Maryland 2024 2024 Regular Session

Maryland Senate Bill SB959 Introduced / Bill

Filed 02/06/2024

                     
 
EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. 
        [Brackets] indicate matter deleted from existing law. 
          *sb0959*  
  
SENATE BILL 959 
M5, C5   	4lr1719 
    	CF 4lr1718 
By: Senator Feldman 
Introduced and read first time: February 2, 2024 
Assigned to: Education, Energy, and the Environment 
 
A BILL ENTITLED 
 
AN ACT concerning 1 
 
Electricity – Tariffs, Distributed Energy Resources, and Electric Distribution 2 
System Support Services  3 
(Distributed Renewable Integration and Vehicle Electrification (DRIVE) Act) 4 
 
FOR the purpose of requiring the Public Service Commission, on or before a certain date, 5 
to adopt a transition plan requiring each electric company to transition customers to 6 
a certain time–of–use tariff on or before a certain date; requiring the Commission to 7 
adopt certain regulations on or before a certain date regarding the interconnection 8 
of certain systems to the electric distribution system; prohibiting an electric company 9 
from requiring a certain customer to enter into a certain contract or apply for 10 
interconnection with the electric distribution system; requiring the Commission to 11 
develop a program for each electric company to establish a pilot program or 12 
temporary tariff to compensate certain persons for electric distribution system 13 
support services in a certain manner; requiring each electric company to submit the 14 
pilot program or temporary tariff to the Commission for approval on or before a 15 
certain date; requiring the Commission to approve a certain pilot program or tariff 16 
by a certain date; authorizing the Commission to approve or require an electric 17 
company to offer certain incentives or rebates under certain circumstances; requiring 18 
the Commission to consider establishing a certain limit on the amount of certain 19 
incentives or rebates; authorizing an electric company to recover certain costs; 20 
prohibiting the dispatch of energy from a certain energy storage device to the electric 21 
distribution system under a pilot program or temporary tariff from being considered 22 
duplicative of any value realized by a certain customer through net energy metering; 23 
and generally relating to the generation and provision of electricity in the State.  24 
 
BY adding to 25 
 Article – Public Utilities 26 
Section 7–1001 through 7–1008 to be under the new subtitle “Subtitle 10. Electric 27 
Distribution System Support Services” 28 
 Annotated Code of Maryland 29 
 (2020 Replacement Volume and 2023 Supplement) 30  2 	SENATE BILL 959  
 
 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 
That the Laws of Maryland read as follows: 2 
 
Article – Public Utilities 3 
 
SUBTITLE 10. ELECTRIC DISTRIBUTION SYSTEM SUPPORT SERVICES. 4 
 
7–1001. 5 
 
 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 6 
INDICATED. 7 
 
 (B) “BENEFICIAL ELECTRIFIC ATION” MEANS REPLACING DIRE CT FOSSIL 8 
FUEL USE WITH ELECTR ICITY. 9 
 
 (C) “BIDIRECTIONAL ELECTRIC VEHICLE ” MEANS AN ELECTRIC VE HICLE 10 
THAT IS CAPABLE OF B OTH RECEIVING AND DI SCHARGING ELECTRICIT Y. 11 
 
 (D) “DISTRIBUTED ENERGY RE SOURCE” MEANS AN ENERGY RESO URCE 12 
LOCATED ON A CUSTOME R’S PREMISES THAT : 13 
 
 (1) PRODUCES OR STORES E LECTRICITY; OR 14 
 
 (2) MODIFIES THE TIMING OR AMOUNT OF THE CUS TOMER’S 15 
ELECTRICITY CONSUMPT ION. 16 
 
 (E) (1) “ELECTRIC DISTRIBUTION SYSTEM SUPPORT SERVI CES” MEANS 17 
THE DISPATCH AND CON TROL OF A DISTRIBUTE D ENERGY RESOURCE TO PROVIDE 18 
SERVICES THAT CONTRI BUTE TO THE EFFICIEN T AND RELIABLE OPERATION O F THE 19 
ELECTRIC DISTRIBUTIO N SYSTEM BY: 20 
 
