The Maryland Public Service Commission (PSC) oversees the regulation of public utilities, including electric companies. In Maryland, the concept of a “rate case” is fundamental to how utility prices are determined. A rate case is a formal legal proceeding where a utility company proposes new rates for its services. The PSC then reviews these proposals, often after extensive analysis by PSC staff, consumer advocates, and other interested parties. The commission considers various factors, including the utility’s operating expenses, capital investments, the cost of providing service, and a fair rate of return on investment. The PSC’s decision in a rate case is based on ensuring that rates are just and reasonable, meaning they are sufficient to allow the utility to operate and invest in infrastructure while also being affordable for consumers. The process involves public hearings and the submission of evidence. The PSC’s ultimate authority is to approve, deny, or modify the proposed rates, thereby setting the prices that consumers will pay. This regulatory framework, established by Maryland law, aims to balance the interests of both the utility providers and the public. The PSC’s authority to approve or modify rate schedules is a core component of its regulatory mandate under Maryland statutes governing public utilities.

Maryland’s Renewable Energy Portfolio Standard (RPS), as established by the Renewable Energy Portfolio Standard Act of 2007 (and subsequent amendments), mandates that a certain percentage of electricity sold by retail electricity suppliers in Maryland must be generated from eligible renewable energy sources. The law specifies a phased increase in this percentage over time, with different classes of renewable energy sources contributing to the overall requirement. Specifically, the law defines various categories of renewable energy, including solar, wind, and other technologies, and assigns different weights or compliance factors to each, particularly for solar technologies. The Renewable Energy Portfolio Standard (RPS) in Maryland aims to promote the development and deployment of renewable energy technologies within the state by creating a market demand for clean electricity. The act sets forth specific compliance mechanisms for utilities, such as the purchase of Renewable Energy Credits (RECs) generated by eligible facilities. These RECs represent the environmental attributes of electricity produced from renewable sources. The compliance obligation for retail electricity suppliers is calculated based on their total retail sales of electricity. The law also includes provisions for solar renewable energy credits (SRECs) and a solar carve-out, which is a subset of the overall RPS specifically dedicated to solar energy generation, reflecting a policy emphasis on advancing solar development within Maryland. The specific percentage targets and the definitions of eligible technologies are subject to periodic review and modification by the Maryland General Assembly and relevant regulatory bodies.

The Maryland Public Service Commission (PSC) regulates investor-owned utilities in Maryland. Under Maryland law, specifically the Electric Customer Choice and Competition Act of 1999 (codified in various sections of the Public Utilities Article of the Annotated Code of Maryland), the PSC is empowered to oversee the transition to competitive retail electric markets. This includes establishing rules for the licensing of electricity suppliers, setting standards for consumer protection, and ensuring the reliability and affordability of electric service. When a utility proposes to recover costs associated with the decommissioning of a nuclear power plant, such as the Calvert Cliffs Nuclear Power Plant, it must seek approval from the PSC. This recovery mechanism is typically sought through a rate case or a specific regulatory filing. The PSC evaluates the prudence and reasonableness of the costs incurred, the proposed recovery period, and the impact on customer rates. The commission’s authority extends to approving the amortization of these costs over a period that balances the utility’s financial needs with the ratepayers’ ability to pay. Therefore, any plan for recovering such significant costs requires explicit authorization and structuring by the PSC, which acts as the primary regulatory body overseeing these financial and operational matters for Maryland’s investor-owned utilities. The PSC’s role is to ensure that these recovery mechanisms are just and reasonable and do not unduly burden consumers while allowing utilities to recover legitimate expenses.

