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Maryland delegate proposes emergency storage procurement to speed capacity online

Maryland Public Service Commission · December 3, 2024
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Delegate Lorig Charcutian told the PSC technical conference she filed a legislative proposal to enable emergency state procurement of storage (transmission‑ and distribution‑connected) to deliver capacity faster than new thermal plants and protect ratepayers.

Delegate Lorig Charcutian outlined a legislative plan at the Maryland Public Service Commission’s resource adequacy conference that seeks a fast, state‑directed path to bring battery storage online and shield ratepayers from higher bills.

Charcutian said the proposal — filed as written comments with the commission — would authorize an emergency procurement of transmission‑level storage that could be in service more quickly than traditional gas plants. "There's storage coming out of the PJM queue ... it could come online quickly and certainly more quickly than any gas plant could," she said.

Her package envisions two tracks: an initial emergency procurement focused on storage that is near‑term and transmission‑connected, and parallel steps to accelerate distribution‑level storage and demand‑side improvements. The plan also proposes running competitive procurements for utility‑scale clean resources and adjusting renewable procurement tools so projects that have progressed through the PJM queue can become Maryland resources instead of out‑of‑state Power Purchase Agreements.

Charcutian told the commission the procurement could be structured to pay only the "missing money" needed to make projects pencil while developers keep market revenues. She argued the approach would be less risky for ratepayers than broad, open-ended rate basing of new generation.

Supporters at the conference called storage a “no‑regret” resource because it can be built and interconnect faster than new thermal plants, be placed at both transmission and distribution levels, and pair with solar to serve peak needs. Opponents and some legal advisers cautioned careful drafting to avoid conflicts with federal jurisdiction and the Hughes decision that limits some forms of utility ownership of generation without clear statutory direction.

Commission staff and participants asked for more analysis of the procurement mechanics, cost impacts on Standard Offer Service or other retail procurement mechanisms, and whether a competitive solicitation or a non‑bypassable charge would be used to recover any state support.

The delegate said she is pursuing draft legislation and expects continued work with commission staff and stakeholders in the months ahead; no formal PSC action was taken at the conference.