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Maryland Dem Proposes Utility-Backed Energy Construction Bill

Yahoo Finance •
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Maryland Senator Kevin Harris introduced legislation that would let utilities like Exelon use ratepayer funds to build renewable energy projects. The Affordable Energy Act permits cost recovery for infrastructure even if projects fail, drawing fierce debate about consumer protections versus grid reliability needs.

Exelon claims the plan would initially raise bills by $2 monthly before delivering $5-$10 monthly savings through solar and battery projects. Critics counter that Maryland ratepayers shouldn't finance regional grid expansions primarily benefiting data centers in neighboring states. Consumer advocates warn the bill shields utilities from financial risks.

The proposal marks a sharp departure from Maryland's 1999 deregulation that separated power generation from distribution. Senate President Bill Ferguson expressed skepticism about promised savings, noting lawmakers will scrutinize whether the math benefits households. Exelon's Maryland subsidiaries serve 1.2 million customers statewide.

With utilities guaranteed 9% returns on approved projects, the debate centers on whether ratepayer-backed construction offers cheaper energy long-term or locks in costly monopolies. Ferguson emphasized any policy must prove concrete savings before gaining support.