MD
Maryland House Bill HB1256

Maryland 2024 Regular Session

Maryland House Bill HB1256 Compare Versions

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1- WES MOORE, Governor Ch. 476
21
3-– 1 –
4-Chapter 476
5-(House Bill 1256)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *hb1256*
89
9-Electricity – Tariffs, Distributed Energy Resources, and Electric Distribution
10-System Support Services
11-(Distributed Renewable Integration and Vehicle Electrification (DRIVE) Act)
10+HOUSE BILL 1256
11+M5, C5 4lr1718
12+ CF SB 959
13+By: Delegate Fraser–Hidalgo
14+Introduced and read first time: February 8, 2024
15+Assigned to: Economic Matters
16+Committee Report: Favorable with amendments
17+House action: Adopted
18+Read second time: March 8, 2024
1219
13-FOR the purpose of requiring the Public Service Commission, on or before a certain date,
14-to adopt a transition plan requiring each electric company to transition customers to
15-a certain time–of–use tariff on or before a certain date; requiring a certain electric
16-company to file certain time–of–use tariffs with the Public Service Commission on or
17-before a certain date; requiring a certain electric company to attempt to achieve a
18-certain enrollment target for certain tariffs by a certain date; authorizing the
19-Commission to require the automatic enrollment of certain customers in a
20-time–of–use tariff, on an opt–out basis; requiring the Commission to adopt certain
21-regulations on or before a certain date regarding the interconnection of certain
22-systems to the electric distribution system; prohibiting an electric company from
23-requiring a certain customer to enter into a certain contract or apply for
24-interconnection with the electric distribution system; requiring a certain electric
25-company to require a customer to apply for interconnection with the electric
26-distribution system under certain circumstances; requiring the Commission to
27-develop a program for each a certain electric company to establish a pilot program
28-or temporary tariff to compensate certain persons for electric distribution system
29-support services in a certain manner; requiring each electric company to submit the
30-pilot program or temporary tariff to the Commission for approval on or before a
31-certain date; authorizing a certain electric company to propose and the Commission
32-to approve certain performance mechanisms for a certain purpose under certain
33-circumstances; requiring the Commission to approve a certain pilot program or tariff
34-by a certain date; authorizing the Commission to approve or require an a certain
35-electric company to offer certain incentives or rebates under certain circumstances;
36-requiring the Commission to consider establishing a certain limit on the amount of
37-certain incentives or rebates; authorizing an a certain electric company to recover
38-certain costs; prohibiting the dispatch of energy from a certain energy storage device
39-to the electric distribution system under a pilot program or temporary tariff from
40-being considered duplicative of any value realized by a certain customer through net
41-energy metering; and generally relating to the generation and provision of electricity
42-in the State.
20+CHAPTER ______
4321
44-BY repealing and reenacting, without amendments,
45- Article – Public Utilities
46- Section 1–101(a)
47- Annotated Code of Maryland
48- (2020 Replacement Volume and 2023 Supplement)
49- Ch. 476 2024 LAWS OF MARYLAND
22+AN ACT concerning 1
5023
51-– 2 –
52-BY adding to
53- Article – Public Utilities
54-Section 1–101(p–1); and 7–1001 through 7–1008 7–1007 to be under the new subtitle
55-“Subtitle 10. Electric Distribution System Support Services”
56- Annotated Code of Maryland
57- (2020 Replacement Volume and 2023 Supplement)
24+Electricity – Tariffs, Distributed Energy Resources, and Electric Distribution 2
25+System Support Services 3
26+(Distributed Renewable Integration and Vehicle Electrification (DRIVE) Act) 4
5827
59- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
60-That the Laws of Maryland read as follows:
28+FOR the purpose of requiring the Public Service Commission, on or before a certain date, 5
29+to adopt a transition plan requiring each electric company to transition customers to 6
30+a certain time–of–use tariff on or before a certain date; requiring a certain electric 7
31+company to file certain time–of–use tariffs with the Public Service Commission on or 8
32+before a certain date; requiring a certain electric company to attempt to achieve a 9
33+certain enrollment target for certain tariffs by a certain date; authorizing the 10
34+Commission to require the automatic enrollment of certain customers in a 11
35+time–of–use tariff, on an opt–out basis; requiring the Commission to adopt certain 12
36+regulations on or before a certain date regarding the interconnection of certain 13
37+systems to the electric distribution system; prohibiting an electric company from 14
38+requiring a certain customer to enter into a certain contract or apply for 15
39+interconnection with the electric distribution system; requiring a certain electric 16
40+company to require a customer to apply for interconnection with the electric 17
41+distribution system under certain circumstances; requiring the Commission to 18
42+develop a program for each a certain electric company to establish a pilot program 19
43+or temporary tariff to compensate certain persons for electric distribution system 20
44+support services in a certain manner; requiring each electric company to submit the 21
45+pilot program or temporary tariff to the Commission for approval on or before a 22
46+certain date; authorizing a certain electric company to propose and the Commission 23
47+to approve certain performance mechanisms for a certain purpose under certain 24
48+circumstances; requiring the Commission to approve a certain pilot program or tariff 25 2 HOUSE BILL 1256
6149
62-Article – Public Utilities
6350
64-1–101.
51+by a certain date; authorizing the Commission to approve or require an a certain 1
52+electric company to offer certain incentives or rebates under certain circumstances; 2
53+requiring the Commission to consider establishing a certain limit on the amount of 3
54+certain incentives or rebates; authorizing an a certain electric company to recover 4
55+certain costs; prohibiting the dispatch of energy from a certain energy storage device 5
56+to the electric distribution system under a pilot program or temporary tariff from 6
57+being considered duplicative of any value realized by a certain customer through net 7
58+energy metering; and generally relating to the generation and provision of electricity 8
59+in the State. 9
6560
66- (a) In this division the following words have the meanings indicated.
61+BY repealing and reenacting, without amendments, 10
62+ Article – Public Utilities 11
63+ Section 1–101(a) 12
64+ Annotated Code of Maryland 13
65+ (2020 Replacement Volume and 2023 Supplement) 14
6766
68- (P–1) “INVESTOR–OWNED ELECTRIC COMPA NY” MEANS AN ELECTRIC
69-COMPANY THAT IS NOT A MUNICIPAL ELECTRIC UTILITY OR AN ELECTR IC
70-COOPERATIVE .
67+BY adding to 15
68+ Article – Public Utilities 16
69+Section 1–101(p–1); and 7–1001 through 7–1008 7–1007 to be under the new subtitle 17
70+“Subtitle 10. Electric Distribution System Support Services” 18
71+ Annotated Code of Maryland 19
72+ (2020 Replacement Volume and 2023 Supplement) 20
7173
72-SUBTITLE 10. ELECTRIC DISTRIBUTION SYSTEM SUPPORT SERVICES.
74+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
75+That the Laws of Maryland read as follows: 22
7376
74-7–1001.
77+Article – Public Utilities 23
7578
76- (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
77-INDICATED.
79+1–101. 24
7880
79- (B) “BENEFICIAL ELECTRIFIC ATION” MEANS REPLACING DIRE CT FOSSIL
80-FUEL USE WITH ELECTR ICITY.
81+ (a) In this division the following words have the meanings indicated. 25
8182
82- (C) “BIDIRECTIONAL ELECTRI C VEHICLE” MEANS AN ELECTRIC VE HICLE
83-THAT IS CAPABLE OF B OTH RECEIVING AND DI SCHARGING ELECTRICIT Y.
83+ (P–1) “INVESTOR–OWNED ELECTRIC COMPA NY” MEANS AN ELECTRIC 26
84+COMPANY THAT IS NOT A MUNICIPAL ELECTRIC UTILITY OR AN ELECTR IC 27
85+COOPERATIVE . 28
8486
85- (D) “DISTRIBUTED ENERGY RE SOURCE” MEANS AN ENERGY RESO URCE
86-LOCATED ON A CUSTOME R’S PREMISES THAT :
87+SUBTITLE 10. ELECTRIC DISTRIBUTION SYSTEM SUPPORT SERVICES. 29
8788
88- (1) PRODUCES OR STORES E LECTRICITY; OR
89+7–1001. 30
8990
90- (2) MODIFIES THE TIMING OR AMOUNT OF THE CUS TOMER’S
91-ELECTRICITY CONSUMPT ION.
91+ (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 31
92+INDICATED. 32
9293
93- (E) (1) “ELECTRIC DISTRIBUTION SYSTEM SUPPORT SERVI CES” MEANS
94-THE DISPATCH AND CON TROL OF A DISTRIBUTE D ENERGY RESOURCE TO PROVIDE WES MOORE, Governor Ch. 476
94+ (B) “BENEFICIAL ELECTRIFIC ATION” MEANS REPLACING DIRE CT FOSSIL 33
95+FUEL USE WITH ELECTR ICITY. 34
96+ HOUSE BILL 1256 3
9597
96-– 3 –
97-SERVICES THAT CONTRI BUTE TO THE EFF ICIENT AND RELIABLE OPERATION OF THE
98-ELECTRIC DISTRIBUTIO N SYSTEM BY:
9998
100- (I) AN ELECTRIC COMPANY ; OR
99+ (C) “BIDIRECTIONAL ELECTRI C VEHICLE” MEANS AN ELECTRIC VE HICLE 1
100+THAT IS CAPABLE OF B OTH RECEIVING AND DI SCHARGING ELECTRICIT Y. 2
101101
102- (II) AN AGGREGATOR ACTING :
102+ (D) “DISTRIBUTED ENERGY RE SOURCE” MEANS AN ENERGY RESO URCE 3
103+LOCATED ON A CUSTOME R’S PREMISES THAT : 4
103104
104- 1. AT THE DIRECTION OF AN ELECTRIC COMPANY ; OR
105+ (1) PRODUCES OR STORES ELECTRICITY; OR 5
105106
106- 2. UNDER A PROGRAM OR T ARIFF APPROVED BY TH E
107-COMMISSION.
