Maryland Utilities Spending on Gas Infrastructure Impacts Clean Energy Goals
Maryland utilities are averaging more than $700 million a year on gas infrastructure spending, worsening the energy burden among low-income communities and hampering the state’s efforts to hit its ambitious clean energy and emissions reduction targets.
Office of People’s Counsel Report
The Office of People’s Counsel (OPC), the state agency representing Maryland utility customers in federal and state rate cases, released a report on Tuesday highlighting the impact of gas infrastructure spending. The report warns that unless the state changes course, utilities will be recovering around $2.5 billion from customers against that level of investment in the coming decades.
Importance of Sustainable Development Goals (SDGs)
The Sustainable Development Goals (SDGs) play a crucial role in addressing the challenges faced by Maryland in terms of clean energy and emissions reduction. Maryland’s Climate Pollution Reduction Plan recommends investing billions in climate actions and passing bold legislation to accelerate clean energy transitions and hold fossil fuel companies accountable. The state has committed to a 60 percent reduction in greenhouse gas emissions from 2006 levels by 2031, 100 percent clean energy by 2035, and net zero emissions by 2045.
Challenges Faced by Maryland
Maryland’s Governor, Wes Moore, faces a cash shortfall of roughly $1.1 billion and a budgetary hole of $761 million for fiscal year 2025, making it challenging to find the necessary funds for the clean energy transition. Additionally, the last General Assembly session failed to pass bills that could have brought new revenue for the state to invest in climate endeavors.
Impact on Utility Bills
The OPC report reveals that gas delivery rates for some Maryland utilities, particularly Baltimore Gas & Electric and Columbia Gas, have more than tripled since 2010, amounting to about three times the rate of inflation. The analysis shows that skyrocketing utility bills are being driven by the spike in the cost of delivering gas and electricity to homes and businesses, caused by massive spending associated with replacing and upgrading utility infrastructure across the state.
Gas Infrastructure Spending and Recovery Mechanisms
Maryland gas utilities have spent more than $2 billion on new gas infrastructure since 2014 under the Strategic Infrastructure Development and Enhancement Plan law (STRIDE). This law allows gas utilities faster cost recovery for replacing aging gas pipes and components. The OPC recommends that both STRIDE and Multi-Year Rate Plans should either be ended or substantially curtailed, as they result in additional costs for customers without any additional safety requirements.
Impact on Low-Income Communities
High utility bills hit low-income communities the hardest, as they are already energy burdened and often one bill away from falling into a poverty trap. Nearly 450,000 low-income households in Maryland are estimated to be eligible for energy assistance benefits through a state-managed program. However, the analysis of low-income Baltimore households found a significant premium for electricity and gas when bought from energy retailers, further stretching the budgets of low-income families.
Discrimination and Competing Policies
Advocates argue that it is discriminatory to price out low-income residents and that Maryland is pursuing two competing policies simultaneously. The state has the Climate Solutions Now Act, which requires investment in clean energy and emissions reduction, while simultaneously rebuilding a gas system that is polluting and causing climate change.
Stranded Costs and Electrification
As state and federal policies hasten electrification, much of the gas infrastructure will become uneconomic, resulting in billions of dollars of stranded costs. Electrification is expected to happen regardless of climate concerns due to the efficiency and cost-effectiveness of electric technologies. Planning for this transition is crucial to avoid driving gas rates further up and driving more customers away from gas.
SDGs, Targets, and Indicators Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 7: Affordable and Clean Energy
- SDG 11: Sustainable Cities and Communities
- SDG 13: Climate Action
- SDG 1: No Poverty
- SDG 3: Good Health and Well-being
The article discusses the issues of high utility bills, gas infrastructure spending, clean energy transitions, and climate goals. These issues are connected to the SDGs mentioned above.
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 7.2: Increase substantially the share of renewable energy in the global energy mix.
- SDG 11.6: Reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.
- SDG 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.
- SDG 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions.
- SDG 3.9: By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water, and soil pollution and contamination.
Based on the article’s content, these specific targets are relevant to the issues discussed.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Indicator for SDG 7.2: Share of renewable energy in the energy mix.
- Indicator for SDG 11.6: Air quality index and waste management indicators.
- Indicator for SDG 13.1: Resilience and adaptive capacity to climate-related hazards and natural disasters.
- Indicator for SDG 1.2: Proportion of population living below the national poverty line.
- Indicator for SDG 3.9: Number of deaths and illnesses related to hazardous chemicals and air, water, and soil pollution.
The article mentions the need for clean energy transitions, reduction in greenhouse gas emissions, and the impact of high utility bills on low-income communities. These indicators can be used to measure progress towards the identified targets.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 7: Affordable and Clean Energy | 7.2: Increase substantially the share of renewable energy in the global energy mix. | Share of renewable energy in the energy mix. |
| SDG 11: Sustainable Cities and Communities | 11.6: Reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management. | Air quality index and waste management indicators. |
| SDG 13: Climate Action | 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries. | Resilience and adaptive capacity to climate-related hazards and natural disasters. |
| SDG 1: No Poverty | 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions. | Proportion of population living below the national poverty line. |
| SDG 3: Good Health and Well-being | 3.9: By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water, and soil pollution and contamination. | Number of deaths and illnesses related to hazardous chemicals and air, water, and soil pollution. |
Source: insideclimatenews.org
