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PSC Advances Discounted Rate Mechanism for Limited-Income Utility Customers
In a press release the Maryland Public Service Commission announced that it has “given approval for utilities to develop the systems to provide discounted rates to certain limited-income customers to correlate customers’ payments more closely to their ability to pay. The Commission’s decision gives general guidelines to utilities as to program design. Utilities will now need to update their billing systems, develop customer education and marketing materials and submit proposed tariffs to the Commission for approval in order to implement the low-income mechanism before January 1 of next year.
The program’s goal is that these customers’ energy burdens do not exceed, on average, 6% of annual income. This will be reconsidered later this year based on the program costs. This will benefit customers by helping to keep their utility service affordable and minimize the risk of termination of service for non-payment.”
See the Public Service Commission of Maryland Order No. 92190 that stems from the Public Conference 59 Work Group’s report on limited income mechanisms for utility customers that was submitted on October 1, 2025.
In the Order, the Commission approves the general design of the Limited Income Mechanism (“LIM”) and recommends guidance on further details. Phase II of the Work group is approved with the Commission’s intent that the mechanism be implemented prior to January 1, 2027.
