Maryland Energy Bill Rebate Delayed Until August or Later, Averaging $80 per Household
Key Insights
Maryland's energy bill rebate, initially expected in July, will now be distributed in August or September, with a second round in early 2026.
The rebate, averaging $80 per household, will be allocated based on energy usage, with 25% distributed equally to ensure fairness.
Utilities are encouraged to offer donation options, allowing customers to redirect rebates to assistance programs like the Fuel Fund of Maryland.
The rebate is part of the Next Generation Energy Act, funded by a $200 million allocation from the Strategic Energy Investment Fund.
Maryland households anticipating relief from soaring energy bills will have to wait longer than expected, as the state’s Public Service Commission (PSC) announced a delay in the distribution of promised rebates. Initially projected for July, the first round of payments is now slated for August or September, with a second installment expected in January or February 2026. The rebates, averaging $80 per household annually, aim to offset rising energy costs exacerbated by extreme weather conditions.
The PSC, led by Chair Fred Hoover, finalized the distribution plan after consulting utilities, ratepayer advocates, and internal staff. The commission emphasized equity and efficiency, ensuring the rebates reach those most impacted by winter bill spikes. "The selected plan allows for the most equitable, efficient, and timely distribution of refunds," Hoover stated. The rebates will appear as credits on bills, with 75% allocated based on usage and 25% distributed equally to all customers.
Utilities are also directed to facilitate rebate donations to programs like the Fuel Fund of Maryland or SMECO’s Members Helping Members initiative. This measure aligns with legislative intent to provide flexibility for customers willing to support others in need. The rebate program is funded by a $200 million allocation from the Strategic Energy Investment Fund, sourced from utility contributions tied to renewable energy targets.
The delay comes amid mounting pressure from lawmakers and residents grappling with high energy costs. Senate President Bill Ferguson (D-Baltimore City) highlighted the urgency of relief, citing recent heatwaves and their financial toll. "Unbelievably hot weather compounds the burden of rising bills," Ferguson remarked. The rebate is part of the broader Next Generation Energy Act, which also fast-tracks energy infrastructure projects but excludes provisions for nuclear energy expansion, a point of contention between lawmakers and Governor Wes Moore.
Governor Moore criticized the act for not sufficiently incentivizing new power generation, particularly nuclear, while Ferguson defended the legislation as a balanced approach to cleaner energy. The debate underscores broader challenges in Maryland’s energy market, including grid constraints under PJM Interconnection and rising electricity rates set to impact customers through 2025.