Maryland
Commentary: Time for Maryland utility customers to stop subsidizing fossil fuels – Maryland Matters
By David Lapp
The writer is Maryland People’s Counsel.
“A subsidy is a benefit given to an individual, business, or institution, usually by the government.” — Investopedia.com
Even as it searches high and low for funds to support ambitious climate goals, the state is forcing gas utility customers to subsidize billions of dollars in fossil fuel infrastructure spending.
In competitive markets, companies don’t spend billions of dollars on long-lived assets without believing they have a product customers will want for a long time. Absent strong future demand, the investment won’t be profitable and could lead to investor losses and, ultimately, bankruptcy.
But those competitive forces that discipline corporate spending are absent for gas utilities. By law, utilities are insulated from competition, and their investors face few of the risks that competitive businesses face. That insulation is compounded by the counterintuitive way gas utilities enhance their profits — by spending more customer dollars on infrastructure, usually gas pipes. Utilities recover those costs, plus profit, regardless of how much demand there is for the gas that those pipes deliver.
This way of profiting means that Maryland’s gas utilities have an interest in disregarding — and obscuring — the mounting customer costs of spending billions for gas infrastructure despite widely accepted projections of substantial declines in gas consumption due to electric technologies and climate policy.
Consider, for example, what is evident from proceedings before the Public Service Commission (PSC). Utilities report only the short-term impacts of their spending on customer costs. And they fail to consider that projected declines in gas consumption diminish the need for infrastructure spending — or whether lower-cost alternatives to such spending are available.
Our office’s reports provide the only data showing how this massive spending on gas infrastructure has impacted and will impact utility customers. No Maryland gas utility — nor the PSC — has provided its own data or projections.
Quite the opposite, in fact. The utilities are willfully blinding themselves to the future:
- Washington Gas, the state’s second-largest gas utility, admitted in its recent rate case that it has “[n]o analyses, documents, or studies. . . forecasting the expected gas usage of its customers over the next 30 years” — even though it expects customers to pay for its infrastructure investments for much longer, up to 80 years.
- Columbia Gas, Maryland’s third largest gas utility, recently said it is “not aware of any heat pumps currently available that would require no back-up heating system” — a hard-to-swallow statement given the availability of such heat pumps in Maryland and across the country. (This author has one that performed quite well without backup during our recent cold blast.)
- Baltimore Gas and Electric, Maryland’s largest gas utility, is spending more than $1.25 million on gas infrastructure every single day. BGE acknowledges that in the future its distribution infrastructure won’t be used for fossil gas but instead to “deliver something different.” No one — including BGE — can explain how alternatives like landfill gas or hydrogen can be cost-effectively substituted for fossil gas at scale.
No business operating in a competitive environment would risk spending vast sums on long-term infrastructure to deliver an undetermined “something different” or without considering alternatives and competition from other technologies.
Utilities can ignore these realities — but only if government regulation is lax. As the Maryland Supreme Court has observed, for utility monopolies, “extensive government control” over prices, services, and operations “takes the place of competition and furnishes the regulation which competition cannot give.”
The government’s failure to “control” gas utilities by replicating the forces of competition means that captive customers are paying for infrastructure that would never be built in a competitive market. This amounts to a massive state subsidy for fossil fuel infrastructure being foisted on state utility customers.
It’s past time for the General Assembly to address these gas utility subsidies. Right or wrong, the PSC recently declared that it has “limited” options to curb the gas utility spending on gas infrastructure “[u]ntil the General Assembly enacts changes to the STRIDE statute” — referring to the 2013 law that declares as its purpose the acceleration of gas infrastructure replacement work. The gas utilities agree, with BGE recently telling the PSC that it “should not move forward until the Maryland General Assembly makes future state policy decisions related to natural gas service.”
It is imperative that the legislature act now. Each day results in additional spending and locks repayment plus utility profits into rates for many decades to come.
An initial, modest step is to enact The Ratepayer Protection Act (SB 548/HB 731), legislation that would modify STRIDE in line with a Maryland Commission on Climate Change recommendation approved by an overwhelming vote, with broad and universal support, including from cabinet agencies, and opposition only from fossil fuel interests.
Sponsored by Sen. Charles E. Sydnor III (D-Baltimore County) and Del. Elizabeth Embry (D-Baltimore City), the bill requires gas companies to prioritize public safety and perform evaluations of cost-effective alternatives as a condition of obtaining profitable accelerated cost recovery for pipe replacement. These are modest and logical requirements that should already be part of the law.