107+ (2) MODIFIES THE TIMING OR AMOUNT OF THE CUS TOMER’S 6
108+ELECTRICITY CONSUMPT ION. 7
108109
109- (II) AN AGGREGATOR ACTING AT THE DIRECTION OF AN
110-ELECTRIC COMPANY .
110+ (E) (1) “ELECTRIC DISTRIBUTION SYSTEM SUPPORT SERVI CES” MEANS 8
111+THE DISPATCH AND CON TROL OF A DISTRIBUTE D ENERGY RESOURCE TO PROVIDE 9
112+SERVICES THAT CONTRI BUTE TO THE EFFICIENT AND RE LIABLE OPERATION OF THE 10
113+ELECTRIC DISTRIBUTIO N SYSTEM BY: 11
111114
112- (2) “ELECTRIC DISTRIBUTION SYSTEM SUPPORT SERVI CES”
113-INCLUDES:
115+ (I) AN ELECTRIC COMPANY ; OR 12
114116
115- (I) LOCAL OR SYSTEM PEAK DEMAND REDUCTION ;
117+ (II) AN AGGREGATOR ACTING : 13
116118
117- (II) DEMAND RESPONSE ;
119+ 1. AT THE DIRECTION OF AN ELECTRIC COMPANY ; OR 14
118120
119- (III) THE AVOIDANCE OR DEF ERRAL OF A TRANSMISS ION OR
120-DISTRIBUTION UPGRADE OR CAPACITY EXPANSIO N; AND
121+ 2. UNDER A PROGRAM OR T ARIFF APPROVED BY TH E 15
122+COMMISSION. 16
121123
122- (IV) FACILITATING HOSTING CAPACITY TO ACCOMMOD ATE
123-ADDITIONAL DISTRIBUT ED ENERGY RESOURCES .
124+ (II) AN AGGREGATOR ACTING AT THE DIRECTION OF AN 17
125+ELECTRIC COMPANY . 18
124126
125- (F) “ELIGIBLE CUSTOMER –GENERATOR ” HAS THE MEANING STAT ED IN §
126-7–306 OF THIS TITLE.
127+ (2) “ELECTRIC DISTRIBUTION SYSTEM SUPPORT SERVI CES” 19
128+INCLUDES: 20
127129
128- (G) “NET ENERGY METERI NG” HAS THE MEANING STAT ED IN § 7–306 OF
129-THIS TITLE.
130+ (I) LOCAL OR SYSTEM PEAK DEMAND REDUCTION ; 21
130131
131- (H) “NET EXCESS GENERATION ” HAS THE MEANING STAT ED IN § 7–306 OF
132-THIS TITLE.
132+ (II) DEMAND RESPONSE ; 22
133133
134- (I) (1) “RENEWABLE ON –SITE GENERATING SYST EM” MEANS AN ENERGY
135-SYSTEM LOCATED ON A CUSTOMER’S PREMISES THAT :
134+ (III) THE AVOIDANCE OR DEF ERRAL OF A TRANSMISSION OR 23
135+DISTRIBUTION UPGRADE OR CAPACITY EXPANSIO N; AND 24
136136
137- (I) GENERATES OR STORES ELECTR ICITY FROM A TIER 1
138-RENEWABLE SOURCE OR A TIER 2 RENEWABLE SOURCE THAT DOES NOT RELEAS E
139-GREENHOUSE GASES ;
140- Ch. 476 2024 LAWS OF MARYLAND
137+ (IV) FACILITATING HOSTING CAPACITY TO ACCOMMOD ATE 25
138+ADDITIONAL DISTRIBUT ED ENERGY RESOURCES . 26
141139
142-– 4 –
143- (II) IS CAPABLE OF PROVID ING ELECTRICITY TO :
140+ (F) “ELIGIBLE CUSTOMER –GENERATOR ” HAS THE MEANING STAT ED IN § 27
141+7–306 OF THIS TITLE. 28
142+ 4 HOUSE BILL 1256
144143
145- 1. A HOME, BUSINESS, OR OTHER STRUCTURE S ERVICED
146-BY AN ELECTRIC COMPA NY; AND
147144
148- 2. THE ELECTRIC DISTRIB UTION SYSTEM;
145+ (G) “NET ENERGY METERING ” HAS THE MEANING STAT ED IN § 7–306 OF 1
146+THIS TITLE. 2
149147
150- (III) IS PAIRED WITH AN EN ERGY STORAGE DEVICE THAT IS
151-CONFIGURED TO CHARGE FROM:
148+ (H) “NET EXCESS GENERATION ” HAS THE MEANING STAT ED IN § 7–306 OF 3
149+THIS TITLE. 4
152150
153- 1. THE RENEWABLE SOURCE ; AND
151+ (I) (1) “RENEWABLE ON –SITE GENERATING SYST EM” MEANS AN ENERGY 5
152+SYSTEM LOCATED ON A CUSTOMER’S PREMISES THAT : 6
154153
155- 2. THE ELECTRIC DISTRIB UTION SYSTEM UNLESS, FOR
156-THE PURPOSE OF ELIGI BILITY FOR NET ENERG Y METERING, THE DEVICE IS
157-REQUIRED TO BE CHARG ED ONLY FROM THE REN EWABLE SOURCE ; AND
154+ (I) GENERATES OR STORES ELECTRICITY FROM A TIER 1 7
155+RENEWABLE SOURCE OR A TIER 2 RENEWABLE SOURCE THAT DOES NOT RELEAS E 8
156+GREENHOUSE GASES ; 9
158157
159- (IV) IS INTERCONNECTED AN D OPERATES IN PARALL EL WITH AN
160-ELECTRIC COMPANY ’S TRANSMISSION AND D ISTRIBUTION FACILITI ES.
158+ (II) IS CAPABLE OF PROVID ING ELECTRICITY TO : 10
161159
162- (2) “RENEWABLE ON –SITE GENERATING SYST EM” INCLUDES MAY
163-INCLUDE BIDIRECTIONAL ELECTR IC VEHICLE SERVICE E QUIPMENT LOCATED ON A
164-CUSTOMER’S PREMISES.
160+ 1. A HOME, BUSINESS, OR OTHER STRUCTURE S ERVICED 11
161+BY AN ELECTRIC COMPANY; AND 12
165162
166- (J) “TIER 1 RENEWABLE SOURCE ” HAS THE MEANING STAT ED IN § 7–701 OF
167-THIS TITLE.
163+ 2. THE ELECTRIC DISTRIB UTION SYSTEM; 13
168164
169- (K) “TIER 2 RENEWABLE SOURCE ” HAS THE MEANING STAT ED IN § 7–701 OF
170-THIS TITLE.
165+ (III) IS PAIRED WITH AN EN ERGY STORAGE DEVICE THAT IS 14
166+CONFIGURED TO CHARGE FROM: 15
171167
172-7–1002.
168+ 1. THE RENEWABLE SOURCE ; AND 16
173169
174- THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT:
170+ 2. THE ELECTRIC DISTRIB UTION SYSTEM UNLESS, FOR 17
171+THE PURPOSE OF ELIGI BILITY FOR NET ENERGY METERI NG, THE DEVICE IS 18
172+REQUIRED TO BE CHARG ED ONLY FROM THE REN EWABLE SOURCE ; AND 19
175173
176- (1) WELL–DESIGNED TIME –OF–USE PRICING OF ELECT RICITY CAN
177-HELP MITIGATE THE IM PACTS OF ELECTRIFICA TION ON THE ELECTRIC
178-DISTRIBUTION SYSTEM , REDUCE GREENHOUSE GA S EMISSIONS DURING P EAK
179-HOURS, AND ENCOURAGE CUSTOM ER ADOPTION OF BENEF ICIAL ELECTRIFICATIO N
180-MEASURES THROUGH OFF –PEAK COST SAVINGS ;
174+ (IV) IS INTERCONNECTED AN D OPERATES IN PARALL EL WITH AN 20
175+ELECTRIC COMPANY ’S TRANSMISSION AND D ISTRIBUTION FACILITI ES. 21
181176
182- (2) WIDESPREAD BENEFICIA L ELECTRIFICATION WI LL INCREASE
183-DEMAND ON THE ELECTR IC DISTRIBUTION SYST EM AND POTENTIALLY R EQUIRE
184-SIGNIFICANT SYSTEM U PGRADES IF CONSUMERS ADOPTIN G BENEFICIAL
185-ELECTRIFICATION MEAS URES DO NOT ENGAGE I N A FORM OF LOAD MAN AGEMENT WES MOORE, Governor Ch. 476
177+ (2) “RENEWABLE ON –SITE GENERATING S YSTEM” INCLUDES MAY 22
178+INCLUDE BIDIRECTIONAL ELECTR IC VEHICLE SERVICE E QUIPMENT LOCATED ON A 23
179+CUSTOMER’S PREMISES. 24
186180
187-– 5 –
188-TO MITIGATE THE NEED FOR SYSTEM UPGRADES AND REDUCE THE GREEN HOUSE
189-GAS INTENSITIES ASSO CIATED WITH GENERATI ON EMISSIONS DURING PEAK HOURS;
181+ (J) “TIER 1 RENEWABLE SOURCE ” HAS THE MEANING STAT ED IN § 7–701 OF 25
182+THIS TITLE. 26
190183
191- (3) PAIRING THE ADOPTION OF RENE WABLE ON–SITE GENERATING
192-SYSTEMS WITH BENEFIC IAL ELECTRIFICATION MEASURES MAY :
184+ (K) “TIER 2 RENEWABLE SOURCE ” HAS THE MEANING STAT ED IN § 7–701 OF 27
185+THIS TITLE. 28
193186
194- (I) FURTHER REDUCE THE STATE’S GREENHOUSE GAS
195-EMISSIONS;
187+7–1002. 29
188+ HOUSE BILL 1256 5
196189
197- (II) PROVIDE ON–SITE RESILIENCE TO C ONSUMERS; AND
198190
199- (III) FACILITATE LOAD FLEX IBILITY TO MITIGATE IMPACTS ON
200-THE ELECTRIC DISTRIB UTION SYSTEM FROM LO AD GROWTH DUE TO BEN EFICIAL
201-ELECTRIFICATION ; AND
191+ THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT: 1
202192
203- (4) IT IS REASONABLE TO PROVIDE ADDITIONAL I NCENTIVES AND
204-PROTECTIONS TO LOW – AND MODERATE –INCOME HOUSEHOLDS :
193+ (1) WELL–DESIGNED TIME –OF–USE PRICING OF ELECT RICITY CAN 2
194+HELP MITIGATE THE IM PACTS OF ELECTRIFICA TION ON THE ELECTRIC 3
195+DISTRIBUTION SYSTEM , REDUCE GREENHOUSE GA S EMISSIONS DURING PEAK 4
196+HOURS, AND ENCOURAGE CUSTOM ER ADOPTION OF BENEF ICIAL ELECTRIFICATIO N 5
197+MEASURES THROUGH OFF –PEAK COST SAVINGS ; 6
205198
206- (I) TO ENSURE ACCESS TO THE BENEFITS OF ELECTRIF ICATION
207-AND ON–SITE ENERGY SYSTEMS ; AND
199+ (2) WIDESPREAD BENEFICIA L ELECTRIFICATION WI LL INCREASE 7
200+DEMAND ON THE ELECTR IC DISTRIBUTION SYST EM AND POTENTIALLY R EQUIRE 8
201+SIGNIFICANT SYSTEM UPGRADES I F CONSUMERS ADOPTING BENEFICIAL 9
202+ELECTRIFICATION MEAS URES DO NOT ENGAGE I N A FORM OF LOAD MAN AGEMENT 10
203+TO MITIGATE THE NEED FOR SYSTEM UPGRADES AND REDUCE THE GREEN HOUSE 11
204+GAS INTENSITIES ASSO CIATED WITH GENERATI ON EMISSIONS DURING PEAK HOUR S; 12
208205
209- (II) TO PROTECT THOSE HOU SEHOLDS FROM NEGATIV E BILL
210-IMPACTS DURING A TRA NSITION TO TIME–OF–USE RATES.
