Investor-Owned Electric Companies - Generating and Transmission Facilities - Authorization
Summary
SB 951 would change Maryland law governing investor-owned electric companies by expressly authorizing them to construct, acquire, or lease and operate their own generating facilities and the transmission facilities needed to connect those facilities to the electric system. The bill amends Public Utilities Article § 7-510(c)(6) to make this authority explicit, subject to the requirements of Subtitle 2 of Title 7, which covers Public Service Commission oversight and related utility regulation.
The bill also narrows and clarifies the role of the Public Service Commission. Under current law, the Commission may require or allow an investor-owned electric company to build or operate generation and related transmission facilities under certain circumstances. SB 951 would remove the discretionary “allow” language and instead provide that, if the Commission determines such facilities are necessary to meet long-term anticipated demand for standard offer service and other electricity supply, it may require the utility to do so, subject to appropriate cost recovery. The bill takes effect October 1, 2025.
Impact
If enacted, SB 951 would amend Maryland’s Public Utilities Article to give investor-owned electric utilities direct statutory authority to own and operate generation and associated transmission assets, while preserving Commission oversight and cost-recovery protections. It would shift the statute from a more permissive, Commission-dependent framework to one that more clearly recognizes utility ownership of generation and interconnection facilities as an authorized option, potentially affecting utility planning, procurement, and infrastructure investment decisions.
Sentiment
No committee transcripts or recorded votes were provided, so there is no documented debate or vote history to indicate support or opposition. Based on the bill text alone, the measure appears to be a utility-structure and reliability bill framed around meeting long-term electricity demand, with an emphasis on clarifying authority rather than imposing a new mandate.
Contention
The main point of potential contention is the expanded role of investor-owned utilities in owning generation and transmission assets, which may raise concerns about market competition, utility monopoly power, and the scope of Commission oversight. Supporters are likely to view the bill as improving reliability, planning certainty, and the ability to meet future demand, while critics may question whether utilities should be allowed to self-build generation instead of relying on competitive procurement or third-party developers. The cost-recovery language may also be a point of debate because it affects how expenses are passed on to ratepayers.