Regulation of public utility monopolies is not self-executing; the state — the PSC and the General Assembly — must exercise its “extensive control” over utility monopolies. Otherwise, the utilities’ private interests overtake the public interest. Continued State inaction on gas infrastructure spending means continued windfalls for gas utility investors — windfalls from subsidies paid by captive utility customers. Utility customers deserve better.
Senate Bill 548 will be heard Thursday at 1 p.m. in the Committee on Education, Energy and the Environment. House Bill 731 will be heard on Feb. 29 at 1 p.m. in the Economic Matters Committee.
MARYLAND (WBFF) — A Maryland man and his California accomplice both pled guilty to drug trafficking charges involving the concealment of drugs within auto parts at a repair shop, the Maryland U.S. Attorney’s Office announced Wednesday.
Authorities reported that Norville Clarke, 56, of Clarksburg, Maryland, and Daniel Cruz, 39, of Los Angeles, California, were charged with conspiracy to distribute controlled substances.
In 2023, an investigation targeted a drug trafficking organization that was transporting and distributing large quantities of cocaine from California to Maryland.
The investigation began after police seized a parcel containing approximately two kilograms of cocaine that was mailed from Los Angeles with an intended delivery to Clarke’s auto-repair shop in District Heights, Maryland.
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During the investigation, Cruz was linked to the narcotics in the parcel, as well as to its source, authorities reported.
In January 2024, postal inspectors, along with other investigators, identified a freight shipment from Los Angeles intended for delivery at Clarke’s auto-repair shop, and officials said surveillance footage showed Cruz dropping off that shipment at a shipping company in California.
After that, authorities observed Cruz traveling to Maryland to track the shipment’s delivery.
Cruz and Clarke were then seen by investigators meeting at the auto-repair shop several days after the shipment occurred.
Investigators tracked the fright shipment to Dulles, Virginia, where authorities executed a search warrant and recovered two automobile transmissions inside, as well as 20 one-kilogram bricks secreted in both transmissions.
Officials reported that laboratory forensic tests confirmed that the bricks were over 16 kilograms of cocaine.
A search warrant was then also executed for Clarke’s District Heights auto-repair shop, Clarke’s Clarksburg residence, and Cruz’s hotel room in Capitol Heights, Maryland.
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At the auto repair shop, officials recovered 502.4 grams of cocaine, and then at Clarke’s residence, officers found two-kilogram bricks of cocaine and $45,730 in cash.
Furthermore, investigators later found another nine historical freight shipments that resembled the original shipment containing cocaine, which Cruz sent to Clarke’s auto repair shop.
In plea agreements, officials said both defendants agreed to have been involved in possessing around 22 kilograms of cocaine in furtherance of the drug trafficking conspiracy.
Both also face a mandatory minimum sentence of 10 years and a maximum life in prison, followed by up to a lifetime of supervised release
Cruz’s sentencing is scheduled for Thursday, June 18, at 1 p.m., and the sentencing for Clarke is scheduled for Friday, July 24, at 10 a.m.
MONTGOMERY COUNTY, Md. (7News) — The State Department is securing military planes and charter flights for Americans to return home from the Middle East, officials announced Tuesday.
More than 9,000 people have left over the past few days, including 3,000 from Israel, according to a press release.
However, some Americans are staying put. That includes one young woman who is now living through her second war abroad.
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“It’s a big decision to move across the world,” Rachel Cone said. She spoke with 7News’ Lianna Golden via Zoom from her home near Jerusalem.
The 28-year-old from Darnestown wasn’t afraid to leave the life she always knew.
“I grew up on a small farm in Montgomery County,” Cone said. “I spent my whole life there, the youngest of four kids, spent most of my life riding horses all around the DMV.”
Soon after college, she found her calling.
I decided to fulfill that dream, really live a Jewish life in the Jewish homeland.
Cone moved to Israel only six months before the Oct. 7, 2023, attack. So when she heard the sirens go off on Saturday morning after the joint attack on Iran, waking up to an emergency alert on her phone, she knew what was coming next.
“It was saying like, hey, this is your warning. The attack is starting. Go make sure you’re in your safe space.”
She says the sirens sound very often.
“A lot, a lot. I don’t know how many; there’s been a lot,” Cone explained.
The DMV native said she’s learned to stay calm in chaos, even when others are afraid.
Today I had to go to the grocery store. It wasn’t like I was doing anything crazy. There’s a siren – OK, all of a sudden you have a bunch of people all together, a bunch of strangers, and yeah, some people panic. Some people are calm. Some stranger you’ve never met is telling everyone hey it’s okay, calm down… Living in Israel teaches you a lot about resilience. The people here who have grown up their whole life here, they’re just born to be resilient.
It’s a resilience she sends back home.