 (I) AN ELECTRIC COMPANY ; OR 21 
 
 (II) AN AGGREGATOR ACTING : 22 
 
 1. AT THE DIRECTION OF AN ELECTRIC COMPANY ; OR 23 
 
 2. UNDER A PROGRAM OR T ARIFF APPROVED BY TH E 24 
COMMISSION. 25 
 
 (2) “ELECTRIC DIS TRIBUTION SYSTEM SUP PORT SERVICES ” 26 
INCLUDES: 27 
   	SENATE BILL 959 	3 
 
 
 (I) LOCAL OR SYSTEM PEAK DEMAND REDUCTION ; 1 
 
 (II) DEMAND RESPONSE ; 2 
 
 (III) THE AVOIDANCE OR DEF ERRAL OF A TRANSMISS ION OR 3 
DISTRIBUTION UPGRADE OR CAPACITY EXPANSIO N; AND 4 
 
 (IV) FACILITATING HOSTING CAPACITY TO ACCOMMODATE 5 
ADDITIONAL DISTRIBUT ED ENERGY RESOURCES . 6 
 
 (F) “ELIGIBLE CUSTOMER –GENERATOR ” HAS THE MEANING STAT ED IN §  7 
7–306 OF THIS TITLE. 8 
 
 (G) “NET ENERGY METERING ” HAS THE MEANING STAT ED IN § 7–306 OF 9 
THIS TITLE. 10 
 
 (H) “NET EXCESS GENERATION ” HAS THE MEANING STATE D IN § 7–306 OF 11 
THIS TITLE. 12 
 
 (I) (1) “RENEWABLE ON –SITE GENERATING SYST EM” MEANS AN ENERGY 13 
SYSTEM LOCATED ON A CUSTOMER’S PREMISES THAT : 14 
 
 (I) GENERATES OR STORES ELECTRICITY FROM A TIER 1 15 
RENEWABLE SOURCE OR A TIER 2 RENEWABLE SOURCE; 16 
 
 (II) IS CAPABLE OF PROVID ING ELECTRICITY TO : 17 
 
 1. A HOME, BUSINESS, OR OTHER STRUCTURE S ERVICED 18 
BY AN ELECTRIC COMPA NY; AND 19 
 
 2. THE ELECTRIC DISTRIB UTION SYSTEM; 20 
 
 (III) IS CONFIGURED TO CHA RGE FROM: 21 
 
 1. THE RENEWABLE SOURCE ; AND 22 
 
 2. THE ELECTRIC DISTRIB UTION SYSTEM; AND 23 
 
 (IV) IS INTERCONNECTED AN D OPERATES IN PARALL EL WITH AN 24 
ELECTRIC COMPANY ’S TRANSMISSION AND D ISTRIBUTION FACILITI ES. 25 
  4 	SENATE BILL 959  
 
 
 (2) “RENEWABLE ON –SITE GENERATING SYST EM” INCLUDES 1 
BIDIRECTIONAL ELECTR IC VEHICLE SERVI CE EQUIPMENT LOCATED ON A 2 
CUSTOMER’S PREMISES. 3 
 
 (J) “TIER 1 RENEWABLE SOURCE ” HAS THE MEANING STAT ED IN § 7–701 OF 4 
THIS TITLE. 5 
 
 (K) “TIER 2 RENEWABLE SOURCE ” HAS THE MEANING STAT ED IN § 7–701 OF 6 
THIS TITLE. 7 
 
7–1002. 8 
 
 THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT: 9 
 
 (1) WELL–DESIGNED TIME –OF–USE PRICING OF ELECT RICITY CAN 10 
HELP MITIGATE THE IM PACTS OF ELECTRIFICA TION ON THE ELECTRIC 11 
DISTRIBUTION SYSTEM , REDUCE GREENHOUSE GA S EMISSIONS DURING P EAK 12 
HOURS, AND ENCOURAGE CUSTOM ER ADOPTION OF BENEF ICIAL ELECTRIFICATION 13 
MEASURES THROUGH OFF –PEAK COST SAVINGS ; 14 
 
