Maryland House Caps Utility Executive Salaries

Legislation limits amount of ratepayer money that can be used to pay supervisor compensation over $259,000.

Published on Feb. 7, 2026

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The Maryland House of Delegates voted to set new limits on the use of ratepayer dollars to pay salaries for employees of investor-owned utilities. Under the bill, investor-owned utilities can still pay their supervisory staff whatever compensation they deem fit, but only a certain amount can be recouped using money from customers. The ceiling is set just above the salary of the state's top utility regulator, the chair of the Maryland Public Service Commission, who makes about $259,000 annually.

Why it matters

The legislation aims to address high electric bills in Maryland and across the region by restricting the amount of ratepayer money that can be used to pay utility executive salaries. This is seen as a way to provide some relief to consumers who are struggling with rising energy costs.

The details

The bill would affect only the state's investor-owned utilities, which include Exelon companies Baltimore Gas & Electric, Delmarva Power and Pepco. Republicans argued the bill would accomplish little in reducing rates and would demonize utility executives, while Democrats argued that even if the ratepayer relief is minimal, the bill is one of many cost-saving measures coming this year.

  • The Maryland House of Delegates voted on the bill on Friday, February 7, 2026.
  • The Senate version of the measure, Senate Bill 2, had its hearing on Thursday in the Education, Energy the Environment Committee.

The players

Maryland House of Delegates

The lower chamber of the Maryland General Assembly that voted to pass the legislation capping utility executive salaries.

Maryland Public Service Commission

The state's utility regulator, whose chair's $259,000 annual salary was used as the ceiling for the amount of ratepayer money that can be used to pay utility supervisory staff.

Exelon

The parent company of investor-owned utilities Baltimore Gas & Electric, Delmarva Power and Pepco, which would be affected by the legislation.

Del. David Fraser-Hidalgo

A Democratic delegate who argued that utility executives and shareholders are "swimming in profits" while ratepayers struggle.

Del. Jesse Pippy

A Republican delegate who argued the bill would accomplish little in reducing rates and would demonize utility executives.

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What they’re saying

“Their executives and shareholders are swimming, absolutely swimming, in profits, while our ratepayers are trying to figure out whether to pay their rent, or buy milk, or buy eggs.”

— Del. David Fraser-Hidalgo, Democratic Delegate (baltimoresun.com)

“We don't want ratepayers to actually know why their bills are going up. It's better to villainize a few people at the utilities for a dollar.”

— Del. Jesse Pippy, Republican Delegate and Minority Whip (baltimoresun.com)

What’s next

All eyes now turn to the Maryland Senate, where the chamber's version of the measure, Senate Bill 2, had its hearing on Thursday in the Education, Energy the Environment Committee.

The takeaway

This legislation is part of a broader effort by Maryland lawmakers to address high energy costs for consumers by limiting the amount of ratepayer money that can be used to pay utility executive salaries, though the overall impact on individual bills remains to be seen.