206+ (3) PAIRING THE ADOPTION OF RENEWABLE ON –SITE GENERATING 13
207+SYSTEMS WITH BENEFIC IAL ELECTRIFICATION MEASURES MAY : 14
211208
212-7–1003.
209+ (I) FURTHER REDUCE THE STATE’S GREENHOUSE GAS 15
210+EMISSIONS; 16
213211
214- (A) SUBJECT TO SUBSECTION S (D) AND (E) OF THIS SECTION , ON OR
215-BEFORE DECEMBER 31, 2025, THE COMMISSION SHALL ADOP T A TRANSITION PLAN
216-TO REQUIRE EACH ELEC TRIC COMPANY TO TRAN SITION EACH CUSTOMER , ON OR
217-BEFORE SEPTEMBER 1, 2028, TO A TIME–OF–USE TARIFF.
212+ (II) PROVIDE ON–SITE RESILIENCE TO C ONSUMERS; AND 17
218213
219- (B) THE TRANSITION PLAN R EQUIRED UNDER SUBSEC TION (A) OF THIS
220-SECTION SHALL INCL UDE PROVISIONS TO EA SE THE TRANSITION TO A TIME–OF–USE
221-TARIFF FOR CUSTOMERS IN LOW– AND MODERATE –INCOME HOUSEHOLDS .
214+ (III) FACILITATE LOA D FLEXIBILITY TO MIT IGATE IMPACTS ON 18
215+THE ELECTRIC DISTRIB UTION SYSTEM FROM LO AD GROWTH DUE TO BEN EFICIAL 19
216+ELECTRIFICATION ; AND 20
222217
223- (C) THE TRANSITION TO A T IME–OF–USE TARIFF SHALL :
218+ (4) IT IS REASONABLE TO PROVIDE ADDITIONAL I NCENTIVES AND 21
219+PROTECTIONS TO LOW – AND MODERATE –INCOME HOUSEHOLDS : 22
224220
225- (1) ESTABLISH A SUFFICIE NT PRICE REDUCTION F OR OFF–PEAK
226-HOURS COMPARED TO PE AK HOURS TO ENCOURAGE CUSTOME RS TO ADJUST THEIR
227-ELECTRICITY USAGE TO OFF–PEAK HOURS; AND
221+ (I) TO ENSURE ACCESS TO THE BENEFI TS OF ELECTRIFICATIO N 23
222+AND ON–SITE ENERGY SYSTEMS ; AND 24
228223
229- (2) ADEQUATELY EDUCATE A ND ENCOURAGE CUSTOME RS TO ADJUST
230-THEIR ELECTRICITY US AGE TO BENEFIT FROM LOWER RATES DURING O FF–PEAK
231-HOURS. Ch. 476 2024 LAWS OF MARYLAND
224+ (II) TO PROTECT THOSE HOU SEHOLDS FROM NEGATIV E BILL 25
225+IMPACTS DURING A TRA NSITION TO TIME–OF–USE RATES. 26
232226
233-– 6 –
227+7–1003. 27
234228
235- (D) (1) EACH ELECTRIC COMPANY SHALL PRO VIDE TO ITS CUSTOMER S
236-NOTICE AND AN OPPORT UNITY TO OPT OUT OF A TIME–OF–USE TARIFF UNDER THI S
237-SECTION.
229+ (A) SUBJECT TO SUBSECTION S (D) AND (E) OF THIS SECTION , ON OR 28
230+BEFORE DECEMBER 31, 2025, THE COMMISSION SHALL ADOP T A TRANSITION PLAN 29
231+TO REQUIRE EACH ELEC TRIC COMPANY TO TRAN SITION EACH CUSTOMER , ON OR 30
232+BEFORE SEPTEMBER 1, 2028, TO A TIME–OF–USE TARIFF. 31
233+ 6 HOUSE BILL 1256
238234
239- (2) A CUSTOMER IS CONSIDER ED TO HAVE GIVEN PER MISSION TO THE
240-ELECTRIC COMPANY TO TRANSITION THE CUSTO MER TO THE TIME –OF–USE TARIFF:
241235
242- (I) ON RECEIPT BY THE ELECTRIC COMP ANY OF A RETURNED
243-NOTICE EXPLICITLY GR ANTING PERMISSION ; OR
236+ (B) THE TRANSITION PLAN R EQUIRED UNDER SUBSEC TION (A) OF THIS 1
237+SECTION SHALL INCLUDE PROVISIONS TO EASE T HE TRANSITION TO A T IME–OF–USE 2
238+TARIFF FOR CUSTOMERS IN LOW– AND MODERATE –INCOME HOUSEHOLDS . 3
244239
245- (II) IF THE ELECTRIC COMP ANY HAS NOT RECEIVED A
246-RETURNED NOTICE WITH IN 30 DAYS AFTER THE NOTIC E IS GIVEN.
240+ (C) THE TRANSITION TO A T IME–OF–USE TARIFF SHALL : 4
247241
248- (3) A CUSTOMER WHO HAS REF USED PERMISSION TO T RANSITION TO
249-A TIME–OF–USE TARIFF MAY LATER REQUEST TO TRANSITIO N TO THE TIME–OF–USE
250-TARIFF.
242+ (1) ESTABLISH A SUFFICIE NT PRICE REDUCTION F OR OFF–PEAK 5
243+HOURS COMPARED TO PEAK HOU RS TO ENCOURAGE CUST OMERS TO ADJUST THEI R 6
244+ELECTRICITY USAGE TO OFF–PEAK HOURS; AND 7
251245
252- (E) FOR GOOD CAUSE SHOWN , THE COMMISSION MAY DELAY FOR A
253-REASONABLE PERIOD OF TIME THE DEADLINE FO R AN ELECTRIC COMPAN Y TO
254-TRANSITION THEIR CUS TOMERS TO A TIME –OF–USE TARIFF.
246+ (2) ADEQUATELY EDUCATE A ND ENCOURAGE CUSTOME RS TO ADJUST 8
247+THEIR ELECTRICITY US AGE TO BENEFIT FROM LOWER RATES DURING O FF–PEAK 9
248+HOURS. 10
255249
256-7–1003.
250+ (D) (1) EACH ELECTRIC COMPANY SHALL PROVIDE TO ITS CUSTO MERS 11
251+NOTICE AND AN OPPORT UNITY TO OPT OUT OF A TIME–OF–USE TARIFF UNDER THI S 12
252+SECTION. 13
257253
258- (A) (1) ON OR BEFORE JULY 1, 2025, EACH INVESTOR –OWNED ELECTRIC
259-COMPANY SHALL FILE W ITH THE COMMISSION ONE OR MOR E TIME–OF–USE TARIFFS
260-FOR APPROPRIATE CUST OMER CLASSES , TO BE MADE AVAILABLE TO CUSTOMERS ON
261-AN OPT–IN BASIS.
254+ (2) A CUSTOMER IS CONSIDER ED TO HAVE GIVEN PER MISSION TO THE 14
255+ELECTRIC COMPANY TO TRANSITION THE CUSTO MER TO THE TIME –OF–USE TARIFF: 15
262256
263- (2) EACH TIME–OF–USE TARIFF SHALL EST ABLISH A SUFFICIENT
264-PRICE DISCOUNT FOR O FF–PEAK HOURS COMPARED TO PEAK HOURS , AS
265-DETERMINED BY THE MA RKET OR AN INVESTOR –OWNED ELECTRIC COMPA NY’S
266-COST OF SERVICE , TO ENCOURAGE CUSTOME RS TO ADJUST ELECTRI CITY USE TO
267-OFF–PEAK HOURS.