The Public Utility Regulatory Policies Act of 1978 (PURPA) established federal standards for the interconnection of qualifying facilities (QFs) with electric utilities. In Maryland, the Public Service Commission (PSC) is responsible for implementing and enforcing these standards. Section 210 of PURPA mandates that utilities purchase power from QFs at an “avoided cost” rate. Avoided cost is defined as the incremental cost to an electric utility of electric energy or capacity, or both, which, but for the purchase from such facility, such utility would have generated itself or purchased from another supplier. Maryland regulations, specifically those promulgated by the PSC, detail the methodology for calculating avoided costs. This calculation is complex and considers various factors, including fuel costs, variable operations and maintenance expenses, and capital costs that the utility would have incurred to generate power or purchase it from other sources. The PSC’s regulations aim to ensure that the avoided cost rate is just and reasonable, reflecting the utility’s actual cost savings. The methodology involves projecting future costs based on anticipated generation mix, fuel prices, and capacity needs. It is not a static figure but rather a dynamic calculation that evolves with market conditions and utility planning. The primary objective is to provide a fair price for renewable energy producers while ensuring that ratepayers are not burdened with excessive costs. The concept of “full avoided cost” is often debated, with QFs seeking to maximize this rate and utilities aiming to minimize it based on their specific cost structures and future investments. Maryland’s framework requires utilities to file avoided cost schedules with the PSC, which are then reviewed and approved.

Maryland’s Public Service Commission (PSC) oversees the state’s energy sector, including the regulation of utilities and the implementation of energy policy. The Maryland Energy Administration (MEA) plays a crucial role in developing and implementing energy policy, promoting energy efficiency, renewable energy, and clean transportation. The question probes the specific statutory authority granted to the MEA for energy planning and policy development, distinguishing it from the PSC’s regulatory functions. The Maryland Energy Administration Act, codified in Title 2 of the Natural Resources Article of the Maryland Code, specifically grants the MEA the authority to conduct energy resource assessments, develop state energy plans, and advise the Governor and General Assembly on energy matters. This encompasses the proactive development of policy frameworks and strategic planning for the state’s energy future. The PSC, while instrumental in implementing energy policy through its regulatory proceedings, primarily focuses on rate setting, service standards, and the approval of utility infrastructure projects based on existing legal and policy mandates. Therefore, the MEA’s authority is more aligned with the foundational development and strategic direction of energy policy.

The Maryland Public Service Commission (PSC) oversees the regulation of public utilities, including electric companies, within the state. The concept of “rate base” is fundamental to utility regulation, as it represents the value of the utility’s property used and useful in providing service, upon which the utility is allowed to earn a reasonable rate of return. Maryland law and PSC precedent establish methodologies for determining the rate base. Generally, the original cost of utility plant in service, less accumulated depreciation, plus allowances for materials and supplies and cash working capital, constitutes the common components of the rate base. However, certain costs, such as expenses incurred for lobbying activities or political contributions, are typically disallowed from inclusion in the rate base. This disallowance ensures that ratepayers do not subsidize non-operational or non-service-related expenditures of the utility. Specifically, Maryland Code, Public Utilities, § 7-205 prohibits the inclusion of lobbying expenses in the rates charged to customers. Therefore, any expenditure by an electric utility in Maryland on lobbying efforts related to energy policy would be excluded from the calculation of its rate base.

The Maryland Public Service Commission (PSC) oversees the regulation of utilities in Maryland, including electricity and gas. When a utility seeks to recover costs associated with a new generation facility or infrastructure upgrade, it typically files a rate case. This process involves demonstrating the prudence and necessity of the expenditure to the PSC. The PSC then reviews the utility’s proposed rates, which are designed to recover these costs and earn a reasonable return on investment. Public hearings are held, and stakeholders, including consumer advocates and other interested parties, can participate. The PSC’s decision, often a detailed order, will either approve, deny, or modify the proposed rates. This ensures that rate increases are justified and that consumers are not burdened with imprudent or unnecessary costs. The concept of “used and useful” property is central to determining which assets can be included in the rate base, meaning the property must be actively employed in providing utility service. The PSC’s authority extends to setting just and reasonable rates, which involves balancing the utility’s need to earn a fair return with the public’s interest in affordable service.

