Advocates warn utility regulators’ decision to delay puts customer savings a risk
Upgrade Maryland
The Maryland Public Service Commission asked staff to conduct further analysis despite evidence that ending gas line extension allowances would provide
$1 billion in savings to gas customers over next decade
BALTIMORE —On May 8, 2026, the Maryland Public Service Commission (PSC) delayed finalizing regulations to end gas line extension allowances (LEAs), preventing gas customers from having to pay for the expansion of the gas system to new homes and businesses. When finalized, the new rules are expected to save Baltimore Gas & Electric (BGE) and Washington Gas Light (WGL) customers nearly $1 billion in the next decade. The Commission asked staff to conduct further analysis, with an unclear timeline for when the Commission will make a decision, adding to advocates' concern that regulator delays from the PSC are putting customer savings at risk.
“The analysis is already in: allowing gas utilities to pass on the cost of new gas lines to their existing customers unfairly drives up energy bills and locks us into polluting fossil fuels for decades to come. Maryland gas customers shouldn’t have to wait a day longer for regulators to take action to address rapidly rising gas delivery rates,” said Emily Scarr, Senior Adviser at Maryland PIRG Foundation. “Whether it’s finalizing rules to save customers $1 billion or ending multi-year ratemaking, the Commission is creating a habit of unnecessary delays that harm customers and benefit utilities.”
Under the draft regulations, new customers and developers can still choose to connect to the gas system, but will be responsible for the cost of doing so. The hearing comes just weeks after the Maryland General Assembly rejected attempts by housing developers and gas utilities to prevent the PSC from finalizing rules to end LEAs.
“Today’s decision by the Public Service Commission is disappointing and continues to place burdens on front-line communities and Marylanders already struggling to pay costly energy bills," said Sari Amiel, staff attorney with Sierra Club’s Environmental Law Program. "Ongoing reliance on costly gas infrastructure impacts our health and financial well-being, while utility companies reach record profits. We will continue advocating for the state to move away from reliance on fossil fuels and towards more affordable and efficient clean energy.”
Initially petitioned for by the Office of the People’s Counsel (OPC), the rulemaking is the first to come from the “future of gas” proceeding, a venue for short and long-term gas planning. The proceeding aims to protect customers from skyrocketing costs by smoothing the transition away from gas heat and appliances and the outsized infrastructure costs that come with it.
“Seeing the commission delay such an important consumer protection at the 11th hour is exceedingly disappointing. Gas utilities use line extension allowances to boost their profits while locking in decades of pollution and costs,” said Bryan Dunning, Senior Policy Analyst at the Center for Progressive Reform. “Each day we delay, utilities are incentivised to further build out the gas system, undermining state climate goals.”
For decades, existing gas customers have covered some or all of the costs to extend gas lines to new customers, driving up delivery rates and adding to utility profits over a decades-long payback period. Connecting a home to the methane gas system hooks it onto fossil fuels for years, contributing to climate pollution in the state and creating new risks for deadly explosions.
“Maryland gas customers shouldn’t be incentivising housing developers to build housing with dual fuel sources, when electric heating is safer, cleaner, and more affordable for renters,” said Monica O’Connor from the grassroots Maryland Legislative Coalition’s Climate Justice Wing. “Today’s decision by the PSC to delay the end of incentives for new gas lines not only fails to align regulatory policy with fiscal prudency, but sets back our state climate goals.”
In 2025 alone, BGE planned to spend $103.5 million on gas pipeline expansion, costing customers $397 million, while Washington Gas Light (WGL) planned to spend $56.25 million, costing customers $238 million. Utility spending on gas pipelines has caused energy bills to rise in Maryland. Since 2010, Baltimore Gas & Electric and Columbia Gas customers have seen their delivery rates more than triple, far outpacing the rate of inflation, due to excessive gas utility spending. This rise in delivery costs is why BGE gas customers now pay $2 to BGE for delivery for every $1 they spend on gas. A recent analysis found that gas delivery charges account for more than 60% of the average Maryland customer’s gas bill.
“We’re very frustrated to see the Commission needlessly delay a clear action to align state climate goals, consumer protections and lower gas ratepayer costs,” said Brittany Baker, Maryland Director of Chesapeake Climate Action Network. “We need strong leadership from the PSC to act in the best interest of ratepayers and transition Maryland off the gas distribution system. Today, they missed the mark.”
The Upgrade Maryland campaign is calling on the PSC to swiftly finalize regulations to end LEAs, both to protect customers from the rising costs of the gas system and to ensure utility regulation is in line with state climate policy.
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