulnerable populations. The bill stipulates that gas and electric companies may not impose deposit requirements on customers above a certain age and income threshold. Specifically, it protects customers who are at least 65 years old and have an annual income at or below 300% of the federal poverty level. This is a significant measure to ease the financial burden on elderly customers who may struggle to afford additional costs associated with utility services.

Contention

Despite its benefits, the bill has faced some contention. Proponents argue that it provides necessary protections for vulnerable individuals and helps to ensure their safety and livelihood during winter months. However, opponents may raise concerns regarding the financial implications for utility companies and potential impacts on their revenue. Critics might fear that restricting service termination could lead to increased operational burdens on companies, eventually translating into higher costs for other customer segments. Ultimately, this bill aims to balance the needs of vulnerable populations with the operational realities faced by utility companies.