257+ (I) ON RECEIPT BY THE EL ECTRIC COMPANY OF A RETURNED 16
258+NOTICE EXPLICITLY GR ANTING PERMISSION ; OR 17
268259
269- (B) (1) (I) AN INVESTOR –OWNED ELECTRIC COMPA NY SHALL
270-PROPOSE WITH EACH TA RIFF OR TARIFFS REQU IRED UNDER SUBSECTIO N (A) OF
271-THIS SECTION A REASO NABLE ENROLLMENT TAR GET TO TRY TO ACHIEV E BY
272-JANUARY 1, 2028.
260+ (II) IF THE ELECTRIC COMP ANY HAS NOT RECEIVED A 18
261+RETURNED NOTICE WITH IN 30 DAYS AFTER THE NOTIC E IS GIVEN. 19
273262
274- (II) THE INVESTOR –OWNED ELECTRIC COMPA NY SHALL
275-ATTEMPT TO ACHIEVE T HE ENROLLMENT TARGET THROUGH A COMBINATIO N OF WES MOORE, Governor Ch. 476
263+ (3) A CUSTOMER WHO HAS REF USED PERMISSION TO TRANSI TION TO 20
264+A TIME–OF–USE TARIFF MAY LATER REQUEST TO TRANSITIO N TO THE TIME–OF–USE 21
265+TARIFF. 22
276266
277-– 7 –
278-MARKETING, CUSTOMER EDUCATION , AND OTHER MEANS TO C OMMUNICATE THE
279-BENEFITS AND RISKS O F TIME–OF–USE RATES.
267+ (E) FOR GOOD CAUSE SHOWN , THE COMMISSION MAY DELAY FOR A 23
268+REASONABLE PERIOD OF TIME THE DEADLINE FO R AN ELECTRIC COMPAN Y TO 24
269+TRANSITION THEIR CUS TOMERS TO A TIME–OF–USE TARIFF. 25
280270
281- (2) (I) THE COMMISSION MAY REQUIR E AN INVESTOR –OWNED
282-ELECTRIC COMPANY T O AUTOMATICALLY ENRO LL IN A TIME –OF–USE TARIFF
283-CUSTOMERS THAT RECEI VE AN INCENTIVE FROM THE INVESTOR–OWNED ELECTRIC
284-COMPANY AS PART OF A BENEFICIAL ELECTRIFI CATION PROGRAM .
271+7–1003. 26
285272
286- (II) THE COMMISSION SHALL REQU IRE AN INVESTOR –OWNED
287-ELECTRIC COMPANY TO PROVIDE TO CUSTOMERS THAT AR E AUTOMATICALLY
288-ENROLLED IN A TIME –OF–USE TARIFF IN ACCORD ANCE WITH SUBPARAGRA PH (I) OF
289-THIS PARAGRAPH NOTIC E AND AN OPPORTUNITY TO OPT OUT OF THE TI ME–OF–USE
290-TARIFF.
273+ (A) (1) ON OR BEFORE JULY 1, 2025, EACH INVESTOR –OWNED ELECTRIC 27
274+COMPANY SHALL FILE W ITH THE COMMISSION ONE OR MOR E TIME–OF–USE TARIFFS 28
275+FOR APPROPRIATE CUST OMER CLASSES , TO BE MADE AVAILABLE TO CUSTOMERS ON 29
276+AN OPT–IN BASIS. 30
291277
292- (C) ON OR BEFORE JULY 1, 2026, EACH INVESTOR –OWNED ELECTRIC
293-COMPANY SHALL SUBMIT A REP ORT TO THE COMMISSION EVALUATING :
278+ (2) EACH TIME–OF–USE TARIFF SHALL EST ABLISH A SUFFICIENT 31
279+PRICE DISCOUNT FOR O FF–PEAK HOURS COMPARED TO PEAK HOURS , AS 32 HOUSE BILL 1256 7
294280
295- (1) THE POTENTIAL TO AVO ID OR DEFER ELECTRIC DISTRIBUTION
296-SYSTEM CAPITAL PROJE CTS THROUGH THE USE OF TIME–OF–USE RATES ,
297-DEMAND–RESPONSE AND DEMAND –SIDE PROGRAMS , AND RENEWABLE ON –SITE
298-GENERATING SYS TEMS; AND
299281
300- (2) THE MERITS AND FEASI BILITY OF TRANSITION ING ALL
301-CUSTOMERS TO A TIME –OF–USE TARIFF ON AN OPT –OUT BASIS.
282+DETERMINED BY THE MA RKET OR AN INVESTOR –OWNED ELECTRIC COMPA NY’S 1
283+COST OF SERVICE , TO ENCOURAGE CUSTOME RS TO ADJUST ELECTRI CITY USE TO 2
284+OFF–PEAK HOURS. 3
302285
303- (D) IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE,
304-ON OR BEFORE DECEMBER 31, 2027, THE COMMISSION SHALL SUBM IT A REPORT TO
305-THE GENERAL ASSEMBLY ON:
286+ (B) (1) (I) AN INVESTOR –OWNED ELECTRIC COMPA NY SHALL 4
287+PROPOSE WITH EACH TA RIFF OR TARIFFS REQU IRED UNDER SUBSECTIO N (A) OF 5
288+THIS SECTION A REASO NABLE ENROLLMENT TAR GET TO TRY TO ACHIEV E BY 6
289+JANUARY 1, 2028. 7
306290
307- (1) THE IMPACTS OF OPT –IN TIME–OF–USE TARIFFS ON THE
308-ELECTRIC DISTRIBUTIO N SYSTEM;
291+ (II) THE INVESTOR –OWNED ELECTRIC COMPANY SHA LL 8
292+ATTEMPT TO ACHIEVE T HE ENROLLMENT TARGET THROUGH A COMBINATIO N OF 9
293+MARKETING, CUSTOMER EDUCATION , AND OTHER MEANS TO C OMMUNICATE THE 10
294+BENEFITS AND RISKS O F TIME–OF–USE RATES. 11
309295
310- (2) THE TIMELINE, FEASIBILITY, AND MERITS OF TRANSI TIONING ALL
311-CUSTOMERS TO A TIME –OF–USE TARIFF ON AN OPT –OUT BASIS; AND
296+ (2) (I) THE COMMISSION MAY REQUIR E AN INVESTOR –OWNED 12
297+ELECTRIC COMPANY TO AUT OMATICALLY ENROLL IN A TIME–OF–USE TARIFF 13
298+CUSTOMERS THAT RECEI VE AN INCENTIVE FROM THE INVESTOR–OWNED ELECTRIC 14
299+COMPANY AS PART OF A BENEFICIAL ELECTRIFI CATION PROGRAM . 15
312300
313- (3) WHETHER A FULL TRANSITION TO TIME–OF–USE RATES IS
314-JUSTIFIED.
301+ (II) THE COMMISSION SHALL REQU IRE AN INVESTOR –OWNED 16
302+ELECTRIC COM PANY TO PROVIDE TO C USTOMERS THAT ARE AU TOMATICALLY 17
303+ENROLLED IN A TIME –OF–USE TARIFF IN ACCORD ANCE WITH SUBPARAGRA PH (I) OF 18
304+THIS PARAGRAPH NOTIC E AND AN OPPORTUNITY TO OPT OUT OF THE TI ME–OF–USE 19
305+TARIFF. 20
315306
316- (E) AN INVESTOR –OWNED ELECTRIC COMPA NY MAY RECOVER ALL
317-REASONABLE AND PRUDE NT COSTS, INCLUDING MARKETING COSTS, TO ACHIEVE ITS
318-PROPOSED ENROLLMENT TARGETS AND EXECUTE ITS RESPONSIBILITIES IN
319-ACCORDANCE WITH THIS SECTION .
320- Ch. 476 2024 LAWS OF MARYLAND
307+ (C) ON OR BEFORE JULY 1, 2026, EACH INVESTOR –OWNED ELECTRIC 21
308+COMPANY SHALL SUBMIT A REPORT TO THE COMMISSION EVALUATING : 22
321309
322-– 8 –
323- (F) FOR GOOD CAUSE SHOWN , THE COMMISSION MAY DELAY FOR A
324-REASONABLE PERIOD OF TIME THE DEADLINE FO R AN INVESTOR–OWNED ELECTRIC
325-COMPANY TO COMPLY WI TH THE PROVISIONS OF THIS SECTION.
310+ (1) THE POTENTIAL TO AVO ID OR DEFER ELECTRIC DISTRIBUTION 23
311+SYSTEM CAPITAL PROJE CTS THROUGH THE USE OF TIME–OF–USE RATES , 24
312+DEMAND–RESPONSE AND DEMAND –SIDE PROGRAMS , AND RENEWABLE ON –SITE 25
313+GENERATING SYSTEMS ; AND 26
326314
327- (G) (1) A MUNICIPAL ELECTRIC U TILITY OR ELECTRIC C OOPERATIVE
328-MAY FILE WITH THE COMMISSION ONE OR MOR E TIME–OF–USE TARIFFS IN THE
329-SAME MANNER AS AN IN VESTOR–OWNED ELECTRIC COMPA NY UNDER THIS SECTIO N.
315+ (2) THE MERITS AND FEASI BILITY OF TRANSITION ING ALL 27
316+CUSTOMERS TO A TIME –OF–USE TARIFF ON AN OPT –OUT BASIS. 28
330317
331- (2) IF A MUNICIPAL ELECTR IC UTILITY OR ELECTR IC COOPERATIVE
332-ELECTS TO FILE WITH THE COMMISSION A TIME –OF–USE TARIFF UNDER THI S
333-SECTION, THE PROVISIONS OF TH IS SECTION THAT APPL Y TO AN INVESTOR –OWNED
334-ELECTRIC COMPANY SHA LL ALSO APPLY TO THE MUNICIPAL ELECTRIC U TILITY OR
335-ELECTRIC COOPERATIVE .
