|
|
|
|
|
Choice State PSC Staff "Skeptical" Of Open-Ended Or Long-Term Process For New Capacity, Favors Discrete Actions
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
Staff of the Maryland PSC are "skeptical" of, "the value of establishing a long-term, open-ended process for
procuring [electric] supply in Maryland to alleviate resource adequacy at least cost to ratepayer," Staff said in comments on a preliminary report concerning new capacity policy options
Staff is particularly skeptical of an open-ended process for new capacity relative to the status quo, under which the Commission implements discrete
legislatively directed procurements for specified technologies such as those required in PUA §§ 7-
216 through 7-216.2 for distribution energy storage, 7-704.1 through 7-704.4 for offshore wind,
7-1204 through 7-1209 for dispatchable energy generation and large capacity energy resources
(indicating a prioritization for resource adequacy), and 7-1224 through 7-1227 for transmission
energy storage.
Staff's comments were filed in response to a preliminary report from a consultant retained by the PSC to review new capacity policy options for Maryland.
The consultant reviewed various options for new capacity, such as utility-owned generation and long-term contracting, among other policies
As previously reported by ECM, the preliminary report said that the utility-owned policy option for new generation procurement, and the build-and-transfer-to-utility policy option, have the "highest regret" among the studied models
See background here
PSC Staff would recommend that, if a procurement is deemed necessary by the PSC, the
Commission should conduct discrete procurements with defined priorities that, among other things, specify the system need and desired performance characteristics of new capacity, and establish capacity amount targets, timelines, and/or circumstances that would trigger the
Commission to implement a procurement
"It may also be beneficial to observe the results of future BRAs after implementation of
regulatory structures intended to reduce resource adequacy’s risk to non-large load customers such
as PJM’s RBP and/or IRAS and the Maryland large load tariff," Staff said
Baltimore Gas and Electric Company (“BGE”), Potomac
Electric Power Company (“Pepco”) and Delmarva Power & Light Company (“Delmarva Power”)
(collectively, the “Joint Maryland Exelon Utilities” or “JMEU”) filed comments "challeng[ing]" the consultant's Preliminary Report, as the JMEU alleged that the Preliminary Report, "1) lacks
substantive review of the nine models considered, as it only gives in most cases a sentence
describing its rationales supporting its scoring; and 2) does not give sufficiently well-supported
consideration to the utility-owned generation option among the nine models considered, overrelies on other commenters’ assessment of utility owned generation, and disregards the utility
owned generation model that has significant historical precedent, as well in current use nationwide,
while ranking alternative models more favorably in some of the criteria considered, again with
sparse support."
The JMEU further alleged that the report, "assumes that the utility-owned generation model shifts risks to customers, while
IPPs bear the risks."
The JMEU said that, "This assumption fails in several respects," alleging, among other things, that IPP cost and risk premiums are embedded in PPA prices and investor expectations.
The JMEU said that the report, "assumes competitive markets produce efficient entry signals, which is not
currently the case, as state policymakers are examining alternatives precisely
because the market has not delivered adequate resource addition".
The JMEU said that, "The Preliminary Report is focused on utility stranded cost risk and not resource adequacy,
when resource adequacy is Maryland’s biggest concern."
PC66, PC 66
ADVERTISEMENT Copyright 2026 EnergyChoiceMatters.com. Unauthorized copying, retransmission, or republication
prohibited. You are not permitted to copy any work or text of EnergyChoiceMatters.com without the separate and express written consent of EnergyChoiceMatters.com
September 17, 2026
Email This Story
Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
NEW Jobs on RetailEnergyJobs.com:
• NEW -- Enrollment & Rate Management Director - Retail Supplier
• NEW -- Strategic Sales Channels Manager - Retail Supplier
• NEW -- Controller - Retail Provider
• NEW -- Manager, Product I - VXRetail (Retail Energy)
• Refreshed 5/27/26 -- Manager, ISO Coordination (electricity), Retail Supplier
|
|
|
|
|