The Public Utilities Article of the Annotated Code of Maryland, specifically sections related to renewable energy and net metering, governs how solar energy systems are compensated. Maryland’s net metering program, as implemented by the Public Service Commission (PSC), allows eligible customer-generators to receive credit on their electricity bills for excess energy sent back to the grid. The value of this credit is typically based on the retail rate of electricity, reflecting the energy and potentially other components of the bill. However, specific statutory provisions or PSC regulations may cap the total capacity of systems eligible for net metering or establish different compensation mechanisms for larger systems or those that do not meet certain criteria. The question probes the understanding of the legal framework that dictates the financial reconciliation for distributed solar generation within Maryland’s regulatory environment. The core principle is the mechanism by which a customer-generator is credited for exported electricity. The Annotated Code of Maryland, Public Utilities Article, §7-306.1, and subsequent PSC regulations define the net metering program, including the compensation mechanism. This compensation is generally at the full retail rate for eligible systems, accounting for both energy and transmission costs, effectively offsetting the customer’s electricity bill. Other options might represent different compensation models found in other states or for different types of energy generation, or might incorrectly suggest a wholesale rate, which is typically applied to larger power purchase agreements rather than distributed net metering. The question tests the knowledge of the specific Maryland statutory and regulatory framework for distributed solar generation compensation.

The question asks to identify the primary mechanism through which Maryland law promotes the development of distributed generation (DG) resources by allowing them to offset their electricity consumption. This concept is directly related to net metering, which is a billing mechanism that credits solar energy customers for the electricity they add to the grid. In Maryland, the Public Service Commission (PSC) establishes rules for net metering. Specifically, Maryland law, as codified in the Public Utility Article of the Maryland Code, and further detailed in regulations like those found in the Code of Maryland Regulations (COMAR) Title 20, Chapter 10, Subtitle 34, outlines the procedures and rates for net energy metering. This allows customers with DG systems, such as rooftop solar, to receive credit for excess electricity sent back to the grid. The credit is typically applied to their electricity bill, effectively reducing their overall energy cost by offsetting their consumption. Other mechanisms like feed-in tariffs or direct sales to utilities are different approaches to compensating DG, but net metering is the core concept for offsetting self-consumption within the customer’s own account. The Public Utility Regulatory Policies Act of 1978 (PURPA) also influences DG development by requiring utilities to purchase power from qualifying facilities, but net metering is the specific mechanism for retail customer billing and consumption offset.

The question revolves around the regulatory framework governing distributed generation (DG) in Maryland, specifically concerning net metering and the Public Service Commission’s (PSC) role in establishing successor tariff mechanisms. Maryland’s net metering program, established under the Electric Customer Choice and Competition Act of 1999 and subsequently amended, allows customers with DG systems to receive credit for excess electricity sent back to the grid. However, as DG penetration increases, the traditional net metering structure can lead to cost shifts from DG customers to non-DG customers. The Maryland General Assembly recognized this and mandated the PSC to develop successor tariffs. The concept of “avoided cost” is central to these successor tariffs. Avoided cost represents the cost a utility would have incurred to generate or purchase electricity from an alternative source if not for the electricity provided by the DG system. This includes the cost of fuel, operations, maintenance, and potentially capacity. The PSC, in its proceedings (e.g., Case No. 92), has been tasked with determining appropriate avoided cost rates, often through complex methodologies that consider various components of generation costs and grid services. These successor tariffs aim to reflect the true value of DG to the grid and ensure equitable cost allocation. Therefore, understanding the PSC’s authority to set these rates, based on the concept of avoided cost, is crucial. The Maryland Public Utility Regulatory Act (MPUR Act) provides the overarching authority for the PSC’s regulatory actions.

The Maryland Public Service Commission (PSC) oversees the regulation of utilities, including electric companies, within the state. The PSC has the authority to approve or deny rate increases proposed by utilities. In Maryland, the process for a utility seeking to change its rates typically involves filing a formal application with the PSC. This application must demonstrate the need for the rate adjustment, often by detailing increased operational costs, capital investments, or changes in regulatory requirements. The PSC then initiates a formal proceeding, which may include public hearings, expert testimony from the utility, consumer advocates, and other interested parties. The Commission’s decision is based on whether the proposed rates are just and reasonable, ensuring that the utility can provide safe and reliable service while also protecting consumers from excessive charges. This regulatory framework is established by Maryland statutes, such as the Public Utilities Article of the Maryland Code, and PSC regulations. The PSC’s review is a quasi-judicial process, aiming to balance the financial health of the utility with the affordability and accessibility of energy services for Maryland residents and businesses. The specific outcome of such a proceeding, whether approval, denial, or modification of rates, depends on the evidence presented and the Commission’s interpretation of the law and public interest.