“When you live in a war zone, every parent is concerned, even more so when they’re not here. I’m always sending my family pictures of like, hey, I’m still going outside, like I’m still seeing the sun. I’m not locked inside, like it’s OK. Everything is OK,” Cone said.
As the conflict continues, she prays for harmony while uncertainty grows.
“We want to see people of every faith, obviously living the life that they wanna live and not succumbing to any sort of terror,” Cone said. “Let’s work towards peace, and let’s try to see that happen. This is a start for sure.”
Dylan Johnson, Assistant Secretary of State for Global Public Affairs, said American citizens should call 1-202-501-4444 for assistance with departure options.
With a chance to make history, Our Lady of Mount Carmel is the new No. 1 team in the High School on SI Maryland boys basketball Top 25 rankings.
The Cougars (30-10) will try for a second straight Baltimore Catholic League (BCL) Tournament championship Wednesday evening against Saint Frances Academy at Loyola University of Maryland. No team has won the BCL tourney and the Maryland Interscholastic Athletic Association (MIAA) A Conference titles in back-to-back seasons.
The MIAA, whose membership includes most of the private and parochial schools in the Baltimore metro area, started in 1995 following the dissolution of the Maryland Scholastic Association (MSA). The MSA governed athletic competition for Baltimore public and private and parochial schools before the public schools left to join the Maryland state public athletic association (MPSSAA) in 1992.
Saint Frances, last week’s No. 1 which lost to Mount Carmel in the MIAA A final, is No. 2. DeMatha Catholic, Mount Saint Joseph and Springdale Prep round out the Top 5.
The second 5 includes Charles Herbert Flowers, Mount Zion Prep Academy, Bishop McNamara, Georgetown Prep and Archbishop Spalding. Lackey, which won the Southern Maryland Athletic Conference title last week, returns to poll at No. 21.
In addition to the BCL Tournament finale, the Maryland Private Schools State Tournament continues with the Division A semifinals Tuesday at DeMatha with Bishop McNamara taking on Springdale Prep, and DeMatha playing defending champ and No. 17 Clinton Grace Christian School.
No. 16 Takoma Academy plays Saint James School in a Division B semifinal. The state public playoffs continue with region semifinal and final competition.
Here’s this week’s High School on SI Maryland boys basketball Top 25:
Previous rank: No. 3
Record: 30-10
The Cougars defeated No. 4 Mount Saint Joseph, 59-40, in the Baltimore Catholic League Tournament semifinals and Saint Mary’s in the quarterfinals (53-46) after a 69-67 overtime victory over then-No. 1 Saint Frances Academy in the Maryland Interscholastic Athletic Association (MIAA) A Conference final at the University of Maryland-Baltimore County.
Previous rank: No. 1
Record: 35-7
The Panthers defeated then-No. 13 Archbishop Spalding, 61-58, in the Baltimore Catholic League Tournament semifinals and Loyola Blakefield in the quarterfinals (74-57), after a loss to then-No. 3 Our Lady of Mount Carmel in the MIAA A Conference title game.
Previous rank: No. 2
Record: 22-9
The Stags defeated then-No. 9 Glenelg Country School, 63-50, in the Maryland Private School State Tournament Division A quarterfinals.
Previous rank: No. 4
Record: 31-7
The Gaels lost then-No. 3 Our Lady of Mount Carmel in the Baltimore Catholic League Tournament semifinals after a 80-66 win over Calvert Hall College in the quarterfinals.
SEASON COMPLETE – BALTIMORE CATHOLIC LEAGUE TOURNAMENT & MARYLAND INTERSCHOLASTIC ATHLETIC ASSOCIATION A CONFERENCE SEMIFINALIST
Previous rank: No. 6
Record: 26-5
The Lions defeated No. 7 Mount Zion Prep Academy, 67-63, in the Maryland Private School State Division A semifinals.
Previous rank: No. 8
Record: 21-0
The Jaguars defeated Largo, 62-57, in the Prince George’s County championship game.
Previous rank: No. 7
Record: 19-6
The Warriors lost to then-No. 6 Springdale Prep in the Maryland Private School State Division A quarterfinals
SEASON COMPLETE – MARYLAND PRIVATE SCHOOL STATE TOURNAMENT DIVISION A QUARTERFINALIST
Previous rank: No. 12
Record: 14-19
The Mustangs defeated then-No. 5 Georgetown Prep, 59-53, in the Maryland Private Schools State Division A quarterfinals and Saint Andrew’s Episcopal School in the opening round.
Previous rank: No. 5
Record: 17-9
The Little Hoyas lost to then-No. 12 Bishop McNamara in the Maryland Private School State Tournament Division A quarterfinals.
