Bill to recognize off‑grid 'consumer regulated' electricity providers draws broad support and caution on oversight

Senator Mike McKay told the committee that Senate Bill 26 would enable "consumer regulated electricity" (CRE) — off‑grid, non‑interconnected providers that supply large commercial or industrial customers — and argued the model could attract major employers to parts of Maryland with grid constraints. "There is no risk to existing rate payers since CRE systems are off grid and serve only commercial or industrial loads," the sponsor said, adding that CREs would be subject to local zoning, environmental review and the Public Service Commission's certificate of public convenience and necessity (CPCN) when they interconnect.

Panelists including former FERC chair Willie Phillips and developers emphasized that the bill clarifies a regulatory gap for non‑interconnected generation and said PSC oversight for any interconnection would remain. Phillips described the bill as "not deregulation" but "appropriate regulation." Developers and local economic development officials said the approach could unlock sites that are otherwise untenable due to transmission constraints.

Supporters argued CREs would ease pressure on the grid and help economic development in areas lacking transmission capacity; building trades representatives said the projects would support local jobs. Opponents and some committee members urged explicit guardrails — for siting, environmental review, and protections to ensure CREs cannot later impose costs or reliability risks on ratepayers if they seek to interconnect.

The committee probed how the PSC's CPCN process and local permitting would apply, and the sponsor said he would work to narrow scope and add clarifications on local consent and siting. No vote was taken at the hearing.