As frustration persists among residents and elected leaders over rising energy prices, Maryland’s top utility regulator has stepped down, Gov. Wes Moore said Monday.
Maryland Public Service Commission Chairman Frederick Hoover was appointed to his role in 2023 by Moore, and his resignation comes about halfway through a five-year term. Hoover will continue to serve as a commissioner on the five-member panel.
In a news release from Moore’s office, Hoover said it was an honor to chair the PSC during a transformative time for Maryland’s energy sector.
“I am proud of what we have achieved over my past three years as Chair of the Commission to modernize our energy system and advance our State’s clean energy goals,” he said.
Commissioner Kumar Barve, a longtime former state legislator also appointed by Moore in 2023, will take over as chairman, according to the governor’s press release.
“The Governor, Chair Emeritus Fred Hoover and I agree that this moment in history requires an assortment of new policy and legislative approaches — to control energy bills and to build a more stable and sustainable energy grid,” Barve said in a statement. “I will boldly collaborate with the Maryland Energy Administration, the Maryland Department of the Environment and the Maryland General Assembly.”
Because Hoover and Barve are “essentially swapping terms,” both will require confirmation before the state Senate to assume their new roles, PSC spokesperson Tori Leonard said in an email.
While rising energy prices have become a charged political issue during Hoover’s term, the reason for his resignation isn’t clear. He did not immediately return phone calls seeking comment on the decision.
Hoover was at the center of many debates about the impacts of rate increases on Maryland ratepayers.
His resignation comes less than a month after the PSC denied roughly half of the rate increase requested by Baltimore Gas and Electric Company, the Exelon Corporation-owned utility that serves the Baltimore region.
Last year, the commission called on federal regulators to prevent Marylanders from being “overcharged” after the region’s power grid operator’s supply costs would have increased by around 568%. And it forced BGE to shift those increases to lower usage months in an attempt to flatten monthly utility bills.
Local and state lawmakers, alongside the state’s U.S. representatives, have pushed the PSC to end the multiyear rate planning that, since 2021, has allowed investor-owned utilities in the state to increase the costs of delivering power to customers.
The PSC has yet to decide on the future of the pilot program.
There are other consequential questions facing the regulatory panel.
In an effort to tamp down on ballooning energy prices, Maryland Democrats passed legislation last year aimed at boosting power generation in the state, potentially by bringing controversial new natural gas plants online. As part of that new law, the PSC last month approved fast-tracked reviews of two new natural gas proposals by the Baltimore-based Constellation Energy.
In his office’s new release, Moore called Hoover a “tremendous partner” in efforts to “build a cleaner, more reliable, more affordable energy system.”
Emily Scarr, a senior adviser for the consumer advocacy group Maryland PIRG, blamed rising costs on the state’s three Exelon-owned utilities, and praised Hoover for his work to control rates as chair.
“Fred Hoover took decisive action during his time as Commission Chair to rein in wasteful utility spending,” Scarr said in a statement. “We thank Chair Hoover for his service and look forward to working with Chair Barve on these critical issues.”
The PSC, established in 1910, is an independent administrative agency led by five commissioners appointed by the governor and confirmed by the state Senate. It is the state’s regulatory body for electric, gas and some water utilities, telecommunication companies, and certain aspects of transportation.
Barve, the commission’s new chair, formerly represented Montgomery County as a state delegate for more than a decade, serving as majority leader and chair of the environment and transportation committee. His term ends in June 2029.
Prior to joining the PSC, Hoover served in the Office of People’s Counsel, where he represented ratepayers for the state-appointed utility watchdog.
Comments
Welcome to The Banner's subscriber-only commenting community. Please review our community guidelines.