Department of State Police - Centralized Background Check Division
Summary
HB1419 makes several changes to Maryland law governing electric distribution system support services, which are programs and tariffs used to compensate owners and aggregators of distributed energy resources for providing grid support. The bill requires the Public Service Commission (PSC) to approve regulatory asset accounting for certain recoverable costs if the PSC determines those costs are consistent with the goals of the relevant pilot programs and tariffs. It also allows investor-owned electric companies to recover reasonable program costs and continue using performance incentive mechanisms to cover costs associated with distributed energy resources.
The bill further clarifies that a person or company participating as an aggregator in an approved pilot program may not be treated as an electric company or electricity supplier solely because of that participation. It also states that nothing in the section should be read to prevent electric companies, private entities, or aggregators from offering energy storage to residential customers outside the pilot program or temporary tariff. In addition, upon request by an electric company, the PSC must authorize the use of customer usage and production data from customer-owned distributed energy resources to administer these programs.
Beyond the cost-recovery and data provisions, HB1419 directs the PSC to study energy storage programs in other states by January 1, 2026, and then work with electric companies and stakeholders to design Maryland programs to expand home- and business-sited energy storage by June 1, 2026. The bill reflects a policy finding that distributed energy storage can improve reliability and provide electric system benefits in Maryland.
The overall sentiment appears generally favorable, as reflected by the committee report and the House’s adoption of the bill, and the bill ultimately passed third reading with a substantial margin. The discussion record provided does not include detailed testimony or recorded objections, so specific points of debate are not available from the transcript materials. Based on the bill’s structure, likely areas of interest or concern would include utility cost recovery, the use of customer data, and how broadly energy storage offerings may be provided outside the pilot framework.
Impact
HB1419 amends the Public Utilities Article, primarily Sections 7-1005 and 7-1007, to expand and clarify the PSC’s authority over distributed energy resource pilot programs, cost recovery, and energy storage planning. It requires PSC approval of regulatory asset accounting under specified conditions, authorizes use of customer usage and production data for program administration, and directs the PSC to evaluate out-of-state storage programs and design new Maryland programs for home and business energy storage. The bill affects investor-owned electric companies, aggregators of distributed energy resources, private energy storage providers, and customers participating in these programs.
Sentiment
The bill appears to have received broadly positive treatment in the legislative process. It was reported favorably with amendments by committee, adopted by the House, and passed third reading by a wide margin (99 yeas to 39 nays). No committee transcript was provided, so the record does not show detailed debate, but the vote suggests general support with some opposition or reservations.
Contention
The main likely points of contention are utility regulation and consumer-data issues. Some lawmakers or stakeholders may have questioned granting the PSC authority to approve regulatory asset accounting and allowing utilities to recover costs through these programs, while others may have focused on whether customer usage and production data should be used for program administration. Another possible area of disagreement is the bill’s clarification that aggregators are not electric companies or electricity suppliers solely because they participate in a pilot program, which affects regulatory classification and market participation. The available materials do not identify specific speakers or organizations taking these positions.