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Should lawmakers gut Maryland’s EmPOWER program to lower energy bills?

A BGE bill
A BGE bill

A small group of Republican lawmakers, known as the Maryland Freedom Caucus, is pushing to halt fees for the EmPOWER Maryland program, claiming it would provide immediate relief to residents struggling with high energy bills.

The caucus has filed an emergency bill to repeal program fees. The EmPOWER surcharge is a fee that customers pay on both their electric and gas bills funding energy efficiency programs.

In a letter to top Democratic leaders, the seven member caucus urged House Speaker Adrienne Jones, Senate President Bill Ferguson and Gov. Wes Moore “to use legislative and executive powers to deliver immediate relief to Marylanders suffering under sky-high gas and electric bills.”

In an interview with WYPR, Baltimore County Delegate Kathy Szeliga — who also serves as the vice-chair of the Maryland Freedom Caucus — criticized the EmPOWER program and called for its pause.

“In January alone, BGE collected $36.5 million from that fee,” Szeliga said, noting that more savings could be seen if all of Maryland's utilities were factored in. “Please pause all state taxes and fees for 30 days, just like we did in 2022, when the price at the pump was unaffordable. We paused those taxes to give a little bit of relief.”

However, if the caucus’ proposal is enacted, some customers may see only modest savings, if at all.

Szeliga argues that even small amounts matter to those struggling with high bills. “I think it’s quite arrogant of people to say, ‘Well, it’s only $10, it’s only $54.’ That’s a lot of money to a lot of people,” she added.

EmPOWER, which began in 2008, was updated by the General Assembly in 2024 with a provision allowing low and moderate income homeowners to make energy-efficient home improvements without out-of-pocket costs.

"To date, 54,444 households have been served through DHCD’s EmPOWER programs," said a spokesperson with the Maryland Department of Housing and Community Development.

A 2024 report from the Public Service Commission (PSC) which oversees the program, found that for every dollar spent on EmPOWER, about $2.12 in benefits is generated. “Repealing it would be penny-wise and pound-foolish,” said PSC Chair, Fred Hoover.

While environmentalists, Democratic lawmakers and consumer advocates agree with the caucus on rate relief, they’re wary of this approach.

“It’s disappointing to see attempts to scapegoat common-sense energy efficiency measures that have delivered benefits to consumers,” Emily Scarr, senior advisor with Maryland Public Interest Research Group, said in a statement.

Scarr, along with analysts from the Office of People’s Counsel (OPC) and the PSC, cautioned that pausing EmPOWER may not provide the relief the caucus anticipates.

“The utilities front the full cost of the EmPOWER Program and the ratepayers pay that back over time via the surcharge,” wrote Tori Leonard, the PSC spokeswoman. “If the General Assembly passed a bill to stop the EmPOWER programs today, the EmPOWER surcharge would still exist to pay back the remaining balances.”

According to the OPC, that balance could be as high as $800 million. On its website BGE explains that debt will be fully paid off by 2032.

Wambui Kamau is a General Assignment Reporter for WYPR. @WkThee
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