[Baltimore Sun] Lawmakers: ‘Rate Payer Protection Act would rein in BGE gas spending | GUEST COMMENTARY
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If you’re like us, and so many of our constituents who use gas to heat their homes, you’ve seen your utility bills spike as temperatures dropped this winter across Maryland and the country. Part of that spike is because the cost of gas has increased about 40% in the last decade, but another key driver in increased bills is the gas utilities’ spending on new gas infrastructure.
BGE, the state’s largest utility, is investing in the gas system at twice the rate of the electrical grid. The utility has spent two billion dollars on the system in the last decade and will have spent nearly $10 billion by the time their plans are complete. That $10 billion, with interest, will all be recouped by increases in our utility bills.
As background, 10 years ago the Maryland General Assembly, recognizing that some of our gas pipes are more than 100 years old, leaky and even dangerous, passed the Strategic Infrastructure Development and Enhancement Plan (STRIDE) law. The goal was simple: ensure the utilities are moving quickly enough to fix our riskiest pipes by adding additional money onto our monthly bills.
But now, 10 years later, our constituents are seeing ever-escalating bills to fund the new gas equipment and there is growing evidence and concern that the utilities are prioritizing profits instead of safety.
First, and most important in this case, replacing our entire gas system is likely not the fastest way to increase safety. In the long term, the safest solution to gas explosions is to stop using gas for home heating. In the short term, we need to make sure gas utilities are using every tool they have to find and fix the riskiest pipes instead of using STRIDE to overhaul our entire system. Current law doesn’t require them to do that. We think it should.
Second, we should pay attention to cost. The law provides for ratepayers to pay back the billions the gas utilities are spending on new infrastructure with additional profits over the lifetime of the equipment. We simply can’t afford to pay for replacements we don’t need. Current law doesn’t require gas infrastructure spending to be cost-effective. We think it should.
Finally, Maryland has committed to climate goals and clean energy, which means transitioning away from fossil fuels like gas. The state and federal governments are investing millions of dollars in helping Maryland families who want to transition from inefficient gas furnaces for home heating to clean, efficient electric equipment. This doesn’t mean we are going to stop using gas tomorrow or next year, but it does mean we should be thoughtful about spending ratepayer dollars on a gas system that will serve fewer and fewer people and that we should focus on repairs and maintenance.
We’re not alone in our thinking. The Maryland Commission on Climate Change and the state’s Building Energy Transition Task Force, which was coordinated by the Department of the Environment and the Maryland Energy Administration agree that we need some reforms to the STRIDE law.
Our bill, the Ratepayer Protection Act, codifies those recommendations and is being considered by the General Assembly now. It’s a common-sense reform to ensure STRIDE spending prioritizes safety and is cost-effective. We need to make sure our gas system is safe and reliable while we still need it, and these reforms give gas utilities and the Public Service Commission the clarity they need to direct spending where it’s needed most.
— Charles E. Sydnor III and Elizabeth M. Embry
Sen. Sydnor represents Baltimore County (District 44) and Del. Embry represents Baltimore City (District 43A) in the Maryland legislature.
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