The question asks to identify the primary regulatory body responsible for approving electric generation facilities in Maryland, specifically focusing on the siting and environmental aspects. In Maryland, the Public Service Commission (PSC) is vested with the authority to issue Certificates of Public Convenience and Necessity (CPCN) for major utility facilities, including electric generation plants. This process involves a comprehensive review of the proposed facility’s impact on the environment, public health and safety, and the public convenience and necessity. While other agencies like the Maryland Department of the Environment (MDE) play crucial roles in environmental permitting (e.g., air and water quality permits), the overarching decision-making authority for the siting and construction of such facilities rests with the PSC. The Maryland Energy Administration (MEA) is primarily involved in policy development, energy planning, and promoting energy efficiency and renewable energy, but it does not have direct siting approval authority for generation facilities. The Board of Public Works has a role in approving certain state contracts and land acquisitions, but not in the direct siting and licensing of power plants. Therefore, the PSC is the central agency for this type of approval.

The Maryland Public Service Commission (PSC) plays a pivotal role in regulating investor-owned electric utilities within the state, including matters related to rate design, service standards, and the integration of renewable energy. When a utility proposes a new rate structure, such as a demand-charge component for residential customers, it must file an application with the PSC. This application is subject to a thorough review process, which typically involves public hearings, expert testimony from various stakeholders (including consumer advocates and environmental groups), and the PSC’s own analysis. The PSC’s decision-making authority is derived from state statutes, notably Maryland Code, Public Utility Companies Article. The commission must balance the utility’s need to recover costs and earn a reasonable return with the public interest, which includes ensuring affordable and reliable service, promoting energy efficiency, and supporting state energy policy goals. The concept of “least-cost procurement” is a guiding principle in Maryland, requiring utilities to acquire energy and capacity in a manner that minimizes costs to ratepayers while considering reliability and environmental impacts. Therefore, any proposed rate design, including demand charges, must demonstrate that it aligns with these objectives and serves the public convenience and necessity. The PSC’s final order can approve, deny, or modify the proposed rates, often with specific conditions or directives for future proceedings.

The Maryland Public Service Commission (PSC) oversees the regulation of public utilities, including electric companies, within the state. The Electric Customer Choice and Distribution System Improvement Act, enacted in Maryland, permits retail electric customers to choose their electricity supplier. This deregulation aims to foster competition and potentially lower costs for consumers. However, the PSC retains regulatory authority over the distribution system and ensures the reliability and safety of the electric grid. Furthermore, the PSC is responsible for approving rates for the regulated distribution services provided by utilities, even for customers who have chosen a competitive supplier. The PSC also plays a crucial role in implementing state energy policies, such as renewable energy mandates and energy efficiency programs, by setting standards and approving utility plans. The concept of a “decoupled” rate structure, where utility revenue is no longer directly tied to the volume of electricity sold, is a mechanism often considered or implemented by regulatory bodies like the Maryland PSC to incentivize utilities to support energy efficiency and distributed generation without jeopardizing their financial stability. This decoupling is a regulatory tool to align utility business models with state policy goals.

The Public Utilities Article §7-207 of the Annotated Code of Maryland mandates that the Public Service Commission (PSC) must consider the economic impact on ratepayers when approving or rejecting a utility’s proposed rate increase. Specifically, the PSC is required to evaluate whether the proposed rates are just and reasonable, taking into account the financial burden on residential, commercial, and industrial customers. While the PSC also considers factors such as the utility’s financial health, the need for capital investment, and the quality of service provided, the explicit legislative directive to weigh the economic impact on ratepayers is a primary consideration in rate case decisions. This involves analyzing various rate design options and their differential effects on different customer classes. The Maryland Energy Administration’s role is primarily advisory and focused on energy policy development and implementation, not direct rate setting or approval. The Court of Appeals of Maryland, while the ultimate judicial arbiter, does not engage in the initial rate-setting process but reviews PSC decisions for legal error. The Maryland General Assembly sets the statutory framework but does not approve individual rate adjustments.

