Maryland’s energy companies are poised to receive a $250 million sales tax refund following a ruling by the state’s supreme court. Potomac Edison challenged the sales tax on energy utilities’ purchases of transmission and distribution equipment, arguing for a production exemption. The court agreed, leading to a one-time $280 million payment to the utilities, including interest.
Maryland Comptroller Brooke Lierman called this refund a significant “windfall” and urged utilities to pass the savings on to customers. Rob Leming, a vice president at Pepco, stated that the Exelon utilities are aligned with this goal, estimating savings of $160 million for their customers: $110 million for BGE, $30 million for Pepco, and $20 million for Delmarva Power. The utilities plan to work with the Public Service Commission to determine how these savings will be reflected in customer bills moving forward.
