Public Service Commission - Full Costs and Benefits Analysis of Sources of Electricity Generation
SB270 requires the Maryland Public Service Commission (PSC) to conduct a full costs and benefits analysis of major electricity generation sources in the State. The bill defines a “Levelized Full System Cost of Electricity” framework that looks beyond generation costs alone and includes capital costs, distribution costs, operating and maintenance costs, cost of capital, capacity factors, ramping characteristics, and hourly demand. The PSC must compare how much it would cost ratepayers if Maryland’s electricity needs were met by different generation mixes, including natural gas, nuclear, offshore wind, solar, and energy storage.
The analysis must also account for the added costs needed to address reliability and intermittency, especially for offshore wind and solar, and must evaluate scenarios using only one source plus storage. In addition to identifying the costs of each source, the PSC must recommend policy changes that would support the energy sources with the lowest costs and greatest benefits to ratepayers. The PSC must submit its report to the Senate Education, Energy, and Environment Committee and the House Environment and Transportation Committee by December 1, 2027.
The bill does not directly change utility rates or mandate a new generation portfolio, but it does add a statutory study and reporting requirement for the Public Service Commission. It creates a formal analytical obligation under Maryland law to compare electricity generation sources using a broader cost model and to report findings to the General Assembly. The bill affects the PSC, legislative committees overseeing energy policy, and indirectly utilities, generators, and ratepayers by shaping future policy debates on resource planning, reliability, and affordability.
The available voting history shows strong support for the bill, with the Senate passing it 45-0 on third reading. The committee report was favorable with amendments, suggesting the concept was broadly accepted while still refined during committee review. No committee transcript excerpts are available, so the record reflects general legislative support rather than detailed debate.
The main policy issue underlying the bill is how Maryland should compare electricity sources on a full-system basis, including reliability and intermittency costs. That approach is likely to be most relevant to debates over offshore wind and solar versus natural gas and nuclear, since the bill explicitly requires comparison of those sources and storage-backed scenarios. Any contention would center on the assumptions used in the model, the treatment of intermittency and storage, and whether the analysis could favor certain generation types over others, but no specific objections are provided in the available record.