Maryland2026Active
HB0001
Limits on Cost Recovery for Investor-Owned Utility Companies
Last scannedAug 22, 2026, 4:24 AM
In one sentence
This law stops investor-owned electric and gas companies from charging customers through rates for certain high costs, including supervisor pay above a specific limit and most employee bonuses.
What it does
- Prohibits utility companies from recovering the cost of paying supervisors more than 110% of the Public Service Commission chair's maximum annual salary.
- Stops companies from charging customers for industry trade association dues, private plane costs, or most employee bonuses through rates.
- Allows bonus recovery only if an employee has a written contract signed by December 31, 2025, or is covered by a collective bargaining agreement.
- Requires company boards to create policies that set reasonable limits on spending for entertainment, renovations, transportation, staff development, performance incentives, and other activities outside normal business operations.
- Mandates the Public Service Commission to publish guidance defining what counts as 'reasonable cost limitations'.
Who it affects
- Investor-owned electric companies
- Investor-owned gas companies
- Companies that provide both gas and electricity services
- The Public Service Commission
Limits and unknowns
- The law does not define specific dollar amounts for 'reasonable cost limitations' until the Public Service Commission publishes guidance.
- It is unclear how companies will calculate costs if they do not currently track private plane usage or trade association dues separately.
Plain language
Terms to know
- Bonus
- Any payment or benefit given to an employee on top of their base pay, including incentives decided late in the year.
- Compensation
- All forms of pay and benefits for a supervisor, such as salary, bonuses, severance, and perks, but not health or life insurance.
- Supervisor
- An employee who can hire, fire, discipline, or direct the work of other employees, including those in executive roles.
Official record
Sources
Official summary
Prohibiting a certain public service company from recovering through rates any costs associated with a supervisor's annual compensation once the compensation exceeds 110% of the maximum annual salary payable to the chair of the Commission for the same calendar year; requiring the Public Service Commission to publish guidance defining "reasonable cost limitations"; requiring each public service company to send a copy of the policy adopted under the Act to the Commission at certain times; etc.
Official activity
Bill history
- In the Senate - First Reading Education, Energy, and the Environment