Maryland Seeks Tougher Review of Gas Pipeline Replacement Projects
Maryland's consumer advocate is asking a court to overturn regulators' approval of Washington Gas pipeline replacement projects, arguing the utility should first comply with the state's 2025 gas infrastructure reform law.
(P&GJ) — Maryland's Office of People's Counsel (OPC) has appealed a Maryland Public Service Commission (PSC) decision allowing Washington Gas to move forward with pipeline replacement projects, arguing the utility should first demonstrate compliance with the state's 2025 Next Generation Energy Act (NGEA).
The appeal, filed in the Circuit Court for Baltimore City, challenges the PSC's approval of Washington Gas' 2026 Strategic Infrastructure Development and Enhancement (STRIDE) project list and related cost recovery without first determining whether the projects satisfy requirements that took effect June 1, 2025.
The NGEA amended Maryland's STRIDE law by requiring utilities to demonstrate that pipeline replacement projects provide customer benefits, are cost-effective and consider alternatives before qualifying for expedited cost recovery.
"The NGEA sought to ensure that utilities only get the benefit of expedited cost recovery of ratepayer-backed gas infrastructure spending when they demonstrate it will benefit customers and is cost effective after considering alternatives," Maryland People's Counsel David S. Lapp said. "But a year later, Washington Gas is proceeding on a business-as-usual basis, and the PSC has yet to require the utility to modify any of its plans or projects."
The appeal stems from the PSC's Feb. 26, 2026, order approving Washington Gas' 2026 STRIDE projects and associated surcharge while postponing a review of the projects' compliance with the NGEA until completion of an ongoing rulemaking. OPC sought rehearing of that decision, but the commission denied the request on June 9, prompting the court appeal.
Under Maryland's STRIDE program, gas utilities can recover infrastructure replacement costs through accelerated surcharges before those expenditures undergo a prudency review. OPC argues that mechanism has contributed to higher customer bills.
According to OPC, Columbia Gas' distribution rates have increased from about 30 cents per therm before STRIDE to $1.24 per therm, while Baltimore Gas and Electric's gas rates have roughly tripled since the program was enacted in 2013.
The consumer advocate said lawmakers revised the STRIDE statute in 2025 to require utilities to prioritize replacing the highest-risk infrastructure and evaluate lower-cost alternatives before undertaking pipeline replacement projects.
"In passing STRIDE reform, the General Assembly took an important step to curb gas infrastructure replacement work that is driving up utility rates and contributing to an energy affordability crisis," Lapp said. "But so far the reforms have had no meaningful impact. The PSC should move expeditiously to enforce compliance with the law."
OPC also argued that continued investment in gas distribution infrastructure could leave fewer customers responsible for paying system costs over time as natural gas demand declines because of electrification, energy efficiency improvements and state climate policies.
The PSC is continuing a rulemaking to implement the NGEA, a process OPC said is expected to extend through at least the end of 2026. Meanwhile, the appeal asks the court to require the commission to apply the law before approving additional STRIDE projects.