Maryland Court Revives Challenge to Washington gas “Clean Energy” Claims
Table of Contents
Published December 20, 2023
Key Ruling: Commission Erred in Dismissal
The Maryland Court of Appeals has overturned a previous decision by the Maryland public Service commission (PSC), ordering the commission to reconsider a complaint alleging deceptive marketing practices by Washington Gas Light Company. The original complaint centered on statements made on customer bills regarding natural gas.
The Core of the Dispute: “Clean Energy” Label
At the heart of the case is the assertion that Washington Gas’s billing statements misled customers by labeling natural gas as “clean energy.” Complainants argued this statement falsely implied a lack of important greenhouse gas emissions and obscured the broader environmental impact of natural gas.
The PSC initially dismissed the complaint, stating it was not the appropriate venue to address the larger policy questions surrounding natural gas and climate change.The Court of Appeals disagreed,finding this reasoning insufficient and prejudicial to the complainant.
Court’s Reasoning and Remand
The appellate court clarified that the PSC could only dismiss the complaint if it failed to present a valid legal claim. As the PSC’s dismissal was based on broader policy concerns, the court reversed the decision and ordered the case remanded back to the Commission for further proceedings. The court also persistent that the dismissal of claims against a Washington Gas affiliate was premature.
Dissenting Opinion
One judge dissented, arguing that the issue was largely resolved as the contested statements had already been removed from customer bills. The dissenting judge expressed concern about compelling the Commission to make sweeping policy declarations based solely on a complaint against a single utility.
“This ruling underscores the importance of clarity and accuracy in utility marketing. Consumers deserve to have a clear understanding of the environmental impact of their energy sources.”
| Key Parties | Ruling |
|---|---|
| Maryland Court of Appeals | Reversed PSC decision, remanded case. |
| Maryland Public Service Commission | Original dismissal overturned. |
| Washington Gas light Company | Subject of complaint; marketing statements challenged. |