 (2) WIDESPREAD BENEFICIA L ELECTRIFICATION WI LL INCREASE 15 
DEMAND ON THE ELECTR IC DISTRIBUTION SYST EM AND POTENTIALLY R EQUIRE 16 
SIGNIFICANT SYSTEM U PGRADES IF CONSUMERS ADOPTING BENEFICIAL 17 
ELECTRIFICATI ON MEASURES DO NOT E NGAGE IN A FORM OF L OAD MANAGEMENT 18 
TO MITIGATE THE NEED FOR SYSTEM UPGRADES AND REDUCE THE GREEN HOUSE 19 
GAS INTENSITIES ASSO CIATED WITH GENERATI ON EMISSIONS DURING PEAK HOURS; 20 
 
 (3) PAIRING THE ADOPTION OF RENEWABLE ON –SITE GENERATING 21 
SYSTEMS WITH BENEFICIA L ELECTRIFICATION ME ASURES MAY: 22 
 
 (I) FURTHER REDUCE THE STATE’S GREENHOUSE GAS 23 
EMISSIONS; 24 
 
 (II) PROVIDE ON–SITE RESILIENCE TO C ONSUMERS; AND 25 
 
 (III) FACILITATE LOAD FLEX IBILITY TO MITIGATE IMPACTS ON 26 
THE ELECTRIC DISTRIB UTION SYSTEM FROM LOAD GROWT H DUE TO BENEFICIAL 27 
ELECTRIFICATION ; AND 28 
 
 (4) IT IS REASONABLE TO PROVIDE ADDITIONAL I NCENTIVES AND 29 
PROTECTIONS TO LOW – AND MODERATE –INCOME HOUSEHOLDS : 30 
   	SENATE BILL 959 	5 
 
 
 (I) TO ENSURE ACCESS TO THE BENEFITS OF ELEC TRIFICATION 1 
AND ON–SITE ENERGY SYS TEMS; AND 2 
 
 (II) TO PROTECT THOSE HOU SEHOLDS FROM NEGATIV E BILL 3 
IMPACTS DURING A TRA NSITION TO TIME–OF–USE RATES. 4 
 
7–1003. 5 
 
 (A) SUBJECT TO SUBSECTION S (D) AND (E) OF THIS SECTION , ON OR 6 
BEFORE DECEMBER 31, 2025, THE COMMISSION SHALL ADOP T A TRANSITION PLAN 7 
TO REQUIRE EACH ELEC TRIC COMPANY TO TRAN SITION EACH CUSTOMER , ON OR 8 
BEFORE SEPTEMBER 1, 2028, TO A TIME–OF–USE TARIFF. 9 
 
 (B) THE TRANSITION PLAN R EQUIRED UNDER SUBSEC TION (A) OF THIS 10 
SECTION SHALL INCLUD E PROVISIONS TO EASE THE TRANSITION TO A TIME–OF–USE 11 
TARIFF FOR CUSTOMERS IN LOW– AND MODERATE –INCOME HOUSEHOLDS . 12 
 
 (C) THE TRANSITION TO A T IME–OF–USE TARIFF SHALL : 13 
 
 (1) ESTABLISH A SUFFICIE NT PRICE REDUCTION F OR OFF–PEAK 14 
HOURS COMPARED TO PE AK HOURS TO ENCOURAG E CUSTOMERS TO ADJUS T THEIR 15 
ELECTRICITY USAGE TO OFF–PEAK HOURS; AND 16 
 
 (2) ADEQUATELY EDUCATE A ND ENCOURAGE CUSTOME RS TO ADJUST 17 
THEIR ELECTRICITY US AGE TO BENEFIT FROM LOWER RATES DURING O FF–PEAK 18 
HOURS. 19 
 
