WES MOORE, Governor Ch. 475
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Chapter 475
(Senate Bill 959)
AN ACT concerning
Electricity – Tariffs, Distributed Energy Resources, and Electric Distribution
System Support Services
(Distributed Renewable Integration and Vehicle Electrification (DRIVE) Act)
FOR the purpose of requiring the Public Service Commission, on or before a certain date,
to adopt a transition plan requiring each electric company to transition customers to
a certain time–of–use tariff on or before a certain date; requiring a certain electric
company to file certain time–of–use tariffs with the Public Service Commission on or
before a certain date; requiring a certain electric company to attempt to achieve a
certain enrollment target for certain tariffs by a certain date; authorizing the
Commission to require the automatic enrollment of certain customers in a
time–of–use tariff, on an opt–out basis; requiring the Commission to adopt certain
regulations on or before a certain date regarding the interconnection of certain
systems to the electric distribution system; prohibiting an electric company from
requiring a certain customer to enter into a certain contract or apply for
interconnection with the electric distribution system; requiring a certain electric
company to require a customer to apply for interconnection with the electric
distribution system under certain circumstances; requiring the Commission to
develop a program for each a certain electric company to establish a pilot program
or temporary tariff to compensate certain persons for electric distribution system
support services in a certain manner; requiring each electric company to submit the
pilot program or temporary tariff to the Commission for approval on or before a
certain date; authorizing a certain electric company to propose and the Commission
to approve certain performance mechanisms for a certain purpose under certain
circumstances; requiring the Commission to approve a certain pilot program or tariff
by a certain date; authorizing the Commission to approve or require an a certain
electric company to offer certain incentives or rebates under certain circumstances;
requiring the Commission to consider establishing a certain limit on the amount of
certain incentives or rebates; authorizing an a certain electric company to recover
certain costs; prohibiting the dispatch of energy from a certain energy storage device
to the electric distribution system under a pilot program or temporary tariff from
being considered duplicative of any value realized by a certain customer through net
energy metering; and generally relating to the generation and provision of electricity
in the State.
BY repealing and reenacting, without amendments,
Article – Public Utilities
Section 1–101(a)
Annotated Code of Maryland
(2020 Replacement Volume and 2023 Supplement)
Ch. 475 2024 LAWS OF MARYLAND
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BY adding to
Article – Public Utilities
Section 1–101(p–1); and 7–1001 through 7–1008 7–1007 to be under the new subtitle
“Subtitle 10. Electric Distribution System Support Services”
Annotated Code of Maryland
(2020 Replacement Volume and 2023 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Public Utilities
1–101.
(a) In this division the following words have the meanings indicated.
(P–1) “INVESTOR–OWNED ELECTRIC COMPA NY” MEANS AN ELECTRIC
COMPANY THAT IS NOT A MUNICIPAL ELECTRIC UTILITY OR AN ELECTR IC
COOPERATIVE .
SUBTITLE 10. ELECTRIC DISTRIBUTION SYSTEM SUPPORT SERVICES.
7–1001.
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(B) “BENEFICIAL ELECTRIFICATION ” MEANS REPLACING DIRE CT FOSSIL
FUEL USE WITH ELECTR ICITY.
(C) “BIDIRECTIONAL ELECTRI C VEHICLE” MEANS AN ELECTRIC VE HICLE
THAT IS CAPABLE OF B OTH RECEIVING AND DI SCHARGING ELECTRICIT Y.
(D) “DISTRIBUTED ENERGY RE SOURCE” MEANS AN ENERGY R ESOURCE
LOCATED ON A CUSTOME R’S PREMISES THAT :
(1) PRODUCES OR STORES E LECTRICITY; OR
(2) MODIFIES THE TIMING OR AMOUNT OF THE CUS TOMER’S
ELECTRICITY CONSUMPT ION.
(E) (1) “ELECTRIC DISTRIBUTION SYSTEM SUPPORT SERVI CES” MEANS
THE DISPATCH AND CON TROL OF A DISTRIBUTE D ENERGY RESOURCE TO PROVIDE WES MOORE, Governor Ch. 475
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SERVICES THAT CONTRI BUTE TO THE EFFICIEN T AND RELIABLE OPERA TION OF THE
ELECTRIC DISTRIBUTIO N SYSTEM BY:
(I) AN ELECTRIC COMPANY ; OR
(II) AN AGGREGATOR ACTING :
1. AT THE DIRECTION OF AN ELECTRIC COMPANY ; OR
2. UNDER A PROGRAM OR T ARIFF APPROVED BY TH E
COMMISSION.
