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Parties File Comments on Utility’s Treatment of Energy Storage Development Costs
Parties filed comments regarding the request for clarification from the Exelon utilities May 20th petition seeking regulatory asset treatment for an estimated $2.5 million in program-development costs to implement the distribution-connected storage plans under the Next Generation Energy Act.
OPC commented that it does not oppose adoption of the utilities’ proposed program development budget caps; however, it opposes granting regulatory asset treatment for the requested costs. Accordingly, the MDPSC should deny the Exelon utilities’ request for regulatory asset treatment and treat the proposed budgets solely as enforceable caps.
Staff recommended that BGE, Pepco, and DPL be authorized to defer costs as a regulatory asset for the development of their respective energy storage programs, capturing expenses related to internal resources, external services, and materials associated with program development activities.
Next Steps:
The MESP working group must file the Phase II final report with the MDPSC by July 1, 2026. that addresses an energy storage program design study recommendation and any other matter needing MDPSC direction.
As background, the Commission initiated this proceeding in response to legislation passed and signed into law earlier this year (HB910), which directed the PSC to establish “a Maryland Energy Storage Program that provides a competitive energy storage procurement program, with annual deployment targets for energy storage devices in Maryland.”
In this proceeding, the MDPSC established the Maryland Energy Storage Program Workgroup to facilitate the creation of the program.