 (D) (1) EACH ELECTRIC COMPANY SHALL PROVIDE TO ITS CUSTOMERS 20 
NOTICE AND AN OPPORT UNITY TO OPT OUT OF A TIME –OF–USE TARIFF UNDER THI S 21 
SECTION. 22 
 
 (2) A CUSTOMER IS CONSIDER ED TO HAVE GIVEN PER MISSION TO THE 23 
ELECTRIC COMPANY TO TRANSITION THE CUSTO MER TO THE TIME –OF–USE TARIFF: 24 
 
 (I) ON RECEIPT BY THE EL ECTRIC COMPANY OF A RETURNED 25 
NOTICE EXPL ICITLY GRANTING PERM ISSION; OR 26 
 
 (II) IF THE ELECTRIC COMP ANY HAS NOT RECEIVED A 27 
RETURNED NOTICE WITH IN 30 DAYS AFTER THE NOTIC E IS GIVEN. 28 
 
 (3) A CUSTOMER WHO HAS REF USED PERMISSION TO T RANSITION TO 29 
A TIME–OF–USE TARIFF MAY LATER REQUEST TO TRANSITIO N TO THE TIME–OF–USE 30 
TARIFF. 31  6 	SENATE BILL 959  
 
 
 
 (E) FOR GOOD CAUSE SHOWN , THE COMMISSION MAY DELAY FOR A 1 
REASONABLE PERIOD OF TIME THE DEADLINE FO R AN ELECTRIC COMPAN Y TO 2 
TRANSITION THEIR CUS TOMERS TO A TIME –OF–USE TARIFF. 3 
 
7–1004. 4 
 
 (A) ON OR BEFORE APRIL 1, 2025, THE COMMISSION SHALL ADOPT 5 
REGULATIONS TO ESTAB LISH EXPEDITED PROCE SSES FOR INTERCONNEC TING THE 6 
FOLLOWING SYSTEMS TO THE ELECTRIC DISTRIB UTION SYSTEM: 7 
 
 (1) BIDIRECTIONAL ELECTR IC VEHICLE SYSTEMS C APABLE OF 8 
PROVIDING ELECTRICIT Y TO THE ELECTRIC DI STRIBUTION SYSTEM ; AND 9 
 
 (2) BIDIRECTIONAL ELECTR IC VEHICLE SYSTEMS T HAT DO NOT 10 
PROVIDE ELECTRICITY TO THE ELECTRIC DIST RIBUTION SYSTEM BUT DO PROVIDE 11 
ELECTRICITY TO A HOM E, BUSINESS, OR OTHER STRUCTURE S ERVICED BY AN 12 
ELECTRIC COMPANY . 13 
 
 (B) AN ELECTRIC COMPANY : 14 
 
 (1) MAY REQUIRE A CUSTOMER TO PROVIDE NOTICE TO THE 15 
ELECTRIC COMPANY IF THE CUSTOMER INSTALL S A BIDIRECTIONAL EL ECTRIC 16 
VEHICLE SYSTEM DESCR IBED IN SUBSECTION (A) OF THIS SECTION; BUT 17 
 
 (2) MAY NOT REQUIRE THE CUSTOMER TO ENTER IN TO A NET ENERGY 18 
METERING CONTRACT OR OTHERWIS E APPLY FOR INTERCON NECTION WITH THE 19 
ELECTRIC DISTRIBUTIO N SYSTEM. 20 
 
7–1005. 21 
 
 (A) (1) THE COMMISSION SHALL DEVE LOP A PROGRAM FOR EA CH 22 
ELECTRIC COMPANY TO ESTABLISH A PILOT PR OGRAM OR TEMPORARY T ARIFF TO 23 
COMPENSATE OWNERS AN D AGGREGATORS OF DISTRIBUTED ENERG Y RESOURCES 24 
FOR ELECTRIC DISTRIB UTION SYSTEM SUPPORT SERVICES ON A 25 
PAY–FOR–PERFORMANCE BASIS . 26 
 
