Maryland utility tax refund benefits worth about $160 million could be returned to customers of BGE, Pepco and Delmarva Power. The utilities are seeking regulatory approval for the plan, as Baltimore Chronicle reports.
The proposal follows a Maryland Supreme Court ruling involving state taxes previously collected from utilities. According to BGE’s announcement, the companies expect tax overpayments and related interest to be refunded. The case was decided on July 17, 2026, Exelon disclosed in its regulatory filing.
How the $160 million refund would be divided
The proposed customer benefit is not divided equally among the three utilities. Current estimates are:
| Utility | Expected customer benefit |
|---|---|
| BGE | About $110 million |
| Pepco | About $30 million |
| Delmarva Power | About $20 million |
| Total | About $160 million |
These figures describe the total proposed benefits. They do not show how much an individual household will receive.
The Maryland Public Service Commission must still review the plan. Regulators and state officials will determine the timing and allocation.
When will BGE and Pepco customers receive the money?
There is no confirmed payment date yet. There is also no announced standard credit amount per household.
Customers may eventually see the benefit applied directly to utility bills. The precise structure will depend on the regulatory process.
For now, customers do not need to file a claim, contact their utility or submit documents. BGE, Pepco and Delmarva Power say they will provide details once the process is completed.
Why are Maryland utilities receiving tax refunds?
The dispute concerned Maryland sales taxes charged on certain transmission and distribution equipment.
The Maryland Supreme Court ruled that qualifying purchases could receive the manufacturing sales tax exemption. It also found that eligible refund claims could include interest.
Exelon executive Valencia McClure said the companies want the savings passed to customers facing higher energy costs.
Maryland Comptroller Brooke Lierman has also called for transparency. She said utilities should provide a public accounting of refunded taxes and interest so ratepayers receive the money owed to them.
What Maryland customers should do now
Customers should:
- continue paying their utility bills normally;
- watch for notices from BGE, Pepco or Delmarva Power;
- wait for the PSC to approve the refund structure;
- avoid anyone asking for payment to “claim” the credit.
No customer application is currently required. The next significant step is regulatory approval.
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