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From Grant of Request: 

On July 9, 2024, Southern Maryland Electric Cooperative, Inc. (“SMECO”) submitted a request that the Commission extend the deadline to submit comments on the above-mentioned matter until July 26, 2024. After considering the matter, SMECO’s request for an extension of time for all interested parties to file comments by July 26, 2024 is hereby granted.

From Senate President Bill Ferguson’s Comments: 

I am writing regarding the Public Service Commission’s (PSC) implementation of Senate Bill 1 (2024) and the study to be conducted pursuant to Section 6. As you know, the issue of co-location between high load end-use electric customers and existing electric generation facilities became a prominent discussion point towards the end of 2024 Legislative Session. Recognizing that more information was needed for the Maryland General Assembly to make informed decisions regarding State policy around such configurations, we asked the PSC to engage in the aforementioned study and report back by December 15, 2024.

Specifically, Senate Bill 1 requires the PSC to evaluate and report on: 1. Potential cost impacts to Maryland ratepayers related to these co-located load configurations; 2. Potential impacts to the wholesale capacity, energy and ancillary markets or the planning function overseen by PJM Interconnection, LLC; 3. Potential impacts to the reliability of the electric grid serving Maryland; and 4. The means to manage or mitigate the foregoing impacts.

As the PSC undertakes this charge, I request that it work with PJM Interconnection to slightly expand the scope of that report consistent with legislative intent. In particular, I ask that the PSC also include an evaluation of impacts and mitigants if an equal amount of end-use customer load instead (a) connects to the transmission or distribution system; or (b) chooses to locate in a neighboring state.

It is critical that the legislature also understand the impacts of these customers locating in a surrounding state instead of connecting directly to an electricity generation facility in Maryland. Further, there are costs and benefits associated with large end-users coming online regardless of configuration, whether “behind the fence” of a generation facility, connected to the grid, or located in a neighboring state. Evaluating co-located load configurations in isolation would provide incomplete information for future policy discussions instead identifying impacts or mitigants based on each potential configuration.

PJM Interconnection and the PSC play an integral role in enabling the General Assembly to obtain an unbiased, full understanding of the costs and benefits of co-location in our State. Thank you for that partnership. Please be in touch with any questions regarding this request.

Grant of Request – Extension of Time (07/09/2024) 
President Ferguson’s Comments (07/09/2024)
PC61 (06/21/2024)  
(Senate Bill 1 Co-Location Study)