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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0540*
HOUSE BILL 540
C5 6lr1739
By: Delegates Lehman, Charkoudian, Embry, Fennell, Hill, Palakovich Carr,
Phillips, Ruth, Terrasa, White Holland, Woods, and Ziegler
Introduced and read first time: January 27, 2026
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Investor–Owned Electric, Gas, and Gas and Electric Companies – Utility Rate 2
Changes 3
(Public Service Company Transparency Act) 4
FOR the purpose of prohibiting certain electric, gas, and gas and electric companies from 5
initiating a proceeding that may lead to a rate change unless the company provides 6
customers with a certain notice; requiring certain electric, gas, and gas and electric 7
companies to include a certain statement in e ach customer bill and automatic 8
payment e–mail and distribute a certain annual rate report in a certain manner ; 9
requiring the Public Service Commission, in consultation with the Office of People’s 10
Counsel, to develop and publish an annual rate trend report for certain electric, gas, 11
and gas and electric companies operating in the State; requiring the Office of People’s 12
Counsel to take certain actions under certain circumstances; and generally relating 13
to electric, gas, and gas and electric company rate changes. 14
BY adding to 15
Article – Public Utilities 16
Section 4–203.1 17
Annotated Code of Maryland 18
(2025 Replacement Volume and 2025 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Public Utilities 22
4–203.1. 23
2 HOUSE BILL 540
(A) (1) THIS SECTION APPLIES ONLY TO A PUBLIC SER VICE COMPANY 1
THAT IS AN INVESTOR–OWNED ELECTRIC COMPANY , A GAS COMPANY , OR A 2
COMBINATION GAS AND ELECTRIC COMPANY. 3
(2) THIS SECTION DOES NOT APPLY TO A MUNICIPAL ELECTRIC 4
UTILITY OR AN ELECTRIC COOPERATIVE. 5
(B) IN ADDITION TO THE RE QUIREMENTS SET FORTH IN § 4–203 OF THIS 6
SUBTITLE, UNLESS OTHERWISE ORDERED BY THE COMMISSION, A PUBLIC SERVICE 7
COMPANY MAY NOT INITIATE A PROCE EDING THAT MAY LEAD TO A RATE CHANGE 8
UNLESS THE PUBLIC SERVICE COMPANY: 9
(1) NOTIFIES CUSTOMERS , THROUGH A BILL INSER T OR SEPARATE 10
E–MAIL: 11
(I) THAT THE PUBLIC SERVICE C OMPANY IS INITIATING A 12
PROCEEDING THAT MAY LEAD TO A RATE CHANGE; 13
(II) OF THE RELEVANT PROCEDURAL DATES; AND 14
(III) WHERE TO FIND INFORM ATION REGARDING THE RATE 15
CHANGE ON THE COMMISSION’S WEBSITE; AND 16
(2) PREPARES AND P UBLISHES A 10–YEAR RATE TREND REPOR T 17
THAT: 18
(I) INCLUDES A VISUAL GR APHIC DEPICTING THE 10–YEAR 19
RATE CHANGE TREND, INCLUDING AN INDICATION OF THE EFFECTIVE DATE OF THE 20
RATE CHANGE AND INCREMENT BY WHICH THE RATE CHANGED; 21
(II) IDENTIFIES COSTS ASS OCIATED WITH TRANSMISSION, 22
DISTRIBUTION, AND STANDARD–OFFER OR COMMODITY SERVICE; AND 23
(III) ACCOUNTS FOR ALL CUSTOMER BILL LINE ITEMS , 24
INCLUDING RATE RIDERS. 25
(C) A PUBLIC SERVICE COMPA NY SHALL INCLUDE IN E ACH RETAIL 26
CUSTOMER’S BILL AND AUTOMATIC PAYMENT E–MAIL THE FOLLOWING STATEMENT: 27
“THE MARYLAND GENERAL ASSEMBLY ESTABLISHED THE PUBLIC SERVICE 28
COMMISSION TO REGULAT E PUBLIC SERVICE COM PANIES DOING BUSINES S IN 29
MARYLAND. TODAY, THE COMMISSION SUPERVISES AND REGUL ATES THE 30
ACTIVITIES OF PRIVAT ELY OWNED PUBLIC SERVICE COMPANIES, INCLUDING GAS 31
HOUSE BILL 540 3
AND ELECTRIC COMPANIES, TO ENSURE THEIR ACTI VITIES ARE CONSISTENT WITH 1
THE PUBLIC INTEREST . FOR INFORMATION ON HO W TO PARTICIPATE IN OR 2
OBSERVE A PROCEEDING BEFORE THE PUBLIC SERVICE COMMISSION, PLEASE 3
VISIT THE PUBLIC SERVICE COMMISSION’S WEBSITE.”. 4
(D) (1) ON OR BEFORE JANUARY 1, 2028, AND EACH JANUARY 1 5
THEREAFTER, THE COMMISSION, IN CONSULTATION WITH THE OFFICE OF 6
PEOPLE’S COUNSEL, SHALL DEVELOP AND PU BLISH ON ITS WEBSITE AN ANNUAL 7
RATE REPORT FOR EACH PUBLIC SERVICE COMPANY OPERATING IN THE STATE. 8
(2) THE ANNUAL RATE REPOR T SHALL EXPLAIN , IN NONTECHNICAL 9
TERMS, THE OBSERVED RATE TRENDS. 10
(3) THE COMMISSION SHALL USE INFORMATION PROVIDED BY A 11
PUBLIC SERVICE COMPA NY IN A RATE TREND R EPORT SUBMITTED UNDE R 12
SUBSECTION (B) OF THIS SECTION TO DEVELOP THE ANNUAL RATE REPORT. 13
(4) EACH YEAR, A PUBLIC SERVICE COMPANY SHALL: 14
(I) DISTRIBUTE TO EACH R ETAIL CUSTOMER A BILL INSERT 15
THAT INCLUDES THE PUBLIC SERVICE COMPA NY’S ANNUAL RATE REPORT 16
DEVELOPED UNDER SUBSECTION (B) OF THIS SECTION; AND 17
(II) POST THE ANNUAL RATE REPORT ON THE PUBLIC SERVICE 18
COMPANY’S WEBSITE. 19
(5) THE OFFICE OF PEOPLE’S COUNSEL SHALL BRING A CASE TO THE 20
COMMISSION IF THE OFFICE DETERMINES THA T AN ANNUAL RATE REP ORT 21
PUBLISHED BY THE COMMISSION INCLUDES I NCORRECT OR MISLEADI NG 22
INFORMATION. 23
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 24
October 1, 2026. 25