The Maryland Public Service Commission (PSC) oversees the regulation of public utilities, including electric companies, in Maryland. The Electric Customer Choice and Competition Act of 1999, codified in Maryland Code, Public Utility Companies, Title 7, Subtitle 5, established a framework for retail electric competition. Under this act, utilities are required to offer a standard offer service (SOS) to customers who do not choose an alternative supplier. The PSC is responsible for determining the rates and terms for this SOS, ensuring it is just and reasonable and reflects the cost of providing the service. This includes considering various components of the wholesale energy market, transmission costs, and other related expenses. The PSC’s authority to set SOS rates is a critical aspect of consumer protection in a competitive market, ensuring that customers have access to reliable electricity at fair prices, even if they do not actively select a competitive supplier. The PSC’s deliberations on SOS rates are informed by extensive dockets, stakeholder input, and economic analyses to balance the interests of consumers and utilities. The specific methodology for calculating SOS rates can involve complex modeling of energy procurement and market dynamics.

The Maryland Public Service Commission (PSC) oversees the regulation of utilities, including electric companies, in Maryland. The concept of a “rate case” is fundamental to this regulatory oversight. A rate case is a formal proceeding before the PSC where an electric utility seeks approval to change its rates for services provided to customers. During a rate case, the utility must demonstrate to the PSC that the proposed new rates are just and reasonable, and that they are necessary to allow the utility to recover its operating expenses and earn a fair rate of return on its invested capital. This process involves extensive evidentiary hearings, submission of financial data, and expert testimony from both the utility and intervenors, such as consumer advocacy groups or large industrial users. The PSC’s decision in a rate case is based on a thorough review of the utility’s financial health, operational efficiency, and the impact of the proposed rates on consumers. Maryland law, specifically through the Public Utility Article of the Maryland Code, outlines the procedures and standards the PSC must follow in adjudicating these cases. The goal is to balance the need for utilities to remain financially viable with the public interest in affordable and reliable energy services.

The Maryland Public Service Commission (PSC) has the authority to approve or disapprove mergers and acquisitions involving regulated utilities within the state. This oversight is crucial for ensuring that such transactions serve the public interest, maintain reliable service, and do not unduly burden ratepayers. The PSC’s review process typically considers several factors, including the financial stability of the combined entity, the potential impact on competition, the operational efficiency, and the proposed rate structure. Specifically, under Maryland law, the Commission must find that a proposed merger or acquisition is “consistent with the public interest” before granting approval. This involves balancing the potential benefits, such as economies of scale or improved service, against potential drawbacks like increased debt or reduced service quality. The PSC’s decision-making is guided by the principles of protecting consumers, ensuring the provision of safe and reliable utility services, and promoting fair and reasonable rates. The specific statutory framework governing utility mergers in Maryland is found within the Public Utilities Article of the Maryland Code. For instance, provisions related to the transfer of utility assets and the Commission’s authority to regulate such transfers are key to understanding the legal basis for PSC approval. The PSC’s role is not merely ministerial; it requires a thorough analysis of the proposed transaction’s impact on the utility’s ability to fulfill its public service obligations.

The Maryland Public Service Commission (PSC) oversees the regulation of public utilities, including electric companies, within the state. The PSC’s authority extends to setting rates, ensuring service quality, and approving mergers and acquisitions. Specifically, the PSC is empowered to approve or deny proposed utility rate increases. This approval process typically involves a thorough review of the utility’s financial filings, operational costs, and projected revenue needs. The PSC must balance the need for utilities to earn a reasonable return on their investments with the imperative to protect consumers from excessive charges. The determination of a “reasonable rate of return” is a complex process that often involves expert testimony and detailed financial analysis, considering factors such as the utility’s capital structure, market conditions, and the risk associated with its operations. The PSC’s decisions are guided by statutory mandates and administrative regulations designed to ensure just and reasonable rates for all customers in Maryland. The commission’s role is crucial in maintaining the financial health of utilities while safeguarding the public interest.