(II) AN AGGREGATOR ACTING AT THE DIRECTION OF AN
ELECTRIC COMPANY .
(2) “ELECTRIC DISTRIBUTION SYSTEM SUPPORT SERVI CES”
INCLUDES:
(I) LOCAL OR SYSTEM PEAK DEMAND REDUCTION ;
(II) DEMAND RESPONSE ;
(III) THE AVOIDANCE OR DEF ERRAL OF A TRANSMISS ION OR
DISTRIBUTION UPGRADE OR CAPACITY EXPANSIO N; AND
(IV) FACILITATING HOSTING CAPACITY TO ACCOMMODATE
ADDITIONAL DISTRIBUT ED ENERGY RESOURCES .
(F) “ELIGIBLE CUSTOMER –GENERATOR ” HAS THE MEANING STAT ED IN §
7–306 OF THIS TITLE.
(G) “NET ENERGY METERING ” HAS THE MEANING STAT ED IN § 7–306 OF
THIS TITLE.
(H) “NET EXCESS GENERATION ” HAS THE ME ANING STATED IN § 7–306 OF
THIS TITLE.
(I) (1) “RENEWABLE ON –SITE GENERATING SYST EM” MEANS AN ENERGY
SYSTEM LOCATED ON A CUSTOMER’S PREMISES THAT :
(I) GENERATES OR STORES ELECTRICITY FROM A TIER 1
RENEWABLE SOURCE OR A TIER 2 RENEWABLE SOURCE THAT DOES NOT RELEASE
GREENHOUSE GASES ;
Ch. 475 2024 LAWS OF MARYLAND
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(II) IS CAPABLE OF PROVID ING ELECTRICITY TO :
1. A HOME, BUSINESS, OR OTHER STRUCTURE S ERVICED
BY AN ELECTRIC COMPA NY; AND
2. THE ELECTRIC DISTRIB UTION SYSTEM;
(III) IS PAIRED WITH AN EN ERGY STORAGE DEVICE THAT IS
CONFIGURED TO CHARGE FROM:
1. THE RENEWABLE SOURCE ; AND
2. THE ELECTRIC DISTRIB UTION SYSTEM UNLESS, FOR
THE PURPOSE OF ELIGI BILITY FOR NET ENERG Y METERING , THE DEVICE IS
REQUIRED TO BE CHARG ED ONLY FROM THE REN EWABLE SOURCE ; AND
(IV) IS INTERCONNECTED AN D OPERATES IN PARALL EL WITH AN
ELECTRIC COMPANY ’S TRANSMISSION AND D ISTRIBUTION FACILITI ES.
(2) “RENEWABLE ON –SITE GENERATING SYST EM” INCLUDES MAY
INCLUDE BIDIRECTIONAL ELECTR IC VEHICLE SERVICE E QUIPMENT LOCATED ON A
CUSTOMER’S PREMISES.
(J) “TIER 1 RENEWABLE SOURCE ” HAS THE MEANING STAT ED IN § 7–701 OF
THIS TITLE.
(K) “TIER 2 RENEWABLE SOURCE ” HAS THE MEANING STAT ED IN § 7–701 OF
THIS TITLE.
7–1002.
THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT:
(1) WELL–DESIGNED TIME –OF–USE PRICING OF ELECTRICI TY CAN
HELP MITIGATE THE IM PACTS OF ELECTRIFICA TION ON THE ELECTRIC
DISTRIBUTION SYSTEM , REDUCE GREENHOUSE GA S EMISSIONS DURING P EAK
HOURS, AND ENCOURAGE CUSTOM ER ADOPTION OF BENEF ICIAL ELECTRIFICATIO N
MEASURES THROUGH OFF –PEAK COST SA VINGS;
(2) WIDESPREAD BENEFICIA L ELECTRIFICATION WI LL INCREASE
DEMAND ON THE ELECTR IC DISTRIBUTION SYST EM AND POTENTIALLY R EQUIRE
SIGNIFICANT SYSTEM U PGRADES IF CONSUMERS ADOPTING BENEFICIAL
ELECTRIFICATION MEAS URES DO NOT ENGAGE I N A FORM OF LOAD MAN AGEMENT WES MOORE, Governor Ch. 475
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TO MITIGATE THE NEED FOR SYSTEM UPGRADES AND REDUCE THE GREEN HOUSE
GAS INTENSITIES ASSO CIATED WITH GENERATI ON EMISSIONS DURING PEAK HOURS;
(3) PAIRING THE ADOPTION OF RENEWABLE ON –SITE GENERATING
SYSTEMS WITH BENEFIC IAL ELECTRIFICATION MEASURES MA Y:
(I) FURTHER REDUCE THE STATE’S GREENHOUSE GAS
EMISSIONS;
(II) PROVIDE ON–SITE RESILIENCE TO C ONSUMERS; AND
(III) FACILITATE LOAD FLEX IBILITY TO MITIGATE IMPACTS ON
THE ELECTRIC DISTRIB UTION SYSTEM FROM LO AD GROWTH DUE TO BEN EFICIAL
ELECTRIFICATION; AND
(4) IT IS REASONABLE TO PROVIDE ADDITIONAL I NCENTIVES AND
PROTECTIONS TO LOW – AND MODERATE –INCOME HOUSEHOLDS :
(I) TO ENSURE ACCESS TO THE BENEFITS OF ELEC TRIFICATION
AND ON–SITE ENERGY SYSTEMS ; AND
(II) TO PROTECT THOSE HOU SEHOLDS FROM NEGATIVE BILL
IMPACTS DURING A TRA NSITION TO TIME–OF–USE RATES.
7–1003.
(A) SUBJECT TO SUBSECTION S (D) AND (E) OF THIS SECTION , ON OR
BEFORE DECEMBER 31, 2025, THE COMMISSION SHALL ADOP T A TRANSITION PLAN
TO REQUIRE EACH ELEC TRIC COMPANY TO TRAN SITION EACH CUSTOMER , ON OR
BEFORE SEPTEMBER 1, 2028, TO A TIME–OF–USE TARIFF.
(B) THE TRANSITION PLAN R EQUIRED UNDER SUBSEC TION (A) OF THIS
SECTION SHALL INCLUD E PROVISIONS TO EASE THE TRANSITION TO A TIME–OF–USE
TARIFF FOR CUSTOMERS IN LOW– AND MODERATE–INCOME HOUSEHOLDS .
(C) THE TRANSITION TO A T IME–OF–USE TARIFF SHALL :
(1) ESTABLISH A SUFFICIE NT PRICE REDUCTION F OR OFF–PEAK
HOURS COMPARED TO PE AK HOURS TO ENCOURAG E CUSTOMERS TO ADJUS T THEIR
ELECTRICITY USAGE TO OFF–PEAK HOURS; AND
(2) ADEQUATELY EDUCATE AN D ENCOURAGE CUSTOMER S TO ADJUST
THEIR ELECTRICITY US AGE TO BENEFIT FROM LOWER RATES DURING O FF–PEAK
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(D) (1) EACH ELECTRIC COMPANY SHALL PROVIDE TO ITS CUSTOMERS
NOTICE AND AN OPPORT UNITY TO OPT OUT OF A TIME–OF–USE TARIFF UNDER THIS
SECTION.
(2) A CUSTOMER IS CONSIDER ED TO HAVE GIVEN PER MISSION TO THE
ELECTRIC COMPANY TO TRANSITION THE CUSTO MER TO THE TIME –OF–USE TARIFF:
(I) ON RECEIPT BY THE EL ECTRIC COMPANY OF A RETURNED
NOTICE EXPLICITLY GR ANTING PERMISSION ; OR
(II) IF THE ELECTRIC COMP ANY HAS NOT RECEIVED A
RETURNED NOTICE WITH IN 30 DAYS AFTER THE NOTIC E IS GIVEN.
(3) A CUSTOMER WHO HAS REF USED PERMISSION TO T RANSITION TO
A TIME–OF–USE TARIFF MAY LATER REQUEST TO TRANSITIO N TO THE TIME–OF–USE
TARIFF.
(E) FOR GOOD CAUSE SHOWN , THE COMMISSION MAY DELAY FOR A
REASONABLE PERIOD OF TIME THE DEADLINE FO R AN ELECTRIC COMPAN Y TO
TRANSITION THEIR CUS TOMERS TO A TIME –OF–USE TARIFF.
7–1003.
(A) (1) ON OR BEFORE JULY 1, 2025, EACH INVESTOR –OWNED ELECTRIC
COMPANY SH ALL FILE WITH THE COMMISSION ONE OR MOR E TIME–OF–USE TARIFFS
FOR APPROPRIATE CUST OMER CLASSES , TO BE MADE AVAILABLE TO CUSTOMERS ON
AN OPT–IN BASIS.
