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Md. utility regulator extends moratorium on service cutoff for one more month

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After 12 hours of testimony from a broad array of stakeholders late last week, the Maryland Public Service Commission voted Monday to extend the state鈥檚 moratorium on utility service shutoffs for an extra month, through Oct. 1.

Four of the commissioners voted for the motion, offered by PSC Chairman Jason M. Stanek. A fifth commissioner, Michael T. Richard, abstained, saying he hadn鈥檛 had time to fully digest the motion and preferred a proposal from the Office of People鈥檚 Counsel to extend the moratorium indefinitely.

鈥淎 lot of this package was cooked over the weekend,鈥 Stanek said.

Stanek cast his proposal as a balance between protecting the needs of consumers 鈥 many of whom have been hammered financially by the COVID-19 pandemic 鈥 and the needs of utilities that have also suffered from the economic downturn.

鈥淪olutions from a problem of this magnitude do not come easy,鈥 he said.

In addition to extending the moratorium on service shutoffs until Oct. 1, the measure adopted by the PSC also:

  • Requires utilities to supply residential ratepayers with a 45-day notice that service will be terminated. Residential customers in arrears would have 45 days from receipt of a notice to work out a payment plan with their utility or to apply for energy assistance programs. Customers who take either action would not have service disconnected.
  • Requires utilities to offer a 12-month repayment plan for consumers who are in arrears 鈥 and a 24-month repayment for low-income ratepayers whose payments are in arrears.
  • Decrees that no down payment is required by consumers who enter into a repayment agreement with a utility.
  • Decrees that negotiations between a utility and a consumer over a repayment plan cannot be cut if if the consumer has been in arrears in the past.

Stanek praised certain utility companies for already showing flexibility and compassion toward their customers and directed other utilities that have not reached out to struggling customers and offered repayment plans to do so immediately.

He called out Washington Gas for communicating with consumers with 鈥渁 personal touch,鈥 and added, 鈥淭hat鈥檚 exactly what we want and exactly what we need from Maryland utilities.鈥

Commissioners noted that the state鈥檚 Office of Home Energy Programs has about $170 million available to low-income Marylanders who need relief with their energy bills.

But Richard, who like all five current PSC commissioners was appointed by Gov. Larry Hogan 鈥 and previously served as Hogan鈥檚 deputy chief of staff 鈥 called Stanek鈥檚 proposal 鈥渨oefully inadequate.鈥

鈥淭his is no time for business as usual and [to] throw Marylanders at the mercy of monopoly utilities,鈥 he said.

Richard said he preferred a 鈥渟ound, moderate and compassionate鈥 proposal put forward by the Office of People鈥檚 Counsel 鈥 a unit of the state Attorney General鈥檚 office that represents consumers before the PSC on utility matters 鈥 that sought a longer-term moratorium on service shutoffs. More than 60 members of the General Assembly sent a letter to the PSC last month in support of the proposal.

鈥淲hat we鈥檙e doing today is putting too much power in the hands of utilities,鈥 Richard said.

‘Time to move forward again’

Commissioner Anthony J. O鈥橠onnell, a former Republican lawmaker, called the economic shutdown from COVID-19 鈥渢errifying,鈥 and compared what the state has just experienced financially to a Navy vessel narrowly missing a collision. Now that the collision has been avoided, he said, 鈥渋t鈥檚 time to move forward again鈥 鈥 with an eye toward protecting consumers and energy providers alike financially.

鈥淭hese are matters that will affect people鈥檚 lives and the commerce of this state for a generation to come,鈥 O鈥橠onnell said.

While the PSC鈥檚 decision didn鈥檛 go as far as many lawmakers would have liked, one senior legislator said it was a step in the right direction.

鈥淧eople are hurting right now,鈥 said Del. Joseline Pe帽a-Melnyk (D-Prince George鈥檚). 鈥淪ome do not even have money for food. I am glad that the PSC is giving them some protection.鈥

Information on energy assistance programs can be found online at the following sites:

Maryland website;

in the Maryland Department of Human Services (you can also call them at 800-332-6347);

(you can also call them at 410-235-9080);

, (you can also call 211 or text “My211MD” to 898-211);

Maryland .

Bruce DePuyt contributed to this report.

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