New analysis shows proposed EmPOWER cuts would increase Maryland consumer electricity costs by $592 million, undermine jobs

Watch the livestream recording on Instagram HERE.

ANNAPOLIS, MD – Advocates, small business owners, energy workers, and state lawmakers rallied today at Lawyer’s Mall to protect consumers and tout EmPOWER Maryland, the state’s flagship energy efficiency program. The Senate Education, Energy and Environment Committee is expected to vote Monday to remove provisions of the Utility Relief Act designed to protect utility customers from rapidly rising delivery rates, and is considering deeper cuts to the state’s energy efficiency program. Advocates warn that these cuts to energy efficiency funding will result in higher energy use and bills, increasing the profits of utility companies and power plants, and harming customers and local small businesses. According to new analysis from the American Council for an Energy-Efficient Economy (ACEEE), proposed EmPOWER cuts would increase customers’ costs for electricity by $592 million.

“EmPOWER Maryland is a proven way to lower bills and reduce pollution by preventing energy waste,” said Brittany Baker, Maryland Director of Chesapeake Climate Action Network Action Fund. “At a time when many Maryland families are struggling under the weight of a crushing energy affordability crisis, energy efficiency can play a key role in protecting consumers. Lawmakers should protect the program, which has delivered billions of dollars in savings and reduced the need for expensive transmission lines and power plants.” 

Additional cuts to energy efficiency investments, along with other changes to the House bill, could actually drive bills higher. As passed by the House of Delegates, the Utility Relief Act addresses rapidly rising utility delivery rates by prohibiting forecasted ratemaking and requiring utility investors to finance capital spending up front. The Senate is considering amendments to remove this provision in its entirety and instead add new opportunities for utilities to profit through so-called “performance incentives.” The House bill also caps how much utilities can charge customers for executive pay. 

“Under forecasted ratemaking, delivery rates for Exelon utility customers have skyrocketed, far outpacing inflation,” said Emily Scarr, Senior Advisor at Maryland PIRG. “Forecasted ratemaking has led to excessive spending, outrageous profits, and unmanageable bills. Paired with “performance incentives,” these ratemaking policies act as virtual profit guarantees. The House has demonstrated bold leadership by standing up to BGE and PEPCO on behalf of customers. It’s time for the Maryland Senate to get on board.” 

Since 2008, EmPOWER has delivered more than $15.8 billion in savings from a $4.6 billion investment, returning more than $2 for every $1 spent. In 2024 alone, EmPOWER resulted in more than 1,300,000 MWh in electricity savings, reducing the need for expensive new transmission lines and power plants. EmPOWER helps reduce energy, especially during peak usage, through free or discounted energy audits, weatherization, appliance rebates for households, and incentives that help businesses cut energy use and costs. 

“When we invest in energy efficiency, we are helping Maryland families collectively save billions on their energy bills and helping our state reach its climate pollution goals, ” said Josh Tulkin, Chapter Director of the Sierra Club Maryland Chapter. “Cutting EmPOWER Maryland, a program that returns more than $2 for every $1 spent, would only lead to higher energy bills for families and small businesses, loss of jobs, and more harmful pollution. At a time when families are struggling with rising energy bills, cutting a program that has helped people save money would only bolster utility profits but hurt the rest of us. We urge lawmakers to protect EmPOWER and ensure hardworking families are put ahead of utility profits.”

“Since 2010, the EmPOWER Maryland program has allowed us to help over 130,000 Maryland residents reduce their utility bills and live in more comfortable homes,” said Jorge Solis, Atlas Home Energy Solutions. “We know that electric bills have been out of control this year, and everyone is looking for relief. The cuts proposed to the EmPOWER program present a short-term patch that would devastate our network of skilled small businesses and foreclose long-term savings for residents. The best way to help Maryland residents is not to reduce or eliminate the EmPOWER Maryland Program–it is to support and promote it.”

“Maryland currently has roughly 60-70,000 workers in energy-efficiency-related fields — HVAC technicians, insulation installers, energy auditors, electricians, and other skilled trades. When we talk about potential reductions in these programs, we are not talking about numbers on a spreadsheet — we are talking about thousands of Maryland families,” said Isaiah Allen, Operations Manager at Advanced Green Home Solutions. “Weakening these programs risks creating larger challenges in the future — higher costs, fewer trained workers, and reduced ability to help Maryland families control their energy use. Behind every policy decision are real people, real careers, and real families working to build stable futures. Protecting these programs helps protect Maryland families, supports skilled careers, and helps keep long-term energy costs more stable for everyone.”

Watch the livestream recording on Instagram HERE.

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Chesapeake Climate Action Network (CCAN) Action Fund is dedicated to driving change in public policies at the local, state, and national levels to address the climate crisis. Through voter education, lobbying, and participation in the electoral process, we seek to advance our country’s leadership in the global movement toward clean energy solutions — focusing our efforts primarily in Maryland, Virginia, and Washington, DC. We know that a vibrant democracy is central to our success so we work to defend democratic integrity wherever we can.