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Proposed Implementation Of Energy Storage Mandate On Retail Suppliers Would Be Accomplished Via Nonbypassable Recovery, Under Workgroup Report
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A Maryland workgroup report has made non-consensus recommendations regarding implementation of energy storage procurements required to be undertaken by retail electric suppliers and the utilities (for SOS customers) under Public Utilities Article (PUA) § 7-1224 through § 7-1229 (Next Generation Energy
Act)
The report proposes that the PSC establish a non-bypassable "cost recovery mechanism" pursuant to PUA § 7–1226 under which costs shall be recovered either through (i) a distribution rider on electric companies’ customer bills, or (ii) a supply charge applied by retail electric suppliers or by electric companies for default supply service to ensure the timely and full payment of all Energy Storage Capacity Credits (ESCC) price schedule obligations.
As noted in the language further below, while certain of the workgroup recommendations specifically propose the use of a central agent procuring ESCCs on behalf of retail suppliers, with a specific nonbypassable "distribution" charge for cost recovery, other provisions leave open the possibility that ESCC costs would be paid by the central agent "or" the retail suppliers and the utilities for SOS customers, with the non-bypassable recovery not necessarily achieved via "distribution" charge
The report states, "A Non-bypassable Distribution Charge ('NBC') shall be applied to all electric customers to ensure equitable cost recovery."
The report states, "The electric companies shall determine a Central Agent to procure ESCCs on behalf of all retail suppliers, ensuring a single recovery pathway through the NBC and to reduce the risk of double-billing."
The report states, "The Escrow Administrator will invoice Electricity Suppliers or the Central Agent monthly for ESCC purchases, and determine the amount invoiced based on ESCC Payment Rate, electricity sales data, the Electricity Supplier’s capacity obligation and authorized ESCCs. The Commission Electricity Supplier’s capacity obligation for purchasing ESCCs is based on the Electricity Supplier's share of PJM-assigned Zonal Peak Load Contribution ('PLC')."
The report states, "Electricity Suppliers or the Central Agent must pay invoices for ESCC purchases within 10 business days. Late payment notices are issued within 3 business days of the due date, and if payment isn't received within 10 business days, the matter is referred to the Commission. Late payments incur a compounded quarterly fee based on the average prime rate."
The report states, "Although a lower priority at this time, the Commission may
also consider requesting comments from stakeholders on their positions for establishing an
escrow account for the purpose of coordinating between electric companies and electricity
suppliers ESCC purchases and non-bypassable distribution charges."
The report proposes that the PSC shall require Electricity Suppliers by Order to provide an ESCC Escrow Administrator with updated Electricity Supplier information in accordance with the PJM seasonal capacity schedule in order to establish the Electricity Supplier's capacity obligation which shall apply to both Standard Offer Service (SOS) and retail choice Electricity Suppliers.
PC75, PC 75
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June 12, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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