Potomac residents are paying more at the pump, earning higher minimum wages and watching a new state push to cut their Pepco bills after a slate of new Maryland laws took effect at the beginning of the month.

The changes with the most immediate local impact: a gas tax increase, a Montgomery County minimum wage bump and the Utility RELIEF Act, which targets the transmission costs that Pepco passes along to households in the Potomac area.

Gas tax ticks up

Maryland's motor fuel tax rose on July 1 under the state's automatic inflation-based indexing system. For a typical 15-gallon fill-up, drivers will pay roughly 9 cents more. The revenue funds road and bridge projects statewide.

The Sentinel reports the new rate is 47.5 cents per gallon; other outlets cite 46.6 cents. Maryland's fuel tax has multiple components, which may account for the difference.

Minimum wage climbs across Montgomery County

Full-time workers at large Montgomery County employers got a raise on July 1. The county's tiered minimum wage, recalculated annually based on the regional Consumer Price Index, increased at every level:

  • Large employers (51+ employees): $18.00/hour, up from $17.65
  • Mid-size employers (11–50 employees): $16.50/hour, up from $16.00
  • Small employers (10 or fewer): $15.95/hour, up from $15.50

County officials estimate the bump translates to roughly $728 to $1,040 in additional annual earnings for a full-time worker, depending on employer size. The increases reflect a 2.0% rise in the D.C.-area CPI for 2025, according to MoCo Show.

County Executive Marc Elrich called the adjustment necessary to keep wages aligned with inflation, saying working people shouldn't "be forced to fall behind as everyday costs rise."

Utility RELIEF Act targets Pepco bills

The law most likely to show up on Potomac electric bills is the Utility RELIEF Act, signed by Gov. Wes Moore and effective July 1. The governor's office estimates the package will save Maryland households at least $150 a year on energy costs through short- and long-term reforms.

One provision directly affects Pepco customers. The act requires Maryland's transmission owners to hold PJM Interconnection membership, which enabled state agencies to file a complaint with the Federal Energy Regulatory Commission earlier this month, asking to strip Pepco and other utilities of an extra 0.5% return on equity they've collected as "voluntary" PJM members. Removing that surcharge would save Maryland ratepayers more than $20 million annually, according to the joint filing by the Maryland Energy Administration, Office of People's Counsel and Public Service Commission.

Maryland People's Counsel David Lapp said his office appreciates the Moore administration's efforts to address rising transmission rates, which now account for about 15% of a residential customer's bill.

Maryland's Family and Medical Leave Insurance program, known as FAMLI, also formally took effect July 1. But Potomac workers should not expect a check anytime soon.

Despite some reports suggesting benefits are available now, multiple legal authorities confirm the timeline is much longer. Employer registration opens in fall 2026. Payroll contributions, 0.9% of wages, split between employer and employee, begin Friday, January 1, 2027. Actual benefit payments won't start until January 2028 at the earliest.

When benefits do arrive, eligible workers can receive up to 12 weeks of paid, job-protected leave per year and up to $1,000 per week in wage replacement.

Other new laws of local note

  • School cellphone ban: Maryland schools must implement "bell-to-bell" phone restrictions, as the law describes them — devices put away all day, including lunch — by the 2027–2028 school year.
  • Housing study: The Maryland Department of Housing and Community Development must study housing availability and affordability in Montgomery County, with a final report due February 1, 2029.
  • Stop-sign cameras: Gaithersburg and Rockville are authorized to install stop-sign monitoring systems in school zones under a new state pilot program.

What's next

For Potomac employers, the nearest deadline is FAMLI registration, opening in fall 2026, with payroll contributions starting January 1, 2027. The FERC complaint on Pepco's transmission surcharge will move through federal regulatory review in the coming months.