SEASON COMPLETE – INTERSTATE ATHLETIC CONFERENCE CHAMPION & MARYLAND PRIVATE SCHOOL STATE TOURNAMENT DIVISION A QUARTERFINALIST
Previous rank: No. 13
Record: 20-14
The Cavaliers lost to then-No. 1 Saint Frances Academy in the Baltimore Catholic League Tournament semifinals after a 74-53 win over then-No. 10 John Carroll School in the quarterfinals.
SEASON COMPLETE – BALTIMORE CATHOLIC LEAGUE TOURNAMENT & MARYLAND INTERSCHOLASTIC ATHLETIC ASSOCIATION A CONFERENCE SEMIFINALIST
Previous rank: No. 9
Record: 17-10
The Dragons lost to then-No. 2 DeMatha Catholic in the quarterfinals of the Maryland Private School State Division A tournament after an 81-77 opening round win over then-No. 15 Our Lady of Good Counsel.
SEASON COMPLETE – MARYLAND INTERSCHOLASTIC ATHLETIC ASSOCIATION A CONFERENCE SEMIFINALIST & MARYLAND PRIVATE SCHOOL STATE TOURNAMENT DIVISION A QUARTERFINALIST
Previous rank: No. 14
Record: 23-1
The Mustangs defeated Severn Run, 72-49, in the Maryland Class 4A East Region I semifinals.
Previous rank: No. 16
Record: 20-3
The Bengals defeated Springbrook, 85-66, in the Maryland Class 4A North Region II semifinals after beating Walt Whitman, 67-55, in the Montgomery County championship game.
Previous rank: No. 17
Record: 20-2
The Colonels defeated Rockville, 74-61, in the Maryland Class 3A West Region II semifinals.
Previous rank: No. 19
Record: 21-3
The Knights defeated Northeast, 73-61, in the Maryland Class 3A East Region I semifinals and Edmondson-Westside, 66-58, in the Baltimore City final.
Previous rank: No. 18
Record: 26-7
The Tigers defeated Hebrew Academy, 88-33, in the Maryland Private School State Division B quarterfinals.
Previous rank: No. 24
Record: 27-18
The Eagles defeated then-No. 11 Bullis School, 56-48, in the Maryland Private School State Division A quarterfinals.
Previous rank: No. 10
Record: 22-10
The Patriots lost to then-No. 13 Archbishop Spalding in the quarterfinals of the Baltimore Catholic League Tournament.
Previous rank: No. 13
Record: 20-10
The Bulldogs lost to then-No. 24 Clinton Grace Christian School in the Maryland Private Schools State Division A quarterfinals after defeating then-No. 22 Riverdale Baptist School in the first round.
SEASON COMPLETE – INTERSTATE ATHLETIC CONFERENCE SEMIFINALIST & MARYLAND PRIVATE SCHOOL STATE TOURNAMENT QUARTERFINALIST
Previous rank: No. 15
Record: 15-14
The Falcons lost to No. 9 Glenelg Country School in the opening round of the Maryland Private School State Tournament.
WASHINGTON CATHOLIC ATHLETIC CONFERENCE TOURNAMENT PARTICIPANT & MARYLAND PRIVATE SCHOOL STATE TOURNAMENT DIVISION A PARTIPICANT
Previous rank: Not ranked
Record: 20-3
The Chargers defeated Maurice J. McDonough, 61-46, in the Maryland Class 2A South Region II semifinals and then-No. 20 Great Mills, 62-59, in the Southern Maryland Athletic Conference (SMAC) championship game.
Previous rank: No. 20
Record: 21-3
The Hornets defeated Saint Charles, 70-54, in the Maryland Class 3A South Region II semifinals, and lost to Lackey in the SMAC title game.
Previous rank: No. 21
Record: 16-14
SEASON COMPLETE – METRO PRIVATE SCHOOL CONFERENCE QUARTERFINALIST
Previous rank: No. 22
Record: 15-11
The Crusaders lost to then-No. 11 Bullis School in the opening round of the Maryland Private School State tournament.
SEASON COMPLETE – METRO PRIVATE SCHOOL CONFERENCE QUARTERFINALIST & MARYLAND PRIVATE SCHOOL STATE TOURNAMENT PARTICIPANT
Previous rank: No. 23
Record: 21-10
The Mustangs won the Maryland Christian School Tournament championship, defeating The Heritage Academy, 65-53, in the final, and King’s Christian Academy in the semifinals (65-59).
SEASON COMPLETE – MARYLAND CHRISTIAN SCHOOL TOURNAMENT CHAMPION
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