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Md. lawmakers approve natural gas surcharge bill

Published on NewsOK Modified: February 7, 2013 at 2:14 pm •  Published: February 7, 2013

ANNAPOLIS, Md. (AP) — Natural gas companies would be able to seek a surcharge of up to $2 on monthly gas bills to help recover costs for replacing aging infrastructure, in a measure approved by state lawmakers Thursday.

The Senate voted 35-12 after spirited debate. The House of Delegates' vote was 120-17. The measures are similar and any differences will need to be worked out for the legislation to go to Gov. Martin O'Malley.

Lawmakers who supported the bill said companies need the cash to help replace aging pipes and address safety concerns. Supporters also say the surcharge would have to be approved by the Public Service Commission, and the money wouldn't be charged until work was done to improve infrastructure.

"It's not a pre-payment plan," said Sen. Thomas Middleton, D-Charles.

But opponents argued gas companies shouldn't be asking for extra money at all to do a job they should have been doing all along.

Sen. E.J. Pipkin, R-Cecil, described it as "corporate welfare" for gas companies that have a monopoly and have not invested enough in infrastructure.

"Their business model underinvested," Pipkin said. "Now they want the citizens of Maryland to bail them out."

Sen. Richard Madaleno, D-Montgomery, also opposed the bill, saying the measure undermined long-standing regulatory rules.

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