(2) EACH TIME–OF–USE TARIFF SHALL EST ABLISH A SUFFICIENT
PRICE DISCOUNT FOR O FF–PEAK HOURS COMPARED TO PEAK HOURS , AS
DETERMINED BY THE MA RKET OR AN INVESTOR –OWNED ELECTRIC COMPA NY’S
COST OF SERVICE , TO ENCOURAGE CUSTOME RS TO ADJUST ELECTRI CITY USE TO
OFF–PEAK HOURS.
(B) (1) (I) AN INVESTOR –OWNED ELECTRIC COMPA NY SHALL
PROPOSE WITH EACH TA RIFF OR TARIFFS REQUIRED UNDER SUBSE CTION (A) OF
THIS SECTION A REASO NABLE ENROLLMENT TAR GET TO TRY TO ACHIEV E BY
JANUARY 1, 2028.
(II) THE INVESTOR –OWNED ELECTRIC COMPA NY SHALL
ATTEMPT TO ACHIEVE T HE ENROLLMENT TARGET THROUGH A COMBINATIO N OF WES MOORE, Governor Ch. 475
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MARKETING, CUSTOMER EDUC ATION, AND OTHER MEANS TO C OMMUNICATE THE
BENEFITS AND RISKS O F TIME–OF–USE RATES.
(2) (I) THE COMMISSION MAY REQUIR E AN INVESTOR –OWNED
ELECTRIC COMPANY TO AUTOMATICALLY ENROLL IN A TIME–OF–USE TARIFF
CUSTOMERS THAT RECEI VE AN INCENTIVE FROM THE INVESTO R–OWNED ELECTRIC
COMPANY AS PART OF A BENEFICIAL ELECTRIFI CATION PROGRAM .
(II) THE COMMISSION SHALL REQU IRE AN INVESTOR –OWNED
ELECTRIC COMPANY TO PROVIDE TO CUSTOMERS THAT ARE AUTOMATICAL LY
ENROLLED IN A TIME –OF–USE TARIFF IN ACCORD ANCE WITH SUBPARAGRA PH (I) OF
THIS PARAGRAPH NOTIC E AND AN OPPORTUNITY TO OPT OUT OF THE TI ME–OF–USE
TARIFF.
(C) ON OR BEFORE JULY 1, 2026, EACH INVESTOR –OWNED ELECTRIC
COMPANY SHALL SUBMIT A REPORT TO THE COMMISSION EVALUATING :
(1) THE POTENTIAL TO AVO ID OR DEFER ELECTR IC DISTRIBUTION
SYSTEM CAPITAL PROJE CTS THROUGH THE USE OF TIME–OF–USE RATES ,
DEMAND–RESPONSE AND DEMAND –SIDE PROGRAMS , AND RENEWABLE ON –SITE
GENERATING SYSTEMS ; AND
(2) THE MERITS AND FEASI BILITY OF TRANSITION ING ALL
CUSTOMERS TO A TIME –OF–USE TARIFF ON AN OPT–OUT BASIS.
(D) IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE,
ON OR BEFORE DECEMBER 31, 2027, THE COMMISSION SHALL SUBM IT A REPORT TO
THE GENERAL ASSEMBLY ON:
(1) THE IMPACTS OF OPT –IN TIME–OF–USE TARIFFS ON THE
ELECTRIC DISTR IBUTION SYSTEM ;
(2) THE TIMELINE, FEASIBILITY, AND MERITS OF TRANSI TIONING ALL
CUSTOMERS TO A TIME –OF–USE TARIFF ON AN OPT –OUT BASIS; AND
(3) WHETHER A FULL TRANS ITION TO TIME –OF–USE RATES IS
JUSTIFIED.
(E) AN INVESTOR –OWNED ELECTRIC COMPA NY MAY RECOVER ALL
REASONABLE AND PRUDE NT COSTS, INCLUDING MARKETING COSTS, TO ACHIEVE ITS
PROPOSED ENROLLMENT TARGETS AND EXECUTE ITS RESPONSIBILITIES IN
ACCORDANCE WITH THIS SECTION.
Ch. 475 2024 LAWS OF MARYLAND
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(F) FOR GOOD CAUSE SHOWN , THE COMMISSION MAY DELAY FOR A
REASONABLE PERIOD O F TIME THE DEADLINE FOR AN INVESTOR –OWNED ELECTRIC
COMPANY TO COMPLY WI TH THE PROVISIONS OF THIS SECTION.
