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
Maryland HOA holiday lights dispute highlights what homeowners can and can’t do
MONTGOMERY COUNTY, Md. (7News) — A Maryland family’s ongoing battle with their homeowners’ association over a Christmas light display has reignited a broader conversation about how much control HOAs can legally exercise over holiday decorations.
7News has been following the case, in which the family continues to face fines from their HOA over their holiday lights.
To better under how homeowner associations operate and what options residents may have, 7News spoke with Alfredo Vásquez, a Washington, D.C.-based homeowner defense attorney.
RELATED COVERAGE | HOA vs. Christmas decorations: Maryland family facing hundreds in fines for lights
Why HOAs often cite holiday decorations
According to Vásquez, disputes over holiday decorations are common, but they usually center on timing rather than style.
“It may vary by community or HOA,” Vásquez said. “The most common reason would be that residents put decorations up too early or take them down too late.”
He explained that most HOA governing documents regulate how long decorations can remain on display, outlining specific start and end dates of holiday decor.
Are there rules on lights, music, or colors?
While many homeowners wonder whether HOAs can ban flashing lights, colored bulbs, or loud holiday music, Vásquez said those restrictions are less common.
“I haven’t seen any restrictions that are specific in that way,” he said. “Most governing documents I’ve reviewed focus on whether lights or music interfere with a neighbor’s lot.”
In other words, enforcement is often tied to nuisance complaints rather than aesthetics.
What if homeowners feel targeted?
Vásquez emphasized that HOA boards are legally required to enforce rules consistently.
“The Board of Directors has a duty to implement regulations in an equitable manner across the entire community,” he said.
If homeowners believe they are being unfairly singled out, the first step is reviewing the HOA’s governing documents to confirm whether the association actually has authority to regulate the issue at hand.
MORE COVERAGE | HOA still not specifying ‘nuisance’ in Germantown, Md. family’s Christmas decorations
Can issues be resolved without going to court?
Yes, and in most cases, that’s the recommended path.
HOAs must follow state condo and HOA laws, which typically require formal processes for enforcement, including notices of violations and opportunities for hearings.
“It would be ideal for homeowners to act quickly and request a hearing with the board,” Vásquez said. “They should present their case and allow the board to decide whether the violation and fines can withstand scrutiny.”
Do homeowners have any recourse after signing HOA bylaws?
Once a homeowner buys into an HOA-regulated community, they are generally bound by its bylaws, Vásquez said.
“As long as those bylaws comply with federal and state laws, homeowners’ hands may be tied,” he explained.
However, bylaws can be changed, usually through a supermajority vote of the community. Homeowners may also have stronger grounds to challenge newly adopted amendments, as long as they act promptly.
Vásquez added that staying engaged in HOA meetings and decisions is critical.
“Homeowners have to pay attention to what’s going on in their community so they can challenge changes in a timely manner,” he said.
Maryland
Attempted traffic stop leads to arrest of Maryland man wanted for kidnapping
Frederick County Sheriff’s Office (FCSO) announced the arrest of a man wanted for kidnapping on Thursday afternoon.
Suba Washington Jr., 27, of Williamsport, Maryland, was apprehended in Frederick after an attempted traffic stop early Thursday morning, according to deputies.
The pursuit
When officers tried to pull over a Hyundai Elantra in the 7300 block of Crestwood Blvd., the driver, later identified as Washington, refused to stop.
Deputies were later notified that Washington was wanted on charges of kidnapping, first-degree assault, second-degree assault, and reckless endangerment in Washington County, Maryland.
As Washington fled northbound on Route 85, he struck a car near Crestwood Blvd. and Buckeystown Pike; however, the driver of the vehicle was unharmed as the suspect continued onto northbound I-270 and then westbound I-70.
Washington’s tires were eventually flattened after deputies deployed stop sticks near the Middletown exit.
Though the pursuit still wasn’t over, as the vehicle managed to cross over into Washington County, where the Washington County Sheriff’s Office (WCSO) and Maryland State Police (MSP) aided in apprehension.
Washington was taken into custody after his vehicle approached the Route 40 exit, coming to a full stop on the highway.
The charges
A 17-year-old in the passenger seat was found with Washington during the pursuit. The teenager was released to WSCO.
According to FCSO, Washington Jr. was taken to the Frederick County Adult Detention Center and charged with numerous traffic citations, including reckless driving, negligent driving, and two counts of attempting to elude law enforcement.
Maryland
Maryland to launch study on economic impacts of climate change
Maryland will launch a study to analyze the economic impacts of climate change to determine the costs associated with storm damage and health outcomes.
The move is part of the Moore-Miller administration’s strategic approach to investing in a clean energy economy and modernizing the state’s energy infrastructure.
“While the federal government has spent the past year rolling back climate protections and driving up energy costs, Maryland is taking a responsible step toward understanding the true price tag of climate change,” Gov. Wes Moore said in a statement. “This study will give us a clear, data-driven look at the real burden taxpayers are shouldering as climate change drives more extreme and costly weather events.”
The RENEW Act Study will be funded by investments and state sources, including $30,000 from philanthropic funding and $470,000 from the Strategic Energy Investment Fund, to assess the burden that Marylanders are paying due to intense weather events and environmental shifts.
Marylanders on climate change
The announcement comes months after Maryland lawmakers opposed a proposal by the U.S. Environmental Protection Agency to recind its 2009 endangerment finding, which determined that greenhouse gases were a danger to public health.
Lawmakers raised concerns that the move would mean engine and vehicle manufacturers would not be required to measure, control or report greenhouse gas emissions. They also raised concerns that the decision could impact climate change and harm local communities.
The EPA said it intended to retain regulations for pollutant and toxic air measurement and standards. In September, the agency initiated the formal process to reconsider the finding.
In March, a Johns Hopkins University poll found that nearly 73% of surveyed Baltimore City and County residents were concerned that climate change would affect them.
According to the study, city residents were more concerned about personal harm from climate change than county residents. However, county residents expected to see higher costs in the next five years due to climate change.
About 70% of Baltimore area residents believe climate change will increase costs for homeowners and businesses in the next five years, the study found.
An April report ranked the Washington/Baltimore/Arlington region as the 36th worst in the country and second worst in the mid-Atlantic region for ozone smog. The report graded Baltimore County an “F” for ozone smog.
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