Maryland Code § PU-7-1005

Section PU-7-1005
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(a) The Commission shall develop a program for each investor-owned
electric company to establish a pilot program or temporary tariff to compensate
owners and aggregators of distributed energy resources for electric distribution
system support services through an incentive mechanism determined by the
Commission.
(b) (1) (i) On or before July 1, 2025, each investor-owned electric
company shall submit to the Commission for approval a pilot program or temporary
tariff for electric distribution system support services that provides reasonable
compensation through a mechanism determined by the Commission.
(ii) The pilot program or temporary tariff submitted under
subparagraph (i) of this paragraph shall provide that electric distribution system
support services to on-site energy storage devices be used for system peak reduction.
(2) (i) A municipal electric utility or an electric cooperative may
establish a pilot program, temporary tariff, or performance mechanism under this
section.
(ii) If a municipal electric utility or electric cooperative
establishes a pilot program, temporary tariff, or performance mechanism under this
section, the provisions of this section and §§ 7-1006 and 7-1007 of this subtitle that
apply to an investor-owned electric company shall also apply to the municipal electric
utility or electric cooperative.
(c) (1) Notwithstanding any provision of this subtitle, an investor-
owned electric company may propose and submit to the Commission a performance
mechanism to cover the cost of using distributed energy resources or an aggregator
of distributed energy resources under this subtitle.
(2) The Commission may approve a performance mechanism
submitted under paragraph (1) of this subsection if the Commission determines that
the performance mechanism is in the public interest.
(d) (1) The Commission shall approve, deny, or approve with
amendments a pilot program or temporary tariff submitted under this section for
each investor-owned electric company in an expedited manner.
(2) If the Commission determines that transitioning a pilot program
or temporary tariff to a permanent program or tariff is in the public interest, the
Commission may establish a process for an investor-owned electric company to

transition a pilot program or temporary tariff to a permanent program or tariff for
electric distribution system support services.
(3) If the Commission determines the transition to a permanent
program or tariff is in the public interest, each customer participating in a pilot
program or temporary tariff approved under paragraph (1) of this subsection may be
transitioned to a permanent program or tariff for electric distribution system support
services when the program or tariff is approved by the Commission.
(e) (1) The Commission may allow the energy generated by a renewable
on-site generating system that provides electric distribution system support service
under a pilot program or temporary tariff approved under subsection (d)(1) of this
section to count towards the investor-owned electric company's greenhouse emissions
reduction goals under § 7-211 of this title.
(2) (i) Subject to subparagraph (ii) of this paragraph, the
cumulative energy storage capacity of any energy storage devices installed on a
customer's property in accordance with this subtitle shall count towards the targets
established under § 7-216.1 of this title.
(ii) Subparagraph (i) of this paragraph does not include the
energy storage capacity of:
1. electric vehicles that are part of a renewable on-site
generating system; or
2. mobile energy storage devices.
(f) The cumulative nameplate capacity of renewable on-site generating
systems participating in a pilot program or temporary tariff approved under this
section may not exceed 2% of the investor-owned electric company's highest recorded
coincident peak demand.

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