Ratepayers could see millions in savings through MD court ruling

Salisbury, Md. – Maryland Comptroller Brooke Lierman is calling on energy companies to return millions in tax refunds to ratepayers.

Following a July decision by the Supreme Court of Maryland in Comptroller of Maryland v. The Potomac Edison Company that certain equipment used by electric utilities qualifies for Maryland’s sales and use tax exemption, the Office of the Comptroller will issue refunds expected to total more than $250 million to the utilities companies.

During Thursday’s Maryland Board of Revenue Estimates meeting, Comptroller Lierman called on Maryland’s electric utilities to reimburse customers using the funds.

Lierman said that, while she respects the court’s decision, she disagrees with the Court’s interpretation of Maryland’s tax law.

“This refund will create a windfall for the energy companies in Maryland, more than $250 million in overpayments on taxes and interest,” Lierman said in a statement. “This is ratepayer money. When utilities pay taxes, they recover those taxes through the rates that they charge their customers.”

She called on energy companies to give the refund of taxes and interest to ratepayers.

“I call on the energy companies to do the right thing here and act quickly to issue credits to all ratepayers in the full amount of the amount of taxes being refunded to each company and provide an accounting for that to the Public Service Commission,” she said. “This $250 million plus should be in addition to the $32.2 million in overpayments that the energy companies collected in 2025.”

BGE, Delmarva Power and Pepco announced on Monday that they will seek regulatory approval to provide approximately $160 million in tax refund benefits to Maryland customers.

“We know many Maryland families and businesses are feeling pressure from higher energy costs, and we are committed to doing everything we can to help,” said Valencia McClure Exelon’s SVP of Governmental, Regulatory and External Affairs in a statement. “Providing these tax savings to customers is another example of The Exelon Promise in action, taking practical steps today to provide relief, protect customers and work with policymakers and regulators on long-term solutions that keep energy safe, reliable and affordable.”

Delmarva Power officials said the total expected benefit includes approximately $20 million for Delmarva Power customers.

Lierman said she welcomes the news that “at least some of our utility companies have spoken up and said that they agree.”

“I look forward, then, to finalizing the numbers for what the tax refund will be to the utility companies and then seeing the utility companies provide an accounting to the Public Service Commission on the amount of dollars that they have credited to people’s bills, right?” she said in an interview with WMDT. “I’m really happy that they have indicated they plan to do this. I want to make sure that they are transparent and report to the Public Service Commission on what they have done.”

Lierman said there may be other electric utilities that file for refunds.

“And if that happens, my expectation would be the same for all of those electric utilities,” she said. “And so, I, encourage all of those electric utilities to be prepared to make a public accounting to the PSC, and it’s my hope, of course, that the PSC will include that information in a transparent way for all of us ratepayers to review and see as well.”