SB 31
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Enrolled - Revised
Senate Bill 31 (Senator Washington)
Finance Economic Matters
Electricity and Gas - Energy Suppliers - Supply Offers
This bill requires the Public Service Commission (PSC), by January 1, 2023, to establish
an administrative process to approve supply offers for electricity or gas for households in
the State that receive energy assistance through a program administered by the Office Of
Home Energy Programs (OHEP), subject to specified requirements. An approved supply
offer must include a commitment to charging at or below the standard offer service (SOS)
rate for customers receiving energy assistance. Beginning July 1, 2023, unless PSC has
approved the supply offer, a third-party retail supplier is prohibited from charging a
customer receiving assistance from an OHEP program, receiving funds from an OHEP
program, and taking other specified actions. The bill contains a related annual reporting
requirement for PSC. The bill takes effect July 1, 2021.
Fiscal Summary
State Effect: Special fund expenditures increase by $178,100 in FY 2022. Future year
expenditures reflect ongoing costs. Special fund revenues increase correspondingly from
assessments imposed on public service companies.
(in dollars) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
SF Revenue $178,100 $160,500 $165,100 $170,900 $176,800
SF Expenditure $178,100 $160,500 $165,100 $170,900 $176,800
Net Effect $0 $0 $0 $0 $0
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: The bill does not materially affect local government finances or operations.
Small Business Effect: Meaningful.
 Analysis
Current Law: The Electric Customer Choice and Competition Act of 1999 facilitated the
restructuring of the electric utility industry in Maryland. The resulting system of customer
choice allows the customer to purchase electricity from a competitive supplier or to
continue receiving electricity under SOS. Default SOS electric service is provided by a
customer’s electric company (e.g., Baltimore Gas and Electric Company or Pepco).
Competitive electric supply is provided by competitive electricity suppliers. In either case,
the electric company delivers the electricity and recovers the costs for delivery through
distribution rates. Gas supply and delivery are similarly restructured, with gas suppliers
and gas companies.
Energy Assistance
OHEP within the Department of Human Services (DHS) administers a variety of energy
assistance programs and services for residential customers using local administering
agencies, including local departments of social services, in each county and Baltimore City.
These programs include the Electric Universal Service Program bill payment assistance,
Maryland Energy Assistance Program bill payment assistance (heating source), and gas
and electric arrearage assistance programs. The income eligibility for each of these
programs is 175% of the federal poverty level.
State Fiscal Effect: The bill creates new and ongoing responsibilities for PSC that cannot
be absorbed with existing resources. Therefore, special fund expenditures for PSC increase
by $178,083 in fiscal 2022, which accounts for the bill’s July 1, 2021 effective date. This
estimate reflects the cost of hiring one regulatory economist and one staff attorney to
monitor supplier offers and engage in ongoing enforcement efforts. It includes salaries,
fringe benefits, one-time start-up costs, and ongoing operating expenses.
Positions 2.0
Salaries and Fringe Benefits $161,593
Other Operating Expenses 16,490
Total FY 2022 PSC Expenditures $178,083
Future year expenditures reflect salaries with annual increases and employee turnover and
ongoing operating expenses. Special fund revenues increase correspondingly from
assessments imposed on public service companies.
The extent to which special/federal fund expenditures from OHEP energy assistance
programs may be reallocated across customers due to the bill is unknown; overall
expenditures are not affected. DHS did not indicate the need for any additional resources
as a result of the bill.
SB 31/ Page 2
Small Business Effect: Electricity and gas suppliers are generally prohibited from
enrolling and serving customers who have received financial assistance from OHEP in the
previous fiscal year, beginning July 1, 2023. As such, the bill (1) precludes small suppliers
from serving a portion of their potential market unless they can at least compete with SOS
prices and (2) requires additional verification procedures at the time of contract enrollment
and renewal.
Additional Information
Prior Introductions: SB 685 of 2020, a similar bill, passed the Senate with amendments
and was referred to the House Economic Matters Committee; no further action was taken.
Its cross file, HB 1224, received a hearing from the House Economic Matters Committee,
but no further action was taken.
Designated Cross File: HB 397 (Delegate Lierman) - Economic Matters.
Information Source(s): Public Service Commission; Department of Human Services;
Department of Legislative Services
Fiscal Note History: First Reader - January 28, 2021
rh/lgc Third Reader - March 16, 2021
Revised - Amendment(s) - March 16, 2021
Enrolled - April 8, 2021
Revised - Amendment(s) - April 8, 2021
Analysis by: Stephen M. Ross Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 31/ Page 3


Statutes affected:
Text - First - Electricity and Gas – Energy Suppliers – Supply Offers: 4-308 Public Utilities
Text - Third - Electricity and Gas - Energy Suppliers - Supply Offers: 4-308 Public Utilities
Text - Enrolled - Electricity and Gas - Energy Suppliers - Supply Offers: 4-308 Public Utilities