The Maryland Public Service Commission (PSC) has completed its investigation of market competition and regulatory policies for the electric industry. The PSC chose a "measured approach," ruling against retail wheeling at this time while permitting, but not requiring, utility proposals for performance-based ratemaking.
The PSC described electricity rates in the state as "globally competitive," noting that Maryland's utilities were not encumbered by a lot of expensive nuclear power plants or high-cost cogeneration contracts. Finding that the conditions needed to ensure a competitive retail market "do not currently exist," the PSC cited numerous unresolved concerns associated with retail competition, including: 1) system reliability, 2) stranded investment, 3) reciprocity in neighboring states, and 4) continued funding for environmental and social goals.