Maryland Lawmakers Scrutinize Utility Upgrade Costs

Senators question utility executives about competitive bidding process and ratepayer impact

Published on Mar. 7, 2026

Maryland state lawmakers are concerned about utilities passing on the costs of infrastructure upgrades to consumers. The Maryland Senate Education, Energy and the Environment Committee held a hearing to examine the competitive bidding process for these projects and consider legislation to provide more oversight and protect ratepayers.

Why it matters

As utilities invest hundreds of millions in distribution and transmission upgrades, there are growing concerns that the costs will be passed on to ratepayers without sufficient scrutiny. Lawmakers want to ensure the bidding process is competitive and the projects are truly necessary and cost-effective.

The details

Baltimore Gas and Electric (BGE) plans to invest over $500,000 to upgrade infrastructure to support growth in the Baltimore Peninsula area. Senate President Bill Ferguson drafted a bill to give the state more oversight over the utility's projects, amid concerns the costs would be passed to ratepayers. Ferguson's bill would require the Maryland Public Service Commission to evaluate the need and cost-effectiveness of proposed upgrades, a function currently handled after-the-fact by federal regulators.

  • The Maryland Senate Education, Energy and the Environment Committee held a hearing on Friday, March 7, 2026.
  • BGE issued a temporary pause on the Baltimore Peninsula project on Wednesday, March 5, 2026.

The players

Brian Feldman

Chairman of the Maryland Senate Education, Energy and the Environment Committee, representing Montgomery County.

Bill Ferguson

Maryland Senate President, representing District 46.

Jason Stanek

Executive Director of Government Services at PJM, the regional grid operator.

John Frain

Vice President of Strategy and Regulatory Affairs at Baltimore Gas and Electric (BGE).

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What they’re saying

“It's the growth and scale that ratepayers have to bear through a process that, from my perspective and many others, felt new and the first time they ever heard of it.”

— Bill Ferguson, Maryland Senate President

“Often, they are resulting of the need to replace aging assets to provide service to a new customer base that did not exist before, or to be proactive and not wait for existing infrastructure to become at a state where it needs to be replaced.”

— Jason Stanek, Executive Director of Government Services, PJM

“Multi-year plans look at up to three years in the future, and what the utility work is going to be, what our work plans are.”

— John Frain, Vice President of Strategy and Regulatory Affairs, BGE

What’s next

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The takeaway

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