Maryland PSC To Examine Rate Design, Distributed Resources, Low-Income Protections in Grid Transformation Proceeding

The Maryland PSC has opened a new proceeding (PC44) concerning the transformation of the electricity grid.

The proceeding will examine in particular:

1. Rate Design: exploring time-varying rates for traditional electric service, Distributed Energy Resources (DERs) and EVs and considering pilot programs for driving desired results through performance-based compensation;

2. Benefits and Costs of DERs: calculating comprehensively the Maryland-specific benefits and costs of solar (and perhaps other DERs) – including specific consideration of solar's geographic and grid location – for potential use in future utility tariffs, with assistance of a consultant paid for by an undetermined portion of the $500,000 pledged by PHI as a result of Case No. 9361;

3. Advanced Metering Infrastructure (AMI): maximizing AMI’s benefits for Maryland ratepayers;

4. Energy Storage: classifying storage properly in Commission rules and policies and valuing it appropriately as a distribution or customer-sited resource;

5. Interconnection Process: implementing rules and policies to promote competitive, efficient and predictable DER markets that maximize customers’ choices;

6. Distribution System Planning: ensuring that utilities’ distribution systems have the capability to handle increased DER penetration and evaluating the appropriate level of utility investment in distribution assets; and

7. Limited-Income Marylanders: assessing the effects of the evolving electric distribution system on Marylanders with limited means.

The PSC invited comments to begin the review, and said that the first public meeting in the proceeding is anticipated to be scheduled for early December 2016

The Commission intends to conclude the proceeding public conference no later than 18 months from the date of the first public hearing.