 (2) ON OR BEFORE JANUARY 1, 2025, THE COMMISSION SHALL 27 
ADOPT REGULATIONS ES TABLISHING PROGRAM R EQUIREMENTS TO ACHIE VE 28 
ELECTRIC SYSTEM BEN EFITS USING DISTRIBU TED ENERGY RESOURCES . 29 
 
 (B) (1) ON OR BEFORE JULY 1, 2025, EACH ELECTRIC COMPAN Y SHALL 30 
SUBMIT TO THE COMMISSION FOR APPROV AL A PILOT PROGRAM O R TEMPORARY 31   	SENATE BILL 959 	7 
 
 
TARIFF FOR ELECTRIC DISTRIBUTION SYSTEM SUPPORT SERVICES THA T PROVIDES 1 
REASONABLE COMPENSATION ON A PA Y–FOR–PERFORMANCE BASIS TO RENEWABLE 2 
ON–SITE GENERATING SYST EMS. 3 
 
 (2) THE PILOT PROGRAM OR TEMPORARY TARIFF SUB MITTED UNDER 4 
PARAGRAPH (1) OF THIS SUBSECTION S HALL PROVIDE THAT EL ECTRIC 5 
DISTRIBUTION SYSTEM SUPPORT SERVICES TO ON–SITE ENERGY STORAGE DEVICE S 6 
BE USED FOR SYSTEM P EAK REDUCTION ACCORD ING TO A SCHEDULE AT A 7 
FREQUENCY OF AT LEAS T 30 EVENTS PER YEAR . 8 
 
 (C) ANY PILOT PROGRAM OR TEMPORARY TARIFF SUB MITTED UNDER THIS 9 
SECTION SHALL ESTABL ISH A STRUCTURE FOR PERFORMANCE PAYMENTS THAT IS 10 
DESIGNED TO COVER TH E COST OF DISTRIBUTE D ENERGY RESOURCES T O AN OWNER 11 
OR AGGREGATOR PROVID ING ELECTRIC DISTRIB UTION SYSTEM SUPPORT 12 
SERVICES. 13 
 
 (D) (1) ON OR BEFORE OCTOBER 1, 2025, THE COMMISSION SHALL 14 
APPROVE, DENY, OR APPROVE WITH AMEN DMENTS A PILO T PROGRAM OR 15 
TEMPORARY TARIFF SUB MITTED UNDER THIS SE CTION FOR EACH ELECT RIC 16 
COMPANY. 17 
 
 (2) THE COMMISSION SHALL ESTA BLISH A PROCESS FOR AN 18 
ELECTRIC COMPANY TO TRANSITION A PILOT P ROGRAM OR TEMPORARY TARIFF TO 19 
A PERMANENT PROGRAM OR TARIFF FOR ELECTR IC DISTRIBUTION SYSTEM 20 
SUPPORT SERVICES . 21 
 
 (3) EACH CUSTOMER PARTICI PATING IN A PILOT PR OGRAM OR 22 
TEMPORARY TARIFF APP ROVED UNDER PARAGRAP H (1) OF THIS SUBSECTION 23 
SHALL BE TRANSITIONE D TO A PERMANENT PRO GRAM OR TARIFF FOR E LECTRIC 24 
DISTRIBUTION SYSTEM SUPPORT SE RVICES WHEN THE PROG RAM OR TARIFF IS 25 
APPROVED BY THE COMMISSION. 26 
 