318+ (D) IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, 29
319+ON OR BEFORE DECEMBER 31, 2027, THE COMMISSION SHALL SUBMIT A REPORT TO 30
320+THE GENERAL ASSEMBLY ON: 31
336321
337-7–1004.
322+ (1) THE IMPACTS OF OPT –IN TIME–OF–USE TARIFFS ON THE 32
323+ELECTRIC DISTRIBUTIO N SYSTEM; 33
324+ 8 HOUSE BILL 1256
338325
339- (A) ON OR BEFORE APRIL MAY 1, 2025, THE COMMISSION SHALL ADOPT
340-REGULATIONS TO :
341326
342- (1) ESTABLISH EXPEDITED PROCESSES FOR INTERC ONNECTING THE
343-FOLLOWING SYSTEMS TO THE ELECTRIC DISTRIB UTION SYSTEM:
327+ (2) THE TIMELINE, FEASIBILITY, AND MERITS OF TRANSI TIONING ALL 1
328+CUSTOMERS TO A TIME –OF–USE TARIFF ON AN OPT –OUT BASIS; AND 2
344329
345- (1) (I) BIDIRECTIONAL ELECTR IC VEHICLE SYSTEMS C APABLE OF
346-PROVIDING ELECTRICIT Y TO THE ELECTRIC DI STRIBUTION SYSTE M; AND
330+ (3) WHETHER A FULL TRANS ITION TO TIME –OF–USE RATES IS 3
331+JUSTIFIED. 4
347332
348- (2) (II) BIDIRECTIONAL ELECTR IC VEHICLE SYSTEMS T HAT DO NOT
349-PROVIDE ELECTRICITY TO THE ELECTRIC DIST RIBUTION SYSTEM BUT DO PROVIDE
350-ELECTRICITY TO A HOM E, BUSINESS, OR OTHER STRUCTURE S ERVICED BY AN
351-ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY; AND
333+ (E) AN INVESTOR –OWNED ELECTRIC COMPA NY MAY RECOVER ALL 5
334+REASONABLE AND PRUDE NT COSTS, INCLUDING MARKETING COSTS, TO ACHIEVE ITS 6
335+PROPOSED ENROLLMENT TARGETS AND EXECUTE ITS RESPONSIBILITIE S IN 7
336+ACCORDANCE WITH THIS SECTION. 8
352337
353- (2) PROVIDE INVESTOR –OWNED ELECTRIC COMPA NIES WITH
354-ADEQUATE TIME TO ENS URE ELECTRIC DISTRIB UTION SYSTEM RELIABI LITY IN
355-ADVANCE OF THE INTER CONNECTIONS DESCRIBE D IN ITEM (1) OF THIS
356-SUBSECTION.
338+ (F) FOR GOOD CAUSE SHOWN , THE COMMISSION MAY DELAY FOR A 9
339+REASONABLE PERIOD OF TIME THE DEADLINE FO R AN INVESTOR–OWNED ELECTRIC 10
340+COMPANY TO COMPLY WI TH THE PROVISIONS OF THIS SECTION. 11
357341
358- (B) AN ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY:
342+ (G) (1) A MUNICIPAL ELECTRIC U TILITY OR ELECTRIC COOPER ATIVE 12
343+MAY FILE WITH THE COMMISSION ONE OR MOR E TIME–OF–USE TARIFFS IN THE 13
344+SAME MANNER AS AN IN VESTOR–OWNED ELECTRIC COMPA NY UNDER THIS SECTIO N. 14
359345
360- (1) MAY REQUIRE A CUSTOM ER TO PROVIDE NOTICE TO THE
361-ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY IF THE CUSTO MER INSTALLS A
362-BIDIRECTIONAL ELECTR IC VEHICLE SYSTEM DE SCRIBED IN SUBSECTIO N (A)
363-(A)(1)(II) OF THIS SECTION; BUT AND
364- WES MOORE, Governor Ch. 476
346+ (2) IF A MUNICIPAL ELECTR IC UTILITY OR ELECTR IC COOPERATIVE 15
347+ELECTS TO FILE WITH THE COMMISSION A TIME–OF–USE TARIFF UNDER THI S 16
348+SECTION, THE PROVISIONS OF TH IS SECTION THAT APPL Y TO AN INVESTOR –OWNED 17
349+ELECTRIC COMPANY SHA LL ALSO APPLY TO THE MUNICIPAL ELECTRIC U TILITY OR 18
350+ELECTRIC COOPERATIVE . 19
365351
366-– 9 –
367- (2) MAY NOT REQUIRE THE CUSTOMER TO ENTER INTO A NET ENE RGY
368-METERING CONTRACT OR OTHERWISE APPLY FOR INTERCONNECTION WITH THE
369-ELECTRIC DISTRIBUTIO N SYSTEM.
352+7–1004. 20
370353
371- (2) SHALL REQUIRE A CUST OMER TO APPLY FOR IN TERCONNECTION
372-IF THE CUSTOMER CONF IGURES A BIDIRECTION AL ELECTRIC VEHICLE SYSTEM TO
373-PROVIDE ELECTRICITY TO THE ELECTRIC DIST RIBUTION SYSTEM .
354+ (A) ON OR BEFORE APRIL MAY 1, 2025, THE COMMISSION SHALL ADOP T 21
355+REGULATIONS TO : 22
374356
375- (C) A MUNICIPAL ELECTRIC U TILITY OR AN ELECTRI C COOPERATIVE MAY
376-COMPLY WITH THE REQU IREMENTS OF SUBSECTI ON (B) OF THIS SECTION IN T HE
377-SAME MANNER AS AN IN VESTOR–OWNED ELECTRIC COMPA NY.
357+ (1) ESTABLISH EXPEDITED PROCESSES FOR INTERC ONNECTING THE 23
358+FOLLOWING SYSTEMS TO THE ELECTRIC DISTRIB UTION SYSTEM: 24
378359
379-7–1005.
360+ (1) (I) BIDIRECTIONAL ELECTR IC VEHICLE SYSTEMS C APABLE OF 25
361+PROVIDING ELECTRICIT Y TO THE ELECTRIC DI STRIBUTION SYSTEM ; AND 26
380362
381- (A) (1) THE COMMISSION SHALL DEVE LOP A PROGRAM FOR EA CH
382-ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY TO ESTABLISH A PILOT PROGRAM
383-OR TEMPORARY TARIFF TO COMPENSATE OWNERS AND AGGREGATORS OF
384-DISTRIBUTED ENERGY R ESOURCES FOR ELECTRI C DISTRIBUTION SYSTE M SUPPORT
385-SERVICES ON A PAY –FOR–PERFORMANCE BASIS THROUGH AN INCENTIVE
386-MECHANISM DETERMINED BY THE COMMISSION.
363+ (2) (II) BIDIRECTIONAL ELECTR IC VEHICLE SYSTEMS T HAT DO NOT 27
364+PROVIDE ELECTRICITY TO THE ELECTRIC DIST RIBUTION SYSTEM BUT DO PROVIDE 28
365+ELECTRICITY TO A HOM E, BUSINESS, OR OTHER STRUCTURE S ERVICED BY AN 29
366+ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY; AND 30
387367
388- (2) ON OR BEFORE JANUARY 1, 2025, THE COMMISSION SHALL
389-ADOPT REGULATIONS ES TABLISHING PROGRAM R EQUIREMENTS TO ACHIE VE
390-ELECTRIC SYSTEM BENE FITS USING DISTRIBUTED ENERGY R ESOURCES.
368+ (2) PROVIDE INVESTOR –OWNED ELECTRIC COMPA NIES WITH 31
369+ADEQUATE TIME TO ENS URE ELECTRIC DISTRIB UTION SYSTEM RELIABI LITY IN 32 HOUSE BILL 1256 9
391370
392- (B) (1) (I) ON OR BEFORE JULY 1, 2025, EACH ELECTRIC
393-INVESTOR–OWNED ELECTRIC COMPANY SHALL SUBMIT TO THE COMMISSION FOR
394-APPROVAL A PILOT PRO GRAM OR TEMPORARY TARIFF FOR ELECTRIC
395-DISTRIBUTION SYSTEM SUPPORT SERVICES THA T PROVIDES REASONABL E
396-COMPENSATION ON A PAY–FOR–PERFORMANCE BASIS TO RENEWABLE ON–SITE
397-GENERATING SYSTEMS THROUGH A MECHANISM DETERMINED BY THE
398-COMMISSION.
399371
400- (2) (II) THE PILOT PROGRAM OR TEMPORA RY TARIFF SUBMITTED
401-UNDER PARAGRAPH (1) OF THIS SUBSECTION SUBPARAGRAPH (I) OF THIS
402-PARAGRAPH SHALL PROVIDE THAT E LECTRIC DISTRIBUTION SYSTEM SUPPORT
403-SERVICES TO ON –SITE ENERGY STORAGE DEVICES BE USED FOR SYSTEM PEAK
404-REDUCTION ACCORDING TO A SCHED ULE AT A FREQUENCY OF AT LEAS T 30 EVENTS
405-PER YEAR.
372+ADVANCE OF THE INTER CONNECTIONS DESCRIBE D IN ITEM (1) OF THIS 1
373+SUBSECTION. 2
406374
407- (C) ANY PILOT PROGRAM OR TEMPORARY TARIFF SUB MITTED UNDER THIS
408-SECTION SHALL ESTABL ISH A STRUCTURE FOR PERFORMANCE PAYMENTS THAT IS
409-DESIGNED TO COVER TH E COST OF DISTRIBUTE D ENERGY RESOURCES T O AN OWNER Ch. 476 2024 LAWS OF MARYLAND
375+ (B) AN ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY: 3
410376
411-– 10 –
412-OR AGGREG ATOR PROVIDING ELECT RIC DISTRIBUTION SYS TEM SUPPORT
413-SERVICES.
