Maryland HB 650: Energy Storage Pilot Project Act

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0650*

HOUSE BILL 650
C5, M5 9lr1189
CF SB 573
By: Delegates Korman and Barve
Introduced and read first time: February 6, 2019
Assigned to: Economic Matters

A BILL ENTITLED

AN ACT concerning 1

Energy Storage Pilot Project Act 2

FOR the purpose of requiring the Public Service Commission to establish an energy storage 3
pilot program; providing for the structure and operation of the program; requiring 4
the Commission to require each investor–owned electric company to solicit offers to 5
develop energy storage projects for certain commercial and regulatory models; 6
requiring each investor–owned electric company to submit an application for projects 7
from a certain number of models; establishing that a proposed project must be able 8
to meet reasonably the program’s timelines and data collection requirements; 9
requiring an investor–owned electric company to prioritize projects that defer or 10
replace certain needs under certain circumstances; requiring an investor–owned 11
electric company to describe in a project application whether a project demonstrates 12
certain attributes; requiring an investor–owned electric company to include certain 13
information in a project application; authorizing the Commission, for a certain 14
purpose, to determine how to address cost recovery for certain models; authorizing 15
the Commission, for a certain purpose, to allow certain program activity on a 16
project–by–project basis; providing for the beginning and termination of the pilot 17
program; requiring an investor–owned electric company to submit certain 18
information or data on or before a certain date; requiring an investor–owned electric 19
company to make certain data available to the public; requiring certain data to be 20
seasonally adjusted; authorizing an investor–owned electric company, under certain 21
circumstances, to apply for an extension of the pilot program on or before a certain 22
date; requiring the Commission to evaluate certain matters and report certain 23
findings and recommendations to the General Assembly on or before a certain date; 24
establishing that the pilot program does not preclude any other investments in 25
energy storage by a public service company; defining certain terms; and generally 26
relating to pilot energy storage projects. 27

BY adding to 28
Article – Public Utilities 29
Section 7–216 30

2 HOUSE BILL 650

Annotated Code of Maryland 1
(2010 Replacement Volume and 2018 Supplement) 2

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
That the Laws of Maryland read as follows: 4

Article – Public Utilities 5

7–216. 6

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 7
INDICATED. 8

(2) (I) “ENERGY STORAGE DEVICE” MEANS A RESOURCE CAPABLE 9
OF ABSORBING ELECTRICAL ENERGY, STORING IT FOR A PERIOD OF TIME, AND 10
DISPATCHING THE ENERGY FOR USE AT A LATER TIME AS NEEDED, REGARDLESS OF 11
WHERE THE RESOURCE IS LOCATED ON THE ELECTRIC DISTRIBUTION SYSTEM. 12

(II) “ENERGY STORAGE DEVICE” INCLUDES ALL TYPES OF 13
ELECTRIC STORAGE TECHNOLOGIES, REGARDLESS OF THEIR SIZE, STORAGE 14
MEDIUM, OR OPERATIONAL PURPOSE. 15

(3) “INVESTOR–OWNED ELECTRIC COMPANY” MEANS AN ELECTRIC 16
COMPANY THAT IS NOT A MUNICIPAL ELECTRIC UTILITY OR AN ELECTRIC 17
COOPERATIVE. 18

(B) (1) THE COMMISSION SHALL ESTABLISH AN ENERGY STORAGE 19
PILOT PROGRAM. 20

(2) THE CUMULATIVE SIZE OF THE PILOT PROJECTS UNDER THE 21
PROGRAM SHALL BE BETWEEN 5 AND 10 MEGAWATTS, WITH A MINIMUM OF 15 22
MEGAWATT–HOURS. 23

(C) THE COMMISSION SHALL REQUIRE EACH INVESTOR–OWNED ELECTRIC 24
COMPANY TO SOLICIT OFFERS TO DEVELOP ENERGY STORAGE PROJECTS FOR EACH 25
OF THE FOLLOWING COMMERCIAL AND REGULATORY MODELS: 26

(1) A “UTILITY–ONLY” MODEL UNDER WHICH THE ELECTRIC 27
COMPANY WOULD OWN THE PROJECT, CONTROL THE PROJECT FOR GRID 28
RELIABILITY, AND OPERATE THE PROJECT IN WHOLESALE MARKETS OR OTHER 29
APPLICATIONS WHEN NOT PROVIDING GRID SERVICES; 30

(2) A “UTILITY AND THIRD–PARTY” MODEL UNDER WHICH THE 31
ELECTRIC COMPANY WOULD OWN THE PROJECT AND CONTROL THE PROJECT FOR 32

HOUSE BILL 650 3

GRID RELIABILITY, AND A THIRD PARTY WOULD OPERATE THE PROJECT IN 1
WHOLESALE MARKETS OR OTHER APPLICATIONS WHEN THE PROJECT IS NOT 2
PROVIDING GRID SERVICES; 3

(3) A “THIRD–PARTY OWNERSHIP” MODEL UNDER WHICH THE 4
ELECTRIC COMPANY WOULD CONTRACT WITH A PROJECT OWNED BY A THIRD PARTY 5
FOR GRID RELIABILITY; AND 6

(4) A “VIRTUAL POWER PLANT” MODEL UNDER WHICH: 7

(I) THE ELECTRIC COMPANY WOULD AGGREGATE OR USE A 8
THIRD–PARTY AGGREGATOR TO RECEIVE GRID SERVICES FROM DISTRIBUTED 9
ENERGY STORAGE PROJECTS OWNED BY CUSTOMERS OR A THIRD PARTY; AND 10

(II) THE PROJECTS WOULD BE USED BY THE CUSTOMERS OR 11
THIRD PARTY FOR OTHER APPLICATIONS WHEN THE PROJECTS ARE NOT PROVIDING 12
GRID SERVICES. 13

(D) (1) EACH INVESTOR–OWNED ELECTRIC COMPANY SHALL SUBMIT AN 14
APPLICATION FOR COMMISSION APPROVAL T