(G) (1) A MUNICIPAL ELECTRIC U TILITY OR ELECTRIC C OOPERATIVE
MAY FILE WITH THE COMMISSION ONE OR MOR E TIME–OF–USE TARIFFS IN THE
SAME MANNER AS AN I NVESTOR–OWNED ELECTRIC COMPA NY UNDER THIS SECTIO N.
(2) IF A MUNICIPAL ELECTR IC UTILITY OR ELECTR IC COOPERATIVE
ELECTS TO FILE WITH THE COMMISSION A TIME –OF–USE TARIFF UNDER THI S
SECTION, THE PROVISIONS OF TH IS SECTION THAT APPL Y TO AN INVESTOR –OWNED
ELECTRIC COMPANY SHALL ALSO APPLY TO THE MU NICIPAL ELECTRIC UTI LITY OR
ELECTRIC COOPERATIVE .
7–1004.
(A) ON OR BEFORE APRIL MAY 1, 2025, THE COMMISSION SHALL ADOP T
REGULATIONS TO :
(1) ESTABLISH EXPEDITED PROCESSES FOR INTERC ONNECTING THE
FOLLOWING SYSTEMS TO THE ELECT RIC DISTRIBUTION SYS TEM:
(1) (I) BIDIRECTIONAL ELECTR IC VEHICLE SYSTEMS C APABLE OF
PROVIDING ELECTRICIT Y TO THE ELECTRIC DI STRIBUTION SYSTEM ; AND
(2) (II) BIDIRECTIONAL ELECTR IC VEHICLE SYSTEMS T HAT DO NOT
PROVIDE ELECTRICITY TO THE ELECTRIC DIST RIBUTION SYSTEM BUT DO PROVIDE
ELECTRICITY TO A HOM E, BUSINESS, OR OTHER STRUCTURE S ERVICED BY AN
ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY; AND
(2) PROVIDE INVEST OR–OWNED ELECTRIC COMPA NIES WITH
ADEQUATE TIME TO ENS URE ELECTRIC DISTRIB UTION SYSTEM RELIABI LITY IN
ADVANCE OF THE INTER CONNECTIONS DESCRIBE D IN ITEM (1) OF THIS
SUBSECTION.
(B) AN ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY:
(1) MAY REQUIRE A CUSTOM ER TO PROVIDE NOTICE TO THE
ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY IF THE CUSTO MER INSTALLS A
BIDIRECTIONAL ELECTR IC VEHICLE SYSTEM DE SCRIBED IN SUBSECTIO N (A)
(A)(1)(II) OF THIS SECTION; BUT AND
WES MOORE, Governor Ch. 475
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(2) MAY NOT REQUIRE THE CUSTOMER TO ENTER INTO A NET ENE RGY
METERING CONTRACT OR OTHERWISE APPLY FOR INTERCONNECTION WITH THE
ELECTRIC DISTRIBUTIO N SYSTEM.
(2) SHALL REQUIRE A CUST OMER TO APPLY FOR IN TERCONNECTION
IF THE CUSTOMER CONF IGURES A BIDIRECTION AL ELECTRIC VEHICLE SYSTEM TO
PROVIDE ELECTRICITY TO THE ELECTRIC DIST RIBUTION SYSTEM .
(C) A MUNICIPAL ELECTRIC U TILITY OR AN ELECTRI C COOPERATIVE MAY
COMPLY WITH THE REQU IREMENTS OF SUBSECTI ON (B) OF THIS SECTION IN T HE
SAME MANNER AS AN IN VESTOR–OWNED ELECTRIC COMPA NY.
7–1005.
(A) (1) THE COMMISSION SHALL DEVE LOP A PROGRAM FOR EA CH
ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY TO ESTABLISH A PILOT PROGRAM
OR TEMPORARY TARIFF TO COMPENSATE OWNERS AND AGGREGATORS OF
DISTRIBUTED ENERGY R ESOURCES FOR ELECTRI C DISTRIBUTION SYSTE M SUPPORT
SERVICES ON A PAY –FOR–PERFORMANCE BASIS THROUGH AN INCENTIVE
MECHANISM DETERMINED BY THE COMMISSION.
(2) ON OR BEFORE JANUARY 1, 2025, THE COMMISSION SHALL
ADOPT REGULATIONS ES TABLISHING PROGRAM R EQUIREMENTS TO ACHIE VE
ELECTRIC SYSTEM BENE FITS USING DISTRIBUTED ENERGY R ESOURCES.
