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Commission Issues Order On DRIVE (Distributed Renewable Integration and Vehicle Electrification) Act Pilot Programs Implementation
[ *** ] ORDERED:
(1) that on or before July 1, 2025, each investor-owned electric company must file with the Commission one or more time-of-use rate tariffs for appropriate customer classes to be made available to customers on an opt-in basis pursuant to PUA § 7–1003;
(2) that on or before July 1, 2026, each investor-owned electric company must submit a report to the Commission evaluating: (1) the potential to avoid or defer electric distribution system capital projects and (2) the merits and feasibility of transitioning all customers to a time-of-use tariff on an opt-out basis pursuant to PUA § 7–1003;
(3) that on or before November 1, 2024, the PC44 Interconnection Work Group must propose regulations to the Commission to establish expedited processes to interconnect V2G and ensure that electric companies have adequate time to ensure electric system reliability in advance of these interconnections pursuant to PUA § 7–1004;
(4) that on or before July 1, 2025, each investor-owned electric company must submit to the Commission for approval a pilot program or temporary tariff for electric distribution system support services provided by VPP and V2G programs that provide reasonable compensation on a pay-for-performance basis through temporary tariff proposals to be approved by the Commission pursuant to PUA § 7–1005;
(5) that the Maryland Energy Administration and other stakeholders provide comments on or before September 1, 2024 on the advisability of requiring an electric utility incentive or rebate for renewable on-site generating systems to supplement other available state and federal incentives. These incentives and rebates should be established to coordinate with the effective date for a pilot program or temporary tariff for electric distribution system support services pursuant to PUA § 7–1006;
(6) that the Commission requests comments on or before September 1, 2024, from stakeholders regarding the licensing of distributed energy resource aggregators. The Commission specifically requests comments on the existing COMAR 20.51.02.01 licensing requirements, and COMAR 20.51.02.02 application requirements, or modifications thereof, that are applicable to distributed energy resource aggregators along with any additional minimum requirements for these aggregators to maintain their licenses in good standing;
(7) that biannually, starting on or before February 1, 2026, each electric utility must provide information for the previous July through December and January through June reporting period in a report filed with the Commission. These periodic reports shall summarize the numbers of tariff participants approved and denied, if applicable, for each tariff. In addition, an investor-owned electric company must report the enrolled amount of load reduction by tariff, including information summarizing the actual performance of these tariffs as compared to the expected performance, in addition to any other metrics determined by the electric utility to be needed for evaluation of the pilot programs;
(8) that in order to facilitate the Commission meeting its DRIVE Act requirement to submit a report and recommendation on the TOU pilots by December 31, 2027, on or before October 1, 2027, each investor-owned electric company must submit a report to the Commission on the impacts of opt-in time-of-use tariffs on the electric distribution system along with timelines, feasibility, and merits, and whether a full transition to time-of-use rates is justified. In addition, each investor-owned utility must set a reasonable TOU enrollment target in this report pursuant to PUA § 7–1003;
(9) that on or before October 1, 2027, each investor-owned electric company must file with the Commission an assessment of any VPP and V2G pilot programs and temporary tariffs employed by the EDC that includes a cost effectiveness evaluation, quantitative and qualitative assessments of benefits received, costs, lessons learned to-date, and any conclusions regarding making the pilot program or temporary tariff a permanent program or tariff. If the Commission determines that transitioning a pilot program or temporary tariff is in the public interest, the Commission may require the electric utility to provide a plan to transition a pilot program or temporary tariff to a permanent program or tariff; and
(10) that the investor-owned electric companies must consult with the PC44 Time of Use Work Group, the PC44 Interconnection Work Group, and the PC44 Electric Vehicle Work Group to assist in establishing their relevant pilot programs and temporary tariffs, as needed.
Order No. 91218 (07/11/2024)
PC44 (09/26/2016)
(In the Matter of Transforming Maryland’s Electric Distribution Systems to Ensure that Electric Service is Customer-Centered, Affordable, Reliable and Environmentally Sustainable in Maryland)

