Maryland lawmakers voted Thursday to approve a bill that enables utility companies to impose a surcharge on customers of up to $2/month to pay for repair and replacement of aging pipe and distribution lines.

The Maryland Strategic Infrastructure Development and Enhancement Program (STRIDE) bill passed the state Senate (SB 8) 34-13 and the House (HB 89) 119-17.

The legislature rejected the surcharge during the past two legislative sessions, in part because of resistance from the state’s regulator, the Maryland Public Service Commission (PSC). This time around, the PSC did not take a position on the legislation but offered amendments, which were added to the legislation.

“This is a bill we’ve supported. We think it’s extremely important for safety and reliability,” said Aaron Koos, spokesman for Maryland utility Baltimore Gas and Electric Co. It has 1,400 miles of aging cast iron mains that need to be replaced. The STRIDE Bill would allow the company to receive compensation for the work from customers on a “pay as you go” basis, Koos said.

The STRIDE bill was opposed by the Maryland Office of People’s Counsel (see Daily GPI, Feb. 7).

Following several high profile pipeline explosions with fatalities in different parts of the country, the federal government turned the spotlight on pipeline safety issues. U.S. Secretary of Transportation Ray LaHood’s 2011 Pipeline Safety Action Plan encouraged state regulators to enable the timely recovery of costs associated with maintenance projects by utilizing alternative financing methods if necessary.

The Department of Transportation’s Pipeline and Hazardous Safety Administration aims to improve pipeline safety by working more closely with state safety programs and pipeline operators (see Daily GPI, Sept. 14, 2012).

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