(B) (1) (I) ON OR BEFORE JULY 1, 2025, EACH ELECTRIC
INVESTOR–OWNED ELECTRIC COMPANY SHALL SUBMIT TO THE COMMISSION FOR
APPROVAL A PILOT PRO GRAM OR TEMPORARY TARIFF FOR ELECTRIC
DISTRIBUTION SYSTEM SUPPORT SERVICES THA T PROVIDES REASONABL E
COMPENSATION ON A PAY–FOR–PERFORMANCE BASIS TO RENEWABLE ON–SITE
GENERATING SYSTEMS THROUGH A MECHANISM DETERMINED BY THE
COMMISSION.
(2) (II) THE PILOT PROGRAM OR TEMPORA RY TARIFF SUBMITTED
UNDER PARAGRAPH (1) OF THIS SUBSECTION SUBPARAGRAPH (I) OF THIS
PARAGRAPH SHALL PROVIDE THAT E LECTRIC DISTRIBUTION SYSTEM SUPPORT
SERVICES TO ON –SITE ENERGY STORAGE DEVICES BE USED FOR SYSTEM PEAK
REDUCTION ACCORDING TO A SCHED ULE AT A FREQUENCY OF AT LEAS T 30 EVENTS
PER YEAR.
(C) ANY PILOT PROGRAM OR TEMPORARY TARIFF SUB MITTED UNDER THIS
SECTION SHALL ESTABL ISH A STRUCTURE FOR PERFORMANCE PAYMENTS THAT IS
DESIGNED TO COVER TH E COST OF DISTRIBUTE D ENERGY RESOURCES T O AN OWNER Ch. 475 2024 LAWS OF MARYLAND
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OR AGGREG ATOR PROVIDING ELECT RIC DISTRIBUTION SYS TEM SUPPORT
SERVICES.
(2) (I) A MUNICIPAL ELECTRIC U TILITY OR AN ELECTRI C
COOPERATIVE MAY ESTA BLISH A PILOT PROGRA M, TEMPORARY TARIFF , OR
PERFORMANCE MECHANIS M UNDER THIS SECTION .
(II) IF A MUNICIPAL ELECTR IC UTILITY OR ELECTRIC
COOPERATIVE ESTABLIS HES A PILOT PROGRAM , TEMPORARY TARIFF , OR
PERFORMANCE MECHANIS M UNDER THIS SECTION , THE PROVISIONS OF TH IS
SECTION AND §§ 7–1006 AND 7–1007 OF THIS SUBTITLE THA T APPLY TO AN
INVESTOR–OWNED ELECTRIC COMPA NY SHALL ALSO APPLY TO THE MUNICIP AL
ELECTRIC UTILITY OR ELECTRIC COOPERATIVE .
(C) (1) NOTWITHSTANDING ANY P ROVISION OF THIS SUB TITLE, AN
INVESTOR–OWNED ELECTRIC COMPA NY MAY PROPOSE AND S UBMIT TO THE
COMMISSION A PERFORMA NCE MECHANISM TO COV ER THE COST OF USING
DISTRIBUTED ENERGY R ESOURCES OR AN AGGRE GATOR OF DISTRIBUTED ENERGY
RESOURCES UNDER THIS SUBTITLE.
(2) THE COMMISSION MAY APPROV E A PERFORMANCE MECH ANISM
SUBMITTED UNDER PARA GRAPH (1) OF THIS SUBSECTION I F THE COMMISSION
DETERMINES THAT THE PERFORMANCE MECHANISM IS IN THE PUBLIC INTEREST .
(D) (1) ON OR BEFORE OCTOBER 1, 2025, THE THE COMMISSION SHALL
APPROVE, DENY, OR APPROVE WITH AMEN DMENTS A PILOT PROGR AM OR
TEMPORARY TARIFF SUB MITTED UNDER THIS SE CTION FOR EACH ELECTRIC
INVESTOR–OWNED ELECTRIC COMPANY IN AN EXPEDITED MANN ER.
(2) THE COMMISSION SHALL IF THE COMMISSION DETERMINES THAT
TRANSITIONING A PILO T PROGRAM OR TEMPORA RY TARIFF TO A PERMA NENT
PROGRAM OR TARIFF IS IN THE PUBLIC INTERE ST, THE COMMISSION MAY
ESTABLISH A PROCESS FOR AN ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY
TO TRANSITION A PILO T PROGRAM OR TEMPORA RY TARIFF TO A PERMA NENT
PROGRAM OR TARIFF FO R ELECTRIC DISTRIBUT ION SYSTEM SUPPORT S ERVICES.