The Maryland Public Service Commission (PSC) oversees the regulation of public utilities in Maryland, including electric companies. Under Maryland law, specifically Title 7 of the Public Utility Article of the Maryland Code, the PSC has broad authority to ensure that utility services are provided safely, reliably, and at reasonable rates. When a utility proposes a significant change in its operations or seeks to recover costs for new infrastructure, such as a large-scale renewable energy project or transmission upgrades, it must typically file a rate case or a request for approval with the PSC. This process involves detailed scrutiny of the proposed expenditures, the projected benefits, and the impact on consumers. The PSC conducts public hearings, reviews evidence submitted by the utility and other stakeholders (like consumer advocates and environmental groups), and ultimately issues an order approving, modifying, or denying the request. The concept of “used and useful” is a fundamental principle in utility regulation, meaning that utilities can generally only recover costs for assets that are currently providing service to customers. For new projects, the PSC evaluates whether the investment is prudent and necessary to meet the state’s energy goals, such as those outlined in the Maryland Clean Energy Act, and whether the costs are just and reasonable. The PSC’s decision-making process is guided by statutes, regulations, and its own precedent, aiming to balance the financial health of the utility with the affordability and quality of service for Maryland ratepayers.

The Maryland Public Service Commission (PSC) oversees the regulation of utilities in the state, including energy providers. When a utility proposes a significant change in its rate structure or operational practices that could impact consumers, the PSC initiates a formal proceeding to review these proposals. This review process is designed to ensure that rates are just and reasonable and that utility operations serve the public interest. The PSC has the statutory authority to approve, deny, or modify such proposals based on evidence presented during these proceedings. The Maryland Energy Administration (MEA), while involved in energy policy and planning, does not have the direct regulatory authority to approve or deny utility rate changes; that power rests with the PSC. The Public Utility Regulatory Policies Act (PURPA) of 1978 is a federal law that influences state utility regulation, particularly concerning cogeneration and small power production, but it does not grant a state agency the direct authority to approve utility rate structures in the manner described. The Maryland General Assembly enacts laws that govern the energy sector, but the day-to-day regulatory oversight and decision-making on specific utility proposals, such as rate adjustments, are delegated to the PSC. Therefore, the PSC is the appropriate body to approve or deny a proposed adjustment to a utility’s rate structure in Maryland.

The Maryland Public Service Commission (PSC) oversees the regulation of public utilities, including those involved in energy. The Public Utility Regulatory Policies Act of 1978 (PURPA) and its subsequent federal and state implementations aim to encourage cogeneration and small power production. In Maryland, the PSC has established regulations and policies to facilitate the interconnection of qualifying facilities (QFs) with the utility grid. A key aspect of this is the development of standard offer service (SOS) rates, which are designed to provide a stable and predictable energy supply for consumers while allowing utilities to recover their costs. The PSC’s authority extends to approving rate schedules, service standards, and environmental compliance plans for energy providers. When a utility proposes changes to its rate structure, such as those affecting the cost of distributed generation interconnection or the terms of power purchase agreements for renewables, these proposals must undergo a formal review and approval process by the PSC. This process ensures that proposed rates are just and reasonable and that they comply with Maryland’s energy policies, including those promoting renewable energy and energy efficiency. The PSC’s decisions are informed by evidence presented by the utility, consumer advocates, and other interested parties during formal hearings. The commission’s mandate is to balance the interests of consumers, utilities, and the public good in ensuring reliable and affordable energy services.

The Maryland Public Service Commission (PSC) plays a pivotal role in regulating the state’s energy sector. A key aspect of this regulation involves ensuring fair competition and preventing undue market power. When a utility proposes a merger or acquisition, the PSC must assess the potential impacts on consumers, market structure, and the provision of essential energy services. This assessment often involves analyzing the combined entity’s market share, its ability to influence prices, and the potential for discriminatory practices against competitors or customers. The PSC’s authority extends to approving or denying such transactions, or conditioning approval on specific remedies to mitigate adverse effects. Maryland law, particularly provisions within the Public Utility Companies Article of the Maryland Code, grants the PSC broad powers to oversee utility mergers, ensuring that they are in the public interest. This includes scrutinizing agreements for their impact on rates, service quality, and the overall competitive landscape within Maryland. The PSC’s decision-making process is guided by principles of consumer protection and the promotion of a reliable and affordable energy supply.

