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Gov. Signs Law Requiring "Each Electricity Supplier" To Purchase Energy Storage Credits
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Maryland Governor Wes Moore has signed SB 937 which requires "each electricity supplier" to purchase energy storage capacity credits under a state procurement program
SB 937 requires the Maryland PSC to develop a process to develop and procure front–of–the–meter transmission energy storage devices
Any order from the PSC approving such a procurement shall provide that, "each electricity supplier shall be
responsible for purchasing storage capacity credits at the monthly
fixed price schedule proportional to the electricity supplier’s
capacity obligation."
The term "electricity supplier" is broad in Maryland, and includes a person who sells electricity or electricity supply services or who purchases, brokers, arranges, or markets electricity or
electricity supply services for sale to a retail electric customer. "Electricity supplier" includes an electric company, an aggregator, a
broker, and a marketer of electricity. An "electric company" generally means the distribution utility
While an existing energy storage target, with related procurements, exists under prior Maryland law, such prior statute was limited to an, "investor–owned electric company."
Under SB 937, the PSC in any storage approval would set a 15–year pricing schedule that uses a monthly fixed price for each megawatt that represents the anticipated
wholesale value of capacity for the front–of–the–meter transmission
energy storage device and the benefits identified in the bill (e.g. avoided transmission, avoided emissions, etc.)
Under the bill, all PJM capacity market revenue earned by
the energy storage project shall be transmitted to the PSC to be
held in escrow for distribution to electric companies to be refunded
or credited to each distribution customer proportional to the
electricity supplier’s monthly capacity purchase obligation
Notably, SB 937 requires that, "for any cost recovery by an electric company, that
the recovery shall be done through a nonbypassable surcharge
established by the electric company that is added to the electric
company’s base distribution rate or supply rate on customer bills."
SB 937 authorizes a maximum of 1,600 MW of front–of–the–meter transmission energy storage through the procurements, subject to PSC approval
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May 20, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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