 (E) (1) THE COMMISSION MAY ALLOW THE ENERGY GENERATED BY A 27 
RENEWABLE ON –SITE GENERATING SYST EM THAT PROVIDES ELE	CTRIC 28 
DISTRIBUTION SYSTEM SUPPORT SERVICE UNDE R A PILOT PROGRAM OR 29 
TEMPORARY TARIFF APPROVED UNDE R SUBSECTION (D)(1) OF THIS SECTION TO 30 
COUNT TOWARDS THE EL ECTRIC COMPANY ’S GREENHOUSE EMISSIO NS REDUCTION 31 
GOALS UNDER § 7–211 OF THIS TITLE. 32 
 
 (2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , THE 33 
CUMULATIVE ENERGY ST ORAGE CAPAC ITY OF ANY ENERGY ST ORAGE DEVICES 34 
INSTALLED ON A CUSTO MER’S PROPERTY IN ACCORD ANCE WITH THIS SUBTI TLE 35  8 	SENATE BILL 959  
 
 
SHALL COUNT TOWARDS THE TARGETS ESTABLIS HED UNDER § 7–216.1 OF THIS 1 
TITLE. 2 
 
 (II) SUBPARAGRAPH (I) OF THIS PARAGRAPH DO ES NOT 3 
INCLUDE THE ENERGY S TORAGE CAPACITY OF: 4 
 
 1. ELECTRIC VEHICLES TH AT ARE PART OF A 5 
RENEWABLE ON –SITE GENERATING SYST EM; OR 6 
 
 2. MOBILE ENERGY STORAG E DEVICES. 7 
 
7–1006. 8 
 
 (A) (1) THE COMMISSION MAY APPROVE OR REQUIRE A N ELECTRIC 9 
COMPANY TO OFFER UPF RONT INCENTIVES OR R EBATES TO CUSTOMERS TO 10 
ACQUIRE AND INSTALL RENEWABLE ON –SITE GENERATING SYST EMS IF THE 11 
CUSTOMER: 12 
 
 (I) ENROLLS IN A PILOT P ROGRAM OR TEMPORARY TARIFF 13 
ESTABLISHED UNDER § 7–1005 OF THIS SUBTITLE; AND 14 
 
 (II) ALLOWS THE SYSTEM TO BE USED FOR ELECTRIC 15 
DISTRIBUTION SYSTEM SUPPORT SERVI CES FOR A PERIOD OF NOT LESS THAN 5 16 
YEARS. 17 
 
 (2) THE COMMISSION MAY : 18 
 
 (I) AUTHORIZE OR REQUIRE AN ELECTRIC COMPANY TO 19 
PROVIDE AN ADDITIONA L INCENTIVE OR REBAT E FOR LOW– OR MODERATE –INCOME 20 
CUSTOMERS WHO APPLY FOR AN INCENTIVE OR REBATE UNDER THIS SECTIO N; AND 21 
 
 (II) REQUIRE AN ELECTRIC COMPANY TO PRIORITIZ E THE 22 
OFFER OF INCENTIVES OR REBATES UNDER THI S SECTION TO LOW – OR  23 
MODERATE–INCOME CUSTOMERS . 24 
 
 (B) IN DETERMINING WHETHE R TO REQUIRE AN ELEC TRIC COMPANY TO 25 
OFFER AN INCENTIVE O R REBATE UNDER THIS SE CTION, THE COMMISSION SHALL 26 
CONSIDER: 27 
 
 (1) THE BENEFIT OF REDUC ING THE OPERATION OF PEAK 28 
GENERATING FACILITIE S IN OVERBURDENED AN D UNDERSERVED COMMUN ITIES; 29 
   	SENATE BILL 959 	9 
 
 
 (2) THE BENEFIT OF RESIL IENCY AND SERVICE OU TAGE AVOIDANCE 1 
FOR CUSTOMERS WI TH ON–SITE GENERATING SYST EMS; AND 2 
 
 (3) THE POTENTIAL FOR EL ECTRIC COMPANIES TO REDUCE 3 
EXPENSES RELATING TO ELECTRIC DISTRIBUTIO N SYSTEM INFRASTRUCT URE BY 4 
LEVERAGING CUSTOMERS ’ ON–SITE GENERATING SYST EMS. 5 
 