The Maryland Public Service Commission (PSC) has a mandate to ensure reliable and affordable energy for the state’s residents. When considering the siting of new energy infrastructure, particularly large-scale renewable energy projects like offshore wind farms, the PSC must balance economic development, environmental protection, and public interest. The process involves extensive review of applications, including environmental impact assessments, economic viability studies, and community engagement. Maryland law, specifically through provisions like the Renewable Energy Portfolio Standard (REPS) and the Offshore Wind Energy Act of 2013 (as amended), guides the PSC’s decision-making. The PSC’s authority extends to approving permits, setting rates, and overseeing the operations of utilities. In evaluating a proposal for a new offshore wind farm, the PSC would consider factors such as the project’s contribution to meeting Maryland’s renewable energy goals, the potential impacts on marine ecosystems and fisheries, the economic benefits for the state (job creation, local investment), and the overall cost to consumers. The PSC’s role is not merely administrative; it involves a deliberative process of weighing competing interests and ensuring that approved projects serve the public good, consistent with state energy policy. The decision-making framework emphasizes a thorough, evidence-based approach to regulatory oversight.

The Maryland Public Service Commission (PSC) has a statutory mandate to ensure the provision of safe, reliable, and affordable energy services to the state’s citizens. This includes overseeing the rates and services of utilities. In Maryland, the authority to set electric generation rates is primarily vested in the PSC, which operates under the framework of Maryland Code, Public Utilities, Title 2, Subtitle 2. Specifically, § 2-202 outlines the PSC’s general powers and duties, including the regulation of rates, charges, and services of public utilities. While Maryland has a competitive retail electricity market, the PSC retains oversight to prevent market manipulation and ensure fair pricing, particularly for default service provided by utilities to customers who do not choose an alternative supplier. The PSC’s regulatory process involves reviewing utility-filed rate cases, conducting public hearings, and issuing orders that establish just and reasonable rates. This process is distinct from federal regulatory authority, which typically governs wholesale electricity markets and transmission infrastructure under the Federal Energy Regulatory Commission (FERC). The Maryland Energy Administration (MEA) focuses on energy policy, conservation, and the promotion of renewable energy, but it does not directly set utility rates. The Maryland General Assembly enacts legislation that shapes the energy landscape, but the day-to-day rate-setting authority rests with the PSC. Therefore, when considering the entity responsible for establishing electric generation rates for utilities in Maryland, the PSC is the primary regulatory body.

Maryland’s Renewable Energy Portfolio Standard (RPS), as established by the Renewable Energy Portfolio Standard Act of 2004 (and subsequent amendments), mandates that a certain percentage of electricity sold in the state must be generated from eligible renewable energy sources. The Act specifies various compliance mechanisms, including the procurement of Renewable Energy Credits (RECs). These RECs represent the environmental attributes of one megawatt-hour (MWh) of electricity generated from a qualifying renewable source. Utilities can meet their RPS obligations by retiring RECs. The law also outlines a system of Alternative Compliance Payments (ACPs) for utilities that cannot meet their obligations through REC procurement. The ACP rate is a crucial component, as it sets a financial disincentive for non-compliance and influences the market value of RECs. For instance, if a utility needs to procure 100 MWh of renewable energy and the RPS requirement is 1 MWh per 100 MWh sold, they need 1 REC. If they cannot acquire this REC, they can make an ACP. The ACP rate is periodically adjusted by the Public Service Commission of Maryland to reflect market conditions and policy goals. Understanding the hierarchy of compliance and the specific mechanisms for meeting RPS obligations, including the role and calculation of ACPs, is fundamental. The ACP is calculated based on a prescribed rate per MWh of unbundled renewable energy that the retail electric supplier failed to procure. This rate is designed to be a penalty that incentivizes compliance while also providing a revenue stream for programs that support renewable energy development in Maryland. The concept of “unbundled” RECs is important here, as it refers to the separation of the environmental attributes from the electricity itself.

