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Governor Moore of Maryland approved SB 0937  on May 20, 2025.

Among other things the new law also requires “each electricity supplier” to purchase energy storage capacity credits under a state procurement program.  The new law is entitled the “Next Generation Energy Act. 

The Maryland Public Service Commission (PSC) must approve a procurement plan whereby “each electricity supplier shall be responsible for purchasing storage capacity credits at the monthly fixed price schedule proportional to the electricity supplier’s capacity obligation.”

The PSC must also develop and procure front–of–the–meter transmission energy storage device processes.

See:  Enrolled Bill Text

Summary from Fiscal and Policy Note: [ *** ]

∙ authorizes the Department of Housing and Community Development (DHCD) to issue loans, in addition to grants, for specified energy conservation and renewable energy projects under a program required by the Climate Solutions Now Act (CSNA) of 2022 and expands the sources of savings that DHCD may procure or provide when calculating the achievement of greenhouse gas (GHG) emissions reduction targets under the EmPOWER Maryland Program; 

∙ establishes requirements for investor-owned gas and electric companies to demonstrate the reasonableness of the use of internal labor in comparison to contractual labor in a base rate proceeding; 

∙ alters the purpose of the process for authorizing gas infrastructure replacement (“STRIDE”) surcharges, requires gas companies to submit additional information in proposed gas infrastructure replacement plans to PSC, and adds additional criteria necessary for PSC to approve such plans; 

∙ requires, by September 1, 2026, each investor-owned electric company and each electric cooperative to submit to PSC for approval a specific rate schedule for large load customers so that retail electric customers do not bear the financial risks associated with their interconnection (municipal electric utilities must submit a schedule for approval upon receipt of an application for service); 

∙ establishes requirements for PSC approval of multi-year rate plans and related cost or revenue variance reconciliations for electric, gas, and combination gas and electric companies;

 ∙ establishes requirements for investor-owned gas companies to recover costs for planned gas infrastructure investments; 

∙ prohibits investor-owned electric, gas, or combination gas and electric companies from recovering specified costs through rates;

∙ clarifies the applicability of certain contracts entered into by investor-owned gas, electric, or combination gas and electric companies for underground infrastructure work;

∙ establishes that it is the policy of the State to encourage the development of nuclear power; 

∙ requires the Maryland Energy Administration (MEA), in coordination with PSC and DNR, to pursue regional nuclear cost-sharing agreements with neighboring states and agreements with federal agencies regarding the siting of small modular reactors and establishes a related reporting requirement; 

∙ establishes two rounds of applications and approvals by PSC for 150 megawatts of distribution-connected front-of-the-meter energy storage devices;

∙ authorizes PSC to apply specified costs to behind-the-meter co-located commercial or industrial customers and generating stations and modifies related definitions; 

∙ establishes a solicitation, evaluation, and approval process for a minimum of approximately 3,100 megawatts of dispatchable energy generation and large capacity energy resources for expedited Certificates of Public Convenience and Necessity (CPCN);

∙ establishes an application process for new nuclear energy procurement overseen by PSC and a related reporting requirement; 

∙ establishes two rounds of applications and approvals by PSC for 1,600 megawatts of front-of-the-meter transmission energy storage devices; 

∙ authorizes fast-track procurements for specified consultants; 

∙ establishes a process to provide two residential electric customer bill credits in fiscal 2026, funded by Alternative Compliance Payment (ACP) revenues;

∙ removes waste-to-energy and refuse-derived fuel from eligibility for inclusion in the State Renewable Energy Portfolio Standard (RPS); 

∙ establishes that a presently existing obligation or contract right may not be impaired in any way by the bill; 

∙ establishes the General Assembly’s support of the extension or renewal of the federal license for the Calvert Cliffs Nuclear Power Plant; and 

∙ requires the Department of Human Services (DHS) to report to the Governor and the General Assembly on any legislative or regulatory changes necessary to combine all energy assistance programs operated by the State into one program. [ *** ]

SB 0937