 (C) THE COMMISSION SHALL CONS IDER ESTABLISHING A LIMIT ON THE 6 
AMOUNT OF INCENTIVES OR REBATES ISSUED IN A MANNER THAT ACHIEV ES 7 
DEPLOYMENT GOALS WHI LE MITIGATING POTENT IAL CUSTOMER IMPACTS . 8 
 
 (D) THE COMMISSION SHALL CONS ULT WITH THE MARYLAND ENERGY 9 
ADMINISTRATION , WHEN APPROVING OR RE QUIRING AN INCENTIVE OR REBATE 10 
UNDER THIS SECTION , TO ENSURE THAT THE I NCENTIVE OR REBATE I S DESIGNED 11 
TO SUPPLEMENT , TO THE GREATEST EXTE NT POSSIBLE, OTHER AVAILABLE STATE 12 
AND FEDERAL INCENTIV ES FOR CUSTOMER ADOP TION OF RENEWABLE ON –SITE 13 
GENERATING SYSTEMS . 14 
 
7–1007. 15 
 
 (A) AN ELECTRIC COMPANY M AY RECOVER ALL REASO NABLE COSTS 16 
INCURRED IN: 17 
 
 (1) PARTICIPATING IN A P ILOT PROGRAM OR TEMP ORARY TARIFF 18 
UNDER § 7–1005 THIS SUBTITLE; AND 19 
 
 (2) OFFERING AN UPFRONT INCENTIVE OR REBATE UNDER § 7–1006 20 
OF THIS SUBTITLE. 21 
 
 (B) TO THE EXTENT FEASIBLE , THE COSTS LISTED IN SUBSECTION (A) OF 22 
THIS SECTION SHALL B E RECOVERED BY THE E LECTRIC COMPANY WITH IN THE 23 
CALENDAR YEAR IN WHI CH THOSE COSTS WERE INCURRED. 24 
 
 (C) NOTWITHSTANDING ANY P ROVISION OF THIS SUB TITLE, AN ELECTRIC 25 
COMPANY MAY PUR SUE AND USE A PERFOR MANCE INCENTIVE MECH ANISM TO 26 
COVER THE COST OF US ING DISTRIBUTED ENER GY RESOURCES OR AN A GGREGATOR 27 
OF DISTRIBUTED RESOU RCES UNDER THIS SUBT ITLE. 28 
 
7–1008. 29 
 
 (A) THIS SECTION APPLIES ONLY TO AN ELIGIBLE CUSTOMER–GENERATOR 30 
THAT IS: 31 
  10 	SENATE BILL 959  
 
 
 (1) PARTICIPATING IN AN ELECTRIC COMPANY ’S NET ENERGY 1 
METERING PROGRAM ; AND 2 
 
 (2) USING AN ENERGY STOR AGE DEVICE THAT : 3 
 
 (I) IS CHARGED ONLY FROM THE ELIGIBLE 4 
CUSTOMER–GENERATOR ’S GENERATING FACILIT Y THAT CREATES NET E XCESS 5 
GENERATION ; OR 6 
 
 (II) ACCRUES NET EXCESS GENERATIO N ONLY FOR ENERGY 7 
CREATED BY AN ON –SITE ENERGY GENERATI NG SYSTEM. 8 
 
 (B) THE DISPATCH OF ENERG Y FROM AN ENERGY STO RAGE DEVICE TO THE 9 
ELECTRIC DISTRIBUTIO N SYSTEM UNDER A PIL OT PROGRAM OR TEMPOR ARY 10 
TARIFF ESTABLISHED U NDER § 7–1005 OF THIS SUBTITLE MAY NOT B E CONSIDERED 11 
DUPLICATIVE OF ANY V ALUE REALIZED BY THE ELIGIBLE CUSTOMER –GENERATOR 12 
THROUGH NET ENERGY M ETERING. 13 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 14 
October 1, 2024. 15