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PSC Commences Consideration Of Using PJM Reliability Backstop Procurement Opt-Out Process
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The Maryland PSC has opened consideration of using the opt-out process under PJM's reliability backstop procurement (RBP), and issued a series of questions for comment (PC 82)
As previously reported, PJM's RBP provides an opt-out if the relevant utility is addressing its capacity needs through peak shaving adjustment programs that are codified in state law. See more background here
The opportunity to exercise the opt-out in PJM’s RBP proposal expires on October 21, 2026
Use of the opt-out would prevent the potential for a state to be defaulted to PJM's default allocation of RBP costs to LSEs on a load ratio share basis (meaning costs would not be borne by only large load customers), as under the opt-out no RBP costs would be assigned to the utility area opting-out
The PSC issued the following questions for comment:
1. Per PJM Proposed Tariff, Attachment DD, section 18.1(d), opting out of cost allocation
under the RBP using a peak-shaving program requires compliance with PJM Tariff
Attachment DD-2.
a. Do the utilities have existing peak shaving programs that are compliant with PJM
Tariff Attachment DD-2?
b. Do the utilities consider it viable to develop PJM Tariff-compliant programs that
can be submitted to PJM prior to October 21, 2026, as a means of opting out of the
RBP?
2. In addition to requiring compliance with PJM Tariff Attachment DD-2, opt-out under
section 18.1(d) requires a peak shaving adjustment program to be codified in state law. The
Commission is aware of a 'voluntary large-load interruptible interconnection process'
codified in PUA §4-212(h)(iii).
a. Are the utilities aware of any interest from customers in participating in a voluntary
interruptible interconnection process?
b. The Commission requests that the utilities reach out to their current and prospective
large load customers to gauge such interest, to the extent utilities have not yet done
so, and to share the results of this outreach with the Commission.
c. If there is known customer interest, how many megawatts in interruptible demand
do these customers represent?
d. As a practical matter, how could utilities ensure that large loads participating under
voluntary peak shaving programs would reduce demand as needed?
e. Is there any other statute that may comply with PJM’s proposed opt-out
requirement for a peak shaving program?
3. OPC asserts that the Commission has the authority to direct large load customers to
participate in a peak-shaving program. Do other stakeholders believe this to be within the
Commission’s jurisdiction?
4. What do stakeholders consider to be a legally durable framework for Commission
directives regarding RBP opt-out? Specifically, do stakeholders envision the RBP opt-out
could be effectuated through one or more Commission orders, or would it require the
implementation of regulations?
5. Are utilities aware of any bilateral agreements/contracts that have been made or are
expected to be made between their large load customers and eligible capacity which may
be submitted to PJM as 'Qualifying RBP Offset UCAP MW' under Proposed Tariff Attachment DD, section 18.2?
a. If so, please specify which customers (please align these answers with the answers
provided to the Commission’s previous Bench Request7) and how many megawatts
are or are expected to be part of these agreements/contracts.
b. Are there any other opportunities for submission to PJM of 'Qualifying RBP Offset
MW' to reduce the targeted procurement for Maryland that you think may exist?
Please elaborate if so.
The PSC scheduled for Sept. 25 a legislative-style hearing on the matter
"In order to meet deadlines in PJM’s RBP process, the Commission anticipates that
it will issue a decision on the RBP peak-shaving opt-out on or before October 21, 2026," the PSC said
PC 82, PC82
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September 11, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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