(3) EACH IF THE COMMISSION DETERMINES THE TRANSITION TO A
PERMANENT PROGRAM OR TARIFF IS IN THE PUB LIC INTEREST, EACH CUSTOMER
PARTICIPATING IN A P ILOT PROGRAM OR TEMP ORARY TARIFF APPROVE D UNDER
PARAGRAPH (1) OF THIS SUBSECTION SHALL MAY BE TRANSITIONED TO A
PERMANENT PROGRAM OR TARIFF FOR ELECTRIC DISTRIBUTION SYSTEM SUPPORT
SERVICES WHEN THE PROGRAM O R TARIFF IS APPROVED BY THE COMMISSION.
WES MOORE, Governor Ch. 475
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(E) (1) THE COMMISSION MAY ALLOW THE ENERGY GENERATED BY A
RENEWABLE ON –SITE GENERATING SYST EM THAT PROVIDES ELE CTRIC
DISTRIBUTION SYSTEM SUPPORT SERVICE UNDE R A PILOT PROGRAM OR
TEMPORARY TARIF F APPROVED UNDER SUB SECTION (D)(1) OF THIS SECTION TO
COUNT TOWARDS THE ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY’S
GREENHOUSE EMISSIONS REDUCTION GOALS UNDE R § 7–211 OF THIS TITLE.
(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , THE
CUMULATIVE E NERGY STORAGE CAPACI TY OF ANY ENERGY STO RAGE DEVICES
INSTALLED ON A CUSTO MER’S PROPERTY IN ACCORD ANCE WITH THIS SUBTI TLE
SHALL COUNT TOWARDS THE TARGETS ESTABLIS HED UNDER § 7–216.1 OF THIS
TITLE.
(II) SUBPARAGRAPH (I) OF THIS PARAGRAPH DO ES NOT
INCLUDE THE ENERGY STORAGE C APACITY OF:
1. ELECTRIC VEHICLES TH AT ARE PART OF A
RENEWABLE ON –SITE GENERATING SYST EM; OR
2. MOBILE ENERGY STORAG E DEVICES.
(F) THE CUMULATIVE NAMEPL ATE CAPACITY OF RENE WABLE ON–SITE
GENERATING SYSTEMS P ARTICIPATING IN A PI LOT PROGRAM OR TEMPO RARY
TARIFF APPROVED UNDE R THIS SECTION MAY N OT EXCEED 2% OF THE
INVESTOR–OWNED ELECTRIC COMPA NY’S HIGHEST RECORDED C OINCIDENT PEAK
DEMAND.
7–1006.
(A) (1) THE COMMISSION MAY APPROVE OR REQUIRE A N
INVESTOR–OWNED ELECTRIC COMPANY TO OFFER UPFRONT INCENT IVES OR
REBATES TO CUSTOMERS TO ACQUIRE AND INSTA LL RENEWABLE ON –SITE
GENERATING SYSTEMS I F THE CUSTOMER :
(I) ENROLLS IN A PILOT P ROGRAM OR TEMPORARY TARIF F
ESTABLISHED UNDER § 7–1005 OF THIS SUBTITLE; AND
(II) ALLOWS THE SYSTEM TO BE USED FOR ELECTRIC
DISTRIBUTION SYSTEM SUPPORT SERVICES FOR A PERIOD OF NOT LESS THAN 5
YEARS.
(2) THE COMMISSION MAY :
Ch. 475 2024 LAWS OF MARYLAND
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(I) AUTHORIZE OR REQUIRE AN INVESTOR–OWNED ELECTRIC
COMPANY TO PROVIDE A N ADDITIONAL INCENTI VE OR REBATE FOR LOW – OR
MODERATE–INCOME CUSTOMERS WHO APPLY FOR AN INCENTI VE OR REBATE
UNDER THIS SECTION ; AND
(II) REQUIRE AN INVESTOR–OWNED ELECTRIC COMPANY TO
PRIORITIZE THE OFFER OF INCENTIVES OR REB ATES UNDER THIS SECT ION TO
LOW– OR MODERATE –INCOME CUSTOMERS .
