People's Counsel Seeks Transparency on Utility Efforts to Obtain Federal Infrastructure Funding
BALTIMORE – The Office of People’s Counsel today petitioned the Public Service Commission to open a public proceeding to examine what utilities in the State are doing to access federal funds available under the Infrastructure Investment and Jobs Act (IIJA). Such a proceeding will give the public and state policymakers important access to information and an opportunity for input, OPC’s filing said.
“The IIJA makes substantial grant funding available to the State’s utilities to support system resiliency, promote innovative technologies, and help the State meets its greenhouse gas reduction goals,” said People’s Counsel David S. Lapp. “Federal grant money can replace customer funding for the same investments, but the funding is limited, making it critical that utilities diligently pursue these grants.”
Among others, IIJA programs make $42.8 billion available to support delivering clean power and developing clean energy, over $50 billion to improve grid resilience against threats, and $6.5 billion for energy efficiency projects. Many of these programs enable utilities to obtain funding directly. The investments paid for by IIJA grants might otherwise be paid for by utility customers. Such grants can thus prevent rate increases.
Public input and transparency are critical for making sure Maryland utilities use the IIJA's federal grant opportunities to further the public interest, OPC’s filing explained. The White House has emphasized the importance of coordination between community stakeholders, states and local governments, and the Climate Solutions Now Act—recently enacted by the Maryland General Assembly—calls on the Commission to be engaged in electric utility efforts to obtain federal funding. The Act requires the utilities to report their IIJA funding applications, their purposes, and any conditions. It further authorizes the Commission to “adopt regulations or issue orders” requiring electric utilities to apply for funding “in a timely manner.”
“The Public Service Commission should immediately initiate a proceeding and direct utilities to report on their efforts so far to obtain federal funds,” Lapp said. “Such a proceeding will promote transparency, create important opportunities for public input, and help ensure a diligent and thorough consideration of time-limited federal funding.”
The Maryland Office of People’s Counsel is an independent state agency that represents Maryland’s residential consumers of electric, natural gas, telecommunications, private water and certain transportation matters before the Public Service Commission, federal regulatory agencies and the courts.
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