Bill > HB419

This bill modifies Maryland's existing law regarding natural gas infrastructure replacement, aiming to promote gas infrastructure improvements with a stronger emphasis on safety and climate policy considerations. The bill requires gas companies filing infrastructure replacement plans with the Public Service Commission to provide more detailed information, including project descriptions, expected useful life, timelines, cost estimates, customer benefits, and critically, a demonstration of project prioritization based on public risk and cost-effectiveness. Gas companies must now analyze alternative approaches like leak detection and potential system electrification, and provide advance customer notification about proposed projects. The bill introduces new requirements for the Public Service Commission when evaluating these plans, mandating that proposed investments must not only be reasonable and designed to improve safety, but also be consistent with state climate policy and the potential for natural gas alternatives. The legislation maintains the existing mechanism of a fixed annual surcharge for recovery of infrastructure replacement costs, with caps of $2 per month for residential customers and proportional limits for non-residential customers. The surcharge remains in effect for 5 years, after which a base rate case must be filed, and includes provisions for refunds if actual project costs are lower than collected amounts. The bill is set to take effect on October 1, 2025, and represents a more nuanced approach to gas infrastructure development that balances safety, reliability, and environmental considerations.

Business and Industry

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0419?ys=2025RS