Maryland consumers will begin paying small monthly fees on electric bills this year to subsidize an ambitious energy-conservation initiative, under plans approved by regulators yesterday.
The plans are part of an initiative championed by Gov. Martin O'Malley to reduce electricity consumed by utility customers at least 10 percent by the end of 2015. Within several months, Baltimore Gas & Electric Co. and other utilities are expected to begin marketing cost-saving measures such as rebates on energy-efficient appliances and "home energy audits" paid for by the new fees.
The surcharges will not be set until spring, said Public Service Commission Chairman Douglas Nazarian, but preliminary estimates range from less than $1 to about $3 per month for residential ratepayers.
Despite the costs, consumer advocates heralded the commission's approval of utility conservation plans as a long-delayed step that could help ratepayers shrink their overall bill, forestall the threats of rolling blackouts and eventually reduce the cost of electricity because of lowered demand.
"If a customer just takes advantage of one or two proposed measures, you'll wipe out any charge," said Theresa V. Czarski, deputy people's counsel, whose office represents the interests of consumers in utility matters. "People who participate in these programs will see immediate benefits, and over the long term that helps bring down the cost of electricity for everyone."
O'Malley heralded the regulatory approval. "The programs approved today will not only help build a more sustainable energy future, but will also provide the opportunity for Maryland ratepayers to save on energy and ultimately lower their bills," the governor said in a statement.
Electricity bills have been a thorn in O'Malley's side since he campaigned in 2006 on the unfulfilled promise of undoing a 72 percent electricity rate increase for 1.2 million customers of BGE, the state's largest utility. The O'Malley administration successfully negotiated a $170 credit for BGE customers in September, but critics were quick to upbraid the governor yesterday for policies that pile on fees at a time of economic hardship.
"I thought one of the claims of this administration ... was they were going to fight higher rates," said Del. Warren E. Miller, a Howard County Republican who sits on the House Economic Matters Committee. "Now what I'm hearing is they're going to issue an order to impose an additional charge, thereby making electricity more expensive."
