During 2026 Legislative Session, there are so many presentations, discussions and legislations related to energy, utility price, regulations. We are determined to fix the high utility cost issue facing our constitutes.
Hopefully the following presentations will help all to understand these issues better.
Below is a clear, regulator-accurate breakdown of which parts of your Washington Gas bill are avoidable vs. unavoidable, and what actions (if any) actually reduce each charge.
1. UNAVOIDABLE CHARGES
You pay these no matter what supplier you choose and even if gas prices fall.
๐ฅ Distribution Charge ($15.98)
Pays for pipes, meters, maintenance, emergency response
Set by Maryland PSC
Cannot be avoided
Reduced only by using less gas
๐ฅ STRIDE Surcharge (~$1.90)
Funds pipeline replacement & safety upgrades
Automatically approved cost recovery
Unavoidable
Continues even if you switch suppliers
๐ฅ System Charge ($11.85)
Covers system-wide reliability & balancing
Infrastructure-based
Unavoidable
๐ฅ EmPower MD Surcharge ($1.80)
State-mandated energy efficiency programs
Required by law
Unavoidable
๐ฅ Taxes ($2.99 total)
Montgomery County energy tax
MD Gross Receipts tax
Unavoidable
๐ด Bottom line (Unavoidable)
~$34โ36 of your $47.98 bill is unavoidable
No supplier switch, negotiation, or timing can remove these.
2. PARTIALLY AVOIDABLE CHARGES
Can be reduced only by using less gas
๐จ All per-therm charges
These scale with usage:
Distribution charge
STRIDE
System charge
EmPower MD
Taxes
How to reduce them:
Insulation
Heat pump hybrid systems
Lower thermostat setpoints
Efficient water heater
โ ๏ธ But note:
Even cutting usage 30% usually lowers the bill only ~15โ20%.
3. AVOIDABLE / CHOOSABLE CHARGES
These are the only charges you can change via supplier choice
๐ฉ Natural Gas Supply (PGC โ $13.46)
This is the commodity gas price
You may:
stay with Washington Gas default
switch to a retail supplier
This is the ONLY line item you can shop for
Reality check:
Typical savings from switching: $1โ3/month
Many third-party suppliers:
raise rates after teaser periods
add early termination fees
lock you into higher fixed prices
๐ Most people save little or nothing long-term.
4. What Is Truly Avoidable?
Charge Type
Avoidable?
How
Distribution
โ No
None
STRIDE
โ No
None
System charge
โ No
None
EmPower MD
โ No
None
Taxes
โ No
None
Gas supply (PGC)
โ Yes
Switch supplier
All charges
โ ๏ธ Partially
Use less gas
5. Hard Truth (Important)
Washington Gas is essentially a fixed-cost utility disguised as a usage bill.
70โ75% of your bill is policy + infrastructure
Efficiency helps, but only modestly
Electrification (heat pumps) is the only real escape, but costly upfront
If you want next:
a side-by-side bill before/after heat pump
a supplier switch risk table
how Maryland PSC approved STRIDE and why bills rose
Recently there are many complaints across the east coast (13 states falling under PJM, 67 million customers) about the high utility price. MD Senator Katie Fry Hester organized a meeting to talk about PJM price models and data center issue. I am attaching different price models shared from her office.
I asked a question during the virtual meeting. Could we have a rate-payer centered model? I support having data centers. However, they need to share the cost of building infrastructures.
So the price model starts where considering the price increase will be limited by 3% every year, traverse back to see how much every other user need to pay to increase electricity capacity?
PJM has not done such analysis, or probably they would not. The Federal Energy Regulatory Commission should demand to do a study like that.
Another issue always puzzles me: we, as rate-payers, pay energy companies to design, build, finance and run our energy portfolio, what’s the exact power do we have to influence the decision of a private company? Is there anything wrong with this model for affordable energies?