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Thousands of Maryland residents could soon see credits on their utility bills, thanks to the newly passed Next Generation Energy Act.

The legislation, approved by the General Assembly earlier this year, includes a $200 million Legislative Energy Relief Refund designed to help residents hit hardest by rising energy costs. The refunds will be distributed in two phases, first in August or September, and again in January or February.

According to the Maryland Public Service Commission, the average refund will total about $80 per customer over both phases. However, the actual credit will vary based on energy consumption and service area. Households with lower usage will receive smaller credits, while those with higher usage will see larger amounts.

To be eligible for the first round of refunds, residents must have an active residential electric account with at least 12 months of usage history.

This relief comes as energy prices continue to climb, though recent action by the Commission helped curb increases. A planned rate hike by Baltimore Gas and Electric (BGE), set to take effect June 1, was cut nearly in half. As a result, the average BGE customer is expected to pay around $260 this July, up $13 from last year’s $247, compared to the projected $275 if the full rate increase had gone into effect.

Officials are reminding residents that energy costs still vary based on usage. Households that use both gas and electricity heavily should expect higher bills, even with the upcoming credits.

More information will be shared as the credits are rolled out later this summer.