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Maryland

Legislative activities

Maryland has been active in legislation that pertains to smart grid development. Starting in 1997 Maryland enacted net-metering laws for bi-directional metering which have been revised in 2009 and again in 2010 and implemented though the Maryland Public Service Commission. [6]

In 2007 the legislators required the Maryland Public Service Commission to for a small generator interconnection working group to develop interconnection standards in SB 595. [5]

The Maryland legislature had created laws protecting the rights of solar energy system owners as early as 1980 and re-addressed the issue in 2008. (H.B. 117) [4]

“In April 2008, Governor O’Malley signed two bills:

1. The EmPower Maryland Energy Efficiency Act sets efficiency and peak-demand reduction portfolio standards, mandates utilities to file demand response plans, and directs the Maryland Public Service Commission to consider whether smart meters are “are cost–effective in reducing consumption and peak demand of electricity” (SB 205/HB 374).

2. The Regional Greenhouse Gas Initiative—Maryland Strategic Energy Investment Program Act creates the Maryland Strategic Energy Investment Program (housed in the Maryland Energy Administration), which will fund demand response programs (HB 368).” [7]


Regulatory activities

In 1997, as directed by the legislature, the Maryland Public Service Commission had addressed the issue of net metering. By 2000, the Commission had dealt with distributed generation within the PJM marketplace. In 2008 the Maryland Energy Administration developed the “Maryland Strategic Electricity Plan” which makes 19 recommendations many of which impact smart grid development. In 2008 the Maryland Public Service Commission approved residential demand response. Times of use for business were one of the early issues the commission reviewed and were evaluated by 2009 for residential customers. [1, 2, 3]

As Maryland is within the PJM footprint there is the opportunity for end-use customers to participate in demand response though curtailment service providers outside of the utility rates and tariffs.

“In February 2007, the Maryland Public Service Commission deferred its decision about whether to adopt PURPA Standard 14 (“Time-Based Metering and Communications”) as enacted in EPACT 2005. It wrote:

“…the Commission hereby advises its jurisdictional electric utilities that it will not direct the wholesale implementation of the above-mentioned standards at this time. The Commission will continue to evaluate the standards and other demand response measures through its work group and any specific utility filings with the Commission. It will consider the working group’s efforts and conduct further proceedings in this matter, if necessary, within two years of the effective date of [the Energy Policy] Act.”

In May 2008, the Commission held a public conference with the purpose of gathering information about select issues regarding the implementation of the EmPower Maryland Energy Efficiency Act of 2008. (The EmPower Maryland Energy Efficiency Act requires the Commission to evaluate the cost effectiveness of smart meters and a smart grid, and it allows the Commission to mandate the implementation of cost effective smart meter or smart grid technologies.)” [7]

Time-of-use rates, time metered rates, and the experimental shoulder-peak rates just break the cost for electricity or demand into periods on a seasonal basis either on-peak, intermediate, or off-peak pricing.

Net metering is available for any customer’s facility where energy production exceeds the energy supplied by the Company.

Demand response credits customers for allowing specific electrical equipment to be interrupted based on selected option based on certain grid conditions.

Distributed generators include qualifying cogeneration, small power production facilities, and net metering generators where prices are negotiated or energy netted out.


Utilities and Rate Schedules

Baltimore Gas and Electric Company
- Baltimore Gas and Electric Company Rates

Delmarva Power & Light Company
- Delmarva Power & Light Company Rates

The Potomac Edison Company
- The Potomac Edison Company Rates

Potomac Electric Power Company
- Potomac Electric Power Company Rates

See the National Rural Electric Cooperative Association (NRECA) for information on consumer-owned Cooperatives: http://www.nreca.org/members/MemberDirectory/Pages/default.aspx


State-Level Incentives

Maryland has several tax incentives on renewable energy generation including personal, property, and corporate tax credits on solar, geothermal, and wind. They also grants on solar and wind. There is also the EmPower loan program that includes loans for peak demand reduction systems.

More information can be found in the Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=MD


Additional Resources

State Energy Office:
- Maryland Energy Administration

State Authority Dealing with Energy Regulation:
- Maryland Public Service Commission
- Docket Search: http://webapp.psc.state.md.us/Intranet/AdminDocket/CaseForm_new.cfm

Maryland Code

Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=MD


References

[1] Pepco – Maryland Electric. URL: http://www.pepco.com/_res/documents/md_tariff.pdf
[2] DPL – Maryland Electric. URL: http://www.delmarva.com/_res/documents/DPLMdMasterTariff.pdf
[3] Allegheny Power, Maryland Tariffs. URL: http://www.alleghenypower.com/Tariffs/MD/MDTariff.asp
[4] Database of State Incentives for Renewables & Efficiency, Maryland Solar Access Laws, 04/10/2010. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=MD01R&re=1&ee=1
[5] Database of State Incentives for Renewables & Efficiency, Maryland Interconnection Standards, 05/11/2010. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=MD06R&re=1&ee=1
[6] Database of State Incentives for Renewables & Efficiency, Maryland – Net Metering, 05/05/2010. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=MD03R&re=1&ee=1
[7] Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: A Summary for State Officials, Prepared by the U.S. Demand Response Coordinating Committee for The National Council on Electricity Policy, Fall 2008. URL: http://www.oe.energy.gov/DocumentsandMedia/NCEP_Demand_Response_1208.pdf