Request for Feedback: Limited Income Mechanism (PC59)

“In 2021, the Maryland General Assembly passed legislation requiring utilities to implement a Limited Income Mechanism (LIM) program to help eligible residential customers manage energy costs, under the oversight of the Maryland Public Service Commission (PSC). The cost of the program may be partially funded by commercial and industrial (C&I) customers, as further discussed below. The PSC is seeking comments from C&I customers on the funding alternatives, and a form is provided below for such comments.

The LIM program is designed to improve affordability for low-income households by aligning utility bills (electric and gas) with a customer’s ability to pay. The program provides bill credits to help ensure that eligible households spend no more than 6% of their income on energy costs. Eligibility generally includes residential customers who qualify for energy assistance through the Maryland Office of Home Energy Programs (OHEP). Funding for the program will come from a surcharge applied to natural gas bills, which will be paid by other residential and commercial customers.

Following guidance from the PSC, Chesapeake Utilities and other Maryland utilities have begun early-stage implementation of the LIM program. In its February 12, 2026 Order, the PSC approved next steps to advance the program, targeting implementation by January 1, 2027.

1. Allocating 75% of program costs to residential customers and 25% to commercial customers;

2. Allocating 25% of costs to residential customers and 75% to commercial customers; or

3. Allowing utilities to determine cost allocation based on their specific customer mix and service territory.

The PSC has emphasized the importance of providing commercial and industrial customers with an opportunity to understand the program and offer feedback on the proposed cost allocation methods.

A final decision on cost allocation is expected later this year, following Chesapeake Utilities’ filing of proposed tariff modifications to incorporate the LIM program. The PSC has indicated that stakeholder feedback, including input from commercial and industrial customers, will be an important factor in their review of Chesapeake Utilities’ and other utilities’ tariff proposals.

A feedback form is provided below for your input on the program and the proposed cost-allocation approaches. All responses will be submitted to the PSC’s PC 59 Working Group for review and may also be shared directly with the Commissioners. Please submit your comments by July 1, 2026.

Additionally, a virtual stakeholder meeting is scheduled for July 9, 2026, from 10 to 11 a.m. You may use the same form below to register to attend the meeting.

Google Meet Link »