§ 4–212
Statutes in effect as of October 1, 2026.
Md. Code Ann., Pub. Util. § 4-212 (2026)
Title 4. Rate Regulation
Subtitle 2. Rate Setting Proceedings
§ 4–212LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Contract capacity” means the amount of monthly peak load requirements:
(i)
that is mutually agreed to by an electric company and a large load customer for each month remaining in a contract term after the load ramp period has ended; and
(ii)
for which:
(1)
the electric company agrees to provide all of the components of retail electric service subject to the terms and conditions in its tariffs; and
(2)
the large load customer agrees to purchase service at that load level for the stated term of the contract and under the same terms and conditions as those stated in the contract.
(3)
“Large load customer” has the meaning stated in § 7–232 of this article.
(4)
“Load ramp period” means the period of time from commencement of service until a large load customer’s billing calculation is based on the full contract capacity.
(b)
It is the intent of the General Assembly that residential retail electric customers in the State should not bear the financial risks associated with large load customers interconnecting to the electric system serving the State.
(c)
(1)
(i)
On or before September 1, 2026, each investor–owned electric company and each electric cooperative shall submit to the Commission for approval a specific rate schedule for large load customers that accomplishes the intent of subsection (b) of this section.
(ii)
Each municipal electric utility that receives an application for retail electric service from a large load customer shall submit to the Commission for approval a specific rate schedule for large load customers.
(2)
(i)
Service under a specific rate schedule shall be available to large load customers that will use, within the initial contract term:
(1)
a monthly maximum demand of more than 25 megawatts at a single location; or
(2)
an aggregated contract capacity in the electric company’s service territory of more than 25 megawatts.
(ii)
Except as provided in subparagraph (iii) of this paragraph, large load customers that qualify for a specific rate schedule after the effective date of that schedule:
(1)
shall take service under the specific rate schedule; and
(2)
may not be allowed to take service under any other existing schedule.
(iii)
A specific rate schedule does not apply to the facility of an existing large load customer that has signed a service agreement before the effective date of the schedule if:
(1)
the large load customer’s existing load does not expand by more than 25 megawatts at that facility under the existing service agreement; or
(2)
the large load customer does not sign a new service agreement to expand the facility’s load by more than 25 megawatts above the contract capacity of the existing service agreement.
(d)
In making a determination on whether to approve a specific rate schedule submitted under subsection (c) of this section, the Commission shall consider whether the rate schedule:
(1)
requires a large load customer to cover the just and reasonable costs associated with any electric transmission or distribution system buildout required to:
(i)
interconnect the large load customer to the electric system serving the State; or
(ii)
serve the large load customer;
(2)
protects residential retail electric customers from the financial risks associated with large load customers through the use of:
(i)
load ramp periods;
(ii)
minimum billing demand for electric distribution and transmission service that is a high percentage of a large load customer’s contract capacity;
(iii)
long–term contractual commitments and exit fees;
(iv)
guarantee or collateral requirements; and
(v)
penalties and reimbursement requirements for the large load customer if the large load customer delays or cancels a project after the electric company has begun buildout to accommodate the large load customer;
(3)
allocates to the large load customer:
(i)
any increased or avoided costs that the Commission determines have been caused by the large load customer, including any increased or avoided wholesale costs such as:
(1)
transmission costs; and
(2)
capacity costs; and
(ii)
notwithstanding § 4–503(b) of this title and as authorized under federal law, any direct or indirect costs, fees, and obligations that are normally applied to retail electric customers in the service territory in which the large load customer is located or interconnected if the Commission determines that the direct or indirect costs, fees, and obligations should be attributable to the large load customer; and
(4)
sufficiently ensures that the allocation of costs to large load customers under the schedule does not result in customers that are not large load customers unreasonably subsidizing the costs of large load customers under the schedule.
(e)
It is the intent of the General Assembly that the costs allocated to a large load customer in accordance with subsection (d)(3) of this section include costs that are incurred by a large load customer that is not providing 100% of its electricity needs and are associated with:
(1)
capacity procurement, including backstop reliability procurement; and
(2)
costs associated with the interconnection process, including transmission costs.
(f)
Before signing a contract for service under a specific rate schedule submitted under subsection (c) of this section, a large load customer under the schedule is required to:
(1)
submit a request for a load study to determine the necessary contract capacity for the large load customer and pay any applicable fees associated with the study;
(2)
designate a specific site where the large load customer’s project will be constructed and served by the electric company;
(3)
own or have the exclusive right to use the land designated in item (2) of this subsection for the project; and
(4)
meet any other requirements specified under the rate schedule.
(g)
(1)
On or before June 1, 2026, the Commission shall adopt regulations to carry out this section.
(2)
The regulations shall:
(i)
establish minimum notice requirements and deadlines related to load study requests and contract terminations and adjustments;
(ii)
if considered necessary by the Commission, specify common forms of acceptable collateral to satisfy the requirements of this section; and
(iii)
establish deadlines related to completion of load studies and payment of fees.
(h)
(1)
By order or regulation, the Commission shall:
(i)
prohibit behind–the–meter energy storage facilities from being studied by an electric company as an additional load under a load study conducted under this section;
(ii)
establish requirements and limitations for charging and discharging behind–the–meter energy storage facilities during peak demand; and
(iii)
subject to paragraph (2) of this subsection, establish a voluntary large–load interruptible interconnection process for an electric company to provide voluntary large–load interruptible interconnection service.
(2)
(i)
The voluntary large–load interruptible interconnection process established under paragraph (1)(iii) of this subsection shall include:
(1)
a load study that reflects the terms of the voluntary interruptible interconnection service; and
(2)
methods to ensure compliance with the voluntary large–load interruptible interconnection service.
(ii)
The compliance methods required under subparagraph (i)2 of this paragraph may include the imposition of civil penalties for failure to comply with the voluntary large–load interruptible interconnection service.