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<chapter num="10" heading="Net Metering" title_num="20" subtitle_num="50">
  <regulation prefix="Regulation" num=".01" heading="General.">
    <paragraph num="A.">
      <text>Net Energy Metering. An electric company shall provide net metering of electric service to eligible customer-generators using a meter capable of net energy metering until the rated generating capacity of all eligible customer-generators in the State reaches 1,500 megawatts.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Maximum Size of Electric Generating System — Net Metering. An electric company may not provide net energy metering to an eligible customer-generator operating an electric generating system that has a rated capacity of more than 2 megawatts.</text>
    </paragraph>
    <paragraph num="C.">
      <text>Micro Combined Heat and Power Electric Generating System. An electric company may not provide net energy metering to an eligible customer-generator operating a micro combined heat and power electric generating system that has a rated capacity of more than 30 kilowatts.</text>
    </paragraph>
    <paragraph num="D.">
      <text>Qualifying for Net Energy Metering.</text>
      <paragraph num="(1)">
        <text>In order to initially qualify for net energy metering:</text>
        <paragraph num="(a)">
          <text>An eligible customer-generator shall comply with the provisions of COMAR 20.50.09; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>The eligible customer-generator’s proposed electric generating system may not exceed 200 percent of the eligible customer-generator’s baseline annual usage.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>Upgraded Electric Generating Systems.</text>
        <paragraph num="(a)">
          <text>When an eligible customer-generator receiving net energy metering proposes an upgrade to an existing electric generating system, an electric company shall re-evaluate the baseline annual usage to determine whether the electric generating system continues to meet the requirements of §D(1)(b) of this regulation.</text>
        </paragraph>
        <paragraph num="(b)">
          <text>If the eligible customer-generator’s upgraded electric generating system does not meet the requirements of §D(1)(b) of this regulation, an electric company may discontinue net energy metering.</text>
        </paragraph>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="Metering.">
    <text>An electric company shall ensure that a meter installed for net energy metering is capable of measuring the flow of electricity in two directions.</text>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Tariffs and Contracts.">
    <paragraph num="A.">
      <text>An electric company shall offer net energy metering service to an eligible customer-generator under a Commission-approved standard contract or tariff.</text>
    </paragraph>
    <paragraph num="B.">
      <text>An electric company’s tariff or contract for net metering shall contain an energy rate, a rate structure, and any monthly charge identical to the monthly contract or tariff charge paid by a customer of the rate class in which the eligible customer-generator would be a member if they were not receiving net energy metering service.</text>
    </paragraph>
    <paragraph num="C.">
      <text>An electric company may not include in an eligible customer-generator’s bill rates, charges or fees that raise the eligible customer-generator’s minimum monthly charge above that of customers of the same rate class to which the eligible customer-generator would otherwise be assigned.</text>
    </paragraph>
    <paragraph num="D.">
      <text>An electric company may not charge to an eligible customer-generator new or additional demand charges, standby charges, customer charges, or minimum monthly charges.</text>
    </paragraph>
    <paragraph num="E.">
      <text>An electric company may not require an eligible customer-generator whose electric generating system meets the requirements of this chapter to:</text>
      <paragraph num="(1)">
        <text>Install additional controls;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Perform or pay for additional tests; or</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Purchase additional liability insurance.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Calculation of Net Energy.">
    <paragraph num="A.">
      <text>Net Energy Calculation. An electric company shall calculate net energy in accordance with this regulation.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Metering Net Energy — The electric company shall meter net energy produced or consumed on a regular basis in accordance with standard metering practice under this subtitle.</text>
    </paragraph>
    <paragraph num="C.">
      <text>Time-Varying Rates.</text>
      <paragraph num="(1)">
        <text>For eligible customer-generators whose applicable tariff includes time-varying rates, an electric company may calculate net energy separately for each applicable rate period during a billing cycle.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>An electric company may apply §§D, E, and F of this regulation separately for each rate period for an eligible customer-generator whose applicable tariff bills using time-varying rates. If net generation is calculated separately for each applicable rate period during a billing cycle, an electric company shall apply §§E and F of this regulation separately for each rate period for an eligible customer-generator whose applicable tariff bills using time-varying rates.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>Energy Usage Exceeds Generation — Billing. If the electricity used by an eligible customer-generator exceeds the electricity generated by the eligible customer-generator in a billing month, an electric company shall bill the eligible customer-generator for usage under the terms of Regulation .03 of this chapter.</text>
    </paragraph>
    <paragraph num="E.">
      <text>Generation Exceeds Usage — Billing. If the electricity generated by an eligible customer-generator exceeds the customer’s usage, an electric company shall only bill the eligible customer-generator a customer charge.</text>
    </paragraph>
    <paragraph num="F.">
      <text>Conversion of Excess Generation — Billing. An electric company shall convert any excess electric generation described in §E of this regulation into generation credits upon billing, consistent with the provisions of Regulation .05 of this chapter.</text>
    </paragraph>
    <paragraph num="G.">
      <text>Commercial Customers.</text>
      <paragraph num="(1)">
        <text>An electric company shall use the net hourly energy consumed or produced to assign the energy requirement for commercial eligible customer-generators with interval metering equipment.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>PJM shall use the net energy metered each hour, positive or negative, for the settlement process, even in cases when the total usage by the customer in a month exceeds the electricity generated by a commercial eligible customer-generator with interval metering equipment.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".05" heading="Net Excess Generation.">
    <paragraph num="A.">
      <text>Generation Conversion — Dollar Amount. An electric utility shall convert an eligible customer-generator’s net excess generation to a dollar amount according to this regulation.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Conversion Calculation.</text>
      <paragraph num="(1)">