(B) IN DETERMINING WHETHE R TO REQUIRE AN INVESTOR–OWNED
ELECTRIC COMPANY TO OFFER AN INCENTIVE O R REBATE UNDER THIS SECTION,
THE COMMISSION SHALL CONSIDER:
(1) THE BENEFIT OF REDUC ING THE OPERATION OF PEAK
GENERATING FACILITIE S IN OVERBURDENED AN D UNDERSERVED COMMUN ITIES;
(2) THE BENEFIT OF RESIL IENCY AND SERVICE OU TAGE AVOIDANCE
FOR CUSTOMERS WITH O N–SITE GENERATING SYST EMS; AND
(3) THE POTENTIAL FOR ELECTRIC INVESTOR–OWNED ELECTRIC
COMPANIES TO REDUCE EXPENSES RELATING TO ELECTRIC DISTRIBUTIO N SYSTEM
INFRASTRUCTURE BY LE VERAGING CUSTOMERS ’ ON–SITE GENERATING SYST EMS.
(C) THE COMMISSION SHALL CONS IDER ESTABLISHING A LIMIT ON THE
AMOUNT OF INCENTIVES OR REBATE S ISSUED IN A MANNER THAT ACHIEVES
DEPLOYMENT GOALS WHI LE MITIGATING POTENT IAL CUSTOMER IMPACTS .
(D) THE COMMISSION SHALL CONS ULT WITH THE MARYLAND ENERGY
ADMINISTRATION , WHEN APPROVING OR RE QUIRING AN INCENTIVE OR REBATE
UNDER THIS SECTION, TO ENSURE THAT THE I NCENTIVE OR REBATE I S DESIGNED
TO SUPPLEMENT , TO THE GREATEST EXTE NT POSSIBLE, OTHER AVAILABLE STATE
AND FEDERAL INCENTIV ES FOR CUSTOMER ADOP TION OF RENEWABLE ON –SITE
GENERATING SYSTEMS .
7–1007.
(A) AN ELECTRIC INVESTOR–OWNED ELECTRIC COMPANY MAY RECOVER
ALL REASONABLE COSTS INCURRED IN:
(1) PARTICIPATING IN A PILOT PROGRAM OR T EMPORARY TARIFF
AND ADMINISTERING A PROGRAM UNDER § 7–1005 OF THIS SUBTITLE; AND
WES MOORE, Governor Ch. 475
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(2) OFFERING AN UPFRONT INCENTIVE OR REBATE UNDER § 7–1006
OF THIS SUBTITLE.
(B) TO THE EXTENT FEASIBL E, THE COSTS LISTED IN SUBSECTION (A) OF
THIS SECTION SHALL B E RECOVERED BY THE ELECTRIC INVESTOR–OWNED
ELECTRIC COMPANY WITHIN THE C ALENDAR YEAR IN WHIC H THOSE COSTS WERE
INCURRED.
(C) NOTWITHSTANDING ANY P ROVISION OF THIS SUB TITLE, AN ELECTRIC
INVESTOR–OWNED ELECTRIC COMPANY MAY PURSUE A ND USE A PERFORMANCE
INCENTIVE MECHANISM TO COVER THE COST OF USING DISTRIBUTED EN ERGY
RESOURCES OR AN AGGR EGATOR OF DISTRIBUTE D RESOURCES UNDER TH IS
SUBTITLE.
7–1008.
(A) THIS SECTION APPLIES ONLY TO AN ELIGIBLE CUSTOMER–GENERATOR
THAT IS:
(1) PARTICIPATING IN AN ELECTRIC COMPANY ’S NET ENERGY
METERING PROGRAM ; AND
(2) USING AN ENERGY STOR AGE DEVICE THAT :
(I) IS CHARGED ONLY FROM THE ELIGIBLE
CUSTOMER–GENERATOR ’S GENERATING FACILIT Y THAT CREATES NET E XCESS
GENERATION ; OR
(II) ACCRUES NET EXCESS G ENERATION ONLY FOR E NERGY
CREATED BY AN ON –SITE ENERGY GENERATI NG SYSTEM.
(B) THE DISPATCH OF ENERG Y FROM AN ENERGY STORAGE DEVICE TO THE
ELECTRIC DISTRIBUTIO N SYSTEM UNDER A PIL OT PROGRAM OR TEMPOR ARY
TARIFF ESTABLISHED U NDER § 7–1005 OF THIS SUBTITLE MAY NOT BE CONSIDERED
DUPLICATIVE OF ANY V ALUE REALIZED BY THE ELIGIBLE CUSTOMER –GENERATOR
THROUGH NET ENERGY M ETERING.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2024.
Approved by the Governor, May 9, 2024.