377+ (1) MAY REQUIRE A CUSTOM ER TO PROVIDE NOTICE TO THE 4
378+ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY IF THE CUSTO MER INSTALLS A 5
379+BIDIRECTIONAL ELECTR IC VEHICLE SYSTEM DE SCRIBED IN SUBSECTIO N (A) 6
380+(A)(1)(II) OF THIS SECTION; BUT AND 7
414381
415- (2) (I) A MUNICIPAL ELECTRIC U TILITY OR AN ELECTRI C
416-COOPERATIVE MAY ESTA BLISH A PILOT PROGRA M, TEMPORARY TARIFF , OR
417-PERFORMANCE MECHANIS M UNDER THIS SECTION .
382+ (2) MAY NOT REQUIRE THE CUSTOMER TO ENTE R INTO A NET ENERGY 8
383+METERING CONTRACT OR OTHERWISE APPLY FOR INTERCONNECTION WITH THE 9
384+ELECTRIC DISTRIBUTIO N SYSTEM. 10
418385
419- (II) IF A MUNICIPAL ELECTR IC UTILITY OR ELECTRIC
420-COOPERATIVE ESTABLIS HES A PILOT PROGRAM , TEMPORARY TARIFF , OR
421-PERFORMANCE MECHANIS M UNDER THIS SECTION , THE PROVISIONS OF TH IS
422-SECTION AND §§ 7–1006 AND 7–1007 OF THIS SUBTITLE THA T APPLY TO AN
423-INVESTOR–OWNED ELECTRIC COMPA NY SHALL ALSO APPLY TO THE MUNICIP AL
424-ELECTRIC UTILITY OR ELECTRIC COOPERATIVE .
386+ (2) SHALL REQUIRE A CUST OMER TO APPLY FOR IN TERCONNECTION 11
387+IF THE CUSTOMER CONF IGURES A BIDIRECTION AL ELECTRIC VEHICLE SYSTEM TO 12
388+PROVIDE ELECTRICITY TO THE ELECTRIC DIST RIBUTION SYSTEM . 13
425389
426- (C) (1) NOTWITHSTANDING ANY P ROVISION OF THIS SUB TITLE, AN
427-INVESTOR–OWNED ELECTRIC COMPA NY MAY PROPOSE AND S UBMIT TO THE
428-COMMISSION A PERFORMA NCE MECHANISM TO COV ER THE COST OF USING
429-DISTRIBUTED ENERGY RESOUR CES OR AN AGGREGATOR OF DISTRIBUTED ENERG Y
430-RESOURCES UNDER THIS SUBTITLE.
390+ (C) A MUNICIPAL ELECTRIC U TILITY OR AN ELECTRI C COOPERATIVE MAY 14
391+COMPLY WITH THE REQU IREMENTS OF SUBSECTI ON (B) OF THIS SECTION IN T HE 15
392+SAME MANNER AS AN IN VESTOR–OWNED ELECTRIC COM PANY. 16
431393
432- (2) THE COMMISSION MAY APPROV E A PERFORMANCE MECH ANISM
433-SUBMITTED UNDER PARA GRAPH (1) OF THIS SUBSECTION I F THE COMMISSION
434-DETERMINES THAT THE PERFORMANCE MECHANISM IS IN THE PUBLIC INTEREST .
394+7–1005. 17
435395
436- (D) (1) ON OR BEFORE OCTOBER 1, 2025, THE THE COMMISSION SHALL
437-APPROVE, DENY, OR APPROVE WITH AMEN DMENTS A PILOT PROGR AM OR
438-TEMPORARY TARIFF SUB MITTED UNDER THIS SE CTION FOR EACH ELECTRIC
439-INVESTOR–OWNED ELECTRIC COMPANY IN AN EXPEDITED MANN ER.
396+ (A) (1) THE COMMISSION SHALL DEVE LOP A PROGRAM FOR EA CH 18
397+ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY TO ESTABLISH A PILOT PROGRAM 19
398+OR TEMPORARY TARIFF TO COMPENSATE OWNERS AND AGGREGATORS OF 20
399+DISTRIBUTED ENERGY R ESOURCES FOR ELECTRI C DISTRIBUTION SYSTEM SUPPORT 21
400+SERVICES ON A PAY –FOR–PERFORMANCE BASIS THROUGH AN INCENTIVE 22
401+MECHANISM DETERMINED BY THE COMMISSION. 23
440402
441- (2) THE COMMISSION SHALL IF THE COMMISSION DETERMINES THAT
442-TRANSITIONING A PILO T PROGRAM OR TEMPORA RY TARIFF TO A PERMA NENT
443-PROGRAM OR TARIFF IS IN THE PUBLIC INTERE ST, THE COMMISSION MAY
444-ESTABLISH A PROCESS FOR AN ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY
445-TO TRANSITION A PILO T PROGRAM OR TEMPORA RY TARIFF TO A PERMA NENT
446-PROGRAM OR TARIFF FO R ELECTRIC DISTRIBUT ION SYSTEM SUPPORT S ERVICES.
403+ (2) ON OR BEFORE JANUARY 1, 2025, THE COMMISSION SHALL 24
404+ADOPT REGULATIONS ES TABLISHING PROGRAM R EQUIREMENTS TO ACHIE VE 25
405+ELECTRIC SYSTEM BENEFITS USING DISTR IBUTED ENERGY RESOUR CES. 26
447406
448- (3) EACH IF THE COMMISSION DETERMINES THE TRANSITION TO A
449-PERMANENT PROGRAM OR TARIFF IS IN THE PUBLIC I NTEREST, EACH CUSTOMER
450-PARTICIPATING IN A P ILOT PROGRAM OR TEMP ORARY TARIFF APPROVE D UNDER
451-PARAGRAPH (1) OF THIS SUBSECTION SHALL MAY BE TRANSITIONED TO A
452-PERMANENT PROGRAM OR TARIFF FOR ELECTRIC DISTRIBUTION SYSTEM SUPPORT
453-SERVICES WHEN THE PROGRAM OR TARIFF IS APPROVED B Y THE COMMISSION.
454- WES MOORE, Governor Ch. 476
407+ (B) (1) (I) ON OR BEFORE JULY 1, 2025, EACH ELECTRIC 27
408+INVESTOR–OWNED ELECTRIC COMPANY SHALL SUBMIT TO THE COMMISSION FOR 28
409+APPROVAL A PILOT PRO GRAM OR TEMPORARY TARIFF FOR ELECTRIC 29
410+DISTRIBUTION SYSTEM SUPPORT SERVICES THA T PROVIDES REASONABL E 30
411+COMPENSATION ON A PAY–FOR–PERFORMANCE BASIS TO RENEWABLE ON–SITE 31
412+GENERATING SYSTEMS THROUGH A MECHANISM DETERMINED BY THE 32
413+COMMISSION. 33
414+ 10 HOUSE BILL 1256
455415
456-– 11 –
457- (E) (1) THE COMMISSION MAY ALLOW THE ENERGY GENERATED BY A
458-RENEWABLE ON –SITE GENERATING SYST EM THAT PROVIDES ELE CTRIC
459-DISTRIBUTION SYSTEM SUPPORT SERVICE UNDE R A PILOT PROGRAM OR
460-TEMPORARY TARIFF APPROVED UNDER SUBSE CTION (D)(1) OF THIS SECTION TO
461-COUNT TOWARDS THE ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY’S
462-GREENHOUSE EMISSIONS REDUCTION GOALS UNDE R § 7–211 OF THIS TITLE.
463416
464- (2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , THE
465-CUMULATIVE ENE RGY STORAGE CAPACITY OF ANY ENERGY STORAG E DEVICES
466-INSTALLED ON A CUSTO MER’S PROPERTY IN ACCORD ANCE WITH THIS SUBTI TLE
467-SHALL COUNT TOWARDS THE TARGETS ESTABLIS HED UNDER § 7–216.1 OF THIS
468-TITLE.
417+ (2) (II) THE PILOT PROGRAM OR TEMPORA RY TARIFF SUBMITTED 1
418+UNDER PARAGRAPH (1) OF THIS SUBSECTION SUBPARAGRAPH (I) OF THIS 2
419+PARAGRAPH SHALL PROVIDE THAT E LECTRIC DISTRIBUTION SYSTEM SUPPORT 3
420+SERVICES TO ON –SITE ENERGY STORAGE DEVICES BE USED FOR SYSTEM PEAK 4
421+REDUCTION ACCORDING TO A SCHED ULE AT A FREQUENCY OF AT LEAS T 30 EVENTS 5
422+PER YEAR. 6
469423
470- (II) SUBPARAGRAPH (I) OF THIS PARAGRAPH DO ES NOT
471-INCLUDE THE ENERGY STORAGE CA PACITY OF:
424+ (C) ANY PILOT PROGRAM OR TEMPORARY TARIFF SUB MITTED UNDER THIS 7
425+SECTION SHALL ESTABL ISH A STRUCTURE FOR PERFORMANCE PAYMENTS THAT IS 8
426+DESIGNED TO COVER TH E COST OF DISTRIBUTE D ENERGY RESOURCES T O AN OWNER 9
427+OR AGGREG ATOR PROVIDING ELECT RIC DISTRIBUTION SYS TEM SUPPORT 10
428+SERVICES. 11
472429
473- 1. ELECTRIC VEHICLES TH AT ARE PART OF A
474-RENEWABLE ON –SITE GENERATING SYST EM; OR
430+ (2) (I) A MUNICIPAL ELECTRIC U TILITY OR AN ELECTRI C 12
431+COOPERATIVE MAY ESTA BLISH A PILOT PROGRA M, TEMPORARY TARIFF , OR 13
432+PERFORMANCE MECHANIS M UNDER THIS SECTION . 14
475433
476- 2. MOBILE ENERGY STORAG E DEVICES.
