Marylanders Who Signed Up with Retail
Suppliers Since the State Deregulated Have Paid an Extra
$1.2 Billion
WASHINGTON, May 9, 2024
/PRNewswire/ -- Today, Maryland Governor Wes Moore signed
into law Senate Bill 1 (SB1). This legislation provides
reasonable oversight of electricity markets and protects customers
by restricting the amount retail suppliers can charge. This brings
an end to the most harmful component of Maryland's deregulation
experiment, which began in 1999 under the Electric Choice Act and
promised energy savings for consumers. In the 25 years following
the Electric Choice Act, Maryland customers collectively have paid
an extra $1.2 billion to
retail energy suppliers, compared to regulated electricity and gas
prices.
Maryland ends their failed electric
deregulation experiment.
"For far too long, Maryland residents have been overpaying for
their energy and have been left to fend against retail electric
suppliers," said Gary Meltz, executive director of Power for
Tomorrow (PFT), an organization that advocates for sensible
regulation of electric utilities. "Today's achievement took courage
and dedication from members of the General Assembly, Governor
Moore, consumer advocates and concerned citizens, who stood up
against an aggressive lobbying campaign led by bad actors who were
committed to taking advantage of Marylanders. Electric deregulation
doesn't mean lower power bills. Before Senate Bill 1, retail
electric suppliers were free to raise their rates higher than the
regulated utilities, and they always did. This important
legislation ensures retail suppliers are only able to participate
in the market if they are offering real cost savings."
Earlier this year, PFT expert and former Maryland Governor
Parris Glendenning, who signed the
Electric Choice Act legislation in 1999, wrote an
op-ed in Maryland
Matters in favor of SB1. Glendenning noted that he
regrets backing deregulation because it did not lower power bills,
but rather, let retail electric suppliers target vulnerable
populations "with the most common bait-and-switch scam; offering
customers a teaser rate that is below what the regulated utility
offers. Then, over time, retail suppliers raise the energy rate
dramatically higher than the price customers would pay for power if
they stayed with the existing utility."
PFT applauds the work done in Maryland and continues to advocate for
customers, particularly in Massachusetts, where the state senate has
passed legislation to ban retail electric suppliers from
enrolling new residential customers. The legislation is now with
the Massachusetts state house
before going to Governor Maura
Healey for her signature. The legislative pushback is in
response to Bay State power
utility customers being overcharged a total of a
$525 million by retail electric
suppliers between 2017 and 2023.
PFT encourages Virginia,
Louisiana, South Carolina, and all other states that are
considering deregulating their electric utilities to learn from the
mistake made in Maryland and to
strongly reconsider their efforts to deregulate their energy
markets.
About Power for Tomorrow
Power for Tomorrow is a
nonpartisan 501 (c)(6) organization and is the nation's leading
resource for providing practical research, commentary, and
information regarding how the regulated electric utility model
protects consumers and supports environmental and public policy
goals. To learn more, visit www.powerfortomorrow.org.
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SOURCE Power for Tomorrow