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Read. Follow. Verify.Maryland Senate Bill 954 Sets New Resource Adequacy and Cost Recovery Rules for Electric Companies
Last action · February 6, 2026: First Reading Education, Energy, and the EnvironmentSponsor: Kevin Harris
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What This Bill Would Do
Senator Harris introduced SB 954 to require electric companies to submit resource adequacy plans upon Public Service Commission determination, permit investor-owned utilities to recover facility costs through s, and establish credit rating agency approval requirements for new generating facilities over two megawatts.
Changes how electric companies recover construction and operating costs for generation and storage facilities by allowing them to apply s directly to customer bills, while introducing strict credit rating review thresholds for projects exceeding two megawatts.
- The Public Service Commission is the state agency that regulates public utilities operating in Maryland. context
- PJM Interconnection operates the regional wholesale electricity market and transmission grid serving Maryland and several other mid-Atlantic states. context
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Electric companies and Investor-owned electric companies
Electric companies are required to submit resource adequacy plans when ordered, and investor-owned electric companies are authorized to recover facility costs through nonbypassable surcharges and participate in wholesale markets.
Distribution customers
Distribution customers pay nonbypassable surcharges added to customer bills and receive refunds or credits from escrowed wholesale market revenues.
Electricity suppliers
Electricity suppliers are responsible for purchasing storage capacity credits at the monthly fixed price schedule proportional to their capacity obligations.
Key Facts
- The Public Service Commission must require electric companies to develop and submit a resource adequacy plan within 270 days if the Commission determines there is insufficient resource adequacy or a price stability event has occurred.
- Resource adequacy plans must prioritize renewable energy resources and may include generating and large capacity energy resources.
- Investor-owned electric companies may recover all prudently incurred and verifiable costs in constructing, acquiring, owning, or operating generating facilities plus a reasonable return.
- Cost recovery for investor-owned electric companies may be achieved through a nonbypassable surcharge subject to Commission approval.
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- Investor-owned electric companies may recover verified costs at an annual rate of return not less than the rate of return on their transmission rate base approved by the Federal Energy Regulatory Commission.
- Commission orders requiring or allowing an investor-owned electric company to construct or operate a generating facility exceeding 2 megawatts cannot take effect until a premier credit rating agency issues a rating assessment finding the order is not credit negative.
- The Commission must propose regulations to carry out the generating facility provisions on or before October 31, 2026.
- Front-of-the-meter transmission energy storage device proposals must specify a 15-year pricing schedule or a pricing schedule representing construction/operating costs and benefits, and ensure wholesale market revenues are held in escrow for customer refunds.
- Energy storage devices utilizing lithium-ion batteries must comply with the National Fire Protection Association 855 standard in effect at the final permit application date.
- The Act takes effect October 1, 2026.
Frequently Asked Questions
What triggers a resource adequacy plan requirement for electric companies?
How are investor-owned electric companies allowed to recover their costs?
What safety standard applies to energy storage devices under this bill?
What else do you want to know?
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Votes, people, money & the original sourceWhere This Stands
Currently filed. The next step in the legislative lifecycle is Committee.
Procedural history
1 action- Feb 6, 2026SenateIntroducedFirst Reading Education, Energy, and the Environment
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
New Financial Safeguards for Utility Capital Projects
The legislation ties the approval of large utility-owned generation projects exceeding two megawatts directly to independent credit rating assessments.
Connected Entities
Sources
mgaleg.maryland.gov
Analysis Score
0–100- Significance85How much this matters to a regular citizen
- Controversy60Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz45Current news / social attention level
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