Recent media coverage of an Abell Foundation report erroneously suggested that Maryland’s 1999 electricity market restructuring saddled consumers with higher electricity bills than they would have received under Maryland’s old regulations. A new analysis from the Maryland Public Policy Institute finds that media coverage presented an inaccurate representation of the Abell Foundation’s conclusions.

In the 1990s, Maryland electricity consumers—along with consumers in Northeast states and California— were experiencing soaring electricity rates due in part to antiquated regulations. In response, Maryland and other states restructured their electricity markets to lower prices by encouraging competition between electricity providers.

“It is important to not misunderstand the Abell Foundation report as showing that Maryland’s previous energy market structure was better for consumers than the current structure,” stated Thomas Firey, Senior Fellow at the Institute. “The report does not pursue that question, and there is ample policy analysis showing restructuring’s benefits.”

The Institute finds that retail electric rates have experienced challenges due in part to deceptive marketing practices, but overall wholesale regulation and standard of service regulation have been very successful: rates fell and have stayed significantly below what it’s believed they would have been under traditional regulation.

To read the Institute’s full analysis, visit mdpolicy.org.

About the Maryland Public Policy Institute: Founded in 2001, the Maryland Public Policy Institute is a nonpartisan public policy research and education organization that focuses on state policy issues. The Institute’s mission is to formulate and promote public policies at all levels of government based on principles of free enterprise, limited government, and civil society. Learn more at mdpolicy.org.