Bill Positions

Bill Number: SB 558

Bill Title: Public Service Commission - Long-Term Power Purchasing Agreements - Renewable Energy

Bill Sponsor(s): Senator Pinsky

Subject: Environment & Energy

Committee: FIN

Bill Summary: This bill would have amended Maryland’s RPS statute with a new section 7-707 that would require only SOS providers (Maryland's electric companies, but not other suppliers) to enter into at least one 20-year contract with a renewable energy facility, chosen after an RFP and competitive bid process. The bill would have allowed the SOS provider to not enter into such a contract if the Commission determined it was not cost-effective, a decision it could reach after considering the sum of alternative compliance fees to be paid if not for the contract, and the life-cycle costs of operating a fossil-fuel station. The Commission would have have been allowed to grant any such waiver if the waiver confered a competitive advantage to the SOS provider.

History: In 2010 this bill received an UNF report by the Finance Committee.

Chamber Position: Oppose

Position Summary: By placing this obligation only on SOS providers the bill would have raised electricity costs to the majority of Maryland's electricity consumers and disadvantage SOS providers compared to other electricity suppliers. The bill was costly to SOS customers and risky to SOS providers (long-term contracts are treated as debt by credit rating agencies and will restrict utilities' access to capital markets and clutter their balance sheets). For these reasons, the Maryland Chamber opposed this bill.

Position Statement: To view the Chamber's complete position statement, click here (pdf).

Chamber Staff: Allyson Black

General Assembly: Click here to view the bill on the Maryland General Assembly's website.