Maryland Regulators Advance Comprehensive Review of Gas System Planning Amid Climate Goals

The Maryland Public Service Commission on Aug. 20 launched a broad review of natural gas system planning practices under its ongoing “Future of Gas” proceeding. The regulator said the initiative is intended to evaluate whether the current long-term capacity, supply, and investment planning processes of natural gas utilities are consistent with the state’s climate commitments while maintaining affordable costs for consumers.

The proceeding will explore how natural gas and electric system planning should be coordinated, reflecting Maryland’s push to reduce reliance on fossil fuels and accelerate clean energy adoption. A central focus is aligning utility practices with the Climate Solutions Now Act of 2022, which requires a 60 percent cut in greenhouse gas emissions from 2006 levels by 2031 and directs the state to reach net-zero emissions by 2045.

The review also comes as the Maryland General Assembly enacted the Next Generation Energy Act during the 2025 legislative session. The measure revises the state’s Renewable Portfolio Standard, encourages new generation development, and sets specific conditions for cost recovery of natural gas infrastructure replacement projects. Under the law, utilities must demonstrate that their proposed projects satisfy the statutory requirements in order to recover costs through customer rates, a provision that could significantly influence upcoming planning decisions.

A prehearing conference, to be held within 30 days of the order launching the review, will establish procedural steps. In a related order issued on June 13, the regulator flagged inconsistencies between existing gas line extension policies and the state’s emissions reduction targets, instructing staff to draft regulations for revising the policy. The outcome of these proceedings could reshape the future of gas utility planning in Maryland.