PSC Advances Discounted Rate Mechanism for Limited-Income Utility Customers
February 12, 2026
(BALTIMORE, MD) – The Maryland Public Service Commission has given approval for utilities to develop the systems to provide discounted rates to certain limited-income customers to correlate customers’ payments more closely to their ability to pay. The Commission’s decision gives general guidelines to utilities as to program design. Utilities will now need to update their billing systems, develop customer education and marketing materials and submit proposed tariffs to the Commission for approval in order to implement the low-income mechanism before January 1 of next year.
The program’s goal is that these customers’ energy burdens do not exceed, on average, 6% of annual income. This will be reconsidered later this year based on the program costs. This will benefit customers by helping to keep their utility service affordable and minimize the risk of termination of service for non-payment.
“Although it does not take effect immediately, it is a significant step towards eventually easing the energy burden on Maryland families,” said Commission Chair Kumar P. Barve. “The primary goal of this mechanism is to ensure that households already strained by the rising costs of everything, won’t have to pay more than they can afford for vital utility services.”
Who is eligible for the discount?
Most residential utility customers eligible for energy assistance from the Maryland Department of Human Services Office of Home Energy Programs (OHEP).
Do customers need to apply to receive the bill credit?
No. Once the systems are designed, customers eligible for a credit would receive it on their bill. OHEP will work with the utilities to ensure eligible customers are identified.
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[Order No. 92190, in Public Conference 59]
Media Contact: Tori Leonard | tori.leonard@maryland.gov
About the Public Service Commission:
The Maryland Public Service Commission regulates electric and gas utilities and suppliers, telephone companies (land lines), private water and sewer companies, passenger motor vehicle carriers for hire, taxicab companies in some jurisdictions and bay pilot rates. The Commission implements the energy policy of the State and also regulates the siting of energy generating facilities and high-voltage transmission lines.