The Maryland Public Service Commission (PSC) ordered electric and gas utilities to extend the notice period for customers facing service disconnection. This action is in response to a funding shortfall in two utility bill assistance programs managed by the Maryland Department of Human Services (DHS) Office of Home Energy Programs (OHEP).
No Moratorium, But Encouragement for Voluntary Halts
The PSC has decided against imposing a moratorium on service disconnections but acknowledges the proactive steps taken by most Maryland utilities. Many utilities have voluntarily paused disconnections for customers who recently had their assistance applications denied. The Commission strongly encourages all utilities to continue this practice until July 31, 2024.
Funding Shortfall and Its Impact
In April, the PSC discovered that funds for the Maryland Energy Assistance Program (MEAP) and the Gas Arrearage Retirement Assistance Program (GARA) had run out. As a result, OHEP began denying applications from April 17, 2024, through the end of the fiscal year on June 30, 2024.
Seeking Solutions and Stakeholder Input
To address the issue, the PSC asked utilities and other stakeholders for comments and information about actions to protect affected customers. Comments from utilities, consumer advocates, and community organizations revealed that most utilities did not see a moratorium as necessary, citing measures already in place to help customers.
Additional Notice Period
The PSC agreed with the Maryland Energy Advocates Coalition’s (MEAC) suggestion to extend termination notices by 15 days for customers who received denials for OHEP funds between April 17 and June 30, 2024. Utilities must report to the Commission within 30 days to confirm the additional notice period and detail efforts to halt disconnections for these customers.
Addressing the Broader Issues
The PSC’s order also requests that DHS report on OHEP’s long-term funding situation and the timing of MEAP and GARA fund distributions to ensure that future funding cycles can better meet Maryland residents’ needs.
Background on MEAP and GARA
MEAP, funded through the federal Low-Income Home Energy Assistance Program (LIHEAP), provides grants to help customers pay utility bills. Using MEAP funds, GARA helps relieve past-due amounts for natural gas service. The current funding shortfall stems from a significant increase in assistance applications and higher energy costs, exacerbated by legislative changes that increased eligibility.
