Statement from People’s Counsel on passage of House bill to shield customers from excessive utility compensation
Maryland People’s Counsel David S. Lapp issued the following statement on today’s passage of House Bill 1:
OPC appreciates the House’s leadership in protecting ratepayers from funding excessive utility compensation and bonuses of over $250,000 a year while utility customers are struggling to pay their bills. Like provisions in last year’s Next Generation Energy Act, HB1 sends an important message that customers should not be responsible for costs above and beyond what is necessary to provide safe and reliable service.
HB1 does not prevent utilities and their corporate owners from paying generous compensation to their employees—$250,000 a year is about eight times Maryland’s statewide minimum wage, four times the median household income in Baltimore City, and compensation on which Maryland residents can and do thrive. Costs above that amount are unnecessary to serve customers safely and reliably.
To the extent that utilities and their holding company owners desire to pay more in compensation or bonuses, they can choose to tap into their high profits. In 2024, BGE’s profits soared to $527 million, Exelon's profits were $2.4 billion, and Exelon’s CEO’s compensation totaled $14.7 million. Meanwhile, more than one hundred thousand households in Maryland are receiving energy assistance just to help make ends meet.
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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