434+ (II) IF A MUNICIPAL ELECTR IC UTILITY OR ELECTRIC 15
435+COOPERATIVE ESTABLIS HES A PILOT PROGRAM , TEMPORARY TARIFF , OR 16
436+PERFORMANCE MECHANIS M UNDER THIS SECTION , THE PROVISIONS OF TH IS 17
437+SECTION AND §§ 7–1006 AND 7–1007 OF THIS SUBTITLE THA T APPLY TO AN 18
438+INVESTOR–OWNED ELECTRIC COMPA NY SHALL ALSO APPLY TO THE MUNICIP AL 19
439+ELECTRIC UTILITY OR ELECTRIC COOPERATIVE . 20
477440
478- (F) THE CUMULATIVE NAMEPL ATE CAPACITY OF RENE WABLE ON–SITE
479-GENERATING SYSTEMS P ARTICIPATING IN A PI LOT PROGRAM OR TEMPO RARY
480-TARIFF APPROVED UNDE R THIS SECTION MAY N OT EXCEED 2% OF THE
481-INVESTOR–OWNED ELECTRIC COMPA NY’S HIGHEST RECORDED C OINCIDENT PEAK
482-DEMAND.
441+ (C) (1) NOTWITHSTANDING ANY P ROVISION OF THIS SUB TITLE, AN 21
442+INVESTOR–OWNED ELECTRIC COMPA NY MAY PROPOSE AND S UBMIT TO THE 22
443+COMMISSION A PERFORMA NCE MECHANISM TO COV ER THE COST OF USING 23
444+DISTRIBUTED ENERGY RESOUR CES OR AN AGGREGATOR OF DISTRIBUTED ENERG Y 24
445+RESOURCES UNDER THIS SUBTITLE. 25
483446
484-7–1006.
447+ (2) THE COMMISSION MAY APPROV E A PERFORMANCE MECH ANISM 26
448+SUBMITTED UNDER PARA GRAPH (1) OF THIS SUBSECTION I F THE COMMISSION 27
449+DETERMINES THAT THE PERFORMANCE MECHANISM IS IN THE PUBLIC INTEREST . 28
485450
486- (A) (1) THE COMMISSION MAY APPROVE OR REQUIRE A N
487-INVESTOR–OWNED ELECTRIC COMPANY TO OFFER UPFRONT INC ENTIVES OR
488-REBATES TO CUSTOMERS TO ACQUIRE AND INSTA LL RENEWABLE ON –SITE
489-GENERATING SYSTEMS I F THE CUSTOMER :
451+ (D) (1) ON OR BEFORE OCTOBER 1, 2025, THE THE COMMISSION SHALL 29
452+APPROVE, DENY, OR APPROVE WITH AMEN DMENTS A PILOT PROGR AM OR 30
453+TEMPORARY TARIFF SUB MITTED UNDER THIS SE CTION FOR EACH ELECTRIC 31
454+INVESTOR–OWNED ELECTRIC COMPANY IN AN EXPEDITED MANN ER. 32
490455
491- (I) ENROLLS IN A PILOT P ROGRAM OR TEMPORARY TARIFF
492-ESTABLISHED UNDER § 7–1005 OF THIS SUBTITLE; AND
456+ (2) THE COMMISSION SHALL IF THE COMMISSION DETERMINES THAT 33
457+TRANSITIONING A PILO T PROGRAM OR TEMPORA RY TARIFF TO A PERMA NENT 34
458+PROGRAM OR TARIFF IS IN THE PUBLIC INTERE ST, THE COMMISSION MAY 35
459+ESTABLISH A PROCESS FOR AN ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY 36 HOUSE BILL 1256 11
493460
494- (II) ALLOWS THE SYS TEM TO BE USED FOR E LECTRIC
495-DISTRIBUTION SYSTEM SUPPORT SERVICES FOR A PERIOD OF NOT LESS THAN 5
496-YEARS.
497461
498- (2) THE COMMISSION MAY :
499- Ch. 476 2024 LAWS OF MARYLAND
462+TO TRANSITION A PILO T PROGRAM OR TEMPORA RY TARIFF TO A PERMA NENT 1
463+PROGRAM OR TARIFF FO R ELECTRIC DISTRIBUT ION SYSTEM SUPPORT S ERVICES. 2
500464
501-– 12 –
502- (I) AUTHORIZE OR REQUIRE AN INVESTOR–OWNED ELECTRIC
503-COMPANY TO PROVIDE A N ADDITIONAL INCENTI VE OR REBATE FOR LOW – OR
504-MODERATE–INCOME CUSTOMERS WHO APPLY FOR AN INCENTI VE OR REBATE
505-UNDER THIS SECTION ; AND
465+ (3) EACH IF THE COMMISSION DETERMINES THE TRANSITION TO A 3
466+PERMANENT PROGRAM OR TARIFF IS IN THE PUBLIC INTERE ST, EACH CUSTOMER 4
467+PARTICIPATING IN A P ILOT PROGRAM OR TEMP ORARY TARIFF APPROVE D UNDER 5
468+PARAGRAPH (1) OF THIS SUBSECTION SHALL MAY BE TRANSITIONED TO A 6
469+PERMANENT PROGRAM OR TARIFF FOR ELECTRIC DISTRIBUTION SYSTEM SUPPORT 7
470+SERVICES WHEN THE PROGRAM OR TARIF F IS APPROVED BY THE COMMISSION. 8
506471
507- (II) REQUIRE AN INVESTOR–OWNED ELECTRIC COMPANY TO
508-PRIORITIZE THE OFFER OF INCENTIVES OR REB ATES UNDER THIS SECT ION TO
509-LOW– OR MODERATE –INCOME CUSTOMERS .
472+ (E) (1) THE COMMISSION MAY ALLOW THE ENERGY GENERATED BY A 9
473+RENEWABLE ON –SITE GENERATING SYST EM THAT PROVIDES ELE CTRIC 10
474+DISTRIBUTION SYSTEM SUPPORT SERVICE UNDE R A PILOT PROGRAM OR 11
475+TEMPORARY TARIFF APP ROVED UNDER SUBSECTION (D)(1) OF THIS SECTION TO 12
476+COUNT TOWARDS THE ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY’S 13
477+GREENHOUSE EMISSIONS REDUCTION GOALS UNDE R § 7–211 OF THIS TITLE. 14
510478
511- (B) IN DETERMINING WHETHER T O REQUIRE AN INVESTOR–OWNED
512-ELECTRIC COMPANY TO OFFER AN INCENTIVE O R REBATE UNDER THIS SECTION,
513-THE COMMISSION SHALL CONS IDER:
479+ (2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , THE 15
480+CUMULATIVE ENERGY S TORAGE CAPACITY OF A NY ENERGY STORAGE DE VICES 16
481+INSTALLED ON A CUSTO MER’S PROPERTY IN ACCORD ANCE WITH THIS SUBTI TLE 17
482+SHALL COUNT TOWARDS THE TARGETS ESTABLIS HED UNDER § 7–216.1 OF THIS 18
483+TITLE. 19
514484
515- (1) THE BENEFIT OF REDUC ING THE OPERATION OF PEAK
516-GENERATING FACILITIE S IN OVERBURDENED AN D UNDERSERVED COMMUNITIES ;
485+ (II) SUBPARAGRAPH (I) OF THIS PARAGRAPH DO ES NOT 20
486+INCLUDE THE EN ERGY STORAGE CAPACIT Y OF: 21
517487
518- (2) THE BENEFIT OF RESIL IENCY AND SERVICE OU TAGE AVOIDANCE
519-FOR CUSTOMERS WITH O N–SITE GENERATING SYST EMS; AND
488+ 1. ELECTRIC VEHICLES TH AT ARE PART OF A 22
489+RENEWABLE ON –SITE GENERATING SYST EM; OR 23
520490
521- (3) THE POTENTIAL FOR ELECTRIC INVESTOR–OWNED ELECTRIC
522-COMPANIES TO REDUCE EXPENSES RELATING TO ELECTRIC DISTRIBUTIO N SYSTEM
523-INFRASTRUCTURE BY LEVE RAGING CUSTOMERS ’ ON–SITE GENERATING SYST EMS.
491+ 2. MOBILE ENERGY STORAG E DEVICES. 24
524492
525- (C) THE COMMISSION SHALL CONS IDER ESTABLISHING A LIMIT ON THE
526-AMOUNT OF INCENTIVES OR REBATES ISSUED IN A MANNER THAT ACHIEV ES
527-DEPLOYMENT GOALS WHI LE MITIGATING POTENT IAL CUSTOMER IMPACTS .
493+ (F) THE CUMULATIVE NAMEPL ATE CAPACITY OF RENE WABLE ON–SITE 25
494+GENERATING SYSTEMS P ARTICIPATING IN A PI LOT PROGRAM OR TEMPO RARY 26
495+TARIFF APPROVED UNDE R THIS SECTION MAY N OT EXCEED 2% OF THE 27
496+INVESTOR–OWNED ELECTRIC COMPA NY’S HIGHEST RECORDED C OINCIDENT PEAK 28
497+DEMAND. 29
528498
529- (D) THE COMMISSION SHALL CONS ULT WITH THE MARYLAND ENERGY
530-ADMINISTRATION , WHEN APPROVING OR RE QUIRING AN INCENTIVE OR REBATE
531-UNDER THIS SECTION , TO ENSURE THAT THE I NCENTIVE OR REBATE I S DESIGNED
532-TO SUPPLEMENT , TO THE GREATEST EXTE NT POSSIBLE, OTHER AVA ILABLE STATE
533-AND FEDERAL INCENTIV ES FOR CUSTOMER ADOP TION OF RENEWABLE ON –SITE
534-GENERATING SYSTEMS .
499+7–1006. 30
535500
536-7–1007.
