Maryland lawmakers are working on a plan to give rebates to electric utility customers to blunt the impact of rising bills.
But how much might you see? Lawmakers can’t say just yet.
Legislation moving through the Maryland General Assembly would tap a state energy fund to the tune of $200 million to provide rebates to utility customers. The idea, as it stands now, is to give customers two rebates on their bills, one this summer and another in the winter.
“These will be immediate relief for ratepayers who we know are feeling it harder than ever,” Senate President BIll Ferguson, a Baltimore Democrat, said Friday.
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But how much that works out per customer is yet to be figured out. Top lawmakers said Friday that the money likely would be parceled out based on energy usage — so those with bigger bills would get bigger rebates.
That approach has given some lawmakers pause, though.
Sen. Cheryl Kagan, vice chair of the committee handling energy legislation, said she would prefer that rebates be adjusted based on income rather than usage. She’s concerned about the idea that people with large homes will get bigger rebates than those with smaller homes who likely have lower incomes and are feeling the pinch more.
“Two hundred million dollars is a lot of money in these tough times to give away with no litmus tests at all,” said Kagan, a Montgomery County Democrat.
Even so, she said, she supported the legislation moving forward, acknowledging that “perfect is the enemy of good.”
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Senate Minority Leader Steve Hershey said the proposal would use money customers have already paid and doesn’t address the underlying problem.
“The Democrats want to take credit for giving back only $200 million and calling it short-term rate relief,” said Hershey, who represents the Eastern Shore. “This return of ratepayer overpayments has nothing to do with electric rates.”
Both the state Senate and House of Delegates are moving forward with legislation meant to address multiple energy issues in the state — not only rising costs to consumers, but also a looming crunch of increased demand for electricity that generation may not be able to keep up with.
Both chambers are expected to debate the legislation next week, as the General Assembly nears its scheduled adjournment on April 7.
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