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A new study shows health disparities cost Texas billions of dollars; Senate rejects impeachment articles against Mayorkas, ending trial against Cabinet secretary; Iowa cuts historical rural school groups.

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Civil Rights activists say a court ruling could end the right to protest in three southern states, a federal judge lets January 6th lawsuits proceed against former President Trump and police arrest dozens at a Columbia University Gaza protest.

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Gas Surcharge Legislation Sparks Watchdog Action

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Thursday, January 24, 2013   

BALTIMORE - Gas companies are looking to add a surcharge to monthly bills in Maryland. Instead of doing it through a rate case before the Public Service Commission, they've gone to the Legislature.

AARP Maryland is taking issue with the tactic, which lawmakers have rejected twice.

Washington Gas makes the case that the surcharge is needed to pay for pipe upgrades. AARP Maryland advocacy director Tammy Bresnahan, who testified Wednesday afternoon, says if that's true, the PSC should make the decision because the legislation comes without review.

"Without looking at all of their financials, without looking at their revenue, without looking at how much they've paid their stockholders - a slap in the face to the Public Service Commission."

A previous request for a surcharge for pipe projects was rejected by the PSC based on company financials that showed ample reserves to cover the expense, Bresnahan says. The PSC has voiced support for the bills - Senate Bill 8 and House Bill 89, referred to as "STRIDE" - with some suggested amendments.

Bresnahan says if this surcharge is allowed, it sets the stage for other utilities to do the same - and it comes on top of multiple rate cases that have sent consumer bills up even when the economy was at its lowest.

"There are no benchmarks. There are no ties to it. There isn't anybody really checking to see if they do the work that needs to be done. Where does it end?"

Maryland's isn't the only legislature making this kind of decision. A national AARP report finds that surcharges are becoming more common and contends that they shortcut consumer rate protections. The text of that report, "Increasing Use of Surcharges on Consumer Utility Bills," is online at aarp.org.


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