501+ (A) (1) THE COMMISSION MAY APPROVE OR REQUIRE A N 31
502+INVESTOR–OWNED ELECTRIC COMPANY TO OFFER UPFRONT INCENT IVES OR 32
503+REBATES TO CUSTOMERS TO ACQUIRE AND INSTA LL RENEWABLE ON –SITE 33
504+GENERATING SYSTEMS I F THE CUSTOMER : 34
505+ 12 HOUSE BILL 1256
537506
538- (A) AN ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY MAY RECOVER
539-ALL REASONABLE COSTS INCURRED IN:
540507
541- (1) PARTICIPATING IN A PILOT PROGRAM OR T EMPORARY TARIFF
542-AND ADMINISTERING A PROGRAM UNDER § 7–1005 OF THIS SUBTITLE; AND
543- WES MOORE, Governor Ch. 476
508+ (I) ENROLLS IN A PILOT P ROGRAM OR TEMPORARY TARIF F 1
509+ESTABLISHED UNDER § 7–1005 OF THIS SUBTITLE; AND 2
544510
545-– 13 –
546- (2) OFFERING AN UPFRONT INCENTIVE OR REBATE UNDER § 7–1006
547-OF THIS SUBTITLE.
511+ (II) ALLOWS THE SYSTEM TO BE USED FOR ELECTRIC 3
512+DISTRIBUTION SYSTEM SUPPORT SERVICES FOR A PERIOD OF NOT LESS THAN 5 4
513+YEARS. 5
548514
549- (B) TO THE EXTENT FEASIBL E, THE COSTS LISTED IN SUBSECTION (A) OF
550-THIS SECTION SHALL B E RECOVERED BY THE ELECTRIC INVESTOR–OWNED
551-ELECTRIC COMPANY WITHIN THE C ALENDAR YEAR IN WHIC H THOSE COSTS WERE
552-INCURRED.
515+ (2) THE COMMISSION MAY : 6
553516
554- (C) NOTWITHSTANDING ANY P ROVISION OF THIS SUB TITLE, AN ELECTRIC
555-INVESTOR–OWNED ELECTRIC COMPANY MAY PURSUE A ND USE A PERFORMANCE
556-INCENTIVE MECHANISM TO COVER THE COST OF USING DISTRIBUTED EN ERGY
557-RESOURCES OR AN AGGR EGATOR OF DISTRIBUTE D RESOURCES UNDER TH IS
558-SUBTITLE.
517+ (I) AUTHORIZE OR REQUIRE AN INVESTOR–OWNED ELECTRIC 7
518+COMPANY TO PROVIDE A N ADDITIONAL INCENTI VE OR REBATE FOR LOW – OR 8
519+MODERATE–INCOME CUSTOMERS WHO APPLY FOR AN INCENTI VE OR REBATE 9
520+UNDER THIS SECTION ; AND 10
559521
560-7–1008.
522+ (II) REQUIRE AN INVESTOR–OWNED ELECTRIC COMPANY TO 11
523+PRIORITIZE THE OFFER OF INCENTIVES OR REBATE S UNDER THIS SECTION TO 12
524+LOW– OR MODERATE –INCOME CUSTOMERS . 13
561525
562- (A) THIS SECTION APPLIES ONLY TO AN ELIGIBLE CUSTOMER–GENERATOR
563-THAT IS:
526+ (B) IN DETERMINING WHETHE R TO REQUIRE AN INVESTOR–OWNED 14
527+ELECTRIC COMPANY TO OFFER AN INCENTIVE O R REBATE UNDER THIS SECTION, 15
528+THE COMMISSION SHALL CONS IDER: 16
564529
565- (1) PARTICIPATING IN AN ELECTRIC COMPANY ’S NET ENERGY
566-METERING PROGRAM ; AND
530+ (1) THE BENEFIT OF REDUCING THE OPER ATION OF PEAK 17
531+GENERATING FACILITIE S IN OVERBURDENED AN D UNDERSERVED COMMUN ITIES; 18
567532
568- (2) USING AN ENERGY STOR AGE DEVICE THAT :
533+ (2) THE BENEFIT OF RESIL IENCY AND SERVICE OU TAGE AVOIDANCE 19
534+FOR CUSTOMERS WITH O N–SITE GENERATING SYST EMS; AND 20
569535
570- (I) IS CHARGED ONLY FROM THE ELIGIBLE
571-CUSTOMER–GENERATOR ’S GENERATING FACILIT Y THAT CREATES NET E XCESS
572-GENERATION ; OR
536+ (3) THE POTENTIAL FOR ELECTRIC INVESTOR–OWNED ELECTRIC 21
537+COMPANIES TO REDUCE EXPENSES RELATING TO ELECTRIC DISTRIBUTIO N SYSTEM 22
538+INFRASTRUCTURE BY LE VERAGING CUSTOMERS ’ ON–SITE GENERATING SYST EMS. 23
573539
574- (II) ACCRUES NET EXCESS G ENERATION ONLY FOR E NERGY
575-CREATED BY AN ON –SITE ENERGY GENERATI NG SYSTEM.
540+ (C) THE COMMISSION SHALL CONS IDER ESTABLISHING A LIMIT ON THE 24
541+AMOUNT OF INCENTIVES OR REBATE S ISSUED IN A MANNER THAT ACHIEVES 25
542+DEPLOYMENT GOALS WHI LE MITIGATING POTENT IAL CUSTOMER IMPACTS . 26
576543
577- (B) THE DISPATCH OF ENERG Y FROM AN ENERGY STORAGE DEVICE TO THE
578-ELECTRIC DISTRIBUTIO N SYSTEM UNDER A PIL OT PROGRAM OR TEMPOR ARY
579-TARIFF ESTABLISHED U NDER § 7–1005 OF THIS SUBTITLE MAY NOT BE CONSIDERED
580-DUPLICATIVE OF ANY V ALUE REALIZED BY THE ELIGIBLE CUSTOMER –GENERATOR
581-THROUGH NET ENERGY M ETERING.
544+ (D) THE COMMISSION SHALL CONS ULT WITH THE MARYLAND ENERGY 27
545+ADMINISTRATION , WHEN APPROVING OR RE QUIRING AN INCENTIVE OR REBATE 28
546+UNDER THIS SECTION , TO ENSURE TH AT THE INCENTIVE OR REBATE IS DESIGNED 29
547+TO SUPPLEMENT , TO THE GREATEST EXTE NT POSSIBLE, OTHER AVAILABLE STATE 30
548+AND FEDERAL INCENTIV ES FOR CUSTOMER ADOP TION OF RENEWABLE ON –SITE 31
549+GENERATING SYSTEMS . 32
582550
583- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
584-October 1, 2024.
551+7–1007. 33 HOUSE BILL 1256 13
585552
586-Approved by the Governor, May 9, 2024.
553+
554+
555+ (A) AN ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY MA Y RECOVER 1
556+ALL REASONABLE COSTS INCURRED IN: 2
557+
558+ (1) PARTICIPATING IN A PILOT PROGRAM OR T EMPORARY TARIFF 3
559+AND ADMINISTERING A PROGRAM UNDER § 7–1005 OF THIS SUBTITLE; AND 4
560+
561+ (2) OFFERING AN UPFRONT INCENTIVE OR REBATE UNDER § 7–1006 5
562+OF THIS SUBTITLE. 6
563+
564+ (B) TO THE EXTENT FEASIBL E, THE COSTS LISTED IN SUBSECTION (A) OF 7
565+THIS SECTION SHALL B E RECOVERED BY THE ELECTRIC INVESTOR–OWNED 8
566+ELECTRIC COMPANY WITHIN THE C ALENDAR YEAR IN WHIC H THOSE COSTS WERE 9
567+INCURRED. 10
568+
569+ (C) NOTWITHSTANDING ANY P ROVISION OF THIS SUB TITLE, AN ELECTRIC 11
570+INVESTOR–OWNED ELECTRIC COMPANY MAY PURSUE A ND USE A PERFORMANCE 12
571+INCENTIVE MECHANISM TO COVER THE COST OF USING DISTRIBUTED EN ERGY 13
572+RESOURCES OR AN AGGR EGATOR OF DISTRIBUTE D RESOURCES UNDER TH IS 14
573+SUBTITLE. 15
574+
575+7–1008. 16
576+
577+ (A) THIS SECTION APPLIES ONLY TO AN ELIGIBLE CUS TOMER–GENERATOR 17
578+THAT IS: 18
579+
580+ (1) PARTICIPATING IN AN ELECTRIC COMPANY ’S NET ENERGY 19
581+METERING PROGRAM ; AND 20
582+
583+ (2) USING AN ENERGY STOR AGE DEVICE THAT : 21
584+
585+ (I) IS CHARGED ONLY FROM THE ELIGIBLE 22
586+CUSTOMER–GENERATOR ’S GENERATING FACILIT Y THAT CREATES NET EXCESS 23
587+GENERATION ; OR 24
588+
589+ (II) ACCRUES NET EXCESS G ENERATION ONLY FOR E NERGY 25
590+CREATED BY AN ON –SITE ENERGY GENERATI NG SYSTEM. 26
591+
592+ (B) THE DISPATCH OF ENERG Y FROM AN ENERGY STO RAGE DEVICE TO THE 27
593+ELECTRIC DISTRIBUTIO N SYSTEM UNDER A PIL OT PROGRAM OR TEMPORARY 28
594+TARIFF ESTABLISHED U NDER § 7–1005 OF THIS SUBTITLE MAY NOT BE CONSIDERED 29
595+DUPLICATIVE OF ANY V ALUE REALIZED BY THE ELIGIBLE CUSTOMER –GENERATOR 30
596+THROUGH NET ENERGY M ETERING. 31
597+ 14 HOUSE BILL 1256
598+
599+
600+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
601+October 1, 2024. 2
602+
603+
604+
605+
606+Approved:
607+________________________________________________________________________________
608+ Governor.
609+________________________________________________________________________________
610+ Speaker of the House of Delegates.
611+________________________________________________________________________________
612+ President of the Senate.