        <text>Except as provided in §C of this regulation, an electric company shall convert net excess generation from kilowatt-hours to dollars by multiplying the net excess generation by the generation or commodity portion of the rate that the eligible customer-generator would have been charged by the electric company averaged over the previous 12-month period ending with the billing cycle that is complete immediately prior to the end of April.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>For customers served by an electricity supplier, the utility shall convert net excess generation in the same manner as described in §B(1) of this regulation except that the dollar value of the net excess generation shall be equal to the generation or commodity rate that the customer would have been charged by the electricity supplier multiplied by the number of kilowatt-hours of net excess generation.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Cooperative Electric Company — Conversion Calculation.</text>
      <paragraph num="(1)">
        <text>When net energy metering is provided by a cooperative electric company that serves a population of less than 250,000 in its distribution territory, the eligible customer-generator may choose to be paid for the dollar value of net excess generation remaining at the end of each month instead of at the end of the accrual period specified in §F of this regulation.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>If an eligible customer-generator chooses to be paid for the dollar value of net excess generation remaining at the end of each month:</text>
        <paragraph num="(a)">
          <text>The customer-generator may accrue net excess generation on a monthly basis;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>The dollar value of the net excess generation shall be equal to the generation or commodity portion of the rate that the eligible customer-generator would have been charged by the electric company for the previous month multiplied by the number of kilowatt-hours of excess generation; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>On or before 30 days after the end of each month, the electric cooperative shall pay the eligible customer-generator for the dollar value of net excess generation remaining at the end of the previous month.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>Net Excess Generation — Carry Forward. An electric company shall carry forward accrued net excess generation on a customer’s bill until the net excess generation has been used by the customer or the electric company has paid the customer for the credit under §F of this regulation.</text>
    </paragraph>
    <paragraph num="E.">
      <text>Time-Varying Rates—Carry Forward.</text>
      <paragraph num="(1)">
        <text>For customers on a time-varying rate, an electric company may calculate net excess generation separately for each applicable rate period during a billing cycle.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>An electric company may carry forward net excess generation separately for each rate period until the net excess generation has been used by the customer or the electric company has paid the customer for the credit under §F of this regulation.</text>
      </paragraph>
    </paragraph>
    <paragraph num="F.">
      <text>Payment for Generator Credits.</text>
      <paragraph num="(1)">
        <text>On or before 30 days after the billing cycle that is complete immediately prior to the end of April of each year, the electric company shall pay each eligible customer-generator for the dollar value of any accrued net excess generation remaining at the end of previous 12-month period ending with the billing cycle that is complete immediately prior to the end of April.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>On the closure of a net energy metering account of an eligible customer-generator, an electric company shall pay an eligible customer-generator the dollar value of the net excess generation on their account within 15 days.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".06" heading="Safety Standards and Controls for Net Energy Metering.">
    <text>An electric generating system used by an eligible customer-generator for net energy metering shall meet all applicable safety and performance standards incorporated by reference in COMAR 20.50.02.02.</text>
  </regulation>
  <regulation prefix="Regulation" num=".07" heading="Meter Aggregation.">
    <paragraph num="A.">
      <text>When requested in writing by a qualified eligible customer-generator under §B of this regulation, an electric utility shall provide meter aggregation.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Customers Qualifying for Aggregation. The following electric utility eligible customer-generators are qualified to request meter aggregation under §A of this regulation:</text>
      <paragraph num="(1)">
        <text>An eligible customer-generator using electrical service for agriculture;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>An eligible customer-generator who is a not-for-profit organization or a not-for-profit business; or</text>
      </paragraph>
      <paragraph num="(3)">
        <text>An eligible customer-generator who is a municipal or county government or its affiliated organizations.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>An electric company shall require that an eligible customer-generator requesting meter aggregation under this regulation provide written allocation instructions detailing how to distribute its excess generation credits to each account prior to the commencement of any meter aggregation.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".08" heading="Meter Aggregation Method.">
    <paragraph num="A.">
      <text>This regulation applies to an eligible customer-generator qualifying for meter aggregation under Regulation .07 of this chapter.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Virtual Meter Aggregation.</text>
      <paragraph num="(1)">
        <text>If an aggregation qualified eligible customer-generator’s electrical services are not located close enough to physically interconnect metered service, the electric company shall sum the usage and excess generation of all applicable accounts on a kilowatt-hour basis over each billing period prior to calculating the customer’s excess generation for that billing period.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The electric company shall allocate generated electricity to each account per the instructions of the eligible customer-generator.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Physical Meter Aggregation.</text>
      <paragraph num="(1)">
        <text>For an aggregation qualified eligible customer-generator whose electrical services are located close enough to physically interconnect and meter at a single point, the electric company shall allow the customer to make physical electrical connections and re-establish metering at a single location.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Physically aggregated services must meet all applicable requirements of COMAR 20.50.01 and 20.50.02.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>The electric company shall allocate the net-energy used each billing period and the excess generation credit calculated each billing period to each account per the instructions of the customer.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <annotations>
    <annotation type="Authority">Public Utilities Article, §§2-113, 2-121, 5-101, 5-303, and 7-306, Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date:</annotation>
    <annotation type="History" subtype="Administrative History">Regulations .01—.04 and Regulations .06—.08 adopted effective September 5, 2011 (38:18 Md. R. 1078)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .04 amended effective September 16, 2024 (51:18 Md. R. 810)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .05 adopted effective February 20, 2012 (39:3 Md. R. 260)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .05 amended effective September 16, 2024 (51:18 Md. R. 810)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .07B amended effective July 18, 2016 (43:14 Md. R. 780)</annotation>
  </annotations>
</chapter>