MD HB960

Investor-owned electric, gas, and combination utility companies are prohibited from recovering through customer rates costs associated with lobbying, political activities, trade association memberships, promotional advertising, executive travel and entertainment, gifts, and corporate aircraft use.

Membership dues to trade associations or tax-exempt organizations may only be recovered if lobbying expenditures are less than 1% of the organization's total expenditures and the primary purpose is research and development benefiting the public.

Utilities may recover advertising and marketing costs only if they demonstrate during a rate case that expenditures were directly beneficial to ratepayers and in the public interest.

Annual reports to the Public Service Commission must include itemized costs for all prohibited activities, including employee salaries and hours, third-party vendor payments, parent company allocations, and identification of all legislation or political campaigns on which the company engaged in lobbying.

Effective date: October 1, 2025.