The Maryland Public Service Commission (PSC) issued an order on June 13, 2025, directing changes to how utilities charge new customers for natural gas service and mainline extensions.
The order directs the PSC technical staff to draft regulations by December 1, 2025, that require new natural gas customers to pay the full connection cost upfront. The effective date, grandfathering, and other details are yet to be determined.
In its June 13 order, the PSC noted that the role of natural gas in Maryland’s energy transition remains unclear and may shift over time but that current natural gas policies may no longer be compatible with the state’s greenhouse gas emissions reduction targets.
The PSC observed that current utility gas line policies expose all ratepayers to the risk of stranded gas infrastructure costs because the full cost of new gas line extensions is not typically charged upfront. Instead, it is collected through distribution rates over the lifetime of the infrastructure. The order expressed concerns about stranded costs associated with long-term investments in new gas infrastructure, particularly if natural gas demand rapidly decreases due to climate policy and advancements in electric technologies.
The PSC emphasized that the order maintains consumer choice and implements a neutral policy stance by neither subsidizing nor penalizing natural gas connections.
The order is part of a larger proceeding on the future of natural gas that will take up long-term natural gas planning issues in future proceedings.