MARYLAND - Major portions of a sweeping new law aimed at reducing energy costs for Maryland residents officially take effect Wednesday, but most customers shouldn't expect to see an immediate drop in their electric bills.
The Utility Reducing Energy Load Inflation for Everyday Families Act makes dozens of changes to Maryland's energy policies, utility regulations, and consumer assistance programs. While the law mostly begins taking effect July 1, many of its biggest consumer-facing provisions will be phased in over the coming months and years.
EmPOWER Maryland changes begin
One of the biggest changes affects the state's EmPOWER Maryland program, which funds energy efficiency programs through a surcharge on electric bills.
Beginning July 1, the law lowers future energy savings targets for electric utilities and removes natural gas utilities from the EmPOWER program. The Public Service Commission will also begin implementing changes to how the program is administered and may eventually consider moving oversight to a third-party administrator beginning with the 2030 program cycle.
According to the Department of Legislative Services, reducing the program's scope is expected to lower the amount utilities collect through the EmPOWER surcharge beginning in fiscal year 2027. The bill’s fiscal note also says utilities are expected to scale back some energy efficiency programs and services as a result.
State begins redirecting energy funding
The new law also redirects hundreds of millions of dollars from Maryland's Strategic Energy Investment Fund to help offset utility-related costs.
The funding will support programs including electric bill assistance for limited-income households, heat pump incentives, battery storage grants and other energy initiatives. However, the fiscal note does not indicate that residential customers will see immediate bill reductions simply because the law takes effect July 1.
More changes still ahead
Several provisions highlighted during debate on the legislation are not yet in effect.
Among them are changes to the Electric Universal Service Program, which are scheduled to begin in January 2027, along with a new successor program for net energy metering that is set to take effect in July 2027 after additional rulemaking by the Public Service Commission.
What Marylanders can expect now
For most residential customers, the biggest change beginning today is behind the scenes.
State agencies and the Public Service Commission will begin implementing the law, utilities will start operating under the new EmPOWER requirements, and state funding authorized by the legislation can begin flowing to energy affordability programs.
While the legislation is intended to reduce long-term energy costs, the fiscal note indicates many of the law's benefits will be realized over time rather than appearing immediately on July electric bills. While Marylanders may not see any immediate effects this month, Maryland Governor Wes Moore’s office says rate payers can expect to see an average savings of $150 a year on their energy bills once the legislation is fully implemented.
