By Sari Amiel, Staff Attorney
In the coming weeks, the Maryland Public Service Commission holds the keys to accelerating Maryland’s electric vehicle (EV) future.
Maryland’s electric utilities and Public Service Commission (PSC) are now facing a critical window to accelerate EV progress through the Phase II docket (Case No. 9478) by upgrading the electric grid and rapidly connecting new chargers to the grid. It is now in the PSC's hands to ensure Maryland utilities are cutting climate pollution and reducing costs for ratepayers by making these essential investments. All Marylanders can benefit from the proposed strategic investments, which are expected to reduce electric rates for all ratepayers, even those who do not own EVs.
In January 2019, the Maryland PSC approved electric vehicle pilot programs for each of Maryland’s five utilities in an effort to reduce pollution from the transportation sector and address the market trend of rapidly increasing EV adoption.
These programs, called “Phase I” programs, stayed in place for 5 years through early 2024, and included rebates for residential EV installation, EV-only rates to incentivize EV charging at off-peak hours, and rebates for multi-unit dwelling owners to purchase chargers or lease utility-owned chargers. Phase I programs were largely successful, with utilities meeting most of their enrollment limits for these pilot programs and facilitating thousands of Marylanders’ transitions to EVs. EV registrations increased almost fourfold, from 22,144 to about 84,000, over the course of the 5-year Phase I program.
On March 1, 2024, Maryland’s utilities all filed final evaluations of their Phase I pilot programs and the PSC is now preparing to make a decision on how to move forward with “Phase II” programs. How the Maryland PSC chooses to move forward will largely determine whether Maryland is able to meet its climate targets, clean up its air, and reduce tailpipe pollution.
One of the harms of gas- and diesel-burning vehicles is their contribution to ozone (smog), a serious respiratory irritant. This is especially harmful in areas with high vehicle traffic, such as Baltimore, which is already overburdened by high asthma rates. In fact, as many as 33.3% of high school students in Baltimore have been diagnosed with asthma. Widespread EV adoption will greatly reduce tailpipe pollution, which is a leading cause of respiratory diseases.
More EVs Are Coming and Maryland Needs to be Ready
Maryland’s roads are going to be home to a rapidly increasing number of EVs, as market trends illustrate. EVs already make up around 10% of all national light-duty vehicle sales and that number is above 13% in Maryland—and EVs are expected to significantly grow as a share of vehicle sales, even under the Trump administration. Maryland’s policies promoting reduced emissions from the transportation sector and increased EV sales will result in even more rapid increases in EVs and charging infrastructure.
The PSC must continue to support the increasing number of EV users in Maryland, and the related growth in EV infrastructure, by requiring utilities to upgrade the distribution grid. This means utilities should carefully project which new equipment they will need to add or upgrade on the grid—whether it’s transformers, feeders, power lines, or substations—and start investing in this equipment.
Not surprisingly, other states—including the nearby states of New York, New Jersey, and Massachusetts—are requiring utilities to proactively plan for and invest in distribution grid upgrades that will be needed to support electrification. The Maryland PSC is falling behind its sister states by not requiring this critical planning and these necessary investments. If the PSC fails to require this in the Phase II docket, the PSC would be slamming the brakes on vehicle electrification in Maryland—which will prevent Maryland from meeting its climate goals and improving air quality for its residents.
Investments in EV Infrastructure Will Benefit Maryland Ratepayers
While Sierra Club shares the PSC’s concerns over rising electricity rates in Maryland, there is ample evidence that utility investments in EV programs are driving down electricity rates in states across the country. Just as it’s more cost-effective to replace an aging roof than patch up leaks over time, prudently investing in grid upgrades that are needed to power new chargers will cost less than utility spending on piecemeal grid upgrades later on.
In fact, many studies conducted by research institutions and universities around the country over the past decade—including Berkeley Lab, National Academy of Sciences, Synapse Energy Economics, and M.J. Bradley & Associates—show that well-planned utility investments in distribution system upgrades and EV-related infrastructure will decrease rates for all ratepayers, even those who do not own EVs.
As clean vehicle programs continue to come under attack, the Maryland PSC needs to lead the way in ensuring Maryland has a strong system of EV charging infrastructure. The PSC must ensure that EV progress continues advancing in order for Maryland to successfully achieve our important energy and environmental goals. To achieve those goals, the PSC should approve the utilities’ proposed Phase II programs and budgets, and require utilities to proactively plan for and invest in upgrades to the electric grid. The Sierra Club has offered recommended improvements for utilities' proposals and urges the PSC to incorporate them.