The Maryland Public Service Commission (PSC) oversees the regulation of public utilities in Maryland, including electric companies. The PSC’s authority extends to approving rates, service standards, and the construction of major utility facilities. In the context of renewable energy development, the PSC plays a crucial role in permitting and siting decisions for new generation facilities, particularly those that may have significant environmental or community impacts. While the Maryland Department of the Environment (MDE) handles environmental permitting, the PSC’s Certificate of Public Convenience and Necessity (COPCN) process is a critical hurdle for large-scale energy projects, ensuring that they serve the public interest and are economically viable and environmentally sound within the state’s regulatory framework. This process involves extensive review of the project’s necessity, its impact on the environment and existing infrastructure, and its overall benefit to Maryland ratepayers. The Maryland Energy Administration (MEA) also plays a role in promoting renewable energy through policy development and program administration, but the PSC holds the ultimate authority for approving the construction and operation of such facilities through its COPCN process. Therefore, understanding the PSC’s regulatory purview is essential for developers seeking to build new energy infrastructure in Maryland.

The Public Utility Regulatory Policies Act of 1978 (PURPA) established a framework for the development of renewable and cogeneration facilities. Section 210 of PURPA mandated that state regulatory authorities and electric utilities implement rules to encourage cogeneration and small power production. These rules required utilities to purchase power from qualifying facilities (QFs) at rates that were just and reasonable to the ratepayers of the electric utility and in the public interest. The Public Service Commission of Maryland (PSC) is responsible for implementing these federal mandates within the state. Specifically, the PSC’s regulations, often found in Title 48 of the Code of Maryland Regulations (COMAR), detail the procedures and standards for interconnection and power purchase agreements for QFs. The determination of the avoided cost rate, which is the rate at which a utility would have generated the power itself or purchased it from other sources, is a critical component. This rate is used to calculate the price paid to QFs. While the PSC oversees these rates, the actual calculation and negotiation of avoided costs involve complex methodologies that consider various factors, including fuel costs, capital costs, and operational expenses of the utility. The question probes the authority responsible for setting these avoided cost rates in Maryland, which falls under the purview of the PSC’s regulatory oversight.

The Maryland Public Service Commission (PSC) oversees the regulation of utilities in Maryland, including electric and gas companies. The Public Utility Regulatory Policies Act of 1978 (PURPA) is a federal law that encourages the use of cogeneration and small power production. In Maryland, the PSC implements PURPA through its regulations, particularly concerning qualifying facilities (QFs). A key aspect of these regulations is the process by which a generator can achieve QF status, which grants them certain rights and protections, including the obligation of utilities to purchase power from them under specific conditions. The PSC’s approach to QF certification involves reviewing applications to ensure they meet the criteria outlined in federal law and state regulations, such as size limitations and ownership requirements, to prevent utility market manipulation and promote competition. Failure to meet these criteria, such as exceeding the maximum capacity or not adhering to ownership thresholds designed to ensure independence from electric utilities, would result in disqualification. Therefore, a facility that is primarily owned by a regulated electric utility in Maryland would not qualify as an independent power producer under the QF framework as administered by the Maryland PSC.

The Maryland Public Service Commission (PSC) oversees the regulation of public utilities in Maryland, including electric companies. The Energy Policy Act of 2005 (EPAct 2005) introduced significant changes to the regulation of wholesale electricity markets and transmission. Section 1281 of EPAct 2005 amended the Federal Power Act (FPA) to grant the Federal Energy Regulatory Commission (FERC) exclusive authority over the siting of interstate electric transmission facilities. This means that while states like Maryland, through its PSC, have jurisdiction over intrastate transmission and the siting of generation facilities, FERC has the ultimate authority over the approval and construction of transmission lines that cross state borders or are deemed necessary for interstate commerce. The Maryland Power Plant Environmental Review Division (PPERD) plays a crucial role in the state’s environmental review process for power plants and transmission lines, but its authority is limited to state-level approvals and environmental impact assessments, not the overarching federal approval required for interstate transmission under the FPA as amended by EPAct 2005. Therefore, for an interstate transmission line, FERC’s approval is paramount, overriding state-level siting decisions for those specific facilities.